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Ch 1: Financial Markets & Financial Instruments

About This Chapter

Study this chapter on financial markets and financial instruments at your own pace to boost your understanding of essential finance concepts. These mobile-friendly lessons and quizzes can function as convenient test prep and homework help resources.

Financial Markets & Financial Instruments - Chapter Summary

Learn about financial markets and financial instruments with this collection of video and text-based finance lessons. Follow along with our expert instructors to examine financial markets, capital market history, bond market strategies, the stock market and much more. Each lesson comes with a short quiz to help you retain the information you study. You can also reach out to our instructors if you have any questions and access the chapter wherever and whenever it's convenient. When you're finished with the chapter, you should be able to:

  • Evaluate different types of financial markets, money market funds and bonds
  • Explain the money market, as well as the concept of supply and demand
  • Identify different types of money market funds
  • Summarize the history of capital markets
  • Analyze several bond market strategies
  • Define the stock market
  • Compare common stock and preferred stock
  • Differentiate between primary and secondary mortgage markets
  • Recognize examples of currency trading
  • Understand how exchange rates are determined

11 Lessons in Chapter 1: Financial Markets & Financial Instruments
Test your knowledge with a 30-question chapter practice test
Financial Markets: Types & Characteristics

1. Financial Markets: Types & Characteristics

Have you ever wanted to start a business? How would you get the money to start your business? Financial markets can be used to generate capital for new and existing organizations. Short-term and long-term assets are traded on the financial market to raise money over short and long periods of time.

The Money Market, Supply & Demand

2. The Money Market, Supply & Demand

So much of the economy hinges on money. But this medium of exchange is actually a good, just like butter or books. This lesson explains money as a good, as well as how economists describe money.

What Are Money Market Funds? - Definition, Types & Examples

3. What Are Money Market Funds? - Definition, Types & Examples

Do you want to earn a higher rate of return on your investment but want to do it in a safe and less risky way? Read on to find out more about money market funds and how they can help you earn a higher rate of return in a low risk way.

The History of Capital Markets

4. The History of Capital Markets

Wall Street has been a hub for financial markets since the 1700s, but other financial markets existed long before that. This lesson discusses the history of financial markets and how they have developed into the intricate systems they are today.

Bond Markets: Analysis & Strategies

5. Bond Markets: Analysis & Strategies

Bonds may not be the most exciting investment opportunity, but they serve a valuable role in providing stability for an investment portfolio. Let's take a look at what investors need to know about bond purchases and strategy.

Bonds: Types, Characteristics and Issuing Procedures

6. Bonds: Types, Characteristics and Issuing Procedures

In this lesson, you will learn about some of the more common types of bonds and their characteristics. Bonds include: secured and unsecured bonds, term and serial bonds, registered and bearer bonds, and convertible and callable bonds.

Stock Market: Definition & Indices

7. Stock Market: Definition & Indices

Understanding what the stock market is and how indices summarize the market are essential pieces of knowledge for an investor. Let's take a look at what these terms mean and how investors apply these concepts.

Comparing Common & Preferred Stock

8. Comparing Common & Preferred Stock

From the sound of it, preferred stock has to be better than common stock, right? However, the simple truth is that it depends. For many people, common stock is the better option because it lets them vote.

Primary vs. Secondary Mortgage Markets: Definition & Differences

9. Primary vs. Secondary Mortgage Markets: Definition & Differences

Mortgage markets are not only important for borrowers and lenders, but they also play an important role in the world of investment. In this lesson, you'll learn about the primary and secondary mortgage markets in the United States.

What is Currency Trading? - Definition & Examples

10. What is Currency Trading? - Definition & Examples

Currency trading may only seem like something of necessity when one travels from one country to another. This lesson will discuss currency trading as a profitable venture, and how owners/managers of such businesses deal with the fluctuations that can occur in currency valuation.

Exchange Rate: Determination and Conversion Across Countries

11. Exchange Rate: Determination and Conversion Across Countries

Understand what exchange rates are and the different types that can be used by governments and countries. See how they operate and how the conversion process works across countries.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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