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Investment Types and Definitions Guide

The document is a record of an activity for a class on Investment and Portfolio Management. It defines investment as allocating resources like money with the expectation of earning income or profit. It defines an investment portfolio as a set of financial assets like stocks, bonds, currencies, and commodities owned by an investor. It then lists and defines the 7 main types of investments: stocks, bonds, mutual funds, annuities, derivatives, commodities, and exchange traded funds.

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Alaiza
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13 views1 page

Investment Types and Definitions Guide

The document is a record of an activity for a class on Investment and Portfolio Management. It defines investment as allocating resources like money with the expectation of earning income or profit. It defines an investment portfolio as a set of financial assets like stocks, bonds, currencies, and commodities owned by an investor. It then lists and defines the 7 main types of investments: stocks, bonds, mutual funds, annuities, derivatives, commodities, and exchange traded funds.

Uploaded by

Alaiza
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

ACTIVITY NO.

01
MTH 1:00 – 2:30 PM

Name: Estrada, Alaiza B. Date: January 26, 2024


Course & Section: BSBA - FM 3E Subject: Investment & Portfolio Mgt.

1. Define the following:


A. Investment
Answer: allocating resources, usually money, with the expectation of earning an
income or profit. Learn how to get started investing with our guide.

B. Investment Portfolio
Answer: This is a set of financial assets an investor owns that may include bonds,
stocks, currencies, cash and cash equivalents, and commodities. Further, it
refers to a group of investments an investor uses to earn a profit while ensuring
that capital or assets are preserved.

2. Define and enumerate the types of investment


1. Stocks - A stock is an investment in a specific company. When you purchase a
stock, you’re buying a share — a small piece — of that company’s earnings and
assets.
2. Bonds - is a loan you make to a company or government. When you purchase a
bond, you’re allowing the bond issuer to borrow your money and pay you back
with interest.
3. Mutual funds - is a collection of investments, such as stocks, bonds, or other
funds, owned by a group of investors and managed by a professional money
manager.
4. Annuities - is a contract between an individual and an insurance company. When
you purchase an annuity, you pay the insurance company in installments or a
lump sum.
5. Derivatives - is a contract that derives its value from the performance of an
underlying entity. This underlying entity can be an asset, index, or interest rate,
and is often simply called the underlying.
6. Commodities - re physical products that you can invest in. They are common in
futures markets where producers and commercial buyers – in other words,
professionals – seek to hedge their financial stake in the commodities.
7. Exchange Traded Funds - a type of investment fund that is also an exchange-
traded product, i.e., it is traded on stock exchanges. ETFs own financial assets
such as stocks, bonds, currencies, debts, futures contracts, and/or commodities
such as gold bars.

Submitted To:
MRS. SHERLYN VILLANUEVA
Subject Instructior

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