What are the risks that Timberland’s investors undertake when they choose to purchase its stock instead of Pelican’s.?

pelican paper, inc., and timberland forest, inc., are rivals

The primary risk that Timberland’s investors undertake when they choose to purchase its stock instead of Pelican’s is the potential for volatility in stock prices. This means that if the market is not performing as expected, or certain events cause a drastic shift in investor sentiment—the value of Timberland’s shares can drastically decrease while those of Pelican remain steady or even increase. Therefore, investors must be aware that if they opt for one company over another there is always some degree of uncertainty regarding the outcome.

In addition to price fluctuations, investors also face other risks associated with investing in either firm such as industry-specific changes which could affect their returns. For example, if there are new regulations imposed on timber production (which would obviously impact Timberland more than Pelican) this might lead to decreased profits and thus make it less attractive for potential shareholders. Similarly, advances made in renewable energy sources (upon which Pelican largely relies on) may make this business model more desirable than traditional woodwork operations—causing people to invest elsewhere.

Ultimately, each company possesses its own unique set of advantages and disadvantages; when considering where to place funds it is important for individuals to conduct research thoroughly before deciding how best to allocate resources across different markets so they reduce their exposure towards losses.