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company risk

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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.


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Source: The Chubb 2004 Private Company Risk Survey of 300 CEOs, CFOs and executives, Chubb Group of Insurance Cos.
Specific company risk that can be eliminated through diversification.
Specific company risk that can be eliminated through diversification.
 
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