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 ...

Downside risk refers to the potential for an investment to decrease in value. Unlike general risk, which considers both upward and downward price movements, downside risk focuses solely on the ...

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 ...

Daniel Jassy, CFA, is an Investopedia Academy instructor and the founder of SPYderCRusher Research. He contributes to Excel and Algorithmic Trading. Robert Kelly is managing director of XTS Energy LLC ...

All investments have some level of risk, and bonds are no exception. Some bonds have virtually no chance of default, such as U.S. Treasuries, while others have a significant default risk. Companies ...

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 ...

Calculate the present value of each year's cash flow by dividing by (1 + discount rate)^number of years. Sum all present values to find the total value of projected cash flows, which in this example ...

There is a huge public debate whether the economic costs of actions designed to arrest the spread of COVID-19 are worth the potential health benefits achieved. Literally trillions of dollars in lost ...

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 ...

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, ...

This article was written by David Mullen, Product Manager for Core Fixed-Income Analytics, and Fateen Sharaby, Business Manager for Index-Linked Products at Bloomberg. Credit futures, which started ...