Announcements from a security-issuing institution that affect the market value of the issuer's securities are an example of ____ risk.

Question

Quizplus · Accepted Answer

Event risk refers to the risk that an unexpected event will negatively affect the market value of a security. Announcements from a security-issuing institution that affect the market value of the issuer's securities are a prime example of event risk, as these announcements can significantly impact investor perception and the security's value.

Announcements from a Security-Issuing Institution That Affect the Market Value