Unraveling the Mystery of Investing #8

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.



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Content © Rich Brott, 2011

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