Simple prospect

An investment opportunity where a certain initial wealth is placed at risk and only two outcomes are possible.

Similar financial terms

Simple moving average
The mean, calculated at any time over a past period of fixed length.

Simple linear trend model
An extrapolative statistical model that asserts that earnings have a base level and grow at a constant amount each period.

Simple linear regression
A regression analysis between only two variables, one dependent and the other explanatory.

Simple interest
Interest calculated only on the initial investment.

Simple compound growth method
A method of calculating the growth rate by relating the terminal value to the initial value and assuming a constant percentage annual rate of growth between these two values.

Prospectus
Formal written document to sell securities that describes the plan for a proposed business enterprise, or the facts concerning an existing one, that an investor needs to make an informed decision. Prospectuses are used by mutual funds to describe the fund objectives, risks and other essential information.

Preliminary prospectus
A preliminary version of a prospectus.

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Statement of cash flows

A financial statement showing a firm's cash receipts and cash payments during a specified period.


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