company risk

Company Risk

Risk that might cause a loss to one company but not to other, similar companies. An example of company risk is the possibility of a strike by a company's employees. One may mitigate company risk by buying securities of multiple companies in the same industry. For example, a particular oil company has the company risk that it may drill little or no oil in a given year. An investor may mitigate this risk by investing in several different oil companies. Company risk is a type of nonsystematic risk.

company risk

The risk that certain factors affecting a specific company may cause its stock to change in price in a different way from stocks as a whole. For example, the profits and stock price of a firm selling an unusually large portion of its output to foreign customers are subject to certain factors, such as changes in foreign exchange rates, that are less important to other companies.
References in periodicals archive ?
TIPS Risk, Credit Risk, Lower-Grade and Unrated Securities Risk, Leverage Risk, Issuer Risk, Country Risk, Emerging Markets Risk, Prepayment Risk, Reinvestment Risk, Derivatives Risk, Inflation/Deflation Risk, Mortgage-Related Securities Risk, Management Risk, Turnover Risk, Anti-Takeover Provisions, Smaller Company Risk, and Market Disruption and Geopolitical Risk.
Moreover, a professionally developed and unbiased view of overall company risk and strengths--as measured by earnings, capitalization, share valuation and liquidity, strategic plan and competitive position--ought to be an integral part of every board member's agenda.
Such risks and considerations include but are not limited to; Equity Risk, Foreign Investment Risk, Non-Correlation Risk, Micro-Cap, Small and Medium-Sized Company Risk, Emerging Market Risk, Replication Management Index, Issuer-Specific Changes, Non-Diversified Fund Risk and Patent Risk.
Users of the BLOOMBERG PROFESSIONAL(R) service now have access to Audit Integrity's detailed company risk assessment reports, based on the firm's in depth data collection and proprietary forensic analytics.
TIPS Risk, Credit Risk, Lower-Grade and Unrated Securities Risk, Leverage Risk, Issuer Risk, Country Risk, Prepayment Risk, Reinvestment Risk, Derivatives Risk, Inflation/Deflation Risk, Mortgage-Related Securities Risk, Management Risk, Turnover Risk, Anti-Takeover Provisions, Smaller Company Risk, and Market Disruption and Geopolitical Risk.