1. Investment Group 6 (2CFM): Dator, CamilleCruz, Nicole Cabusas, JoeyNocon, Francis Araza, Gilbert

2. What is investment? Short-term or long-term are assets held by an entity or the accretion of wealth not directly identified with the operating activities

3. Cash is used for the following purposes: 1. Investing in current operations 2. Investing in temporary investments to earn additional revenue 3. Investing in long-term investments in stock of other companies for strategic reasons

4. Cash is also used to pay the following: 1. Expenses 2. Suppliers of merchandise and other assets 3. Interest to creditors 4. Dividends to stockholders

5. Investing cash in temporary investments: 1. Debt securities – notes and bonds that pay interest and have a fixed maturity date. 2. Equity securities – preferred and common stock that represent ownership in a company and do not have a fixed maturity date.

6. Primary objective in investing in temporary investments is to: 1. Earn interest revenue 2. Receive dividends 3. Realize gains from increases in the market price of the securities

7. Investing cash in long-term investment: Strategic purpose of long term investment: 1. Reduction cost 2. Replacement of management 3. Expansion 4. Integration

8. Debt and Equity Securities are classifies as follows:

9. 1. 1. Trading securities debt and equity securities that are purchased and sold to earn short-term profits from changes in their market prices. Realize profit through trading

10. 2. 2. Available-for-sale securities are debt and equity securities that are neither held for trading, held to maturity, or held for strategic reasons. Neither trading securities or held-to- maturity Direct equity item

11. 3. 3. Held-to-maturity securities debt and investments, such as notes or bonds that a company intends to hold until maturity date. Collect interest and principal