An investment is an 

asset or item acquired (buy or obtain) with the goal of

generating income or appreciation. Appreciation refers to an increase in the
value of an asset over time. When an individual purchases a good as an
investment, the intent is not to consume the good but rather to use it in the future
to create wealth. An investment always concerns the outlay of some asset today
—time, money, or effort—in hopes of a greater payoff in the future than what was
originally put in.

Example: A man bought an apartment, but not with the thought of living in it but
to generate income from it by also renting it to others who are looking for
somewhere to stay in.

Different types of Investment:

1. Stocks – A stock is a general term that refers to any company's ownership

certificates. A share, on the other hand, refers to a specific company's
stock certificate. You become a shareholder if you own a share of a
corporation. Or in simple term, it represents ownership in the corporation
through acquisition (assets bought) of (or by the purchase of) its shares of
stocks which is publicly offered.

2. Bonds - A bond is a fixed income instrument that represents a loan made

by an investor to a borrower (typically corporate or governmental). A bond
could be thought of as an I.O.U. (I owe you) between the lender and
borrower that includes the details of the loan and its payments. (San
Miguel issue bonds for the payment of their other bonds that is near their
maturity)

3. Mutual funds - A mutual fund is a company that brings together money

from many people and invests it in stocks, bonds or other assets. The
combined holdings of stocks, bonds or other assets the fund owns are
known as its portfolio. Each investor in the fund owns shares, which
represent a part of these holdings.

 aggressive – stocks and bonds combined

 moderately aggressive – invested more in bonds,

 conservative –
 Asset is valued (Net Asset Value/NAV) daily at mark-to-Market using its
NAVPU or Net Asset Value Per Unit

4. Exchange-Trade Funds

 Works like a mutual funds except its shares are bought and sold on
the stock market.

 Asset is limited to corporate stocks and bonds.

5. Certificate of Deposit

 Very low risk investment.

 With fix interest rate and predetermined period (Has maturity date)

6. Annuities

 Investment designed to provide payments to the holder at specifies

intervals: 7, 10 or 15 years.

 Usually offered with insurance policy because it has payout.

7. Cryptocurrencies

 A new investment option that works like a stock but only through
online

 Very volatile thus making it a very risky investment

Difference between bonds and stocks is that stocks are riskier than the bonds.
Since stocks is only a partial ownership in a corporation that could be paid out by
the company after not needing it anymore, while in bonds are loan from you to a
company or an investment.

C14: Credit cooperatives

Cooperative – It is a duly registered collection of people or an association na

binubuo ng mga taong with same interest or same goals, that all accept risks and
benefits as well.

Association – similar with cooperative but the shares and risks are not equally
shared, unlike cooperative.
Principles of Cooperative

1. Open and voluntary memberships

- available to all individuals regardless of their social, political, racial or religious

background or beliefs

2. Democratic control

- administered by persons elected or appointed in a manner agreed upon by the

members

3. Limited interest in capital

4. Distribution of surplus

- The surplus of a cooperative is not profit in the traditional sense. Surplus is

considered excess payment by the members or the loans they borrowed or the
goods and services they bought from the cooperative.

5. Cooperative education

- A cooperative will only succeed if its members are aware of their own rights and
obligations, as well as how the cooperative should function. This includes their
role in working together to make the cooperative work as well.

6. Corporation among cooperatives

Types of Cooperative

1. Credit cooperative

- a financial organization owned and operated by its members that allows them
borrow at low interest rates from an amount of money they have saved as a
group.

2. Consumer cooperative

- A consumer co-operative is a consumer-owned and democratically operated

business that seeks to meet the needs and interests of its members. The
customers band together to run the company, and the profits are distributed
among them in proportion to their contributions.

3. Producer cooperative

- Producers may choose to collaborate or work independently to improve

marketing opportunities and production quality. They're set up to manufacture,
sell, and distribute their own goods. This reduces costs and strains in-region,
benefiting both parties.

4. Service cooperative

International Financial Institutions

- International financial institutions (IFIs) play an important role in the social and
economic growth of countries with emerging or transitional economies in many
parts of the world. This position entails providing advice on development projects,
as well as funding and assisting with their implementation.