1

Definition

Investment is the sacrifice of current dollars

for future dollars. Its involve two different
attributes; time and risk

The sacrifice take place in the present and are

certain. The reward comes later

2
 Definition

Investment is a commitment of money that is

expected to generate additional money.

Every investment entails some degree of risk

It requires a present sacrifice for a future

uncertain benefit
3
 Definition

Investment is the purchase by an individual or

institutional investor of a financial or real
estate that produces a return proportionate to
the risk assumed over some future investment
period.

4
 Definition

Investment involves foregoing current

consumption in exchange for future
consumption opportunities; it therefore
should compensate the investor for the time
value of money, loss of purchasing power and
risk associated with owning the asset

5
 Definition

Investment is the current commitment of

resources in the hope of deriving greater
resources in the future.

6
 Definition

Investment is the commitment of funds to one

or more assets that will be held over some
future time period. The field of investment
therefore involves the study of investment
process.

7 Zanita Ismail/2011
 Definition

Penanaman modal pada hari ini dengan tujuan

untuk mendapatkan keuntungan pada masa
hadapan samada dalam bentuk faedah, dividen,
sewa atau kenaikan harga

Pelaburan ialah aktiviti yang melibatkan

pembelian apa jua harta atau asset hakiki atau
kewangan yang menawarkan jangkaan
pendapatan atau keuntungan modal atau
kedua-duanya sekali.
8
 Economy

Accounting & finance

Security

Investor & company

9
 Can be seen
and touched Documents

Material shares,
existence bonds,
mutual
Properties, funds, cash,
land,
buildings
10
 Capital
Time value of money
Return
Risk
11
 Investment
Speculation
Gambling
Savings
12
 • Insurance protection

• Reserve funds for Contingency Events

• Shelter

• Provision for Retirement

• Source of Income

13
 Financial Constraint

Psychological
Constraint

Management Constraint

14
 Setting Investment Policy

Security Analysis

Portfolio Construction

Portfolio Revision

Portfolio Performance Evaluation

15
 • Debt Investment
• Investment in Equity
• Investment in Tangible Asset

• Investment in Future Market

• Investment in Art

16
 Return

Risk
17
 Real
Investment

Financial
Investment

18
 • Treasury Bills
Money Market • Bankers Acceptance
• Negotiable Certificate of
Security Deposits
• Commercial Papers

Capital Market • Primary Market

Security • Secondary Market

Derivatives • Other Popular Market

Securities

19