Tag Archives: shares

Fixed Initial Investments

Posted on December 10, 2009 by admin

How much should be invested? The optimal amount is difficult to pinpoint because you would have to know what risks lie ahead, and of course, that’s not possible. However, based on a very small likelihood of losing 50% of the … Continue reading →

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Financial risk

Posted on December 1, 2009 by admin

Financial risk is the uncertainty introduced by the method by which the firm finances its investments. If a firm uses only common stock to finance investments, it incurs only business risk. If a firm borrows money to finance investments, it … Continue reading →

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