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  3. Finance Glossary
  4. Terms Beginning With R
  5. Risk Sharing

Risk Sharing

Definition of 'Risk Sharing'

By reducing the stake, and investing with others in a range of risky investments, the risk of each investment is reduced.

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Related Terms

Factor Risk / Non-Factor RiskDiversifiable RiskEmerging MarketsMarket RiskPrice RiskRelevant RiskRisk LoverRisk PremiumRisk TransformationSecurity Market LineArbitrage Pricing TheoryBasis RiskBusiness RiskCapital Market LineConflict of PreferencesContractual TheoryCounterparty RiskCountry RiskCredit RiskDominance

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