Unit 5 Investment
• • • • Warm-up questions: What is investment? What are the examples of making investment? Which sector in China is the biggest lure for investment. • If you have extra money, which investment would you go for? Why? • What do you know about the terms: blue chip stock; value stock; penny stock;
• Value Stocks • Stocks of this type generally sell at a low price from companies with a history of growth potential, as well as good earnings potential. However, prices for value stocks offered by these companies would not represent their value. Since many experts believe that value stocks offer only temporary benefits, seldom do people or even the stock markets use stocks of this type as an investment.
• Blue Chip Stocks（蓝筹股，热门股票） • Interestingly, these stocks were so named because of the color blue found in poke chips, which are the chips with the highest value in this game. Only specific companies would offer blue chip stocks, to include those with a long record of profit growth, as well as dividend payout（股息支付率）. In addition, companies selling blue chip stocks would be those that have a longstanding reputation for the products and/or services it offers and high quality management of those products and/or services.
• Collect collectibles: stamps, masters’ paintings, ancient coins, antiques, rareties, • Purchase properties, residential or non-residential • Buy shares, funds, bonds, securities, public debts • Deposit money in a bank nvestment is putting money into something with the hope of profit. More specifically, investment is the commitment of money or capital to the purchase of financial instruments or other assets so as to gain profitable returns in the form of interest, income {dividend}, or appreciation of the value of the instrument. It is related to saving or deferring consumption. Investment is involved in many areas of the economy, such as business management and finance no matter for households, firms, or governments.
• Miscellaneous Stocks • Along with the primary types of stocks listed above, you will also find a variety of miscellaneous stocks. For instance, defensive stocks（价格波动 较小的股） have prices that remain stable even with market decline, cyclical stocks（周期性产业股 票） would fluctuate in coordination with business ups and downs, gold stocks are connected to gold mining, and treasury stocks（库存股份） are those actually purchased by the original issuing company due to an underpriced （定价太低；低价竞争 market.
• Penny Stocks（便士股：面值在美金一元以下 的股票，没有投资价值的投机股票） • Although penny stocks are extremely risky, because they are so affordable they remain popular. Usually, penny stocks are issued by companies that have a history of being erratic specific to revenue and earnings, or those in business for just a short amount of time. Although the price for buying penny stocks is so low, they are usually not a part of most stock exchanges. Sometimes, you will hear penny stocks referred to as “designated securities” but the two are the same.
• Income Stocks • Another type of stock that you may get involved with are called income stocks. The dividends paid over a specified period would be higher than most, which are typically paid by established companies that have solid earnings. For instance, the most common type of companies that offer income stocks are telephone and utilities. If you want to get involved with stock investing so you have steady income over years, then income stocks would be an excellent consideration.
Reading I Going for Gold
• • • • • • How do you analyze the argumentative organization? Paragraphs 1-2 Questions: What atmosphere does the first paragraph create? What atmosphere dominates Paragraph 2? What can be concluded from the two contrasting situations about stock market? Use some words to describe stock market on the basis of the first 2 paragraphs. • Explain the terms: basket in the glory; decent finish; first-half performance;
• Risk: Investment comes with the risk of the loss of the principal sum本金. The investment that has not been thoroughly analyzed can be highly risky with respect to the investment owner because the possibility of losing money is not within the owner's control. The difference between speculation and investment can be subtle. It depends on the investment owner's mind whether the purpose is for lending the resource to someone else for economic purpose or not.[3]