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One way to measure the strength of an investment is through its “rate”. It is an expression for calculating how much profit it makes during the period of investment. A simple example may help. A customer of a bank puts in $100 into a certificate of deposit (CD). The rate is given as 5% per annum. Therefore, at the end of the 365 day period, the customer may expect to cash out at $105. In more detail, it is expected that the CD is continuously earning profit so that even if the customer cashes out in the middle he or she can receive some compensation.

While future articles will return to focusing on the option Greeks, a recent comment regarding risk really piqued my interest. The age old discussion about risk versus reward, equities versus options, and the fundamental difference between Nassim Taleb’s “Black Swan” risk and what most people perceive as ordinary risk.

Like any other business opportunity, penny stock investment requires finding out as much as you can about the product being offered and weighing its advantages and disadvantages. If you receive a phone call or email that urges you to buy a hot stock pick of the day, you have a choice: Either be careful, even skeptical, or accept the offer blithely.

Every business has dreamed of achieving phenomenal success and growth in their market. And one sign of being near this target is having several investors and shareowners who take part in the company’s financial pursuits. This is when the role of investor relations comes to the fore.