1. High School Financial Education Program Florida International University College of Business http://business.fiu.edu/sffll 305-348-1542

2.  Recap  What types of markets do they trade on?  What are the financial products available to me?  Are there fees to investing?  What are the risks?  Can you give me a taste of derivatives?  Showtime!

3.  Types of markets  A bit of economics  What is the purpose of the financial industry?  What kind of market is the flea market?  My mom matches people that want to buy boats with sellers of boats. What is she?  I put in ad on a website. What kind of market is this?

4.  Very liquid  Near-Cash instruments  Less than one year  Low default risk  Lower rates of return

5.  Treasury bill (T-Bill)  Treasury note  Treasury Bond  Very liquid, practically cash  Can be bought directly from the Treasury

6.  Very few risks ◦ Price risk ◦ Inflation  Default risk- practically zero

7.  Issued by corporations with very high credit rating  Up to 270 days maturity in order to avoid registration  Minimum investment $100,000  For short-term corporate investments

8.  Default Risk  Price risk  Inflation risk

9.  Recap ◦ Money Market vs. Capital Market ◦ Treasury instruments ◦ Commercial paper  Any questions?