Is there any insurance exist for the stock's investment risk? If yes which company giving the insurance?

Answer 1

Just like the other guy said, you can use put options, which increase in value as the stock price moves down. You pay 100 x the price of the option, so you could buy one for each 100 shares of the company that you own. You can also buy puts on the indexes (S&P 500, or Dow, or Nasdaq 100) to protect many positions with the same option type.

What you are seeking to do is called "hedging", which is to protect yourself against adverse price movements. Money managers do this all the time, and refer to it as "portfolio insurance". You could invest in a "contrarian" mutual fund, which gains when the market moves down. There is an ETF with the symbol DXD that functions this way. You can buy it like a stock. But this will just keep you even, at best. If the market moves down, your holdings lose value, and your hedge gains value, plus it costs you to do this. An alternative is to sell a portion of your holdings to reduce your risk in an uncertain market. That's called "going to cash", and won't cost you anything but sale commissions.

You can look up options prices on Yahoo Finance on the page that the quotes are on.

Answer 2

The premium on options is the cost of insuring over any specific time period.

Assuming there is a good volume in the stock, you could sell the stock SHORT [Against the Box], and write a covered call against the stock.
When you short "Against the Box", you have bought the stock and sold it SHORT, that is, delivery at a future date, assuming you can find a broker to borrow it from.
So you gain the premium from the write of the option.
You pay a commission to sell the option, and to buy the stock and to sell it "short". Brokers love this. Three times the commision !!
If the stock craters, you retain both the option premium and cover your short sale with the stock from your "box", and if you still like it, lots lower, write a put against your cash.
If the stock takes off, your kinda screwed, except that you have a "cover short" limit order IN PLACE with your broker, cause the rising stock will cause a loss in your short postion, as the option causes the stock in your "box" to be called away from you.
Dangerous and tricky business if even if you master the dance moves. I would not consider it.
Better to study the "financials" of your company, read the latest "dirt" on them in the message boards, and study both the cycles they run in and the forces that drive the stock price. Busy as that is, its alot better 'insurance' than anything else I know.

Good Luck

Answer 3

Sure, they're called put options and they give the holder the right but not the obligation to sell the stock at a certain price before a certain time. Options trade on several different exchanges, mainly the Chicago Board Options Exchange.

Now the real answer...except in special situations, buying put options is pretty expensive. Over time they cost more than they're worth just like regular insurance. If you want to insure against loss for a specific period of time they can be very useful.

Answer 4

As far as I know you are on your own with stocks. If the company did something illegal and the stock dropped then you may participate in a lawsuit. If you are worried about risk with stocks try investing in ETFs-exchange traded funds that trade just like stocks on the open market.. You can invest in just about any sector without the same amount of risk associated with individual stocks. However with less risk comes less reward. Good Luck.

Answer 5

it rather is genuine that well being insurers are between the only communities interior the well being care industry with an activity in controlling expenses (carriers needless to say desire them to pay extra and sufferers are frequently divorced from the fee of well being care and so don't have extremely some activity in decreasing expenses). it is likewise genuine that the best driving force of well being care expenses interior the U. S. isn't the coverage companies. although, they do make well being care extra high priced. interior the U. S. our scientific well being coverage is offered in particular via inner maximum for earnings agencies which compete with one yet another. This opposition leads them to have plenty extra beneficial overhead than government offered coverage plans the two in this us of a or different international places do. Insurers spend an unfavorable lot of money to do issues like weed out undesirable well being hazards, appeal to new subscribers, layout fancy new well being care plans to furnish consumers etc. maximum of those expenses are the two a great deal decreased, or perhaps eradicated, decrease than government run insurers, for this reason greatest to decrease universal well being care spending.

Answer 6

No such insurance...c'mon...how could there be? In the stock market somebody always wins and somebody always loses. That's what comes from playing that game. You have to be prepared to lose it.

Answer 7

Is your money insured when gambling in Vegas?

Not to mention, at least you have hints and clues on Wall Street.

Answer 8

1) Yes.
2) All brokerages sell options.

Answer 9

No, but you could buy put options for that...