Sometimes it's good to stop and think about the things in life we tend to take for granted -- or ignore entirely. We Fools have written often about the various risks companies face, including perils as unorthodox as natural disasters. But there's also another potential pitfall we tend to subconsciously scorn: legal interference.
For example, tobacco companies such as Philip Morris
Similarly, suppose that in order to save some investors from themselves, the government passed a law prohibiting people from trading stocks more than twice a day. Imagine the crimp that could place on the coffers of brokerages such as TD AMERITRADE
And if the FDA declared all known sugar substitutes unsafe, Coca-Cola
Such business-altering legal restrictions are not as unthinkable as you might assume. Earlier this month, Arizona and Ohio voters approved measures to restrict payday loans. In Ohio, the interest rates for such loans were capped at 28%. That was enough for Cash America
Remember, all investments have risks, from real estate to foreign stocks to retirement. It's your job to prepare for these dangers ahead of time. Don't let risks scare you away from investing; just be prepared to meet them head-on, should they become reality.
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Longtime Fool contributor Selena Maranjian owns shares of Coca-Cola and PepsiCo. Coca-Cola is a Motley Fool Inside Value pick. Try our investing newsletters free for 30 days. The Motley Fool is Fools writing for Fools.