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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.

If you are pondering on a real estate development project, you might already be planning to take up a long-term mortgage financing loan. But before you do, stop and think. Your hotel real estate development project doesn’t need funding from a mortgage loan, but from a development loan. Really, mortgage is great for building renovation or land acquisition projects, but not for development projects.