Beyond the Sound Bites:
The Chapter 10 Section 1 Quiz Make-up is today.
The Chapter 9 Test Make-up is today.
The Quiz 9.(4) Prep Page is available.
For the Make-up Quiz, consider the material found in Chapter 9 Section 3:
minimum tax, VAT (Value-Added Tax), flat tax, federal tax reform, business taxes, profits, tax burden, personal income rate, depreciation, investment tax credit, and, capital gains.
Cf. http://shanawiki.wikispaces.com/Honors+Business+Economics+Chapter+9+Section+4+Quiz+Prep+Page+Spring+2011
Standard feature:
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URL: http://nie.philly.com
Click on the words "Access e-Inquirer" located on the gray toolbar underneath the green locker on the opening page.
Login:
Username: bshsinky@shanahan.org
Password: 10888
Chapter 11 Resources
Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit3/chapter11/chapter_overviews.html
Chapter 11: Financial Markets
Section 2 Financial Assets and Their Markets
Bonds as Financial Assets
Bond Components
Bond Prices
Bond Yields
Bond Ratings
In-class assignment, with a partner, answer the following.
Reading Check
What factors determine a bond's value?
Financial Assets and Their Characteristics
Certificates of Deposit
Corporate Bonds
Municipal Bonds
Government Savings Bonds
Treasury Notes and Bonds
Treasury Bills
Individual Retirement Accounts
In-class assignment, with a partner, answer the following.
Reading Check
Analyzing
What features of a government bond most appeal to you?
Markets for Financial Assets
Capital Markets
Money Markets
Primary Markets
Secondary Markets
In-class assignment, with a partner, answer the following.
Reading Check
Contrasting
How are capital and money markets different? How do primary and secondary markets differ?
In-class assignment, with a partner, fill in the graphic.
11.2 Review
Use the graphic organizer to identify the characteristics of financial assets.
Case Study The NYSE
In-class assignment, with a partner, answer the following.
p. 304, #1 Why did the NYSE decide to expand into overseas markets?
p. 304, #2 What has happened to NYSE's share of market capitalization since the enactment of SarbOx (Sarbanes-Oxley Act)?
Then, answer the following while viewing the video.
How long has the NYSE been exclusively American?
Which country, U.S. or German, will own the majority of the NYSE?
Is New York, and American, still the dominant player in world financial markets?
Are derivatives a safe investment, or more risky?
The NYSE may not be New York anymore.
In finance, a derivative is a financial instrument whose value depends on other, more basic, underlying variables. Such variables can be the price of another financial instrument (the underlying asset, interest rates, volatilities, indices, etc. There are many kinds of derivatives, with the most common being swaps, futures, and options. Derivatives are a form of alternative investment.
Germany Buys New York Stock Exchange - Possible Dollar Collapse? 1:36
11.3 Investing in Equities and Options
Guide to Reading
equities
In-class assignment, with a partner, answer the following.
What are equities?
What do you call a person who considers equities?
What is a key factor?
How much, or how little, should you invest?
Finance & Investment Tips: What Are Equities? 1:14
Equities are a short term finance term given to stocks, bonds and mutual funds when an individual and financial investor has a stake in investment instruments. Understand equities and the risk factors involved with advice from a registered financial consultant in this video on finance and investment.
Expert: Patrick Munro
stockbroker
In-class assignment, with a partner, answer the following.
What is important when choosing a stockbroker?
What suggestions are available if you want a less expensive option?
Investment Advice: How to Choose a Stockbroker, 1:23
Choose a stockbroker by finding a brokerage firm that fits your financial goals and preferences. Use a traditional brokerage to get more direction and support or an online brokerage for cheaper trading. Find out more about finding the right stockbroker with advice from a financial consultant in this video on stockbrokers.
In-class assignment, with a partner, answer the following.
Efficient Market Hypothesis (EMH)
Trust Me, I'm an Economist, 2:54
Do most people most of the time choose the best option?
As a result, are there easily predictable bargains?
What do economists call this?
Can all experts be trusted, why or why not?
