Describe the differences between investment, savings, speculation and gambling and identify the categories of the following scenario. Scenario 1 Melissa deposits RM500 every month in her savings account so that she can use the money as a down payment for her new car in two years’ time. Scenario 2 Zack bought 100 lottery tickets at RM5.00 per ticket with the hope of winning the first prize plus a bonus of RM 2 million. Scenario 3 Emily bought 5,000 units of MWM shares at RM0.55 per share and she intends to sell it as soon as the price rises to RM0.62 per share. Scenario 4 David bought 1,000 units of ABC Bank shares at RM3.50 per share and plans to hold them for the long term because he thinks that ABC Bank would be able to pay ‘good’ dividends and the price of the shares would increase in the future.
Describe the differences between investment, savings, speculation and gambling and identify the categories of the following scenario.
Scenario 1
Melissa deposits RM500 every month in her savings account so that she can use the money as a down payment for her new car in two years’ time.
Scenario 2
Zack bought 100 lottery tickets at RM5.00 per ticket with the hope of winning the first prize plus a bonus of RM 2 million.
Scenario 3
Emily bought 5,000 units of MWM shares at RM0.55 per share and she intends to sell it as soon as the price rises to RM0.62 per share.
Scenario 4
David bought 1,000 units of ABC Bank shares at RM3.50 per share and plans to hold them for the long term because he thinks that ABC Bank would be able to pay ‘good’ dividends and the price of the shares would increase in the future.
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