IDENTIFICATION ENUMERATION

1. Investment planning 1. 7 Essential features of investment

-the process of matching your planning
financial goals and objectives with A. Safety of Principals
your financial resources B. Liquidity and Collectible Value
2. Investment C. Stable Income
-exchange of money D. Capital Growth
wealth into some tangible wealth E. Tax Implications
-commitment of funds that is expected F. Stability of Purchasing Power
to generate additional money G. Legality
3. Money Wealth 2. Components of the Investment
-the money (savings) which an Environment
investor has A. Different types of Securities
4. Tangible Wealth B. Institutional Set-up
-the assets the investor acquires by C. Market Intermediaries
sacrificing the money wealth 3. Institutional Investors
5. The Investment Environment A. Insurance Companies
-Encompasses all types of investment B. Pension Funds
opportunities and the market structure C. Investment Funds
that facilitates buying and selling of D. Venture Capitalists
these investments 4. Two Types of Financial Institutions
6. Financial System A. Banking Institutions
-Composed of the myriad markets and B. Non-banking Institutions
institutions through which funds flow 5. Sources of Investment
between lenders and borrowers Informations
7. Financial Market A. Securities and Exchange
-Refers to a marketplace, where Commission (SEC) Filings
creation and trading of financial B. Company Website
assets C. Analyst Reports
such as shares, debentures, bonds, D. Business Dailies
derivatives, currencies, etc. take place E. Business Websites
8. Money Market F. Social Platforms
-Money Market refers to all institutions *Note that the first 3 are
and procedures that provide for considered as the 3 most
transactions in short term debt important sources of
instruments that are generally issued information on a company
by borrowers with good credit ratings performance
9. Capital Market 6. The most important things to look
-Capital market refers to all institutions in a company website
and procedures that provide for A. Financial Statements
transactions in long term financial B. Company Presentations
instruments d C. News/Press Releases
10. Primary Market D. Contact Informations
-is where securities are created. It's in 7. Places where Analyst reports can
this market that firms sell (float) new be found
stocks and bonds to the public for the A. Stock Brokers
first time. An initial public offering, or B. Companies
IPO, is an example of a primary C. Websites/Services
 market. 8. Two Types of Risks
11. Secondary Market A. Unsystematic Risks
-a marketplace where already issued B. Systematic Risks
securities – both shares and debt 9. Two Main ways that risks can
– can be bought and sold by the happen
investors. It is a market where A. individual assets can be
investors buy securities from other voided completely
investors, and not from the issuing B. the return on investment that
company the assets generate may not
12. Financial Institutions be sufficient to keep pace with
-Intermediaries that channel the inflation.
savings of individuals, businesses and 10. Advantages of Diversification
governments into loans an investment A. Minimizing the Risk of loss
13. Banking Institutions B. Preserving Capital
-include all financial institutions C. Generating Returns
engaged in the lending of funds 11. Disadvantages of Diversification
obtained from the public primarily A. Reduces Quality
through the receipt of deposits of any B. Too Complicated
kind. C. Indexing
14. Non-banking Institutions D. Market Risk
-financial institutions other than banks E. Below Average Returns
whose principal functions F. Lack of Focus or Attention to
include lending, investing or the Portfolio
placement of funds or evidence of 12. General types of Investments that
indebtedness or equity deposited Attract Investors
with or otherwise acquired by them, A. Bank Products
either for their own account or for the B. Stock and Bonds
account of others C. Government Securities
15. Unsystematic Risks D. Investment Funds
-is a firm-specific risk that affects E. Real Estate
only one company or a small group of F. Life Investments
companies G. Tangible Assets
16. Systematic Risks 13. Bank Products
-the risk associated with the A. Savings Account
collapse or failure of a company B. Checking Account
industry, financial institution or an C. Time Deposit Account
entire economy because the risk is a 14. Kinda of Mutual Funds
market risk affecting all companies in A. Balanced
the market B. Equity
17. Diversification C. Fixed Income
-a technique of allocating portfolio or D. Money Market
capital to a mix of different 15. Mutual Funds and UITFs usually
investments offer the following types of funds
18. Growth Assets and investments:
-Include investments such as shares A. Money Market Funds
or property and generally provide –moderate risk; short term
longer term capital gains, but typically B. Bond Funds – moderate risk;
have a higher level of risk than long term
defensive C. Equity Funds – aggressive;
assets. long term
19. Defensive Assets D. Balanced Funds – aggressive;
-Include investments such as cash or long term
fixed interest and generally provide a 16. Types of Real Estate
lower return over the long term, but A. Residential
also generally a lower level of volatility B. Commercial
and risk than growth assets. C. Land
20. Savings Account D. Industrial
-Highly liquid cash with limits dictated 17. Types of Residential Real Estate
by a bank’s standard procedure also A. Houses
known as passbook savings B. Town Houses
21. Time Deposit Accounts C. Duplexes
-locks the money in the bank for a D. Twin Homes
certain lock-in period, sometimes E. Triplexes
called tenor, maturity, or terms of F. Quadplexes
placement. During this time, the G. Condos
depositor is not allowed to withdraw H. Mobile Homes
any part of the initial deposit 18. Types of Commercial Real Estate
22. Stocks A. Offices
-An equity instruments representing B. Hotels
an ownership interest in a corporation C. Strip Malls
23. Bonds D. Restaurants
-A debt instruments with a promise to E. Medical Buildings
pay back the principal amount with F. Educational Campuses
interest G. Shopping Centers
24. Government Securities 19. Types of Lands
-are debt instruments issued by the A. Agricultural
Republic of the Philippines or any of B. Vacant Land
its instrumentalities to finance public C. Ranches
expenditures D. Farms
25. Treasury Bills 20. Types of Industrial Real Estate
-are short-term secure investments A. Warehouses
issued by the Philippine government B. Factories
through the Bureau of Treasury (BTr) C. Distribution Centers
26. Mutual Funds D. Self-Storage Facilities
-a type of investment where one joins 21. Things to Consider when buying
other investors and corporations to foreclosed Properties
form a massive fund which will be A. Location
handled by an expert B. Condition of the property
27. UITF (Unit Investment Trust Fund) C. Additional Costs
-is also a type of investment where 22. How money is made through Real
one joins other investors and entities Estate
to form a Trust Fund which will be A. Appreciation (Due to location,
handled by Trust expert/professional development, and
for diversified portfolios of stocks, improvement)
bonds, securities, money markets and B. Income (from Commercial use
other funds and Residential use)
28. Foreclosed Properties 23. Examples of Tangible Assets
-are real estate properties A. Real Estate
that have been taken over by the B. Commodities
lender because the renter/owner of C. Collectibles
 the property failed to make payments
for a loan
29. Insurance (suffix:Life)
-Covers unforeseen events such as
death, sickness, and accidents.
30. Pre-need (suffix:Plan)
-Covers foreseen events such as
education, retirement, and pension
31. VUL (Variable Unit-Linked
Insurance)
-is a kind of insurance that also serves
as an investment. In this type of
investment, what happens is that a
portion of premium is being paid to
insurance charges, but, at the same
time, a portion is being invested.
32. Tangible Assets
-is an investment a buyer
makes to acquire a tangible asset.
Investing in tangible assets enables a
buyer to produce income and
leverage appreciation

