Maximizing Capital Growth

  1. Objective 17-1 Explain the concept of the time value of money and the principle of compound growth, and discuss the characteristics of common stock.

Wise investments are the key to growing your money, especially if you are seeking to accumulate capital to start (or grow) your own business or simply as a cushion for a sound financial future. In searching for investment opportunities, a number of concepts come into play for evaluating alternative investments and sorting out the good from the bad. (As we will discuss more fully later in the chapter, a key element to consider is the relationship between potential returns on investments and investment risk.)

The Time Value of Money and Compound Growth

The most-proven ...

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