The Three Most Important Things I Leaarned in This Course Essay examples

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We learned so much in course that applies to our everyday lives and the condition and operation of the country that I actually wish they had taught it back in high school. There was so much subject matter covered that it is difficult to narrow what I learned down to just three things. The textbook and supporting documentation and discussion pertained to the financial system. The financial system is basically how the money moves through our economy. Funds flow primarily through the financial markets which our book defines as; “Markets in which funds are transferred from people who have excess available funds to people who have shortage”. (Mishkin, 2010) The key is to keep the funds productively working in the economy. I will focus …show more content…
Examples of these markets are the stock market and the bond market. These markets exist throughout the developed world. Stocks are a share of ownership that you purchase in a company. The money is used to finance the company and the stock holder receives a share of the profit, known as a dividend. The stock holder owns the shares until they choose to sell them. Bonds are a security that helps to pay the debt of an institution. The bond holder is promised periodic payments for a specified amount of time. There are two types of markets as well. The primary market is where new issues of securities, such as stocks and bonds, are sold to the initial buyers. Secondary markets are where existing securities are re-sold. The secondary market is also the more common market for the average person. An example would be the New York Stock Exchange. Financial intermediaries are institutions that help to move funds from those with surplus to those who need them. Rather than work directly in the primary markets, we as individuals can more safely and easily work with these intermediaries. It is easier for a large organization to measure the amount of risk, or chance that the investment will not pan out, as they have more resources and expertise. It is this risk as compared to potential reward that helps to gauge the interest that potential investors will have in the

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