If an investor buys enough stocks,he or she can,through diversification,eliminate all of the market risk inherent in owning stocks,but as a general rule it will not be possible to eliminate all company-specific risk.

Diversification

A risk management strategy involving the mixing of different investments within a portfolio to reduce exposure to any single asset or risk.

Market Risk

Market risk, also known as systematic risk, is the potential for investors to experience losses due to factors that affect the overall performance of the financial markets.

Company-specific Risk

The risk associated with an individual company, including factors like management competence, product demand, and industry competition.