Company-specific risk refers to the potential for an individual company's stock or asset to lose value due to factors that are unique to that company. This type of risk is also known as unsystematic risk, and it can arise from events such as management changes, product recalls, or legal issues. Unlike systematic risk, which affects the entire market, company-specific risk can be mitigated through diversification, as it is not tied to broader economic conditions.
congrats on reading the definition of company-specific risk. now let's actually learn it.