Financial markets allow for the trading of various assets between buyers and sellers. They include stock exchanges like the NYSE and NASDAQ for trading stocks of companies, commodities exchanges like the Chicago Mercantile Exchange for trading raw materials and currencies, and bond markets for trading debt. The scale of financial markets is enormous, valued in the trillions and even quadrillions of dollars globally. While complex, financial markets have a significant impact on the global economy and individuals should understand how to navigate them despite risks, as events in the markets can negatively or positively affect people's wealth and daily lives.

1. Financial Markets
Understanding is key to your financial wealth and/or to voice your concern
• Financial markets are similar to super markets where groceries
(goods) are traded between you (buyer) and the store (seller)
• Similar: Market to trade between seller and buyer
• Financial markets differ on key points
• Almost everything is traded, predominantly non-tangible units
• Units can be traded in future time windows
• Ability to make money along with risk of losing money
• Huge economic scale and potential world wide impact; enables change
SUPER MARKET
STOCK MARKET

2. Most common
for the ‘Average Joe’ to invest in
2
Financial Markets – What & Where
(Almost) Everything is traded… in many different market places
WHATWHERE
COMMODITIES
EXCHANGES
E.g.
Chicago Mercantile Exchange
London Metal Exchange
STOCK
EXCHANGES
E.g.
NYSE: New York Stock Exchange
LSE: London Stock Exchange
COMMODITIES
Metals,
Oil & Gas
Livestock & Meats
Agricultural
STOCKS
Apple, Google,
ExxonMobil, IBM,
Nike, Pfizer,
Walmart,…
BONDS
US Treasury bills
DERIVATIVES
(financial instruments)
Options
Futures
Forwards
Swaps
CURRENCIES
US dollar, Yen, Yuan,
Euro, British Pound,…
FOREIGN
EXCHANGES
‘FOREX’
BETWEEN
Corporations,
Investors
Governments, Banks,
Corporations
Everyone can buy and sell
Stocks issued by corporations
Bonds issued by governments, banks, corporation
Over-The-Counter
& Futures exchanges
Banks, Investors
Animated slide – adding in elements

3. 3
Financial Markets – Size
The scale of the markets is mind blowing; jumping 10-100 folds from Billions to Trillions US dollars
… with the Derivatives market valued at upwards of 1.2 Quadrillion US dollar
Forbes list of World’s Billionaires 2017
NASDAQ market caps (Oct 3, 2017)
StatisticsTimes.com – projected 2017 GDP by nation
VisualCapitalist.com (global market sizes)
73 76 86
574
664
796
10-fold jump
From wealthiest individuals
to largest corporations
5
12
19
78
5
70
81
100
199
In Billion US dollars In Trillion US dollars
600-1,200
10-fold jump
Corporations
to wealthiest nations
5 to 100-fold jump
Wealthies nations
to biggest financial markets

4. 4
Why does it matter to you?
You know how to navigate the aisles of your super market. Like traffic you also need to know how to
navigate the financial markets even if you don’t care to; because of its global scale and impact
SUPER MARKET FINANCIAL MARKETS
• Easy to understand
• Part of daily life
• Small economic scale
• Local impact
• Hard to understand
• Part of daily life
• Global economic scale
• Global impact
RED
• Global negative impact – e.g. global
market crash. It will include almost
everyone due to mortgages and
investments
AMBER
• Negative impact trends – e.g. increased
interest rates; you will have to pay more
on your mortgage
• Changes to legislation can put your
money at risk
GREEN
• Financial markets are producing positive
impacts for the masses.
• Learn more take part in the wealth
creation