2 The Stock Market Stock a claim to partial ownership in a firm equity finance vs debt finance stock exchange, e.g. New York Stock EXchange, the American Stock EXchange, NASDAQ(National Association of securities Dealers automated Quotation system) prices are determined by the supply and demand for the stock in these companies stock index: an average of a group of stock prices
2. The Stock Market ➢ Stock ⚫ a claim to partial ownership in a firm ⚫ equity finance vs debt finance ⚫ stock exchange, e.g. New York Stock Exchange, the American Stock Exchange, NASDAQ (National Association of Securities Dealers Automated Quotation system) ⚫ prices are determined by the supply and demand for the stock in these companies. ⚫ stock index: an average of a group of stock prices
3. Bank Financial intermediaries financial institutions through which savers can indirectly provide funds to borrowers Bank's primary job to take in deposits from people who want to save and use these deposits to make loans to people who want to borrow
3. Bank ➢ Financial intermediaries ⚫ financial institutions through which savers can indirectly provide funds to borrowers ➢ Bank’s primary job ⚫ to take in deposits from people who want to save and use these deposits to make loans to people who want to borrow