Tim Harford in the BBC 2 show, with a demonstration of why you should never trust the experts.
portfolio diversification
In-class assignment, with a partner, answer the following.
Faculty Focus: Don Chance speaks about portfolio diversification, 2:37
Why is portfolio diversification important?
What popular expression reflects this view?
What shouldn't you do?
What is the lesson?
Faculty Focus, a new video series from the E. J. Ourso College of Business, showcases research faculty in regular installments. In this episode, Dean Eli Jones interviews James C. Flores Endowed Chair of MBA Studies and Professor of Finance Don Chance about how investors should be diversifying their portfolios.
mutual fund
In-class assignment, with a partner, answer the following.
Investment Basics: How Do Mutual Funds Work? 1:12
How do mutual funds work?
What do they charge?
Where do you find information about them?
net asset value (NAV)
401(k) plan
In-class assignment, with a partner, answer the following.
What will companies encourage their employees to do?
Do you pay taxes on these monies?
Can you take the money out at any time?
Finance & Investment Tips: 401k Plan Benefits, 1:25
Benefits of a 401k retirement savings plan include tax-free deductions, which could affect an individual's adjusted gross income, and receiving matching financial contributions from an employer. Understand the benefits of a 401k savings plan with tips from a registered financial consultant in this video on finance and investment.
Expert: Patrick Munro
stock exchange
In-class assignment, with a partner, answer the following.
When did the NYSE begin?
What famous person went there often?
What does the Exchange mirror?
Stock Market: History of the New York Stock Exchange, 2:26
The New York Stock Exchange began in 1792, with people exchanging certificates at a common meeting place for George Washington. Learn about the movement of the New York Stock Exchange over the years with help from a personal asset manager in this free video on investing in the stock market and money management.
Expert: Roger Groh
securities exchange
In-class assignment, with a partner, answer the following.
Personal Finance: What Is the Securities & Exchange Commission (SEC)? 1:37
What is the Securities and Exchange Commission?
What limits their power?
Is it a bi-partisan commission?
Are stockbrokers under their supervision?
over-the-counter market (OTC)
In-class assignment, with a partner, answer the following.
Over the Counter Vs. Exchange Traded Markets, 5:15
What is the difference between Over-the-Counter vs. Exchange Traded Markets?
Forex stands for Foreign Exchange.
What are the the four characteristics of Over the Counter Markets?
a)
b)
c)
d)
What is the market made up of?
What is its advantage?
A lesson explaining the difference between exchange traded and over the counter markets for forex traders, currency traders, and foreign exchange traders.
Dow Jones Industrial Average
Beginner Investing: What Is the Dow Jones Industrial Average? 1:25
In-class assignment, with a partner, answer the following.
What is the Dow Jones Industrial Average?
How many firms make up the index?
They are a good ______________ of the market?
How is the average indicated?
What colors are used?
The Dow Jones Industrial Average is a company stock index made up of 30 American companies that have been around for a long time. Discover how the Dow Jones is used as a snapshot reference of the market on any given day with help from a registered financial consultant in this video on investments and personal finance.
Expert: Patrick Munro
Standard & Poor's 500 (S&P 500)
In-class assignment, with a partner, answer the following.
Financial Planning & Investment Tips: S&P 500, 1:27
What is the S&P 500?
How many firms make up the index?
Why is this described as blue-chip?
Where are many of their sales made these days?
The S&P 500 is an index of the top 500 companies in the U.S. stock exchange. Find out more about the S&P 500 with tips from a registered financial consultant in this video on financial planning.
Expert: Patrick Munro
bull market
Beginner Investing: What Is a Bull Market? 1:16
In-class assignment, with a partner, answer the following.
What is a Bull Market?
What do people do in this market?
What may happen?
What is the opposite of a bull market?
A bull market is a market that is strong and moving upwards on a regular basis, and this market has people who are investing and moving the economy. Discover how stocks can become overvalued in a bull market with help from a registered financial consultant in this video on investments and personal finance.
Expert: Patrick Munro
bear market
In-class assignment, with a partner, answer the following.
