A high-risk investment refers to an investment that has a significant chance of losing value or failing. These investments often promise higher returns to compensate for the increased risk. Examples include stocks in emerging markets, cryptocurrencies, and startup companies. Investors in these assets should be prepared for potential losses and volatility. Investors typically assess their risk tolerance before engaging in high-risk investments. While the potential for high returns can be appealing, it is essential to conduct thorough research and consider diversifying a portfolio to mitigate risks. Understanding market trends and economic factors can also help in making informed decisions.