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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Unsystematic Risk

Definition:

Risk that YOU bring to the table. That is, it's risk of bad stock and bond and ..other.. investment vehicles you'd put your clients' hard earned money into - and lose it because you're a lousy investor. See systematic risk.

Example

You think you're oh so smart. You bet the ranch on new IPO whatever.com...and end up giving the ranch to your broker. That's UNsystematic. It's you. Because as an investor, well, you suck. Moral: Don't be the ranch. And if you aren't a pro investor with all the bells and whistles of training, just buy an index fund and go play golf.

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