This document discusses various methods of investment, including running a small business, entrepreneurship, farming, securities like shares and bonds, and buying fixed assets. It defines an investment as money set aside to generate future income or appreciation. Some key investment options covered are starting a business, buying shares in companies, purchasing bonds from governments or companies, and investing in real estate through property.

1. By Jane Bweendo
Zambia College of Distance Education

2. An investment refers to:
 any item that is bought with the hope that it
will generate income or appreciate in the future
 or an amount of money set aside to make more
money in future.

3. Methods of investments include the following:
 Running a small business
 Entrepreneurship
 Farming
 Securities (shares, bonds, treasury bills etc.)
 Buying fixed assets (real estates).

4.  Running a small business as an investment
means you put your savings in a small business
like retail shop, kiosk or canteen with the hope
of generating more income.
 When run under the right conditions, such a
small business may grow and provide a fund
for other investments.

5. Entrepreneurship refers to the process of
identifying and starting a new business venture.
 People can invest their savings in
entrepreneurial activities, for example, by
opening financial, education and health
institutions to make profits.
 A person who identifies and starts a new
venture is an entrepreneur.
 An entrepreneur organizes all the required
resources, makes decisions, bears all the risks
and takes up all the rewards.

6.  Farming activities such as horticulture, fish
farming, cattle and goat rearing, and many
more are good investments.
 People invest their savings or income in such
activities with the hope of growing their
income.

7.  A share is simply a unit or portion of
ownership in a company.
 Individuals can invest their income by buying
shares in companies like Zambeef, Shoprite
and Zamefa.
 A person who buys shares in a company is
called a shareholder.
 A shareholder receives a share of profits made
by the company known as a dividend.

8.  A bond is a debt security, issued to an investor by
the government or any company wishing to raise
money.
 The bond issuer is the borrower and the investor
or bond holder is the lender.
 It is a legal document in which the bond issuer, for
example, government promises to pay back the
bond holder the sum borrowed with interest after
a given period.
 A bond holder is issued with a certificate showing
that they have loaned money to the bond issuer.

9.  An individual can invest their savings or
income by buying treasury bills.
 A treasury bill is a short term security issued
by government at a discount, that is, at a price
less than the face value but the issuer pays the
holder in full on maturity.
 By investing in treasury bills, one makes a
profit, which is the difference between the
purchase price and what they get on maturity.
 Treasury bills can be issued for three months,
six months or one year.

10.  One can invest their income or savings in fixed
assets like land and houses. These are called
real estates.
 The value of such fixed assets increase
overtime. So one can buy a house or land now
and sell it later for a profit.

11. One can invest their savings or income in any of
the following areas as a way of growing their
income:
 Running a small business
 Entrepreneurship
 Farming
 Securities (shares, bonds, mutual funds
treasury bills etc.)
 Buying fixed assets.