The Concept of Risk & Return
However, if you need someone to invest actual dollars in your idea, it helps to have an understanding of risk and return from an investor’s perspective. Here are a few articles that I think offer insight and perspective into the concepts.
As you read, consider the following:
- Have you ever invested in the public markets (bought stocks, bonds or mutual funds)? If so, what was your experience?
- Is the age-old maxim “buy low; sell high” in conflict with the concept of risk and return? Why or why not?
- What are some of the types of risks a start-up company might face?
- Do investors prefer to give start ups all the money at once or in stages? Why?
- If a start-up company reaches a milestone does it’s value increase? Why?