1. Global Financial Markets
CHAPTER 21
11/15/2018
CHAPTER 21
Global Financial Markets
21-1 Global Stock Markets
21-2 Bond Markets and Other Financial Markets
21-3 Global Investments
INTERNATIONAL BUSINESS

2. LESSON 21-1 Global Stock Markets
GOALS
Describe how and where stocks are bought and sold.
Explain factors that affect stock prices.
Identify major sources of stock market information.

3. 21
Major Stock Exchanges
A stock exchange is a location where stocks are bought and sold.
More than 130 stock exchanges around the world

4. The Stock Market in Action21
The Stock Market in Action

5. Stock Market Price Information21
Stock Market Price Information
The main influence on stock prices is demand for ownership in a company based on its current and future profitability.
In addition, economic conditions, the political situation, and social trends can influence stock prices.
After an agreement on price is reached, this information becomes public.
Each day millions of stocks are bought and sold. Information about current stock prices, dividends, volume, and past prices are reported online, on television, and in newspapers.

6. LESSON 21-2 Bond Markets and Other Financial Markets
GOALS
Explain how investors earn money from corporate bonds.
Identify different types of government bonds.
Describe the role of other global financial markets.

7. 21
Corporate Bonds
A bond is a certificate representing money borrowed by a company or another organization to be repaid over a long period of time.
A corporate bond is a debt certificate issued by a multinational company or another corporate enterprise.

8. Two Types of Corporate Bonds21
Two Types of Corporate Bonds
A mortgage bond is debt secured by a specific asset or property.
The collateral for a mortgage bond may be equipment, a building, or land.
A corporate bond without collateral is a debenture bond.
These are unsecured debt in which the bondholder is a general creditor of the company.

9. Government Bonds 21 Federal government bonds
State and local government bonds
Foreign government bonds

10. Other Financial Markets21
Other Financial Markets
The over-the-counter (OTC) market
Foreign exchange market
Futures market

11. LESSON 21-3 Global Investments
GOALS
Describe the two major goals of investors.
Analyze international investment opportunities.
Identify major sources of investment information.

12. Investment Goals 21 Current income Long-term growth
Dividends from stocks
Savings certificates
Corporate bonds
Rental property
Long-term growth
Growth stocks
Raw land
Gold, silver
Coins, stamps
Arts, antiques

13. Global Investment Opportunities21
Global Investment Opportunities
Identifying potential investments
Evaluating investment opportunities
Rate of return
Liquidity
Taxes
Safety

14. Investment Information Sources21
Investment Information Sources
News media
Internet
Financial experts
Investment information services