ACRONYMS TRUE OR FALSE (POSSIBLE

STATEMENTS THAT MAY INCLUDE)

1. IPOs 1. Investment Planning involves

(Initial Public Offerings) identifying financial goals throughout
2. SEC life, and prioritizing them.
(Securities and Exchange 2. Investment planning is a core
Commission) component of financial planning.
3. ROI 3. Investment helps to derive maximum
(Return on Investment) benefit from investments.
4. T-Bills 4. The success of an investor depends
(Treasury Bills) upon his ability to choose the right
5. BTr investment options.
(Bureau of Treasury) 5. A good investment plan/program is
6. MF one which is consistent with the
(Mutual Funds) objectives of the investor.
7. UITF 6. A diversified portfolio is less risky than
(Unit Investment Trust Fund) holding a single portfolio.
8. BSP 7. The investor invests in high grade and
(Bangko Sentral ng Pilipinas) readily saleable investments in order
9. NAVPS to ensure their liquidity and collateral
(Net Asset Value Per Share) value.
10. NAVPU 8. Right issue in the right industry should
(Net Asset Value Per Unit) be bought at the right time.
11. VUL 9. Investors who are not particular about
(Variable Unit-Linked Insurance) cash income do not consider tax
 implications seriously.
10. By investing, an investor commits the
present funds to one or more assets
to be held for some time in
expectation of some future return in
terms of interest or capital gain.
11. Sell-side analysts may be biased at
times.
12. Buy-side analysts are not typically
biased.
13. The basic idea of investing is that
money is into something and, if all
goes well, end up with more money
than what was invested.
14. High-risk investments offer much
bigger profits but there’s a higher
chance of losing the money.
15. Fixed interest assets such as
government bonds are low risk.
16. Property investment is medium risk
but there are things that can be done
to moderate risk further, such as
carrying out professional renovations
on properties.
17. Shares are generally classed as high
risk, however, in practice the degree
of risk can vary enormously.
18. Having eggs in multiple baskets
mitigates risk as if one basket breaks,
not all eggs are lost.
19. While passive management or
indexing might work in bull markets it
does not work well in flat or bear
markets.
20. One needs to spread his capital
across different asset classes to
reduce overall investment risk.
21. Diversification is primarily used to
eliminate or smooth unsystematic risk.
22. Diversification does not usually affect
the systematic risk which is the risk
associated with the collapse or failure
of a company, industry, financial
institution or an entire economy
because the risk is a market risk
affecting all companies in the market.
23. Any form of transaction that involves
giving something valuable to gain
something of greater value in time can
count as an investment.
24. Investment not only takes money. It
takes time as well.
25. It still takes some research and
planning to fully commit to chosen
investments.
26. Bonds are a lot more complex than
stocks.
27. Mutual Funds are usually more and
well regulated since companies really
focused on their funds and their
performance.
28. UITF won’t make the investors part of
the company and won’t give
shareholder’s rights.
29. Foreclosed Properties requires a
higher money to invest so as to serve
as a payment for the property to be
purchased.
30. Insurance is a definite investment that
everyone has to acquire.
31. Most investment publications refer to
tangibles as "alternative investments."
32. Investment in tangible assets offers
the unique dynamic of immediate
personal satisfaction, or utility, and the
potential for increased future
consumption through price
appreciation.
33. If one is new to investment, then
jumping into high-risk investments
head first may not be the best
strategy.
34. Investment isn’t an overnight success.
35. Short term investments are usually
sold after three years or less.
Meanwhile,long term investments can
last for up to a 10-year period.