Specific Risk

Specific risk involves any occurrences that may affect only a particular company. For example, the death of the founder, political developments, or heavy debt can affect a particular firm adversely. Some huge companies that have been around for a very long time, even with great products and unsoiled reputations, have fallen into the wrong hands and ended up worthless due to fraud and misrepresentation.

Your thoughts on this subject?  Your comments appreciated!

Content © Rich Brott, 2011

 email to a friend