INVESTMENT OPTIONS
Thinking about what you have already learnt with regards to saving and borrowing to invest complete:

Generally, what are the benefits and drawbacks of saving to invest?
BENEFITS OF SAVING TO INVEST

DRAWBACKS OF SAVING TO INVEST
Generally, what are the benefits and drawbacks of borrowing to invest?
BENEFITS OF BORROWING TO INVEST
DRAWBACKS OF BORROWING TO INVEST
Read pages 365-367 and complete the following activities:

Identify the various ways by which people can invest.

Make your own notes on each of the following Investment Options. You must be mindful
to make sure that you have the key words defined in your notes:
 Investment Accounts – cash management account, internet account, term
deposit
 Shares – dividends, capital growth, sharemarket, stockbroker, brokerage,
diversification
 Property
 Managed funds
 Superannuation
 Debentures and unsecured notes
 Cryptocurrency

Complete the following questions relating to Shares and the ASX Game you are
participating in:
 What does ASX stand for?
 Explain how the ASX works. In your response you need to refer to the following
aspects – share price, dividends, buying and selling shares, opening hours (when
is the market ‘live’ and why is this important?), current patterns in share
performance.
 Comment on your groups experience to date.

Refer to the table below that shows a summary of a day’s trading on the ASX for the
selected companies:
a) Which share had the highest last sale price?
b) Which share had the most trades on this day?
c) In the past 12 months, which share had the lowest price?
d) At what price are people prepared to buy Woolworths shares?
e) At what price are people prepared to sell Woolworths shares?
f) What must happen before a sale can occur?
g) Using the last sale price, what would it cost to purchase 2000 BHP shares?
h) Assume you own 2000 BHP shares and they pay a dividend of 40 cents. How much would you
receive?

‘It’s easy to lose your money in the stock market’ Discuss this statement outlining the
advantages and disadvantages of investing in shares.