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What risk arises from government actions that may constrain a corporation or industry, adversely affecting investors' holdings?
  • a)
    Legislative Risk
  • b)
    Inflationary Risk
  • c)
    Interest Rate Risk
  • d)
    Valuation Risk
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
What risk arises from government actions that may constrain a corporat...
Legislative risk refers to the risk that government actions will constrain a corporation or industry, adversely affecting investors' holdings. This risk can be realized through antitrust suits, new regulations or standards, specific taxes, and other government interventions. Every industry has some degree of legislative risk, although it varies based on the industry.
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