8/18/2019 ECON 311 - Chapter 3

1/6

Financial Markets

and Exchange

2. How do financial markets work?

1. Why do we need financial markets?

8/18/2019 ECON 311 - Chapter 3

2/6

Stock: ight to a share in the !rofits of a firm

8/18/2019 ECON 311 - Chapter 3

3/6

"onds: #romises to make fixed !eriodic !ayments

8/18/2019 ECON 311 - Chapter 3

4/6

$ld "ond

With #a!er %o&!ons

8/18/2019 ECON 311 - Chapter 3

5/6

From The Economist 

8/18/2019 ECON 311 - Chapter 3

6/6