Financial Glossary: Obsolescence Risk


en			ru			jp

Obsolescence Risk

Obsolescence Risk

The Risk that a process, product or technology used or produced by a company for profit Will become obsolete, and is no longer competitive in the marketplace.

Obsolescence Risk is most significant for technology-based companies or companies with offerings that are based on technological advantages. This can also extend to the Risk that certain costs laid out for obsolete products or services cannot be recouped. These risks can significantly alter a company's growth prospects and earning potential.

The stock market "graveyards" are littered with dead companies whose products or technology was rendered obsolete. Due to obsolescence, none of these companies exists today! Obsolescence Risk is a factor for all companies to some degree, and is a necessary side-effect of having a thriving and innovative economy.

Risk is chance that an investment's actual return Will be different than expected. This includes the possibility of losing some or all of the original investment.

Posted by Opal Financial Group

Back

Privatebanking.com

Get the attention you always wanted and promote your corporate image and standing by benefiting from our state of the art interactive web presence.

Ascent Limited

Experience The Difference. Ascent Limited provides first class wealth management and family office services. Our private banking team, assembled from a group of highly experienced banking professionals, will provide financial advice tailored to your individual requirements and keep your portfolio in tune with the latest market developments and opportunities.

©	Copyright by PRIVATE BANKING.COM 2002- - All rights reserved.