Introduction to Investment

Introduction to Investment

​Investment is an asset or item acquired with the goal of generating income of appreciation. Appreciation refers to an increase in the value of an asset over time.

​Investing defines as an act committing money or capital to an endeavor with the expectations of obtaining an additional income or profit.

​Types of Investment

1. Stocks- (Equity​) Types of securities that signifies ownership in a corporation and represents a claim on parts of corporations and earnings.

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​Types of Investment

2. Bank Deposits- (Fixed Income)

   Money placed into a banking institution for safekeeping​

​Types of Investment​

3. Bonds- (Fixed Income) Debt investments where an investor loans money to an entity which borrows the funds for a defined period of time at a variable or commonly, fixed interest rate.​

Multiple Choice

Which type of Investment signifies ownership in a corporation?

• Bank Deposits

• Bonds

• Stocks

• Real Estate

Multiple Choice

If these types of investment are held until maturity and pre-terminated, investors can gain or lose depending on the prevailing interest rates at the time of termination.

• Bank Deposits

• Bonds

• Stocks

• Real Estate

Multiple Choice

Money place into a banking institution for safekeeping?

• Bank Deposits

• Bonds

• Stocks

• Real Estate

Multiple Choice

Debt investments where an investor loans money to an entity which borrows the funds for a defined period of time at a variable or commonly, fixed interest rate?

• Bank Deposits

• Bonds

• Stocks

• Real Estate

Multiple Choice

Which among the following is an advantage of the equities called stocks?

• Riskiest of all assets that has a possibility of losing more than 50% of their money in one day.

• Lower interest income

• No guaranteed returns

• Unlimited upside

What have you learn today?

“Wealth is only a benefit of money. If you win, the money will be there.”

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– J. Paul Getty