Download [2] Bibliotecas del Tecnológico de Monterrey – Investment Strategy

Nombre: Julio César Pomposo
Nombre del curso: Inglés V
Matrícula:
2542767
Nombre del profesor: Miriam Hernández
Martínez
Módulo: 1. Industry and trade
Actividad: Review units 4 to 6
Fecha: 17 de junio de 2011
Bibliografía:
Talcott, C. et all. (2007) Target Score Second edition. Cambridge University Press
Objetives:
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Use comparatives and superlatives
Use causative verbs
Use future forms
Procedimiento:
1. I read the module 2. Industry and trade ( Topics 5,6,7 and 8 )
2. I read the slides 5,6,7 and 8 of module 2
3. I was practiced discovering vocabulary related to stores and products
4. I used vocabulary related to problems and reasons for such problems
Results:
Instructions:
You are going to get a promotion in the NYSE! It is the opportunity you were asking for…but
here comes the deal: Your boss wants you to train her daughter. Your promotion depends on
this. Surprise: She does not know anything about stocking so you need to introduce the most
common terms to her. Write down definitions and examples (15 terms at least).
Commission: Commission is the money paid to a person who sells your product or service to a
customer. Commissions paid can be a set amount of money per unit sold or a percentage of
the sale.
Earnings: Your earnings are your income or profit.
Equity: Equity in a business is the difference between your assets and liabilities. Simply, if the
business has $1,000 in assets and $100 in liabilities, then the business has $900 in equity.
Fixed Costs: Fixed costs are the costs that do not change in relation how much you sell. Paying
rent or salaries are examples of fixed costs. They do not change if your sales or income/profit
increase or decrease.
Gross Margin: Your gross margin is the difference between the total amount of money you
made from selling your product or service and the total amount of money your product or
service cost you. For example, if it cost you $10 to make your widget, but you sold it for $30,
your gross margin is the difference - $20.
Inventory: Your inventory are the goods you have on hand or in stock. Your inventory can also
be the materials you have on hand that are used to manufacture your product.
Invoice: An invoice is the bill that is given to the purchaser of a product or service for money
due.
Liabilities: Your liabilities are your debts. They are items in which you owe money. If the debt
can be repaid in less than five years, it's considered a short-term liability; longer than five
years, it's a long-term liability.
Marketing Collateral: Marketing collateral are the materials used to describe your product or
service. Brochures, newsletters, postcards, flyers, and press releases are all forms of
marketing collateral.
Profit: Your profit is the money you made from the sale of your product or service minus your
costs/expenses before tax. Your net profit is the money you made minus your costs/expenses
AND tax.
Return on Investment (ROI): A ROI is your net profit divided by your total equity. For
example, if cost you $100 to invest in a lawnmower and over six months, your net profit from
mowing lawns with it was $1,000. Your ROI is 90 percent. To calculate:
Equity ($1,000) - Cost ($100) / Cost ($100) = ROI
Variable Costs: Variable costs are costs that change in proportion to the number of units
produced. For example, if you own a dog grooming business, dog shampoo is a variable cost.
You only incur the cost based on the number of dogs you wash. Variable costs aren't as risky
as fixed costs because you only incur them when you sell your product or service.
Wholesaler: A wholesaler is a person who provides the distribution of inventory from the
manufacturer to the retailer.1
Now that she is getting familiar with the terms it is time to explain to her what to do before
investing. Number a set of steps to achieve before you take the risk to invest. Do not forget to
give examples.
Bibliotecas del Tecnológico de Monterrey – Common Business Words – http://biblioteca.itesm.mx
Visitado 17 de junio de 2011
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Financial Steps to Invest
Step No. 1 Appoint a Legal Representative of Industry
Step No. 2 Incorporate the company at NYSE
Step No. 3 Open a bank account
Step No. 4 Funnel your investment through the foreign exchange market
Step No. 5 Register the investment with the bank, on the foreign exchange report form
Step No. 6 Repatriate your profits without paying taxes
You have spent time with her and you already know that she is interested in architecture. You
need to take advantage to show her that she can join both worlds (investment-architecture).
Surf the web, find examples, and design a chart of cause and effects of investment in
architecture.
Cause
Effects
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Cash Flow from Rental Income
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More Value at Sale
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Increases in Value Due to Appreciation
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You Could Just Find that "Steal of a Deal"
You are giving the report to your boss and he is very happy with it. In fact, he decides that her
daughter and you are going to work together! You did not see it coming, did you? This time
you will give your new teammate examples of does and don’ts in this business. Make a chart:
You must
You need to
You have to
Concentration
Discipline and self control
Great personnel
Professionalism
Honesty
Innovation
Speed / efficiency
Management skill
Strategic marketing plan
Write a report about your strategies to introduce someone new into the investment world.
Deliver it to your teacher.
A well-planned investment strategy is essential before having any investment decisions. A
business strategy is generally based upon long run period. Formation of business strategy
largely dependent upon the factors such as long-term goals and risk on the investment.
As the return on investment is not always clear, so the investors prepare the strategy so as to
face the ongoing challenges in investment. A balanced investment strategy is generally
required in the process of investment, which possesses long time period and some risk
tolerance.
In the case, when a strategy is aggressive the chance of attaining a higher goal is higher. An
efficient strategy can be obtained from portfolio theory, which shows good estimates on risk
and return.
Investment Strategy is usually considered to be more of a branch of finance than economics. It
is defined as set of rules, a definite behavior or procedure guiding an investor to choose his
investment portfolio. For example, investing in mutual funds has recently emerged as a very
favorable investment strategy.
An investment strategy is centered on a risk-return tradeoff for a potential investor. High return
investment instruments such as real estate and mutual funds usually have more risks
associated with it than low return-low risk investment opportunities. Return on investment can
be calculated on past or current investment or on the estimated return on future investment. 2
Conclusions:
In this module 2, I learnt too many vocabulary about industry and trade and development
projects, reviewed determiners, a lot of vocabulary related to industry, and recognize
synonyms and antonyms, also learned new ways to meet business strategies
Bibliotecas del Tecnológico de Monterrey – Investment Strategy, Guide to Investment Strategy
– http://biblioteca.itesm.mx Visitado 17 de junio de 2011
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