JMIA - 3 High-Risk High-Reward Stocks to Add to Your Watchlist
When it comes to investing in stocks, the best definition of risk is simple: the chance for a permanent loss of capital. There are several factors in play here, including the strength of the business' cash flows and balance sheet, and demand for its products or services. In general terms, the weaker the business, the higher the risk.
Yet sometimes there are companies that don't have great balance sheets or big cash flows, that still have enormous potential. In other words, high-risk, high-return stocks that could turn thousands into millions if they reach their full potential, or just as easily turn those same thousands into pocket change if funding dries up before the business pans out.
Here are three that look particularly compelling right now.