Other financial assets include stocks, money market mutual funds, and certificates of deposit. Stocks represent ownership in a company, money market mutual funds invest in short-term assets but are not FDIC insured, and certificates of deposit are bank deposits for a fixed time period at a higher interest rate. Financial assets are traded on capital markets, which involve assets that mature in over a year, or money markets, which involve assets that mature in under a year. They can also be traded on primary markets, where only the original holder can redeem the asset, or secondary markets, where the asset can be resold.

1. “ Other” Financial Assets What are they and What do they do?

2. Other Financial Assets In addition to Bonds, financial assets can include: Stock – shares of ownership in a company Money Market Mutual Funds – funds created by financial intermediaries purchasing short-term assets – Not FDIC insured! Certificates of Deposit – CD’s are deposits in a financial institution for a fixed period of time at a higher interest rate than a normal savings account because of the specified deposit time period.

3. How do I get them or get rid of them? The trading of financial assets take place in markets – just like nearly every other type of transaction. These markets can be categorized in two ways: Capital v/s Money Markets Primary v/s Secondary Markets

4. Capital and Money Markets Capital markets involve assets that require more than a year to mature. Examples include: Government Bonds Long-term CD’s Money markets involve assets that require less than a year to mature. Examples include: Money Market Mutual Funds Short-term CD’s

5. Primary and Secondary Markets Primary markets involve assets that can only be redeemed by the original holder. Examples include: Savings Bonds Small denomination CD’s Secondary markets involve assets that can be resold. Examples include: Stocks Most bonds