4.2.4.1 Financial Markets and Financial Assets (AQA A-Level Economics Teaching PowerPoint)

This AQA teaching powerpoint covers aspects of Financial Markets and Financial Assets.

Financial markets are venues where buyers and sellers trade financial assets such as stocks, bonds, commodities, and currencies. Financial assets are a type of asset that represents a claim to a future cash flow or a stream of payments, such as:

• Stocks: Represent ownership in a company, and pay dividends to shareholders.
• Bonds: A debt instrument that pays interest to the bondholder.
• Mutual funds: A pool of investments managed by a fund manager, and offer diversification to investors.
• Exchange-traded funds (ETFs): Similar to mutual funds, but are traded on exchanges like stocks.
• Derivatives: Instruments whose value is based on the value of an underlying asset, such as options and futures.

Financial markets provide a way for investors to diversify their portfolios and achieve their financial goals.