Discussion Post

Financial securities are this week’s topic.  “Securities” refers to any financial instrument, but mostly means stocks and bonds for our purposes.  An important concept in finance is how to value financial securities in the future so one can tell how much an investment is worth investing in today and to compare the values of different investments at different points in time.  These concepts are referred to as the “time value of money”. Albert Einstein calls this concept one of the wonders of the world.

STUDY:

· Time value of money

· Future value

· Present value

The Time Value of Money, http://www.teachmefinance.com/timevalueofmoney.html

 Annuities, http://www.teachmefinance.com/annuities.html

   Perpetuities, http://www.teachmefinance.com/perpetuities.html

   Future Value of Uneven Cash Flow, http://www.teachmefinance.com/futurevalueofanunevencashflow.html