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Why would it have been risky for one person to finance [pay for] the establishment of a whole colony?

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Mario gdo

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∙ 4y ago

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Continue Learning about American Government

Explain why the Declaration of Independence and the Constitution are generally considered to be the greatest documents in America and World History?

The Declaration of Independence was risky because it basically called out the greatest country in the world at the time on their tyranny. The Constitution outlined the freedom that every American citizen now enjoys.


Dangers of excessive conformity among employees?

Excessive conformity stifles innovation. It also leads to uproductive behaviour. As a former public servant, I witnessed ridiculously unproductive activities because the behavioural norm was to avoid risk at all cost and punish those who seemed 'risky'. Was gobsmacked at the extent to which 'unusual' behaviour was frowned upon at the same time as pathetic paper-shuffling to avoid risk was rewarded.


What caused the aig bail out?

AIG's collapse was not due to insolvency but illiquidity. They had mortgage backed securities which derive their income from a pool of mortgages that had been securitized. The bailout came at a cost to AIG as the Treasury received warrants for approximately 80% of all shares. Thus, to some, the bailout was a nationalization of the company. See wikipedia on AIG and mortgage backed securities.


What is one risk involved with borrowing money to buy stocks?

The risks of buying goods on credit, such as using a credit card, are that a person's debt burden increases. As long as the amount owed is easily paid based on a persons monthly income, then there is no problem. It can become a problem if the individual loses their job. Then how will monthy payments be made becomes the question. The end result will be a bad credit rating unless suitable arrangements are made with the credit card company. Buying stocks and bonds on margin is risky if the transaction is not closed out before the stock, for example goes into a steep decline. For example, if a stock is selling at $100 per share is purchased on 50% margin, the other 50% is lent to the buyer from the brokerage firm. That $50 per share draws interest. No one can borrow without paying interest to the lender. In this example, here is the risk element. If the stock bought at $100 per share drops quickly to $25 per share and the investor decides it must be sold, the net amount to the investor is a $75 loss per share. The investor already owes the brokerage firm $50 plus interest. The net of $25 means the investor has lost $50 of his or her own money and must also pay the stock broker another $50 plus interest which was the amount loaned. In the investor's account is $25. The investor has lost his or her $25 plus the $50 of the stock broker. Now there is a debt of $50 the investor must pay to the broker, plus interest. The bottom line is that a huge loss has been incurred by the investor.


Why would someone want to warn Xerxes not to take revenge on Greece?

When countries pay for waging war, that money is diverted from other interests. In the case of Xerxes, his aim was to seek revenge on Greece for the failings of his father. With the benefit of hindsight we can speculate that someone would warn Xerxes not to go to war with Greece because of the tenacity of the Greeks (Athens, Sparta, and the hundreds of other city-states) but a short answer would be the logistics of going to war is very expensive and risky when the enemy is far away. Before Thermoplye, Xerxes lost a great number of ships and men to a storm that sank the boats. With Persia being so far away, replacing them was a logistical nightmare; hence why Xerxes is purported to have invaded Greece with one million men in his army.

Related Questions

Which is more risky between running finance and term finance. and why.?

Which is more risky between running finance and term finance. and why?


Give three examples of companies that became to involved in risky finance.?

Just for Feet Merrill Lynch Ford Motor Company


How did the joint stock options of Jamestown work?

The joint stock options of Jamestown were a financial mechanism that allowed investors to pool their resources to fund the establishment and operation of the Jamestown colony in 1607. Investors purchased shares in the Virginia Company, which granted them rights to a portion of the profits derived from the colony's activities, such as tobacco farming. This system spread the financial risk among multiple investors, making it easier to fund risky ventures like colonization. Ultimately, the success or failure of the colony would directly impact the returns for these investors.


Buying car from person who is still paying?

Risky business, I wouldn't do it.


When we online call from computer to cell then it risky or not?

It shouldn't be risky at all. The conversation is digitally encrypted - and only you and the person you're calling should be able to hear the conversation.


What does audatious mean?

An Audacious individual come across as rash. Daring and risky is an audacious person.


What is an adrenaline junkie?

An adrenaline junkie is a person who is addicted to the sensation of exhilaration associated with risky behaviour or excitement.


Inre international lease finance corp what is the financial furture and how risky would it be to buy some ilfc bonds?

International Lease finance bonds, rates, and yields are listed next to similar bonds to help you make a better decision. http://investment-income.net/rates/corporate-bonds-rate-page


Is playful a synonym for risky?

No, playful is a synonym for frisky, but not for risky. A synonym for risky could be perilous.


Is bluechip investment risky or safe?

RISKY


Is risky a verb?

No it Isn't Risky is an adjective


Is the word risky an adverb or an adjective?

Risky is an adjective. An example sentence is "He was planning a risky endeavor."