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=== Risks of Stock Market Investing === Investing in the stock market carries inherent risks, including: # '''Market Volatility''': Stock prices can fluctuate wildly due to various factors, including market sentiment, news, and economic data. # '''Economic Downturns''': Recessions or economic crises can lead to significant losses in the stock market. # '''Company-Specific Risks''': Individual companies can face issues like poor management, increased competition, or declining demand for their products, which can lead to losses for investors. # '''Inflation''': High inflation can erode purchasing power and negatively affect stock prices, especially for companies with thin profit margins.
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