ELT122
ELT122
ELT122
LOGO
INTRODUCTION ACTIVITY
BDO
PETRON CORPORATION
Current Price: P3.27 as of 11/5/2023 8:08pm
INTRODUCTION
TO
INVESTMENTS
MODULE 5
WHAT CAN A
PESO BUY YOU
TODAY?
INFLATION IS
DUBBED AS
“SILENT THIEF”
Ms. Riza Mantaring
President and CEO of Sunlife Philippines Inc.
DIFFERENT TYPES OF INVESTMENTS
•Common Stocks
•Bonds
•Managed funds
Common Stocks
DIFFERENT TYPES OF INVESTMENTS
Common Stocks
• A common stock, colloquially
known as stock, is a security that
represents small pieces of
ownership in a business that
trades in a stock market.
Common Stocks
• It is composed of two markets, the
primary market and the secondary
market.
• Someone who invests in the stock of a
business is called a stockholder or
shareholder and is considered a part
owner of the business.
Common Stocks
• Someone who invests in the stock
of a business is called a
stockholder or shareholder and
is considered a part owner of the
business.
Capital appreciation
• happens when the current
market price of the investment in
stock is higher than its purchase
price, making the investor money
in the process if he chooses to sell
these stocks.
Cash dividend payment
•happens when the
business pays out a
portion of its earnings to
its stockholders
Here are some guidelines on sound
stock market investing:
1. Think of stocks as pieces of businesses and not
chips in the casino.
2. Invest only the amount of money that you can
afford to lose without that loss affecting your
daily life.
3. Identify and invest in superior businesses.
4. Do not touch what you do not understand.
Here are some guidelines on sound
stock market investing:
5. Value and price are different
6. Buy those superior businesses only when they
are cheap or during a crisis.
7. Let the magic of compounding work by investing for the
long term.
8. Buy some more of that stock if the price goes down after
your initial purchase.
Here are some guidelines on sound
stock market investing:
9. Do not put your eggs in one basket.
10. Sell your stock once it has gained 50% or after
three years
11. Do not invest in IPO's without reviewing it
Bonds
DIFFERENT TYPES OF INVESTMENTS
Bonds
A bond is a security that
represents the debt of a
government or business
promising to pay a fixed interest
to the holder of the bond for a
definite period of time.
Terminologies that are unique and
important to bond investing.
1. Bond Issuer—borrower
2. Investor—lender
3. Coupon/Coupon Rate—interest rate
4. Term/Tenor is the time it takes for all payments
to be made by the issuer and received by the
lender.
5. Face Value/Principal/Par Value is the borrowed
amount,
Terminologies that are unique and important
to bond investing.
6. Bills is a debt security that matures in a year or less.
7. Bonds is a debt security that matures after a year or
more.
8. Treasury is a term that signifies that the debt
security is issued by the government
9. Yield is the return that you would expect if you hold
the bond for a year and is expressed in percentage
Types of Bonds
• Government Bonds
• Corporate Bonds
Government bonds
•also known as treasury
bonds, are issued by the
government
Corporate bonds
•corporate bonds are
issued by a business
The Philippine government issues three types
of debt securities:
5. ________ she
dubbed inflation as
“SILENT THIEF.”
Different Types of Investors
INTRODUCTION TO INVESTMENTS
Different Types of Investors
• Stock and Bond Investor
• Real Estate Investor
• Business Entrepreneur
Stock and Bond Investor
• Though investing in stocks and bonds is
a financial, quantitative activity, the
preference across stocks, bonds, or real
estate is still an extension of the
personality of the investor and, hence,
will reflect his unique individuality.
Real Estate Investor
• Real estate investors tend to hold on
to real assets reflecting their desire
to lock in money in real properties to
hedge against significant inflation.
Business Entrepreneur
• Deciding to invest in a start-up project is a major
decision for any investor, especially if the chosen
business requires much capital. The investor-
entrepreneur usually starts up a business for the
following reasons:
• To express his creativity and talent
• To make use of his personal skills and knowledge
• To practice self-management
• To achieve financial independence
WHO’S WHO?
GROUP ACTIVITY
TIME!
WHO’S WHO MECHANICS
• INSTRUCTOR will Group the students into
four
• Every member of the group will choose
what type of investor they want to be in the
future and why you chose that.
• All the same type of investors in the same
group will group themselves and prepare
for the presentation.
WHO’S WHO MECHANICS
• But before you are going to reveal what
type of investors you want to be, describe
what type of investor you are in front and
other groups will guess
• Every 1 MEMBER OF OTHER GROUPS that
will guess the right answer will get 5pts
5 Investing Risk
Factors
INTRODUCTION TO INVESTMENTS
5 Investing Risk Factors
1. BUSINESS RISK
2. CALL RISK
3. ALLOCATION RISK
4. POLITICAL RISK
5. DIVIDEND RISK
The Bottom Line
INTRODUCTION TO INVESTMENTS
ASSIGNMENT:
Watch “The Big Short by Michael Lewis” year
2015. Then create a Reaction Paper on the movie.
What the movie implies to their viewers and how
will you relate it in your future plans. It composed
at least 500 words.
Enjoy the movie ☺
DEADLINE: NEXT MEETING
MANAGING
PERSONAL
FINANCE
MODULE 6
The Value of
Savings and
Investments
MANAGING PERSONAL FINANCE
Is money root of all
evil??
“The ultimate
purpose of money is
to help others—
nothing more,
nothing less”
Bo Sanchez
Preacher
We need to save a portion of your
allowance or salary for your future needs.
Quiz#2
1. It happens with the general rise
in the prices of goods and
commodities.
2. It is the amount of goods and
services money can buy.
3.-5 Give 2 plans Need To Do to
cut spending or consumption.
Quiz#3
1.-10
Give the 8 suggestions
and steps to keep your
financial affairs in
order Quiz#4