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Finance Dictionary and Glossary of Investment Terms
Price risk
Definition 1.
The risk that the value of a security (or a portfolio) will decline in the future. Or, a type of mortgage pipeline risk created in the production segment when loan terms are set for the borrower in advance of setting terms for secondary market sale. If the general level of rates rises during the production cycle, the lender may have to sell the originated loans at a discount.
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Definition 2.
Risk resulting from the possibility that the price of a security or physical commodity may decline.
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Definition 3.
The risk that the value of a security or portfolio of securities will decline in the future.
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