The Free Market System Financial Markets. Saving and Investment 1.investment: the purchase of an asset in hopes it appreciates or generates income ●Examples:

Slides:



Advertisements
Similar presentations
Unit 4 Econ EOC Review.
Advertisements

The Stock Market Economics.
A Study of Risk & Reward. Why do companies issue stock? Corporations raise money by selling stockCorporations raise money by selling stock –By selling.
Investments & The Stock Market
9 Chapter Financial Institutions.
Key Terms from the World of Finance. Key Terms AMEX – Stands for American Stock Exchange. Located in New York City, this stock exchange sells memberships,
Investing: Taking Risks With Your Savings. Stocks are also known as securities As proof of ownership, you get a stock certificate Stocks What are they?
Investing: Taking Risks With Your Savings.  Part Owner of Corporation  Funds for expansion  Stock Returns ◦ Stockholders ◦ Dividend, return on investment.
FrontPage: Turn in Savings Calculator worksheet from yesterday if you didn’t finish. The Last Word: Ch 11 Review/Unit 4 Test Tuesday.
Unit 4. Money Three Uses: Medium of Exchange Barter Economy vs. Monetary Economy Unit of Account Store of Value Six Characteristics of Currency Durability.
Saving and Investing Objective:
Buying Stock: Corporations sell stock to raise funds. Stock represents ownership in the corporation and is issued in portions called shares.
STOCK MARKET. Two Things to do with Money Income not used for consumption Income today that allows future benefit INVESTMENTSAVE.
Financial Markets Chapter 11. BELLRINGER  What would you do if you suddenly received a cash payment of $100,000 that you were not expecting and didn’t.
Stocks, Bonds, and Futures Why Buy Stock? Gain a Profit Limit the Risk on their investment Become a part of a corporation Profit Potential Capital gain-
Saving and Investing How does investing contribute to the free enterprise system? How does the financial system bring together savers and borrowers?
Financial Markets and Risk
Chapter 11 Financial Markets and Investing Investing Investing – the act of redirecting resources from consumption today so that they may create additional.
Financial Markets. Saving & Investing Investment: the use of assets to earn income or profit. – Ex. Paying for college. Financial System: the system that.
Chapter 11 Financial Markets
Prepare for your Future Chapter 13. Investing  Making money with money  Investing = Saving  It involves risk—you can lose your $$
CH 11 Financial Markets 11.1 Saving and Investing.
The Stock Market Understand the risks Describe how stocks are traded
Financial Markets: Saving and Investing
Financial Markets. Section 1  Investment- the act of redirecting resources from being used today so they can be used to create future benefits  When.
1 Investing  Making money with money  Investing = Saving  It involves risk—you can lose your $$
Ch. 11: Financial Markets. What to do with money: Make a list of as many places you can think of that you could invest money...
Bell Ringer #1 Ch What is the difference b/w a savings account and a time deposit? 2. After the stock market crash of 1929, ___________________ was.
Chapter 11 Financial Markets.
What is a Stock Market?. Where do you go to buy CDs, jeans and books? –Just like a market for CDs, jeans and books, there is a market for stocks People.
Financial Markets Investing: Chapter 11.
Investment company that pools the funds of many individuals to buy stocks, bonds, or other investments.
Stock Market What is a Stock? A claim on the assets of a corporation that gives the purchaser a share in the corporation Ownership.
Chapter 11 Financial Markets. Investment Investment is the act of redirecting resources from being consumed today so that they may create benefits in.
Chapter 11SectionMain Menu Journal. Chapter 11SectionMain Menu 11.1 Saving and Investing How does investing contribute to the free enterprise system?
Stock Market. The Stock Market Investing in Stocks & Bonds Stocks - shares of ownership Stocks & bonds are also known as SECURITIES.
Chapter 11SectionMain Menu Saving and Investing How does investing contribute to the free enterprise system? How does the financial system bring together.
THE STOCK MARKET. THE FINANCIAL SYSTEM The financial system is a network of institutions which connect investors with borrowers. Institutions in the financial.
Savings, Investments & the Stock Market. Saving and Investment  Saving Not consuming all current income Not consuming all current income Examples: Savings.
Savings and Investment. Why do we invest? Spend It Save It Put It In The Bank Invest It If we have money we can... What are the Advantages/R isks of each.
Financial Markets Chapter 11. Financial Intermediaries Example: Nonbank Financial Intermediaries ◦Finance companies make small loans to households, small.
Bell Ringer If you could own stock in any company, which one would it be? Why?
E. Napp The Stock Market In this lesson, students will be able to identify characteristics of the stock market. Students will be able to identify and/or.
 Savings – income not used for consumption  Investment – the use of income today that allows for a future benefit  Financial System – all the institutions.
Chapter 6.2 Investing: Taking Risks With Your Savings.
Chapter 11 Financial Markets.
CHAPTER 6 NOTES. Statement savings account: savings account where the depositor receives a monthly statement showing all transactions. Money market deposit.
Financial Markets. Private Enterprise and Investing Investment is the act of redirecting resources from being consumed today so that they may create benefits.
Money Investments  What is an investment?  Investment is something bought for future financial benefit.  Promotes economic growth  Contributes to wealth.
INVESTMENTS – RISK TOLERANCE QUIZ Stocks Bonds Real Estate Collectibles Mutual Funds.
STOCK MARKET. INVESTMENT  Definition- act of redirecting resources from being consumed today so they may create benefits in the future.
Financial Markets Financial Assets-claim on the property or income of the borrower Financial Intermediary-institution that helps channel funds from savers.
The Free Market System Financial Markets.
Chapter 11 Financial Markets.
Where to Buy Stocks and Bonds
Saving and Investing EQ: Explain the differences between saving and investing and the benefits and risks of each. E. Napp.
Investing: putting savings to use
6.7 Stocks If a corporation needs to make money, they will often borrow it by selling bonds. They promise to repay the borrowed money back plus interest.
Chapter 11 – Financial Markets
Financial Markets Chapter 11
Investments: Chapter 11 Section 3
CH. 11: INVESTING.
CH. 11: INVESTING.
What is a Stock Market?.
Financial Markets and Risk
CH. 11: INVESTING.
Stocks: The Basics.
Chapter 11 Financial Markets.
Saving and Investing.
Presentation transcript:

