Specific Risk
Risk that affects a very small number of assets. This is sometimes referred to as "unsystematic risk." Investopedia Says:
An example would be news that is specific to either one stock or a small number of stocks, such as a sudden strike by the employees of a company you have shares in or a new governmental regulation affecting a particular group of companies.
Unlike systematic risk or market risk, specific risk can be diversified away. Related Terms:
Diversification
Market Risk
Risk
Systematic Risk
Unsystematic Risk |