ivities will become diminished. With the net income being less significant, a firm may need to participate in a form of either debt or equity financing to obtain funds needed to operate. Upon reviewing these companies who necessitate a form of financing, an analyst may view this company as a candidate for increased riskiness. If the risk is too great and a feeling of uneasiness sets in on Wall Street, investors may begin to sell that firm's stock, dropping the market price per share and possibly the value of the firm itself. The reasoning? Simple: if the price of the share goes down, then there is a possibility that when the time came for an upswing, investors wouldn't be paying the higher price as they were before the news hit Wall Street. The amount of equity that they would receive from their outstanding shares would decrease. Also, if the tax rates rise and the company has been deemed risk!
             ier than before, some insiders may begin to sell their shares of the firm. When this hits the market, it sends a negative signal to investors to sell, which will dump excessive shares onto the market. Conversely, if the degree of risk is not in excessive measures, investors might purchase more shares in hopes that the increased risk will yield
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