University of San Jose-Recoletos

1st semester
For the School Year 2022-2023

Name: Richel L. Genobia Course & Year: BSBA FM_2

1. What is an Investment?

 An investment refers to any asset or commodity purchased with the goal

of generating income and allowing money to grow. It necessitates putting
capital to work in the form of time, money, and effort with the hopes of a
higher return in the future than what was initially invested.

2. What are the types of Investment?

1. Stocks represent ownership or shares in a company.

2. Bonds is an investment where you lend money to an
entity.
3. Mutual funds is a pool of many investors’ money that is invested
broadly in a number of companies.
4.Exchange Traded Funds  are bought and sold on the stock markets.
5. Certificate of Deposit is a type of savings account that pays interest on a
lump deposit for a set length of time.
6. Retirement Plans it is intended to take care of your post-retirement
days and assist you in living a stress-free
existence.
7. Options permits a trader to retain a leveraged position in
an asset at a lesser cost than buying the asset's
shares.
8. Annuities is an agreement between you and an insurance
company that requires the insurer to reimburse
you.
9. Money Market Funds Allow the investor to deposit a specific amount in a
bank for a set period of time. When it's done, you
get your principal back, but at a slightly higher
 interest rate.
10. Commodities are physical products that you can invest in.

3. Who are the suppliers and demanders of Funds?

 The suppliers and demanders of funds include government, financial
institutions, individual investors, insurance companies, individuals,
business corporations and retirement funds.

4. What are the types of investors?

These are the types of investors:

 Personal investors
 Angel Investors
 Venture Capitalist
 Peer-to-peer lenders
 Incubators and accelerators
 Banks and financial institutes
 Corporate Investors

5. What is the role of short-term vehicles?

 The short-term investment vehicle's role is to make the investments
liquid. The fundamental reason for the requirement for liquidity is to
save for an emergency cash reserve or to save for a specific short-term
financial goal.

6. What are the advantages and disadvantages of short-term vehicles?

The advantages of short-term vehicles are that they are highly liquid,
making it easy for investors to convert assets to cash, and they are low
risk of default, lowering the chance of default by companies and
individuals. The disadvantages of short-term vehicles include low levels
of return and loss of potential purchasing power due to inflation, as well
as high transaction costs due to transaction volume.

7. What are the uses of short-term vehicle?

 Short-term vehicles can be used to achieve positive returns, keep assets
secure while they await future deployment into higher-returning
opportunities, safeguard capital while still creating a return, temporarily
store extra funds, and for emergency cash.