2. • CHAPTER 1
• INTRODUCTION TO INVESTMENT
– Introduction
– Definition of Investment
– The Differences between Investment Concept
and Speculations
– Financial System’s Users
3. Introduction
• Investment:
• The purchase of a financial assets with an
expectation of favorable future returns. In
general terms, investment means the use of
money in the hope of making more money in
the future.
4. Figure1:Relationship between Financial Asset and
Visible Asset
In general,investment may be referred to the ownerships of
physical and financial assets.The physical assets may consist of
investment
and
ownership
of
property
(including
buildings), machinery, technology and any forms of visible
sources.Meanwhile, financial assets are comprised of
shares, bonds, trade notes’ ownership and other ownership of
financial assets.
5. Return or profit on the investment may consist of dividends,
capital gains or interest (financial assets) and cost of an asset. In
other words, investment is an activity for earning the future profits
or increased in future value of money based on the current
monetary value.