What causes a stock to be risky?
Out of the asset classes of cash, bonds, property, and equities, the latter is considered the most risky investment. However investors can identify stocks to match their risk profile by evaluating the level of risk by looking at the debt, market cap, profitability, age and sector of that company. Large company debt Companies which have large debt numbers on their balance sheet are more risky than companies that have lower debt levels. To calculate the debt ratio you can use …