What Is the Difference Between Macropolitical Risk and Micropolitical Risk

question 12

Essay

What is the difference between macropolitical risk and micropolitical risk?

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Definitions:

Common Stock

Common stock represents ownership shares in a corporation, entitling holders to vote at shareholder meetings and receive dividends.

Dividends

Disbursements from a company to its owners, typically representing a share of the earnings.

Short-term Speculation

Financial transactions or investments made with the expectation of significant returns in a short period, often characterized by high risk.

Available-for-sale Debt Portfolio

Debt securities that are not classified as held-to-maturity or trading securities, and can be sold in response to needs for liquidity or changes in interest rates.