1. Chapter 11 Review
Financial Markets

2. Concepts Municipal Bonds
What are they?
What is their risk level?
What type of investor do they attract?
The different markets for trading stocks in the U.S.
Bear v. Bull markets
Where are most stocks traded?
What trading occurs in each market?

3. Concepts How does interest help you? Put v. Call options
Which one gives you the right to sell?
How does it work?
What are the benefits/drawbacks?
Which one gives you the right to buy?
How does this work?

4. Chapter 11 Visuals
Pg. 312

5. Concepts What are bonds? How do mutual funds work? How do they work?
What type of investment are they?
What type of investor would be attracted to them?
How do mutual funds work?
Buying/Selling
What are the advantages/disadvantages?

6. Chapter 11 Visuals
Pg. 298

7. Concepts What is the difference between: Treasury Bonds Savings Bonds
Capital markets,
Primary markets,
Money markets, and
Secondary markets?
Treasury Bonds
Savings Bonds

8. Concepts What does par value of Bonds mean?
How do savings rates effect the economy?
Reading and interpreting stock tables.
What are junk bonds?
What are nonbank financial institutions?
What is the spot market?

9. Concepts Efficient Market Hypothesis What does ‘diversification’ mean?
How does this help investors?
What does ‘diversification’ mean?
What are ‘Blue Chip’ stocks?
What is found on the Dow Jones?
What is a ‘stock split’?

10. Chapter 11 Visuals
Pg. 312

11. Closing Prices 12/12/12

12. Chapter 11 Visuals
Pg. 312

13. Essay Topics
What is the difference between the following types of investments; stocks, bonds, and certificates of deposit? Compare their risk as investments.

14. Essay Topics
How does the financial system work to transfer funds from savers and investors to borrowers?

15. Essay Topics
Using the stock report provided, be able to read and answer questions about the information presented.

16. Essay Topics
Identify and be able to explain the basic investment considerations one might use to guide their investment strategies.

17. Review Questions
Pg. 314 – 315
24,28,29,33