Business SENIOR

HIGH
Finance SCHOOL

Self-Learning

INTRODUCTION TO INVESTMENT Module

2
Quarter 4
Business Finance
Quarter 4 – Module 1: Introduction to Investment
First Edition, 2020

Republic Act 8293, Section 176 states that no copyright shall subsist in any
work of the Government of the Philippines. However, prior approval of the
government agency or office wherein the work is created shall be necessary for the
exploitation of such work for a profit. Such agency or office may, among other things,
impose as a condition the payment of royalties.

Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand

names, trademarks, etc.) included in this module are owned by their respective
copyright holders. Every effort has been exerted to locate and seek permission to use
these materials from their respective copyright owners. The publisher and authors
do not represent nor claim ownership over them.

Published by the Department of Education - Schools Division of Pasig City

Development Team of the Self-Learning Module

Writer: Josephine T. Macalinao
Editor (Content/Language): Dennis T. Alex / Edna D. Camarao
Reviewer: Edna D. Camarao and Dennd T. Alex
Illustrator: Name
Layout Artist: Name
Management Team: Ma. Evalou Concepcion A. Agustin
OIC-Schools Division Superintendent
Dr. Carolina T. Rivera, CESE
OIC-Assistant Schools Division Superintendent
Victor M. Javeña EdD
Chief, School Governance and Operations Division and
Manuel A. Laguerta EdD
Chief, Curriculum Implementation Division

Education Program Supervisors

Librada L. Agon EdD (EPP/TLE/TVL/TVE)

Liza A. Alvarez (Science/STEM/SSP)
Bernard R. Balitao (AP/HUMSS)
Joselito E. Calios (English/SPFL/GAS)
Norlyn D. Conde EdD (MAPEH/SPA/SPS/HOPE/A&D/Sports)
Wilma Q. Del Rosario (LRMS/ADM)
Ma. Teresita E. Herrera EdD (Filipino/GAS/Piling Larang)
Perlita M. Ignacio PhD (EsP)
Dulce O. Santos PhD (Kindergarten/MTB-MLE)
Teresita P. Tagulao EdD (Mathematics/ABM)

Printed in the Philippines by Department of Education – Schools Division of

Pasig City
Business SENIOR
HIGH

Finance SCHOOL

Self-Learning
Module

2
Quarter 4
Introduction to
Investment
Part 2
Introductory Message

For the Facilitator:

Welcome to the Introduction to Investment!

This Self-Learning Module was collaboratively designed, developed, and

reviewed by educators from the Schools Division Office of Pasig City headed by its
Officer-in-Charge Schools Division Superintendent, Ma. Evalou Concepcion A.
Agustin, in partnership with the City Government of Pasig through its mayor,
Honorable Victor Ma. Regis N. Sotto. The writers utilized the standards set by the K
to 12 Curriculum using the Most Essential Learning Competencies (MELC) in
developing this instructional resource.

This learning material hopes to engage the learners in guided and independent
learning activities at their own pace and time. Further, this also aims to help learners
acquire the needed 21st-century skills especially the 5 Cs, namely: Communication,
Collaboration, Creativity, Critical Thinking, and Character while taking into
consideration their needs and circumstances.

In addition to the material in the main text, you will also see this box in the
body of the module:

Notes to the Teacher

This contains helpful tips or strategies that
will help you in guiding the learners.

As a facilitator, you are expected to orient the learners on how to use this
module. You also need to keep track of the learners' progress while allowing them to
manage their learning. Moreover, you are expected to encourage and assist the
learners as they do the tasks included in the module.
 For the Learner:

Welcome to the Business Finance Self-Learning Module on Introduction to

Investment (part 2)!

This module was designed to provide you with fun and meaningful
opportunities for guided and independent learning at your own pace and time. You
will be enabled to process the contents of the learning material while being an active
learner.

This module has the following parts and corresponding icons:

Expectations - This points to the set of knowledge and skills

that you will learn after completing the module.

Pretest - This measures your prior knowledge about the lesson

at hand.

Recap - This part of the module provides a review of concepts

and skills that you already know about a previous lesson.

Lesson - This section discusses the topic in the module.

Activities - This is a set of activities that you need to perform.

Wrap-Up - This section summarizes the concepts and

application of the lesson.

Valuing - This part integrates a desirable moral value in the

lesson.

Posttest - This measures how much you have learned from the
entire module.
 EXPECTATIONS

At the end of this module, you are expected to:

1. identify what are the factors to be considered before making an investment

decision.

