1. Ch. 11Financial Markets MASON EDUCATION

2. Table of Contents 1.Bell Journals 2.Warren Buffet Profile 3.Ch. 11 Breakdown 4.Ch. 11 Vocab 5.Big Charts Headline current event 6.Lecture notes Sect: (1-3) 7.Journal Discussion: Saudis Withdraw Billions 8.Financial Markets packet (1-3)

3. Bell J How are savers and borrower linked when it comes to investing? Explain 2-3 sentences review pg. 273 Figure 11.1

4. Economic profile: pg276 Read the profile on Warren Buffett Answer check for understanding questions (1-3)

5. UGLY WALL STREET JOURNAL Students will create three articles for a Wall Street Journal using the information from Ch. 11 Financial Markets chapter. Students will use 8 vocabulary terms from each section of Ch. 11 to implement into three articles listed below. Articles will give authors point of view on each article title with the following criteria’s met:

6. UGLY WALL STREET JOURNAL Article Titles Saving and investing for college Are bonds and financial assets a good investment? How to own the Stock Market! Magazines are Due Friday April 22 nd @ beginning of period 8 Vocabulary terms implemented in each article 20% Terms used with current, relevant examples 10% Articles provide educational value 10% Students provide creativity and character in article! 10% Each article includes illustration 10% Magazine cover included 10% Articles are type and 200 words (min) 10% Overall appearance of article 10%

7. Bell J Take out UWSJ Instructions Create your focus statement for articles 1-3 of your UGLY Wall Street Journal

8. Bell J Interpret the photo on page 271 What is the meaning of this photograph? 2-3 sentences

9. S1: Video hook http://www.foxnews.com/poli tics/2016/04/16/report- saudis-vow-to-sell-us-assets-if- congress-decides-gov-was- involved-in-911.html http://www.foxnews.com/poli tics/2016/04/16/report- saudis-vow-to-sell-us-assets-if- congress-decides-gov-was- involved-in-911.html http://www.bloomberg.com/n ews/videos/2014-10- 30/lebron-james-is-clevelands- economic-mvp http://www.bloomberg.com/n ews/videos/2014-10- 30/lebron-james-is-clevelands- economic-mvp

10. Introduction: (S1)Saving and Investing 1.How does investing contribute to the free enterprise system. 2.How does the financial system bring together savers and borrowers. 3. How do financial intermediaries link savers and borrowers. 4. What are the trade offs among risk, liquidity, and return

11. S1: Investing and Free Enterprise Investment promotes economic growth and contributes to a nations wealth When people make deposits in banks, banks lend the funds to businesses

12. S1: Investing and Free Enterprise Businesses can invest that money in equipment and plants to increase production As businesses expand and grow they create new and better products & jobs

13. S1: The Financial System A financial system must be in place for investments to happen A financial system allows money to transfer between Savers and borrowers

14. S1: The Financial System Financial assets (securities) represent claims on the property or income of the borrower. These documents (printouts/certificates) can serve as proof in court that money was borrowed and that repayment is expected

15. S1:Financial Intermediaries

16. Types of Intermediaries: Banks/SLA assoc, Credit Unions Finance companies Mutual funds Life insurance companies Pension funds

17. S1:Financial Intermediaries Why Financial Intermediaries? Sharing Risk-Diversification: diversify/spreading investment Providing information Providing liquidity (money availability)

18. S1:Risk, Liquidity, and Return Savings accounts provide safe but small return and immediate liquidity Certificates of deposit have higher return rates than savings accounts but do not provide immediate liquidity There is risk in Investing your money in business that do no

19. S1:Risk, Liquidity, and Return Risk in Investing Investing in successful business provides return Investing in a unsuccessful business or borrower that defaults on there loans is risky Higher interest rates are required for riskier loans

20. Journal Discussion: Saudis withdraw Tens of Billions from the US 1.Summarize Rense article on Saudis withdraw 2.Describe the effects of the Saudis withdraw on the US economy 3. Is the US economy too dependent on foreign investments

21. Class Discussion For the US to survive without foreign money we must ____? The hope of the US is ____?

22. Bonds and Other Financial Assets Describe the characteristics of bonds as financial assets. Identify different types of bonds Describe the characteristics of other types of financial assets. Explain four different types of financial asset markets.

23. Bell J Use pg. 280 List the different types of bonds Which type of bond would you feel must comfortable investing your money 2-3 sentences

24. S2: Bonds as financial assets Bonds are basically loans that represent debt that the government or a corporation must repay to an investor. Bonds typically pay the investor a fixed amount of interest at regular intervals for a fixed amount of time

25. S2: Bonds as financial assets Bonds are lower risk investments The three components of Bonds Coupon rate Maturity Par Value

26. S2: Bonds as financial assets Buying Bonds at a discount Why? Interest rates are always changing Investors earn interest on the bonds they buy. They can also earn money by buying bonds at a discount from par.

27. Discounts from Par

28. S2:Bond Rating Investors can check bond quality through two firms that publish bond ratings. Standard & Poor’s and Moody’s rate bonds on a number of factors such as: Issuers ability to make future interest payments repay the principle when the bond matures

30. Sell me a Bond Individual Create a bond include the information from section 2 on Bonds Type of Bond Par Value Coupon Rate Maturity Rating Bond must have design with illustration & color

31. 30 Days: Minimum Wage 1.What is the current minimum wage in America 2.Does the price of living in America and minimum wage match? Why or why not? Explain 3-4 sentences