The document discusses various forms of investment. It identifies three main forms: ownership, lending, and cash equivalents. Examples are given for each form: ownership includes stocks, business, real estate, and precious objects; lending includes bonds and savings accounts; and cash equivalents includes money market funds. The document aims to develop an awareness of different investment types and provide examples for each form.

1. What are the various forms
of investment?
Lesson 1 Week 1
Accounting
YEAR 10
Dec 2014

2. AusVELS
• Explain the role and significance of savings
and investment for individuals and for the
economy, and demonstrate the skills required
to successfully plan and manage personal
finances.
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3. GKR
Study Handout 1. What
do you think today’s
lesson is about?
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4. Today’s Learning Intention:
To develop an awareness of various investment
types.
Success Criteria:
Able to identify the investment forms
Able to provide one example of an investment
for each investment form
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5. Key Vocabulary:
• Investment
• Profit
• Convert
• Equivalent
• Money Market
• Real estate
• Stocks
• Shares
• Bonds
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6. Activity – Handout 2
• Create your own definitions
– Look at each of the sentences in Handout 2. Study
how each word (in bold) from the vocabulary list is
used.
– Now create your own definitions for each of these
words.
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7. 3 Forms of Investment
1. Ownership
– Putting money into something that gives you
ownership or part ownership of that ‘thing’.
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8. 3 Forms of Investment
2. Lending
– You act like a bank
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9. 3 Forms of Investment
3. Cash equivalents
– As good as cash because they can be easily turned
converted into cash
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10. Activity – Handout 3
• Complete handout 3 by:
– watching the rest of this presentation to
understand each of the investment types named
– then identifying the form each of the investment
types are by recording them in the correct column
on the handout
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11. Types of Investment
e the following is in no way to be
d investment advice. It is for
al purposes only!
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12. Types of Investments
• Remember, we invest to make money
• How can we compare investments?
• We can look at Return on Investment – that is,
how much we make based on how much we
have put in
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13. Types of Investments
• Savings accounts allow you to keep your
money in a safe place, a bank.
• By putting your money into a savings account
you are lending the bank your money.
• You earn interest on the
money you put into your
savings account.
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Click on the image to find out
- How Banks Work!

14. Types of Investments
• Go to http://www.anz.com.au/personal/bank-
accounts/calculators-tools/
• Use the savings calculator to work out how
much interest you can earn in 1 year on
$100,000
• Calculate the rate of return as:
ROI = (Gains – Cost)/Cost
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15. Types of Investments
• Business ownership
• Benefits – being own boss,
possibly making more money
than could as employee
• Risk – bankruptcy, very long
hours, etc.
Click on image
If it costs $100,000 to invest in the business and
ROI is 25% how much will you have earned on
your investment?
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16. Types of Investment
• Real Estate – owning real estate has many
benefits but there are risks too such as:
– tenancy risks (can’t get any / property damage)
– liquidity (can’t get money quickly)
– unable to make repayments on property
35 Reasons To Invest In Real Estate
http://www.yourinvestmentpropertymag.com.a
u/buying-property/35-reasons-to-invest-in-real-
estat
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17. Types of Investment
• Precious objects ownership – such as gold,
art, classic cars, glass, jewellery, etc., etc.
• Benefits include the pleasure of ownership
and an capital growth.
• There are risks such as capital loss,
damage and theft.
• Usually takes a long time for capital growth to
occur and generally does not generate any
income until sold.
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18. Types of Investments
• A Money Market Fund is an investment that is
easily converted to cash
• The security the fund invests in must be < 3
months to maturity so there is little risk of
change in its value if interest rates change
• It is a place to store cash that pays a higher
rate of interest than a savings account but is
still relatively stable (safe)
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19. Types of Investments
Click on image
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A bond owner has lent money
Bonds – are fixed income investment

20. Types of Investments
• An investment is something into which we put
our money with the intention of making a
profit.
• Are modern cars, education and big screen
TVs something we will make a profit from?
Complete the table.
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21. Handout 3 - Solution
Ownership Lending
Cash
Equivalent
Not an
Investment
Stocks
Savings
Account
Money
Market
Funds
Education
Business Bonds -
Big Screen
TVs
Real Estate - - Cars
Precious
Objects
- - -
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22. Review:
1. List the 3
investment forms.
2. Give one example of
an investment
option for each
investment form.
3. List 1 learning
strategy you used in
today’s lesson.
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