Valuation Risk definition

Valuation Risk. The lack of an active trading market may make it difficult to obtain an accurate price for a security held by the Portfolio. Many commodity-linked derivative instruments are not actively traded. Variable Distribution Risk: Periodic distributions by investments of variable or floating interest rates vary with fluctuations in market interest rates.
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Valuation Risk. The Fund’s assets are generally valued based on evaluated prices received from third-party pricing services or from broker-dealers who make markets in the securities and are generally categorized as Level 2 in the fair value hierarchy. As a result, there is the risk that the values at which these investments are sold may be significantly different to the estimated fair values of these investments. Below Investment-Grade Securities Risk: Lower-quality debt securities (“high yield” or “junk” bonds) are considered predominantly speculative, and can involve a substantially greater risk of default than higher quality debt securities. Issuers of lower-quality debt securities may have substantially greater risk of insolvency or bankruptcy than issuers of higher-quality debt securities. They can be illiquid, and their values can have significant volatility and may decline significantly over short periods of time. Lower-quality debt securities tend to be more sensitive to adverse news about the issuer, or the market or economy in general. Communication Services Sector Risk: Communication services companies are particularly vulnerable to the potential obsolescence of products and services due to technological advancement and the innovation of competitors. Companies in the communication services sector may also be affected by other competitive pressures, such as pricing competition, as well as research and development costs, substantial capital requirements and government regulation. Additionally, fluctuating domestic and international demand, shifting demographics and often unpredictable changes in consumer tastes can drastically affect a communication services company's profitability. While all companies may be susceptible to network security breaches, certain companies in the communication services sector may be particular targets of hacking and potential theft of proprietary or consumer information or disruptions in service, which could have a material adverse effect on their businesses. Consumer Cyclical Sector Risk: Companies in the consumer cyclical sector are largely impacted by the performance of the overall global economy, changes in interest rates, fluctuations in supply and demand, and changes in consumer preferences. Success depends heavily on disposable household income and consumer spending. As a result, consumer cyclical companies may be adversely affected and lose value quickly in periods of economic downturns.
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Examples of Valuation Risk in a sentence

  • Valuation Risk — Valuation may be more difficult in times of market turmoil since many investors and market makers may be reluctant to purchase complex instruments or quote prices for them.

  • Assuming all other factors are held constant, the more a warrant is out-of-the-money and the shorter its remaining term to expiration, the greater the risk that purchasers of such warrants will lose all or part of their investment Valuation Risk Prospective purchasers of warrants should be aware that an investment in the warrants involves valuation risk as regards the underlying assets to which the warrants relate.

  • Valuation Risk – Low The risk that an investor pays too much for the venture is offset by: • Investor funds will be in a Company that generates predictable streams high margin revenue from the sale of Titan Roof Tiles.

  • Valuation Risk – Low The risk that an owner pays too much for the venture can be offset by:  Assets that are primarily divestible within six months.

  • Through its investments in the mutual funds above, this Investment Option is subject to Active Management Risk, Call Risk, Credit Risk, Derivatives Risk, Emerging Markets Risk, Extension Risk, Fixed-Income Foreign Investment Risk, Income Volatility Risk, Index Risk, Interest Rate Risk, Issuer Risk, Market Volatility, Liquidity and Valuation Risk (types of Market Risk), Non-investment Grade Securities Risk, Prepayment Risk and Special Risks for Inflation- Indexed Bonds.

  • Market Volatility, Liquidity and Valuation Risk (types of Market Risk) — The risk that volatile or dramatic reductions in trading activity make it difficult for a fund to properly value its investments and that a fund may not be able to purchase or sell an investment at an attractive price, if at all.

  • Principal Risks – Market Risk, Management Risk, Tracking Risk, Small Cap Stock Risk, Cybersecurity Risk, Market Events Risk, Valuation Risk.

  • Through its investments in the fund above, this Investment Portfolio is subject to the following investment risks (in alphabetical order): Bond Market Risk, Call Risk, Credit Quality Risk, Cybersecurity Risk, Extension Risk, Foreign Securities Risk, Government Obligations Risk, Liquidity Risk, Management Risk, Mortgage- and Asset-Backed Debt Obligations Risk, Municipal Obligations Risk, Recent Market Events Risk, Sector Risk and Valuation Risk.

  • Prepayment (or Call) Risk, Debt Extension Risk, Credit (or Default) Risk, Tracking Risk, Portfolio Turnover Risk, U.S. Government Securities Risk, Cybersecurity risk, Market Events Risk, Valuation Risk.

  • Principal Investment Risks – Currency Risk, Foreign and Emerging Market Risk, Geographic Risk, Growth Stock Risk, Issuer- Specific Risk, Market Capitalization Risk, Market Volatility Risk, Operational and Cybersecurity Risk, Recent Market Conditions, Redemption Risk, Risk Management, Risk of Increase in Expense, Sector Risk, Valuation Risk, Value Stock Risk.