This is how risky shares are: Special risks

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1.) Entrepreneurial development

The shareholder does not act as a creditor vis-à-vis the company, he is rather a co-owner of the joint-stock company with his shares as part of the equity capital and thus directly involved in the economic development of the company. The investor is de facto an entrepreneur who can be confronted with both opportunities and risks in the form of price gains or losses. 

The shareholder's risk is that the economic situation of the public limited company may develop differently than originally assumed. Entrepreneurial developments are difficult to predict.

Most sensitive risk: possible insolvency 

As a so-called worst case scenario, insolvency proceedings mean the total loss of the capital invested, the share becomes worthless. In the event of insolvency of a public limited company, the shareholder is not entitled to liquidation proceeds until all creditors' claims have been satisfied. 

2.) Risk of share price fluctuations

The two different risk factors, the general market risk and the company-specific risk, can influence the price of the acquired share. 

The stock market is influenced by the economic environment such as the uncertainty of economic growth, inflation, interest rates, foreign exchange rates and economic data. These movements are called market risk, which affects the price of the shares. Some companies are more exposed to market risk than others. 

The company-specific risk is that human error in the management of the companies will cause them to react incorrectly or completely wrongly to changing currents in the market.

In the long term, price changes are therefore dependent on the earnings situation of the respective company. In the short to medium term, however, rising and falling prices alternate and cannot be predicted. These fluctuations are described as volatility. They can be measured for the past: The higher the price fluctuations, the higher the volatility.


3.) Psychology of market participants

Price changes on the stock market are highly dependent on the emotions and psychology of the stock market public. Investment decisions are not always made rationally. In periods of strongly rising share prices, market participants tend to gain confidence in the form of investment and to invest capital incessantly in certain shares according to trend-following principles. Conversely, negative trends in Exness mt4 are followed just as persistently. 

Economic reality plays only a secondary role here. The risk to which investors are exposed is that mass psychological behaviour on the part of the stock market public can lead to exaggerated price reactions as a result of hopes, fears or assumptions. Sentiments, opinions and rumours can thus trigger irrational decisions and unjustifiable price movements.

4.) Risk: Dividend amount  

The distribution of profits to shareholders, which takes the form of a dividend, is primarily based on the profit generated by the joint-stock company. The simple calculation is: If the profit increases, the dividend also increases. If the profit falls in a business year, the profit distribution can be reduced or cancelled altogether. A dividend payout that continues for years should not be the sole reason for buying a share, as it does not guarantee a further dividend payout in the future. 

Shri Manik Prabhu Maharaj

Shri Sadguru Manik Prabhu Maharaj was a great saint and yogi who walked the earth in the early nineteenth century to restore love and humanity lurking in the doldrums and to liberate religion from the confines of narrow dogmatism. Regarded as an incarnation of Bhagwan Shri Dattatreya, Shri Prabhu was a philosopher par excellence and a great thinker who lived and breathed his philosophy of SAKALAMATA SIDDHANT – the gospel of love, humanity, and oneness that firmly rests on the Upanishadic principles of ‘ekam sadvipra bahudha vadanti‘, while teaching it to others. A poet-saint that he was, his innumerable compositions in Marathi, Hindi, Urdu, Kannada, and Sanskrit, which, apart from being literary masterpieces in themselves, are divine hymns that proclaim the essential oneness of the ultimate reality, not to mention their inherent musical brilliance. Shri Prabhu attained Sanjivani Maha-Samadhi at Maniknagar in the year 1865. The institution founded by Shri Prabhu in the year 1845 for the propagation of his teachings is today known as Shri Manik Prabhu Samsthan and is among the important spiritual organisations of the country. The Samsthan is presently headed by His Holiness Shri Dnyanraj Manik Prabhu Maharaj, the present Peethadhipati in the illustrious Guru-Parampara.

Shri Manohar Manik Prabhu

Shri Martand Manik Prabhu

Shri Shankar Manik Prabhu

Shri Siddharaj Manik Prabhu

Shri Manohar Manik Prabhu

Shri Shankar Manik Prabhu

Shri Martand Manik Prabhu

Shri Siddharaj Manik Prabhu