What is a Stock Exchange? Is traditionally a place where stocks (shares), bonds, and other financial instruments and derivatives (of the stocks) are traded.

Slides:



Advertisements
Similar presentations
CAPITAL MARKETS PRESENTED BY ANWAR MISBAH SOUBRA, Phd.
Advertisements

4-1 Business Finance (MGT 232) Lecture Business Finance Introduction Introduction (Financial Environment)
1 Chapter 5 Financial Markets & Institutions. 2 Topics The Capital Allocation Process Financial markets Financial institutions Stock Markets and Returns.
Chapter 5 Financial Markets and Institutions. Role of the financial market : allocate scarce resources (capital) from savers (suppliers) to investors.
Buying & Selling Securities. Primary Markets Primary markets: buyers invest in newly offered stock  Initial Public Offerings (lPO)  New issues of stock.
Mutual Funds Aim: Why do people invest in mutual funds? Do Now: What are some of the major problems/risks that come with investing in the stock market?
GBUS502 Vicentiu Covrig 1 Financial Markets and Institutions (chapter 2)
Financial Intermediaries Indirect Finance –An Institution stands between lender and borrower. Direct Finance –Borrowers and lenders deal directly with.
The Ups & Downs of the Stock Market. How does the stock market work? TkSI.
Stock Market Basics. What are Stocks? Stock is ownership in a publicly traded company. Stock is a claim on the company’s assets and earnings. The more.
Investing: Taking Risks With Your Savings.  Part Owner of Corporation  Funds for expansion  Stock Returns ◦ Stockholders ◦ Dividend, return on investment.
Stock Market Basics ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,
Financial Literacy. Why Learn About Stocks  The stock market is the core of America’s economic system Stock is a share of ownership in the assets and.
STOCKS AND STOCK MARKET Vypracovala: Zuzana Kunzová.
Presented by the Arkansas Securities Department AN INTRODUCTION To Securities & The Stock Market.
Dollars and Sense UNIT 5: Investing Part 3: Stocks.
What is a Stock? F.H. O’Hara Adapted from 2006 Foundation for Investor Education. All rights reserved.Begin What is a Stock? F.H. O’Hara Adapted from 2006.
Financial Markets Chapter 11 Sections 3 & 4.
Learning Objectives Explain the role of brokerage firms and stockbrokers. Explain how shares in public companies are “traded” Know different types of buy.
WOW 8 – THE STOCK MARKET. STOCK EXCHANGE: One of the organized stock markets with a centralized trading floor. Auction-type trading allows traders to.
4-1 CHAPTER 2 The Financial Environment: Outlines Financial Markets Financial Institutions.
The Canadian Investment Marketplace
Stock Market Teacher: Washington Macías R. ICHE - ESPOL.
All Rights ReservedChapter 5Slide 1 Financial Markets & Institutions Chapter 2 CapitalAllocation Financial Markets Market Efficiency.
Welcome Miami Northwestern Bulls! Florida International University State Farm Financial Literacy Lab.
LECTURE 3 Practice Questions Chapter 1 Chapter 2.
Stock Market Basics. What are stocks? A stock is a share in the ownership of a company. Stock represents a claim on the company’s assets and earnings.
Lecture 2: Financial Markets and Institutions Financial Management.
FNCE August Function of Financial Markets.
What is Money?  Accounting Measure  Standard of Value  Legal Tender  Financial Exchange  Purchasing Power.
Investments & the Stock Market PowerPoint Objective: Explain how the Federal Reserve, Stock Market, and e-commerce impact the United States’ economic system.
Financial System By-Arbin Shrestha. What is Financial System? System that allows the transfer of money between savers and investors and borrowers. “A.
The Financial System Chapter 16. LO 16.1 Outline the structure and importance of the financial system. LO 16.2 List the various types of securities. LO.
Finance Chapter 4 The financial environment: markets, institutions, & interest rates.
Revise Lecture 8. Q1: Topic of lecture 8? Revise Lecture 8 Ans 1: Money Market and Financial Services.
The Financial System Chapter 16.
Securities Market Investments and Portfolio Management MB 72.
Welcome to UIS!. What is UIS? Who we are What we do.
Stock Market Basics.
Final Vocabulary PowerPoint Brice Holmes. Stock The goods or merchandise kept on the premises of a business or warehouse and available for sale or distribution.
1 Chapter 06 Understanding Financial Markets and Institutions McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
FINAL VOCABULARY POWERPOINT BY; PARKER MADDEN. STOCK The goods or merchandise kept on the premises of a business or warehouse and available for sale or.
BINGO!. Please fill in the board with the following Brand Name Parent Company Subsidiary Opportunity Cost Private companies IPO Public Companies Dividends.
EQUITY MARKETS Sokolova Ksenia. EQUITY MARKETS: DEFINITION  The market in which shares are issued and traded, either through exchanges or over-the-counter.
PRIMARY VERSUS SECONDARY MARKETS
 Savings – income not used for consumption  Investment – the use of income today that allows for a future benefit  Financial System – all the institutions.
Chapter 5 Financial Markets and Institutions. Role of the financial market : allocate scarce resources (capital) from savers (suppliers) to investors.
WHAT ARE THEY DOING?. Stock Market Basics ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly.
Organization and Functioning of Securities Markets Shahadat Hosan Faculty, MBA Program Stamford University, Bangladesh
1 Lecture 2: Financial markets Mishkin chapter 2 – part A Page 23-28,
Chapter Eight Stock Exchanges. Stock and Shares Strictly speaking, stocks are fixed interest securities and shares are equities Share indices are usually.
Money Investments  What is an investment?  Investment is something bought for future financial benefit.  Promotes economic growth  Contributes to wealth.
WOW 6 – The Stock Market. Stock Exchange: One of the organized stock markets with a centralized trading floor. Auction-type trading allows traders to.
Investment Planning Chapter 11. Investing Placing money in some medium such as stocks, bonds or real estate in the expectation of receiving some future.
LESSON 4 The Structure of Financial Markets. A financial market is a market in which people trade financial securities, commodities, and other fungible.
Stock Market Basics.
Stock A supply accumulated for future use; a store.
Stock Market Basics.
Chapter 18 Financing and Investing Through Securities Markets
Investment Management
Holicong Financial Club Introduction
SECURITY MARKET & ITS FUNCTION
Overview of Financial Management and the Financial Environment
Week Notes.
WHERE CAN PEOPLE INVEST?
Stock Market Basics.
Stock Market Basics.
Financial Algebra 20 April 2018.
Stock Market Basics ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,
Financial Algebra 16 April 2018.
Presentation transcript:

What is a Stock Exchange? Is traditionally a place where stocks (shares), bonds, and other financial instruments and derivatives (of the stocks) are traded. Stock is sold for the highest bid and bought for the lowest offer where prices of the stocks are determined by the laws of supply and demands. E.g. London Stock Exchange (LSE), New York Stock Exchange (NYSE), Hang Seng etc.

Primary and Secondary Market Stocks (shares) and bonds are collectively referred as securities Primary Market: securities are initially issued and sold to the investing public. Secondary Market: after being issued and sold, these securities are further traded in secondary market.

Contribution toward economy

Common vs. Preferred Stocks

Types of BONDs

Stock Prices Report

Investing or Speculating?

Derivatives Securities

Mutual Funds