ITB. Government and Financial Market. SY 23/24

1. Define the roles of the FDIC and SEC in government and financial markets.
2. Describe how the FDIC and SEC protect investors in financial markets.

​Success Criteria

Analyze the roles and functions of the FDIC and SEC in government and financial markets.

​Learning Intentions

Topic: Government and Financial Market

Prior Lesson(s) topics review 

Poll

MANY CORPORATIONS ARE BIG BUSINESSES THAT SELL STOCK ON THE STOCK EXCHANGE. WHY WOULD CORPORATIONS DO THIS?

• TO BECOME POPULAR

• TO RAISE MONEY

Multiple Choice

A company that sells stock on the stock market.

• private company

• public company

• stock market

Multiple Choice

How can a stock investor earn a higher return?

• By purchasing stocks that pay healthy dividends
• By owning a larger percentage of the company

• By increasing the dividend rate

Multiple Choice

What is Mutual fund?

• An investment in which investors pool their money to buy stock.

• An investment that you put in your checking account

• Investment that you put in the ground.

Multiple Choice

Which index is the broadest indicator of the entire market?

• Dow Jones

• S&P 500

• Russell 2000

Multiple Choice

A group of large companies that stockbrokers look at to gauge how the market is doing as a whole.

• shareholder

• portfolio

• index

Poll

Do you have any questions about previously covered topics?

• Yes

• No

Intro

• In this presentation, we'll discuss the roles and functions of two important government agencies, the FDIC and SEC, and how they impact economic stability and investor protection.

• Businesses raise money to invest in themselves.

• Creditors lend money with hopes of receiving a return.

• Investors buy stocks expecting growth and returns in the form of dividends and capital gains.

Conduct an internet search and write the definition or description for FDIC and SEC on your notes.

​

​Internet Search

FDIC

• The FDIC is a government agency that was created to maintain stability and public confidence in the nation's financial system.

• Its main function is to:

  • insure deposits in banks and savings associations.

  • protect depositors against the loss of their money if a bank fails.

• FDIC plays a crucial role in promoting economic stability by preventing bank runs and ensuring that people have confidence in the banking system.

Poll

Do you understand what is meant by a "bank run"?

• Yes

• No

Multiple Choice

What is the main function of the FDIC?

• To insure deposits
• To fix cars
• To bake cookies

Functions of the FDIC. Cont...

Multiple Choice

The FDIC insures:

• Real estate

• Corporate bonds

• Checking and savings deposits

The SEC (Securities and Exchange Commission)

• The SEC is another important government agency responsible for:

  • protecting investors

  • maintaining fair and efficient markets,

  • and facilitating capital formation.

• The SEC regulates the securities industry, which includes stocks, bonds, and other investment products.

• The SEC ensures that companies provide accurate and timely information to investors, so they can make informed decisions.

Multiple Choice

What is the main function of the SEC?

• To protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.
• To promote international trade
• To regulate the banking industry

Functions of the SEC. Cont...

Multiple Choice

True or False: The SEC was established to protect buyers of stocks, bonds, and other securities from fraud.

• False
• True

Open Ended

List three things you learned today...