A question | Forex Trading and Money Exchange

a question
Posted 20 May, 2009 by Joshua B. Lowery from Jamshedpur in India
i ran by a term that i couldn't conceive: what does bankruptcy risk mean?
Currency Master Answers:
that's a good question, Joshua. Bankruptcy risk is The risk that a company will be unable to meet its debt obligations. Often referred to as "default" or "insolvency risk". This is a risk that both equity- and bondholders take when deciding to invest in a company. Aside from looking at overall profitability, analyzing a company's debt obligations and ability to repay, agencies like Moody's and Standard & Poor's attempt to determine this risk by giving bond ratings.
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