Another term for venture capital.
- There are no guarantees that investors will make a return on their risk capital, but the hope is that they will.
- When risk capital is highly specific to the firm, then those suppliers should control the firm.
- So, you have now established a system whereby your loss from each individual trade is limited to 2% of your risk capital.
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Syllabification: risk cap·i·tal
Definition of risk capital in:
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