Investments and Securities Markets Review

Comprehensive vocabulary flashcards covering the foundations of investment, personal financial planning, securities market structures, and transactional procedures based on the lecture transcript.

Asset

Anything owned by an individual or organization that has economic value and can generate future benefits.

Capital Appreciation

The increase in the market value of an investment over time, such as buying shares at $P100$ and selling them at $P150$.

Diversification

A strategy of investing in different types of assets to reduce overall investment risk.

Financial Planning

The systematic process of managing financial resources to achieve short-term and long-term financial goals.

Inflation

The continuous increase in the prices of goods and services, reducing the purchasing power of money over time.

Investment

The commitment of money or other resources today with the expectation of generating future income or increasing wealth.

Investment Environment

The economic, political, legal, technological, and social conditions that influence investment decisions.

Investment Objective

A clearly defined financial goal that guides investment decisions, such as wealth accumulation or retirement planning.

Investment Vehicle

Any financial instrument through which an investor places funds, including savings accounts, bonds, stocks, and mutual funds.

Investor

An individual or institution that allocates resources to investments with the expectation of future financial returns.

Liquidity

The ease with which an investment can be converted into cash without significant loss of value.

Return

The financial gain or loss generated by an investment, which may come from interest, dividends, capital gains, or rental income.

Risk

The possibility that actual investment outcomes will differ from expected results, including the potential loss of invested capital.

Time Horizon

The length of time an investor expects to hold an investment before needing the funds.

IDEAS Core Values

The institutional core values of Kolehiyo ng Pantukan representing Integrity, Dynamism, Excellence, Accountability, and Service.

Saving

The act of setting money aside for short-term needs, typically characterized by very low risk, high liquidity, and low interest.

Risk-Return Trade-off

A principle in investment management where higher potential growth often carries greater risk, illustrated by comparing a savings account at $1\%$ interest to a mutual fund at $8\%$.

Financial Market

A marketplace where buyers and sellers exchange financial assets such as stocks, bonds, and other investment securities.

Money Market

A financial market where short-term debt instruments with maturities of one year or less, like Treasury Bills, are traded.

Capital Market

The segment of the financial system where long-term financial instruments with maturities greater than one year are issued and traded.

Primary Market

The market where newly issued securities are sold to investors for the first time, with funds going directly to the issuer.

Secondary Market

The market where existing securities are bought and sold among investors through organized exchanges.

Initial Public Offering (IPO)

The first public sale of a company's shares to the investing public through a stock exchange.

Broker

An intermediary who acts as an agent between buyers and sellers, executing transactions for a commission without owning the securities.

Dealer

A financial intermediary that acts as a principal by buying and selling securities for its own account to profit from the spread.

Market Order

An instruction to a broker to buy or sell a security immediately at the best available market price.

Limit Order

An instruction specifying the maximum purchase price or minimum selling price acceptable to an investor.

Market Index

A statistical indicator that measures the overall performance of a selected group of securities to serve as a benchmark.

Online Trading

The electronic buying and selling of securities using internet-based platforms and licensed brokerage firms.

Investor Protection

Laws, regulations, and ethical practices designed to safeguard investors from fraud, market manipulation, and unfair practices.

Bond

A debt instrument issued by governments or corporations where the investor lends money in exchange for periodic interest and return of principal.

Mutual Fund

An investment vehicle that pools money from many investors to be professionally managed in diversified portfolios of stocks or bonds.

Exchange-Traded Fund (ETF)

A fund traded on stock exchanges like ordinary stocks that offers diversification and real-time trading.

Capital Preservation

An investment objective focused primarily on protecting the original investment using instruments like Treasury bills or savings accounts.