ADVANTAGES OF FUTURE VALUE

Advantages of Future Value 

the high degree of security that investors enjoy 

 The corporations and investors enjoy three main benefits from organized security exchanges. First is a continuous market, which is leads to continuous security prices. Second is establishes and publishes fair security prices based on supply and demand rather than bargaining. Third is organized security exchanges. It is also help business raise new capital because the secondary market makes it easier for firms to float new security offerings successfully..

Low returns which is the limited returns it can generate

The more significant downside to future value investing is the limited returns it can generate. Interest rate of bank grows an investment to its future value but can only provides a small return compared to more lucrative investment with higher risks likes stocks, bonds and certificate of deposits.

Time and the Risks of Inflation

They are very different from investment in stock that can generate larger returns or create a larger losses in a matter of hours and days. Usually future value investment are measured in months and years. This can creates risks due to inflation.