The Free Market System Financial Markets

Saving and Investment 1.investment: the purchase of an asset in hopes it appreciates or generates income ●Examples: going to college, building a factory, buying real estate ●involves risk and reward ●key to economic growth in free market

“The Financial System” SAVERS (Households, Businesses) INTERMEDIARIES (Banks, Financial companies) BORROWERS (Governments, Businesses) Makes investment possible by allowing the transfer of money between savers and borrowers

Saving and Investment 2.diversification: spreading investments to reduce risk 3.return: the money an investor receives above and beyond the initial investment ●low risk and more liquidity = low return ●high risk and less liquidity = high return

Financial Assets 1.bond: a loan given to an entity for a defined period of time at a fixed interest rate ●treasury bond: issued by U.S. government ●municipal bond: issued by State or local governments ●corporate bond: issued by corporations

Types of Bonds TYPEISSUERRISKUSE TreasuryFederal Government Very LowFederal Projects MunicipalState & Local Governments LowLocal Projects CorporateCorporationsModerateBusiness Expansion

Financial Assets 2.savings account: a deposit with a modest interest rate allowing frequent withdrawal 3.certificates of deposit (CDs): a time deposit with a higher interest rate intended to be held until maturity 4.mutual funds: a holding that pools money from many people to purchase stocks and/or bonds

The Stock Market 1.stock: a claim of ownership in a corporation that is sold in portions called shares

The Stock Market 2.Making a Profit ●dividend: a portion of a corporation’s profit paid to shareholders ●capital gains: the difference between a higher selling and lower purchase price ●capital loss: the difference between a lower selling and higher purchase price

LaFleur’s Crazy Kicks Co. $100 $50 You Own: 5 shares at $100 per share 10 shares at $50 per share $500

The Stock Market 3.stockbroker: person who links buyers and sellers of stock

The Stock Market 4.stock exchange: a market for buying and selling stock

The Stock Market 4.stock exchange: ●NYSE: the largest exchange that handles transactions for “blue chip” companies ●NASDAQ: an electronic exchange that handles technology stocks ●AMEX: generally lists smaller companies

The Stock Market 5.Market Trends ●bull market: a steady rise in the market associated with confidence and the purchasing of stock by investors in anticipations of higher prices in future

The Stock Market 5.Market Trends ●bear market: a steady drop in the market associated with pessimism and the selling of stock by investors in anticipation of lower prices in future

Bull vs. Bear Markets

The Stock Market 6.Stock Indexes ●Dow Jones Industrial Average: compiles the prices of the 30 largest and most widely held public companies in U.S. ●S&P 500: gives a broader picture of stock performance

The Stock Market 7.Determinants of Stock Price ●corporate finances: corporations publish quarterly earnings reports ●business news: acquisitions, mergers, restructuring, product releases ●political events: elections, war, bailouts ●government statistics: unemployment, inflation, interests rates

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2024 SlidePlayer.com Inc. All rights reserved.