High School Financial Education Program Florida International University College of Business

Buyers convene to negotiate with Sellers Law of Supply and Demand rules Goods are Allocated Government regulates to make sure competition is fair Equilibrium is the price that buyers and sellers agree on

Direct Search Market Brokered Market Dealer Market Auction Market

What kind of market is this?

Real Assets vs. Financial Assets Real= Physical and Identifiable Machinery, Agriculture, Gold, Oil Financial Assets Money, Bonds, Stocks, Derivatives Financial Assets allow people to transfer consumption, store value, and have a medium of exchange.

Financial Markets serve to match those with an excess of funds to those that have shortage Many intermediaries are involved in the process Investment Banks Mutual Funds Pension Funds Commercial Banks

Savers Companies HouseholdsGovernment Financial Intermediary Capital MarketsBanksHedge FundsMutual FundsPension Funds Borrowers Government Companies Households Government