Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author. What if I say that starting a business is unnatural? The venture is always risky, and we’re ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

Companies continually face risks, and prudent companies set aside contingency reserves to cover any costs associated with those risks. Yet when a company isn't certain whether a given event is going ...

Expected value calculates average future investment returns based on outcome probabilities. In finance, expected value guides portfolio construction and when to sell assets with lower future value.

Risk is common in our lives and affects many everyday decisions (eg, whether to gamble in the casino, which insurance policy to purchase, or which school to enroll in). When making decisions between ...

A risk premium is the return over and above the risk-free rate (generally thought of as the return on U.S. Treasuries) that investors demand to compensate them for the risk of owning an asset. Because ...

Figuring out the value per share of common equity for publicly traded companies is trivial, since all you have to do is look at the market price of the company's stock. For private companies, however, ...

David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of financial accounting, corporate and individual tax planning and preparation, and investing and retirement planning.

Investors demand higher returns from illiquid assets due to greater selling difficulty. Liquidity premium can be calculated by comparing yields of similar liquid and illiquid bonds. Real risk-free ...