The risks inherent in owning stocks include market risk, issuer risk, and liquidity risk. Market risk refers to the possibility that the overall stock market will decline, which could cause the value of your individual holdings to fall as well. Issuer risk is the chance that a particular company will experience financial difficulties, which could lead to a drop in its stock price. Liquidity risk is the likelihood that you will be unable to sell your shares quickly or at all if you need to.