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Risks
1. Market Risk: Like any market, NASDAQ stocks can be subject to market volatility. When stock prices fall, investments can lose their value.
2. Interest rate risk: When interest rates rise, bond prices generally fall and stock prices can be affected as investors shift their money from equities to bonds.
3. Various factors: Political and economic events as well as changes in company fundamentals can all have a negative impact on the value of stocks traded on the NASDAQ.
4. Liquidity risk: The NASDAQ may not always offer the same pricing and liquidity as other bourses. Low-volume stocks can be difficult to trade and could mean large losses in the event of a trade.
5. Change in fundamentals: Nasdaq stocks, like most stocks, are valued on fundamental factors such as earnings, revenues, and the outlook of the company. If these fundamentals change it could have a dramatic effect on stock prices.