Unit Six Making investment decisions 课件.pptVIP

Where would you like to invest if you had some extra money? What would you concern most if you decide to put your money into investing? Investing means putting your savings into work. Investing has become an important part of planning for the future. Where to invest and how much income to put into those investments are just two of the investment decisions to be made. New words special condition capital investment financial commitment equity ethical decision (投资的)限定条件，限制条款 基本建设投资 经济负担 股本，出售公司普通股所筹资金 基于伦理准则的决定 Subject Making investment decision Investment decision Financing investment Ethical investment Important points Investment decisions Generally, individuals invest to make money. Investing is more than just leaving money in your bank account. Successful investing requires good investment decisions. Brain storming Business’ investment at two levels Questions Answers Purchasing Why does a business need to buy new equipment? (1) What fund is often used in capital investment? (2) Interest-earning investment How does a business try to increase profits? (3) On what will the length of time of investment depend? (4) Answers Answers (1)To continue operating and to work efficiently. (2)Borrowed funds. (3)By putting money into investment. (4)The financial commitment of the business. Financing investment Investment is important as a source of income. Investment requires an initial lump sum of capital or a regular flow of funds to increase the equity or ownership in the investment item. Where can the capital or funds for investment come from? What is the relationship between them? Savings and borrowings Savings If you have savings, it means you have money available to : (1) Take advantage of a great deal. (2) Plan for a major purchase. (3) Invest with a higher rate of return. Borrowings If you invest with borrowed money, you have to make su