1. Prepared By Rasha Anan 120050146 Supervised By Mr. Ibrahim Sammour University of Palestine Faculty of Finance &Business Administration

2.  Definition  Investment Types  A Good Investment  The 6 Basic Principles of Successful Investing  Two Strategies to Avoid  Investment Risk  The Twenty Golden Rules of Investing

3.  Investment refers to an asset which is purchased with the expectation that it will generate income in the future or its’ value will appreciate in future so that it will be sold at a higher price.  There are usually three participants in an investment: 1.The Issuer 2.The Investor 3.The Broker

4.  Cash  Savings Accounts  Debt Instruments  Stocks  Collectibles  Precious Metals  Real Estate  Investment Portfolio  Mutual Fund

5.  Four characteristics should be serve as helpful guidelines in the search for a good investment. 1.What is the price of the entire company? 2. Is the company buying back shares? 3. What are your reasons for investing in the company? 4. Are you willing to own the stock for the next ten years?

6.  The 6 Basic Principles of Successful Investing 1.Diversification 2.Asset Class Investing 3.Asset Allocation 4.Rebalancing 5.Compounding 6.Time

7. 1.Stock picking 2.Market timing

8.  In investing parlance, risk refers to the probability of a monetary loss or actual returns from an investment being lower than the expected returns.  Types of Risks 1. Capital risk 2. Currency risk 3. Liquidity risk

9. 4.Credit risk 5.Inflation risk 6.Interest rate risk 7.Market risk 8.Legal risk 9.Counterparty risk

10.  The Twenty Golden Rules of Investing 1.Understand the difference between investing and speculating 2.Do not borrow, do not buy on margin, do not leverage yourself and do not sell short 3.Decide whether you invest for income or for growth 4.Bet on the challenger, but do not buy at peaks 5.Invest only in stocks quoted in big boards

11. 6.Observe the 5 percent rule about assets at risk 7.Look at homework as a better guide than advice by other experts 8.Learn how to do fundamental analysis and technical analysis 9.Learn how to detect and analyze market trends 10.Never chase the return of shares you did not buy

12. 11.Always listen to contrarian opinion 12.Appreciate the need for rigorous risk management 13.Accept responsibility of your own decisions 14.Never hesitate to cut losses 15.Do damage control through limits and profit targets

13. 16.Consider flexibility as one of your best friends 17.Use mathematical models, but understand they are not fail-safe1 18.Factor-in the impact of market liquidity and volatility 19.Appreciate the impact of business risk 20.Look at conflicts of interest as part of daily life