Personal Finance: What Is a Bear Market? 1:18
What is a bear market?
What are investors afraid of?
Why might you embrace a bear?
Would invest in the short-term, or the long term?
Bear markets generally occur over a long period and are marked by widespread pessimism. Discover how bear markets can help investors with tips from a financial planner in this video on personal finance and the stock market.
Expert: Chris Markowski
spot market
futures contract
In-class assignment, with a partner, answer the following.
Investopedia Video: How Do Futures Contracts Work? 1:38
What can a futures contract do?
What can companies do to ensure their profits?
This situation includes two words that begin with the letter "r."
What are they?
Futures contracts are one of the most important financial innovations in history, but they are often misunderstood. Find out this contract is used to transfer risk between different parties.
option
call option
In-class assignment, with a partner, answer the following.
Investopedia Video: Call Option Basics, 1:27
What are call options?
As an example, what does Ken do and why?
How is Bob involved?
What do call options offer?
Call options offer investors a way to leverage their capital for greater investment returns. Find out more about these financial contracts and how they work.
put option
In-class assignment, with a partner, answer the following.
Investopedia Video: Put Option Basics, 1:14
Why does Jim use a put option?
What is his life situation?
What is the only thing he loses?
How does Dan use a put option?
What does a put option allow an investor to do?
Put options allow investors to hedge an investment they own or speculate in an investment they don't own. Find out more about this type of option and how it can work in an investor's favor.
11.3 Reading Strategy
In-class assignment, with a partner, fill in the graphic.
Use the graphic organizer to describe the different stock markets.
Figure 11.7 How Much Money Will You Have at Retirement?
Cf. http://glencoe.com/sites/common_assets/socialstudies/in_motion_08/epp/EPP_p308.swf
11.3 Review
In-class assignment, with a partner, fill in the graphic.
Use the graphic organizer to evaluate the risks and rewards of investments.
Figure 11.1 Overview of the Financial System
Cf. http://glencoe.com/sites/common_assets/socialstudies/in_motion_08/epp/EPP_p291.swf
Figure 11.2 The Power of Compound Interest
Cf. http://glencoe.com/sites/common_assets/socialstudies/in_motion_08/epp/EPP_p293.swf
Figure 11.7 How Much Money Will You Have at Retirement?
Chapter 10: Government Spending
Chapter 10 Resources
Chapter 10: Government Spending Multiple Choice Quiz
Chapter 10: Government Spending ePuzzles and Games Column
Chapter 10: Government Spending Vocabulary eFlashcards
Chapter 10: Government Spending In Motion The Federal Budget for Fiscal Year 2007
Chapter 10: Government Spending In Motion State and Local Expenditures
Chapters 8-11
Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit3/
Chapter 10 Resources
Self-Check Quiz, Crossword, Vocabulary
Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit3/chapter10/
Wisconsin Labor Protests - Noodles, 1:36
Spending, 6:25
Seinfeld Risk Management, 4:17
Cf. http://www.youtube.com/watch?v=laKprX-HP94
Finance Company Collector - A song protesting the current recession, 4:30
Josh Riddle and David Rufful are seniors at Dartmouth College.
Pension Tension Blues, 5:42
Lyrics: co-written by Susan Mangiero and Steven Zelin, Singing CPA.
Houston’s Second Baptist Church
More than 2,000 people from Second Baptist Church, Houston, Texas, gathered at Discovery Green in the heart of Houston to celebrate the resurrection of Jesus. The purpose of Dance Your Shoes Off! was to proclaim the resurrection of Jesus Christ in a powerful and celebratory way. Most importantly, each participant left a new pair of shoes on the field for those in need. These shoes will be given to local mission agencies, including Star of Hope, individuals all across the world through our mission partners and mission trips.
Email (or hand in hard copy) to gmsmith@shanahan.org.
Monday HW
1. p. 286, #33-35
Tuesday HW
1. p. 286, #36-37, p. 294, #2
Wednesday HW
1. p. 294, #4-6
Thursday HW
1. p. 294, #7-8, p. 295, #1
Friday HW
1. p. 295, #2
