The goal of investing is to make a profit. To achieve this goal, the investor places his money at risk with the hope of increasing his wealth. Whether by buying real estate, depositing funds in a savings account, or buying shares of stock, the investor wants to protect his current assets and make a profit. Investors invest with an intuitive knowledge of risk. But only the banking community has been able to quantify both the expected profit and the risk.
Most banks provide a specified rate of return in a risk-free environment.
Prudent money market investors carefully scrutinize interest rates knowing that the risk is negligible. 5 year subscription to Working Money. Free book selection. Limited time offer. Offer ends soon.