INVESTMENT

LEARNING OUTCOMES

Explain the definitions of investment, investor and speculator.

Differentiate investor and speculator.

Investment An asset or item that is purchased with the hope that it will generate income or

appreciate in the future.

Current Income

Capital Gains

Intended as a

Investor SpeculatorDone by

Purpose of Investment

To earn current income

and fixed income.

Increase the value of

investments and capital

gains.

Investment

Can be made by :a) Individual

b) Unit trust companyc) Insurance company

d) Financial institutions

Investment can be in:

a) Short termb) Long term

Investment have two types of risk : a) low

risk b) high risk

INVESTOR AND SPECULATOR

An individual who commits money to investment products with the expectation of financial return.

A person who trades derivatives, commodities, bonds, equities or currencies with a higher-than-average risk in return for a higher-than-average profit potential.

Speculator Bear

Bull

Stag

INVESTOR SPECULATOR

Buy shares to obtain dividends,

bonus, rights issues, and capital

gains.

Buy shares as long term

investments, namely in the

hope that share prices rose in line

with the company's progress.

Buy shares and sell shares for

capital gains only.

Buy shares and sell shares in the short term, in hopes of

obtaining an immediate profit from

changes in prices.

DIFFERENCES BETWEEN INVESTOR AND SPECULATOR

INVESTOR SPECULATOR

Buy shares of strong companies and have

potential for growth in the long term based on the

study and analysis of the company's financial

position.

Buy and sell shares with a caring and

acting rationally in a critical situation.

Buying shares that have high demand and based on the current rumors, ignoring the company's

financial position.

Buy and sell in a hurry in a critical

situation.

DIFFERENCES BETWEEN INVESTOR AND SPECULATOR

QUESTIONS AND ANSWERS SESSION

What is means by capital gains?What types of speculator?

QUESTIONS

FILL THE BLANK SPACES

IN MOLTING BOARDS

CLASS ACTIVITY

Case Study

Four Groups

8 minute to discuss

POP QUIZ

•State the definition of investor.

•State the two types of risk in investment

•Give one differences between investor and speculator.

CONCLUSION

Definition of investment

Definition of investor

Definition of speculator

Differences of investor and speculator

MapsMind