The risk of price change due to the unique circumstances of a specific security, as opposed to the overall market.
It is the diversifiable risk or non-market risk of a security that stems from firm-specific factors like emergence of a new competitor, plant break-down, lawsuit, non-availability of raw-materials and so on. Events of this kind affect primarily a specific firm and not all firms in general. Hence risk arising from them can be diversified away by including several securities in a portfolio. See non-diversifiable risk.
The component of total risk that is related to a specific business or industry that can be eliminated in a diversified portfolio.
The risk attached to a particular security, independent of the movement of the market (as opposed to "systematic risk" or "market risk, " which refers to the risks attached to the movements of the overall market). For instance, bad earnings news may cause a stock`s price to fall even on a day when the overall market i s moving up. (Also see systematic risk.)
Risk that is unique to an individual, company, or industry.
The risk that is unique to a company such as a strike, the outcome of unfavorable litigation, or a natural catastrophe that can be eliminated through diversification. Also known as diversifiable risk or residual risk.
the uncertainty of future returns because of characteristics of the industry, the individual company, and the type of investment interests, that can be avoided through diversification.
This is the proportion of risk that is specific to a particular company. This diversifiable risk could arise due to company specific factors like operational factors, financial factors, labor unrest etc.
Risks which are specific to a particular issuer of company rather than to the market as a whole.
Risk that is specific to a particular security or country and that can be eliminated through diversification.
Risk that is inherent in an individual security that can be diversified away by holding a diverse portfolio of securities.
The risk of price changes due to the conditions of a specific security, as opposed to the overall market. Opposite of systematic risk. alue Stocks — Stocks that are selling at low ratios versus the company fundamentals and are therefore perceived to be undervalued and attractive for purchase.
The extra risk above the systematic risk (see above) that is associated with holding a particular security. Unsystematic risk can be reduced by holding a larger number of securities in that market.
The portion of total risk specific to an individual security that can be avoided through diversification.
specific risk associated with the ownership of an individual security; can be reduced through diversification
Also called the diversifiable risk, residual risk, or company-specific risk, the risk that is unique to a company such as a strike, the outcome of unfavorable litigation, or a natural catastrophe. Related: Systematic risk
Also called nonmarket or diversifiable risk. It is risk attributable to factors unique to the security.
Risk that is company specific and can be eliminated through diversification (thus also known as diversifiable risk).
Risk that affects a very small number of assets. Sometimes referred to as specific risk.
Also called the diversifiable risk or residual risk. The risk that is unique to a company such as a strike, the outcome of unfavorable litigation, or a natural catastrophe that can be eliminated through diversification. Related: Systematic risk
