1. BELL WORK What is the meaning of the cartoon?

2. VU NGUYEN FINANCIAL INTERMEDIARIES

3. INVESTMENTS Redirecting your resources to create benefits in the future. http://www.youtube.co m/watch?v=pYjTPLuNiok http://www.youtube.c om/watch?v=OjJRwbk otQM

4. FINANCIAL INTERMEDIARY An institution that acts as an agent or broker by accepting money from people who wish to save money and giving it to those who want to borrow money.

5. DEPOSITORY INSTITUTIONS Commercial banks. Savings and loans. Credit unions.

6. COMMERCIAL BANKS

7. WHAT BANKS CAN OFFER Savings (Checkings or savings account). Loans (Lending money to borrowers). Mortgages (Loan for the purchase of real estate). Credit Cards (Allow people to buy goods with a promise to pay later).

8. SAVINGS AND LOANS

9. CREDIT UNIONS Specialize in mortgages and car loans. Serve members of a credit union only not general public. Not-for-profit organizations.

10. NON-DEPOSITORY FINANCIAL INSTITUTIONS Finance companies. Life Insurance Companies. Pension Funds. Retirement Accounts. Financial Markets.

11. FINANCIAL COMPANIES Provide loans to households and businesses. Does not accept deposits from public. Use money from stockholders.

12. LIFE INSURANCE COMPANIES

13. PENSION FUNDS Accumulation of money from employees and/or employers.

14. RETIREMENT ACCOUNTS Not pensions. 401k. Individual Retirement Accounts (IRAs). Keogh Plans

15. DIVERSIFICATION Spreading out investments to reduce risk

16. DIVERSIFICATION To spread investment into a variety of assets.

17. BELL WORK What is the meaning of the cartoon?

18. FINANCIAL MARKETS Stocks Treasury Bills and Notes Bonds

19. STOCKS A way for corporations to make large amounts of money to reinvest in the business. http://www.youtube.com/watch?v=50yJHK_g_Ts

20. CAPITAL GAIN AND LOSS Gain- the difference between the higher selling price from the purchasing price Loss-Selling at a lower price than the purchasing price

21. STOCKBROKERAGES Stock brokers can buy or sell, advise customers what to buy or sell, or have complete authority over investments. Shares

22. STOCK EXCHANGES Markets for buying and selling stock. Examples: New York Stock Exchange and Nasdaq

23. BULL AND BEAR MARKET Bull Market- When stock market rises steadily over a period of time Bear Market- When stock market falls for a period of time

24. TREASURY BILLS AND NOTES A way for government to borrow money. T-bills or T-notes http://www.youtube.com/watch?v=cHnGK79_K7U

25. BONDS Issued by governments or corporations to borrow money for long periods. Different ratings (AAA, AA, A). Can be sold before maturity. http://www.treasurydirect.gov/kids/art/tv/tv_16.htm

26. MUTUAL FUND COMPANIES Financial institutions that pool together funs from large number of people. These funds are used to invest in financial assets, bonds, real estate, and stocks.

27. CERTIFICATE OF DEPOSITS Issued by banks http://www.youtube.com/watch?v=R-HKj8Yn06k

28. FINANCIAL RISK Credit risk Liquidity risk Inflation risk Time risk

29. SMARTSTOCKS.COM When you are advised to do so, get a computer from the mobile computer lab and go on smartstocks.com. You will buy, sell, or trade stocks and document your progress. http://www.learn360.com/ShowVideo.aspx?SearchText=financial+markets &lid=4926753&ID=930127