Small companies are more volatile and
riskier than larger companies because they have less business diversification, fewer financial resources and greater uncertainty of earnings than their large counterparts.
Companies that are small tend to be
riskier than large companies while value - based companies tend to be riskier than growth - based companies, so it is important to diversify across all 9 style profiles, even if one part is weighted heavier than the others based on your risk tolerance.
Not exact matches
«The whole rationale for giving
larger bonuses and
larger payouts to executives is that their total pay package is supposed to be
riskier than that of the average worker,» says Eleanor Bloxham, president of the Value Alliance, a group that advises
companies on corporate governance.
Within stocks,
large companies (
large - cap stocks) are seen as safer
than mid-sized
companies (mid-cap stocks) which are likewise seen as less
risky than small
companies (small - cap stocks).
Here, the idea was to test whether people understood that a stock mutual fund contains many stocks and that investing in a
large group of stocks is generally less
risky than putting all one's money into a the stock of a single
company.
Although share prices can fluctuate,
large - cap stocks are considered less
risky than other equities because the
companies tend to have more resources to weather economic downturns.
Investing in small
companies is more
risky and more volatile
than investing in
large companies.
These are considered
riskier than large cap, because there's more volatility with
companies in this mix.
That would be like believing small
risky companies should make less
than large successful
companies.
Put your money in an unmanaged index fund (as
risky as the index you put it to - ie: a venture index with small cap
companies would be
riskier in some ways
than an index of
large cap
companies); and / or
As a
large company not afraid to lose money by supporting
risky technologies, Google can be an important player in streamlining green technology deployment, and making «cheaper
than coal (with a carbon price)» a reality.