INTRODUCTION

Question 1

Definition of investment decision

Answer 1

choices made by individuals made by individuals or organizations about the allocation of resources in order to obtain a financial return

Question 2

What can you invest in?

Answer 2

Stocks, bonds, real estate, and other assets

Question 3

What is investing about?

Answer 3

Getting rid of capital today to collect further income in the future

(commitment today to earn future economic benefit)

Question 4

What are savings?

Answer 4

Income not allocated for immediate consumption

Question 5

What can you do with savings?

Answer 5

You can accumulate it: no remuneration

You can lend it: deposit savings in an credit institution responsible for returning the savings at maturity and remunerate it with certainty. We can also buy debt securities issued by the government or other
authorized agents.

You can invest (risk) it: we directly buy productive tools from a company. It is possible to buy equity securities of
companies, for example shares, for which remuneration are not fixed from the start: the risk is more important