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. Investors should be aware of the fact that they can never predict what will happen if they choose one company or another.

Investors face additional risks when investing in both firms, such as changes to the industry that could impact their return. If new regulations are imposed for timber production, this could lead to lower profits. This would make the company less appealing to potential investors. 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.

It is essential that individuals do thorough research before making decisions about where they should allocate their resources to different markets to reduce the risk of losses.