150 likes | 379 Views
High School Financial Education Program Florida International University College of Business http:// business.fiu.edu/sffll 305-348-1542. What is a Market?. Buyers convene to negotiate with Sellers Law of Supply and Demand rules Goods are Allocated
E N D
High School Financial Education Program Florida International University College of Business http://business.fiu.edu/sffll 305-348-1542
What is a Market? • 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
Types of Markets • Direct Search Market • Brokered Market • Dealer Market • Auction Market
Market in Action What kind of market is this?
Asset Transformation • 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 • 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
The Players Government