Lecture Overview:

• What is an investment?
• Financial markets and instruments
• Participants in the financial markets
• Issue securities
• Trade securities
• Buying on margin
• Short selling

What is an Investment?

Is the current commitment of money or other resources in the expectation of receiving future benefits.

Real Assets Used to produce goods and services.

• Land, buildings, machines, commodities.

Financial Assets Claims to the income generated by real assets or claims on income from the government. Do not directly contribute to the productive capacity of the economy.

• Stocks, bonds, derivatives.

Financial Markets and Instruments

• Money Market
• Capital Market
• Forex