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Table of Contents
1 Cover
5 Preface
6 Preface to the First Edition
9 CHAPTER 1: An Introduction to Financial Institutions, Instruments, and Markets THE ROLE OF AN ECONOMIC SYSTEM A COMMAND ECONOMY A MARKET ECONOMY CLASSIFICATION OF ECONOMIC UNITS AN ECONOMY'S RELATIONSHIP WITH THE EXTERNAL WORLD THE BALANCE OF TRADE THE CURRENT ACCOUNT BALANCE FINANCIAL ASSETS MONEY MONEY AS A UNIT OF ACCOUNT OR A STANDARD OF VALUE MONEY AS A MEDIUM OF EXCHANGE MONEY AS A STORE OF VALUE MONEY IS PERFECTLY LIQUID EQUITY SHARES DEBT SECURITIES PREFERRED SHARES FOREIGN EXCHANGE DERIVATIVES FORWARD AND FUTURES CONTRACTS OPTIONS CONTRACTS SWAPS MORTGAGES AND MORTGAGE-BACKED SECURITIES HYBRID SECURITIES PRIMARY MARKETS AND SECONDARY MARKETS EXCHANGES AND OVER-THE-COUNTER (OTC) MARKETS BROKERS AND DEALERS THE NEED FOR BROKERS AND DEALERS TRADING POSITIONS THE BUY-SIDE AND THE SELL-SIDE INVESTMENT BANKERS DIRECT AND INDIRECT MARKETS MUTUAL FUNDS MONEY AND CAPITAL MARKETS THE EUROCURRENCY MARKET THE INTERNATIONAL BOND MARKET GLOBALIZATION OF EQUITY MARKETS DUAL LISTING FUNGIBILITY ARBITRAGE ARBITRAGE WITH ADRs GDRs RISK AFTER THE TRADE – CLEARING AND SETTLEMENT DEMATERIALIZATION AND THE ROLE OF A DEPOSITORY CUSTODIAL SERVICES GLOBALIZATION – THE NEW MANTRA NOTES
10 CHAPTER 2: Mathematics of Finance INTEREST RATES THE REAL RATE OF INTEREST THE FISHER EQUATION SIMPLE INTEREST & COMPOUND INTEREST PROPERTIES A SYMBOLIC DERIVATION PRINCIPLE OF EQUIVALENCY CONTINUOUS COMPOUNDING FUTURE VALUE PRESENT VALUE HANDLING A SERIES OF CASH FLOWS THE INTERNAL RATE OF RETURN EVALUATING AN INVESTMENT ANNUITIES: AN INTRODUCTION ANNUITY DUE PERPETUITIES THE AMORTIZATION METHOD AMORTIZATION WITH A BALLOON PAYMENT THE EQUAL PRINCIPAL REPAYMENT APPROACH TYPES