RISK AND RETURNS ON INVESTMENT The term ‘risk and return” refers to the potential financial loss or gain experienced through investments in securities. An investor who has registered a profit is said to have seen a “return” on his or her investment. The “risk” of the investment, meanwhile, denotes the […]
Investment
WHY BLUE-CHIPS OUTPERFORM OTHER INVESTMENTS A blue-chip stock is one that is well-established, financially sound, and historically secure. Blue-chip companies are those that have a history of posting earnings and paying dividends, all while continuing to increase profits. While there will always be fluctuations in markets, and all companies go […]
HOW TO FUND A RAPIDLY GROWING VENTURE (3) Capital Structure It may seem that an entrepreneur is totally at the mercy of the venture capitalist. That, unfortunately, is true if the entrepreneur enters the negotiation from a weak position, desperately needing the money to keep the business alive. A better […]
Anyone investing in a new venture has four principal concerns: Rate of growth Return on investment (RoI) Degree of risk Protection Investors are generally betting that the value of their ownership interest in the business will increase over time at a rate greater than another type of investment or of […]
