0
Investments in biotechnology stocks can viewed as the classic high risk/high reward proposition. Many biotechnology companies are engaged in research related to new drug development and do not yet have products, sales, or profits. In addition, if a biotechnology company actually succeeds at developing a new drug, there is a prolonged period of time required for clinical trials to prove the drug's efficacy. Many drugs that look promising in the lab wind up as failures during the testing phase due to side effects. Before a new drug can be marketed it must be approved by the Food and Drug Administration (FDA) which sometimes can demand additional clinical tests. The immense amount of research required for new drug development is very costly and start up biotech companies have to constantly raise cash to stay in business.
The reason that investors are willing to put money into a high risk business like biotech is because the rewards for success can be immense. Successful new biotech drugs typically produce huge profits resulting in a soaring stock price. One example of such success in Amgen which has come up with a variety of successful new biopharmaceutical products. Early investors in Amgen stock are now millionaires many times over.
What else can I help you with?
What are some low-risk short term investments?
There are many different low-risk short term investments, a few of these include short term bond funds, online savings accounts, government bonds and money market mutual funds.
How can you maintain a balance between high-risk and low-risk investments?
"By diversifying your investments" is the way among the choices given in the question that you can maintain a balance between high-risk and low-risk investments.
What prior knowledge would be most helpful in understanding a passage entitled risk of management of money market investments?
Ummm....wat?
What is the spectrum of risk levels when considering investments, from least risky to most risky?
The spectrum of risk levels when considering investments, from least risky to most risky, typically includes: low-risk investments like savings accounts and bonds, moderate-risk investments like mutual funds and real estate, and high-risk investments like stocks and cryptocurrencies.
Correctly orders the investments from LOWER risk to HIGHER risk?
To order investments from lower risk to higher risk, typically, you would start with government bonds, which are considered low-risk due to their backing by the government. Next, you would place corporate bonds, which carry more risk than government bonds but are still relatively stable. Following that, stocks generally represent a higher risk due to market volatility and company performance. Finally, investments like cryptocurrencies or startups are considered the highest risk, as they are subject to significant price fluctuations and potential for loss.
What is the risk level of stock-futures investments?
The risk level of stock-futures investments is generally high. Stock futures are derivative contracts that derive their value from an underlying stock. As such, they are subject to market volatility, price fluctuations, and other risk factors associated with the stock market. Investors should carefully assess their risk tolerance and make informed decisions before investing in stock futures.
What is market risk and how is it measured?
Market risk is the risk of losses in investments due to movements in market factors such as interest rates, exchange rates, and stock prices. It is typically measured using statistical models such as value-at-risk (VaR) or through stress testing that evaluates potential losses under extreme market conditions. By assessing market risk, investors and institutions can better understand and manage their exposure to market fluctuations.
How can you maintain a balance between high risk and low risk investments?
Diversifying your investments will help maintain a balance between high risk and low risk investments.
What has the author Conrad W Thomas written?
Conrad W. Thomas has written: 'Risk and opportunity: a new approach to stock market profits' -- subject(s): Investments, Risk, Speculation 'Hedgemanship' -- subject(s): Investments, Stock exchanges
What is the market cap for Puma Biotechnology Inc PBYI?
As of July 2014, the market cap for Puma Biotechnology Inc (PBYI) is $6,412,686,021.48.
What is the market cap for Prana Biotechnology Ltd PRAN?
As of July 2014, the market cap for Prana Biotechnology Ltd (PRAN) is $97,873,056.15.
What are some low-risk short term investments?
There are many different low-risk short term investments, a few of these include short term bond funds, online savings accounts, government bonds and money market mutual funds.
How can you maintain a balance between high-risk and low-risk investments?
"By diversifying your investments" is the way among the choices given in the question that you can maintain a balance between high-risk and low-risk investments.
What is the difference between diversifiable risk and non-diversifiable risk?
Investment risk that can be reduced or eliminated by combining several diverse investments in a portfolio. Non-market (non-systemic) risks are diversifiable risks.
What prior knowledge would be most helpful in understanding a passage entitled risk of management of money market investments?
Ummm....wat?
What is the market cap for ProShares UltraShort Nasdaq Biotechnology BIS?
As of July 2014, the market cap for ProShares UltraShort Nasdaq Biotechnology (BIS) is $70,800,000.00.
What is the market cap for ProShares Ultra Nasdaq Biotechnology BIB?
As of July 2014, the market cap for ProShares Ultra Nasdaq Biotechnology (BIB) is $355,914,000.00.
