Event Risk
1. The risk due to unforeseen events partaken by or associated with a company.
2. The risk associated with a changing portfolio value due to large swings in market prices. Also referred to as "jump risk" or "fat-tails". Investopedia Says:
1. Unforeseen corporate reorganizations or bond buybacks may have positive or negative impacts upon the market price of a stock. These are considered event risks.
2. These are extreme portfolio risks due to substantial changes in market price. Related Terms:
Bond
Buyback
Liquidity Adjustment Facility
Portfolio
Recapitalization
Risk |