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How do businesses make investors wealthy?
What are the ways businesses make investors wealth?
How does a investor determine the potential rate of return on his investment?
Are most investors projecting return rates only 4 to 6 months in the future and investing according to their expectations?
How does a investor determine the potential rate of return on his investment?
Are most investors projecting return rates only 4 to 6 months in the future and investing according to their expectations?
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Businesses usually do not make investors wealthy from their investment right away. It's the selling of the business, or the exit strategy that makes investors wealthy. An exist strategy can be an IPO or selling to another company. Of course a business can make investors money from generating profits over a long time running a profitable business, but the real wealth is made from cashing out of stock when the company goes public, when new investors come on board, or when the company completely sells itself. If an investor is looking for a quick return on an investment from a company, then they are probably not the right investor. Most investors in businesses are not looking for a quick flip, they are long term investors. An investor looks at a few things to determine a potential rate on return. 1. They look at history, and how the company has done in the past. 2. Trends, and forecasts for the future 3. Product or service being offered. It's hard to answer what "most investors" are looking for, as there are different kinds of investors. Most investors of businesses are longer term investors.
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IPOs have been a source of short term profits
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Here's a good article:
http://beginnersinvest.about.com/library/nwealthy.htm