SUBJECT: INVESTMENT AND PORTFOLIO MANAGEMENT

LESSON 3 FOUNDATION

Direction: Explain the following.

COMPARISON OF DIFFERENT ASSET CLASSES

• What is the STOCK MARKET?
• Why do stock Markets Exist?
• Why do these companies sell their shares to the public?
• Initial Public Offering (IPO)
• How do we make money? (2 ways, DIVIDENDS & PRICE APPRECIATION)
• Why should you INVEST?
• Debunking the LONG-TERM Argument 80/50 Rule on Market Leaders

NOTE: Put an example if necessary.