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Event Risk

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Dictionary Says

Definition of '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

Investopedia explains 'Event Risk'

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.

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