Insurance

Proximate cause

Loss causation is a fundamental concept in finance, referring to the direct cause of a financial loss. It occurs when there is a clear and unbroken chain of events linking an action to a resulting injury or loss. This means that for a loss to be considered causative, there must be a direct connection between the action taken and the eventual negative outcome. Understanding this concept is crucial in analyzing and managing financial risks.

Related terms

Contract of adhesion

Understand the meaning and definition of Contract of adhesion in the context of stock market, trading, and investments.

MORE
Loss ratio

Understand the meaning and definition of Loss ratio in the context of stock market, trading, and investments.

MORE
Experience

Understand the meaning and definition of Experience in the context of stock market, trading, and investments.

MORE
Tort law

Understand the meaning and definition of Tort law in the context of stock market, trading, and investments.

MORE
Objective risk

Understand the meaning and definition of Objective risk in the context of stock market, trading, and investments.

MORE
Endorsement

Understand the meaning and definition of Endorsement in the context of stock market, trading, and investments.

MORE
Open Free Demat Account!

Join our 3.5 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Get it on Google PlayDownload on the App Store
Open Free Demat Account!
Join our 3.5 Cr+ happy customers