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
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