The NASD issued an investor alert on Monday, warning investors about various types of global marketplace risks. Called “Market Risk: What You Don’t Know Can Hurt You,” the alert recommends ways investors can avoid risks. For instance, investors can diversify holdings throughout several regions and hold funds or securities both in the short- and long-term.
“Assessing risk can be a daunting task for any investor, especially with the increasing globalization of financial markets,” said Elisse Walter, senior executive vice president at the NASD. “By issuing this alert, we hope more investors will better understand market risks before investing and take the necessary steps to manage those risks.”