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Financial encyclopediaReviewed 2026-10-23

Risk Tolerance

An investor's ability and willingness to lose some or all of an investment in exchange for greater potential returns.

Sources and references ↗
PROFILE / FACT FILE

Concept at a glance

Term
Risk Tolerance [1]
Subject area
Investor.gov glossary [1]
Jurisdiction / scope
US regulatory and investor-education context [1]
Primary reference
SEC · Investor.gov [1]

Definition and explanation

An investor's ability and willingness to lose some or all of an investment in exchange for greater potential returns. [1]

Frequently asked questions

What does Risk Tolerance mean in the cited reference?

An investor's ability and willingness to lose some or all of an investment in exchange for greater potential returns. [1]

Sources and review dates

  1. US SEC · Investor.gov — Risk Tolerance ↗

Reviewed 23 October 2026. Historical dates and award-time affiliations retain their original context. A review date is not an event date. Background sources are identified separately from official records.

Content preparation: source-based compilation with AI assistance. See methods and attribution. Named sources identify the underlying records; no individual expert review is claimed.