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GUESS THE

LOGO
INTRODUCTION ACTIVITY
BDO

BDO Unibank, Inc.


Current Price: P128 as of 11/5/2023 7:58pm
JOLLIBEE

JOLLIBEE FOODS CORPORATION


Current Price: P209.00 as of 11/5/2023 7:58pm
AYALA LAND

Ayala Land, Inc.


Current Price: P27.35 as of 11/5/2023 8:03pm
CEBU PACIFIC

CEBU AIR, Inc.


Current Price: P32.6 as of 11/5/2023 8:12pm
PETRON

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:

1. The short-term Treasury Bill


2. Fixed Rate Treasury Note
(FXTN)
3. Retail Treasury Bond (RTB)
Managed Funds
DIFFERENT TYPES OF INVESTMENTS
Managed Funds
Managed funds are companies or trust
funds that pool money from various
investors and through a fund manager,
invests the collected money in stocks,
bonds, or a combination of various
investments
Managed Funds
In the Philippines, managed funds could either be a
mutual fund or a Unit Investment Trust Fund (UITF).
Both mutual funds and UlTF's are classified as follows:
1. Equity fund
2. Bond fund (also known as fixed-income fund and
income fund)
3. Balanced fund
4. Money market fund
QUIZ TIME!
CHOOSE THE LETTER OF
YOUR ANSWER
1. ________ It 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.
A. CAPITAL APPRECIATION
B. CASH DIVIDEND PAYMENT
C. COMMON STOCK
2. ________ It happens
when the business pays
out a portion of its
earnings to its
stockholders.
A. CAPITAL APPRECIATION
B. CASH DIVIDEND PAYMENT
C. COMMON STOCK
3. ________ It 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.
A. CAPITAL APPRECIATION
B. CASH DIVIDEND PAYMENT
C. BONDS
IDENTIFY THE FF.

4. ________ It is the time


it takes for all payments to
be made by the issuer and
received by the lender.
IDENTIFY THE FF.

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.

Mathematically, this is expressed as follows:


Income - Savings = Expenses
Do not do what most people do, which is:
Income - Expenses = Savings
You may choose to save at least 20% of your allowance
or salary, the other 10% for charity, while the 70% can
be used to cover your expenses.
What do you do now with that 20%
savings?
First, accumulate an amount equal to six
months of your living expenses. For you to do
this, you need to track or monitor your average
monthly expenses. Multiply that figure by six to
get the amount you need to accumulate to
survive. You can now start investing once you
have accumulated an amount equal to six
months of your living expenses.
What do you do now with that 20%
savings?

For example, your monthly expense is


P10,000.
Therefore, P10,000 x 6 months is P60,000.
This is the minimum that you should have to
cover 6 months’ worth of your monthly
expenses. Any amount over and above this
P60,000 is the amount that you can invest.
Inflation
MANAGING PERSONAL FINANCE
INFLATION
Inflation happens with the general rise
in the prices of goods and commodities.
This occurs when spending increases
relative to the supply of goods.
Why should we be
concerned with inflation?
Here is an illustration of a monthly budget of
P50,000 for a family of five.
If inflation goes up by 20%, prices of goods will go up by about
the same amount, and will shrink the monthly budget as
illustrated below.
NEED TO DO to cut spending or
consumption:
Surviving a
Crisis in
Personal
Finance
MANAGING PERSONAL FINANCE
Here are some suggestions and steps
to keep your financial affairs in order.
First step: Set up an emergency fund.
Second step: List all debts
Third step: Cut back on unnecessary
spending.
Fourth step: Pay off credit card debts
Here are some suggestions and steps
to keep your financial affairs in order.
Fifth step: Apply for a credit line for
emergency use.
Sixth step: Talk to a financial adviser
Seventh step: Monitor all your accounts'
cash flow.
Eighth step: Trust that things will work out
in time
Increasing
Opportunities for
the Filipinos amid
Global Crises
MANAGING PERSONAL FINANCE
Increasing Opportunities for the
Filipinos amid Global Crises
Disasters can bring in opportunities to
discover what solutions to calamities
are available. The Chinese say that there
is always "opportunity in crisis."
Increasing Opportunities for the
Filipinos amid Global Crises
Products and Services
• As typhoons and disasters often visit the country, the entire
nation has come forward to be more helpful to each other.
From a community standpoint, the local government has
become more mindful of the needs of the community.
Businesses have become more personal in terms of delivery
of its services, mindful that some of their clientele may in
fact need more servicing and caring as they go through their
own personal struggles. Calamities have a way of softening
us to the point that our usual way of doing business
becomes more personal considering the situation that hit
the country
Increasing Opportunities for the
Filipinos amid Global Crises
Pope Francis Visits Manila January 2015 in the
"Year of the Poor“
• As the Filipino people prepared for Pope
Francis' visit in January 2015, they looked
forward to the blessings that the head of the
church will bring, especially during a time of
national mourning for the victims of typhoon
Yolanda.
1.Ms. Riza Mantaring dubbed inflation
as?
2.is a security that represents small
pieces of ownership in a business.
3.Bonds that are issued by a business.
4.Is the time it takes for all payments
to be made by the issuer and received
by the lender?
5.Give 1 types of investor. Quiz#1
1-5 (at the back of ¼)
Give the 5 Investing
Risk Factors

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

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