Investor Glossary-legislative riskInvestor Glossary-legislative riskInvestor Glossary-legislative riskInvestor Glossary-legislative riskInsightful stock market charts - Click here
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Legislative Risk

The HTML to link to this page

Legislative risk is the potential of sustaining a loss on an investment as a result of government action. Legislative risk typically implies an amendment, inaction or abolition of one or more laws that may directly impact a given investment. Commonly, legislative risk applies to tax or investment law. Legislative risk may also be eminent in highly regulated industries. Although legislative risk usually applies to government's propensity to affect investments on the domestic front, investors face financial adversity when investing in many foreign companies and securities as well. Foreign legislative risk, also known as political risk, is an important issue when it comes to nations with unstable governments. Thus, second and third world countries that may often change policies and undergo political transformation are prone to political or legislative risk.

Rate this legislative risk definition...

Learn about investing with the Investor Glossary Term of the Day

Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.

Popular Terms: APR, required rate of return, in escrow, per diem, stock split, cancelled check, labor relations, liquidity ratio, inflation, 401a, limit order, risk management, Key Rate Duration, retained earnings, FICO score, quality assurance, 144a, real GDP, command economy, dividends payable, deferred revenue, class C shares, stock market close, deferred tax, balance sheet, reverse mortgage, phantom income, ex-dividend, option premium, LIBOR, annual return, debt service coverage, open position, 1035 exchange, current ratio, EBITDA, implied volatility, average price per share, wholly-owned subsidiary, Zero Cost Collar, irrevocable trust, ex-dividend date, FTSE, diluted share, covered put, minority interest, VIX, 1031 exchange, margin rate

Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use