3.2 Financial Markets

• Meaning and importance of financial markets in the economy
• Types of financial markets: the money market and the capital market
• The primary market and the secondary market
• The stock exchange and the securities traded
• Functions of the stock exchange and the bond market
• The bond market and the types of bonds
• Process of buying and selling securities in the stock exchange
• Participants in the securities market
• The Central Depository and Settlement Corporation and settlement
• Using ICT tools for efficient transactions in the securities exchange
• Market indices and interpreting share prices
• Factors influencing the prices of securities
• Challenges investors face when buying and selling securities
• Investor protection in the securities market
• Ethical issues and good governance in securities transactions
• The role of stock exchange and bond markets in the economy

• explore the importance of financial markets in the economy
• examine the functions of stock exchange and bond markets in the economy
• analyse the process of buying and selling securities in the stock exchange
• use ICT tools for efficient transactions in the securities exchange
• evaluate the challenges investors face when buying and selling securities
• acknowledge the role of stock exchange and bond markets in the economy

“Why are financial markets important?”

“How are transactions on securities carried out in the stock exchange?”

The titles are open to everyone. Reading a lesson needs an account — sign in or create one.

1. Financial markets and their importance
   40 min · 1 practice tasks · quiz
   Introduce financial markets, their meaning and their importance in the economy.
2. The money market and the capital market
   40 min · 1 practice tasks · quiz
   Distinguish the money market from the capital market.
3. The primary market and the secondary market
   40 min · 1 practice tasks · quiz
   Distinguish the primary market from the secondary market.
4. The stock exchange and its role
   40 min · 1 practice tasks · quiz
   Describe the stock exchange and its role in the economy.
5. Functions of the stock exchange and the bond market
   40 min · 1 practice tasks · quiz
   Examine the functions of the stock exchange and the bond market.
6. The bond market
   40 min · 1 practice tasks · quiz
   Explain the bond market and the functions of bonds in the economy.
7. The main securities traded
   40 min · 1 practice tasks · quiz
   Compare the main securities traded: shares, bonds and treasury bills.
8. Participants in the securities market
   40 min · 1 practice tasks · quiz
   Identify the participants in the securities market and their roles.
9. The process of buying and selling securities
   40 min · 1 practice tasks · quiz
   Analyse the process of buying and selling securities in the stock exchange.
10. The depository and settlement of trades
    40 min · 1 practice tasks · quiz
    Explain the role of the Central Depository and Settlement Corporation.
11. Using ICT tools in the securities exchange
    40 min · 1 practice tasks · quiz
    Use ICT tools for efficient transactions in the securities exchange.
12. Reading share prices and the market index
    40 min · 1 practice tasks · quiz
    Interpret share prices and a market index.
13. Factors that move share prices
    40 min · 1 practice tasks · quiz
    Explain the factors that influence the prices of securities.
14. Challenges facing investors
    40 min · 1 practice tasks · quiz
    Evaluate the challenges investors face when buying and selling securities.
15. Investor protection in the securities market
    40 min · 1 practice tasks · quiz
    Explain how investors are protected in the securities market.
16. Ethics and good governance in securities trading
    40 min · 1 practice tasks · quiz
    Examine ethical issues and good governance in securities transactions.
17. The role of stock and bond markets in the economy
    40 min · 1 practice tasks · quiz
    Appreciate the role of stock exchange and bond markets in the economy.