Event Risk

What does it Mean? 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.

Terms Related Links

Bond
Buyback
Liquidity Adjustment Facility
Portfolio
Recapitalization
Risk

Terms Related Links
Financial Concepts - Diversification? Optimal portfolio theory? Read this tutorial and these and other financial concepts will be made clear.

Asset Allocation Strategies - Learn how to make the mix of securities the core of your investing strategy.

Introduction to Value at Risk (VAR) - Part 1 - Volatility is not the only way to measure risk. Learn about the "new science of risk management".

Introduction to Value at Risk (VAR) - Part 2 - Volatility is not the only way to measure risk. Learn about the "new science of risk management".



add investopedia foot
www.investopedia.com