Angel is looking forward to invest her savings as a part time tutor. She planned to deposit her savings in a bank for it has a higher security and offers 3% interest per annum.
On the other hand, her friend Liza introduced her about ABC Food Corporation that is selling some of their stocks, giving high and promising returns but with higher risk due to poor security and unstable market price. According to Liza, shares of stocks are sold in a lower price due to the pandemic and once everything will be back to normal, the price of the stocks will rise again.
According to Liza, shares of stocks are sold in a lower price due to the pandemic and once everything will be back to normal, the price of the stocks will rise again.
If you are Angel, are you going to deposit your money in the bank or you are going to purchase shares of stocks from ABC Food Corporation? Why?
What is Investment? To invest is to allocate money in the expectation of some benefit in the future. In finance, the benefit from an investment is called a return.
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.
What do you consider before investing?
What are the different types of investments?
The types of investments are grouped into three: fixed income and equities, alternatives to fixed income and equities, other investment assets.
“Reflect on the different types of investments. If you were to choose one type of investment for your future, which would it be and why? In your reflection, consider your financial goals, risk tolerance, and personal values.” REFLECTION