PRETEST

Directions. On the space provided, write TRUE if the statement expressed is correct
and FALSE if it is expressed incorrectly.

______________1. An investor must be a risk-bearing person.

______________2. The stock market is always stable all the time.

______________3. Check your risk tolerance. It says “no pain, no gain.”

______________4. “Never put all your eggs in a single basket.”

______________5. An experienced or beginner investor you must lay your financial

road-map.

RECAP
From your previous lessons the Introduction of investment, answer the
following questions:

1. What is the difference between investment and savings?

2. What is investing?
 LESSON

Why do we need to invest?

Maybe because you work hard for your money and should your money will work hard
too for you. To take charge of your financial security, the easiest way to make your
money while you sleep is by investing. Investing allows you to grow your wealth but
also generates an additional income stream if needed ahead. However, if the
investment is not done in the right plan without a proper objective in
mind. Otherwise, you’re wasting your time and money and end up regretting going
on to it. To avoid the common pitfalls. Here are the factors to be considered before
making an investment decision:

1. Lay your Financial Road-map

The first step in making a successful investment is to understand your goals and
objectives to ensure that you are on the right track. You need to know whether you’re
not making any mistake in investing. Whether you are an experienced or beginner
investor you must lay your financial roadmap before making an investment decision.
You need to know that the money you will put into this investment is for the long -
term and you won’t be able to withdraw it anytime you wish. It is important to
evaluate first your assets & liabilities priorities, overall incomes and ensure that your
investment won’t affect your expenditures, insurances, and funds you kept safe for
short-term emergencies.

2. Check your Risk Tolerance

Every person has a different personality, some risk-bearing, and some are
uncomfortable taking the risk. It is important to check first your risk tolerance to
ensure that the investment made an example in stocks aligns with your financial
goals. When it comes to investing, risk and reward go hand in hand. It says: “no
pain, no gain”. All investment involves some degree of risk. You must understand
that you could lose some or all of the money you invest. When you make your
investment within your risk tolerance, there is a higher possibility that you fulfill
your financial goals. An aggressive investor, or one with a high-risk tolerance, is
willing to risk losing money to get potentially better results. A conservative investor,
or one with a low-risk tolerance, favors investments that maintain their original
investment.

3. Consider Asset Allocation

This will help investors reduce risk through diversification. Avoid putting all your
money in one or two companies’ stock. Instead, spread your investments in multiple
sectors. It says “Never put all your eggs in a single basket.”

4. Do not Fall for Volatility

If you have decided to invest in financial security, you should trust your research
and stick to it. During your investment journey, you can’t deny the ups and downs
of the volatility in the stock market. This type of fluctuation triggers investors to
make decisions in haste. Always remember the reason why you made that
investment decision is to accomplish a certain goal that would require you to stick
to your plans no matter if you are in profit or loss. Don’t panic selling or lose your
hope of making profits with your investments or else your efforts will be useless.

ACTIVITIES

Direction: Create your Financial Plan 6 years from now. Write down inside the box
and circle as provided in the picture below your plan for financial success.
 WRAP-UP

In this lesson, you learned:

1. What are the factors to be considered before making an investment decision?

VALUING

1. Do you think it is important to make a plan for your everyday activities and your
future? And Why?

POSTTEST

Directions. On the space provided, write TRUE if the statement expressed is correct
and FALSE if it is expressed incorrectly.

__________1. To ensure you are on the right track of investment lay your financial
plan or roadmap first.
__________2. An aggressive investor is willing to risk losing money to get
potentially better results.
__________3. A conservative investor, or one with a low-risk tolerance, favors
investments that maintain many investments.
__________4. Diversification of investment in different sectors is one way to reduce
risk.
__________5. Volatility shows the ups and downs of the price of a stock in the market.
 KEY TO CORRECTION

1. D

TRUE 5. 5. TRUE
TRUE 4. 4. TRUE
TRUE 3. 3. FALSE
FALSE 2. 2. TRUE
TRUE 1. 1. TRUE
Pre-Test Post-Test

Activity

References
Business Finance Teachers Guide
Florenz C. Tugas, Aeson Luiz C. Dela Cruz, Alloysius Jushua S. Paril, and Alger C.
Tang. Business Finance. Vibal Publishing
https://www.clipartmax.commaxm2i8H7N4i8A0Z5d3
https://www.investopedia.com>ask
https://www.invest19.com/blog/factors-to-be-considered-before-mak
httpswww.summitplanners.complanningscreate-your-roadmap-to-financial-success