High-risk (Adjective)
Meaning
Not financially safe or secure; "a bad investment"; "high risk investments"; "anything that promises to pay too much can't help being risky"; "speculative business enterprises".
Classification
All adjective clusters.
Examples
- Investing in the tech startup without a proven business model is a high-risk move that could result in significant financial losses.
- Penny stocks are often considered high-risk investments due to their low market capitalization and lack of liquidity.
- The hedge fund's high-risk strategy of short-selling the stock market led to a major collapse in value during the financial crisis.
- Any investment that promises a guaranteed return of 20% per annum is likely to be high-risk and may not be sustainable in the long term.
- Entrepreneurs who engage in high-risk business ventures, such as launching a new product in a highly competitive market, must be prepared to accept the possibility of failure.