Global finance and financial markets. A modern introduction (Q2710204)

Former president Lyndon Johnson once said that `International finance is a mystery to most men and women', which is true, but it will not be true for those persons who read most of this book. Professor Ferdinand E. Banks has presented the whole matter of global finance in a very simple way which can be understood by any person of finance and finance market with little knowledge of secondary school algebra. The subject matter is gradually developed from very elementary level giving a number of illustrative examples. Each topic is followed by a number of exercises. A great care has been taken to assist the readers in analysing and thinking about real world of financial markets and that especially includes persons who are using it for self study and as a review. It is therefore, a care has been taken to keep the mathematical contents of the book at the level of secondary school algebra. NEWLINENEWLINENEWLINEThe book begins with a survey of money, markets for money and financial market structure. Banks are at the heart of the global financial system and since one of the features of the 21st century will be a steady growth in crossborder banking and mergers, the importance of these institutions can only increase. Chapter 2 is devoted for the modern concept of banking and banks in detail. NEWLINENEWLINENEWLINEAnalysing the stock market is a serious business that is often treated too superficially, or too esoterically, in the departments of economics and finance at many universities; however the position taken in chapter 3 of this book is that there are certain things at every one should know about the stock-market. NEWLINENEWLINENEWLINEThe topics like futures and options which are assumed to be very complicate and difficult to understand by the students of the financial derivatives. But in this book an introduction to derivatives are treated in chapter 4 so nice that the reader feels very comfortable without indulging in complicated mathematical formulations and it makes much easier to read. NEWLINENEWLINENEWLINEChapter 5 begins with a few important definitions and proceeds to a discussion of exchange rates employing supply and demand curves. It is demonstrated to use computer to carry out the calculations and graphical material to help the reader to take another step towards acquiring the kind of attitude and presentation skills that are traditionally associated with successful residents of financial world. NEWLINENEWLINENEWLINEA long chapter 6 on bonds is devoted in beginners textbook but it is necessary because it contains some very important financial economics and financial mathematics. Among the former are the term structure of the interest rate and among the latter a derivation of annuity formula. The interest rates, yields and bonds are discussed in a very undergraduate way for the beginners in the field of finance. The mathematical calculations of these are treated in a very simple way. NEWLINENEWLINENEWLINEChapter 7 is devoted to present two subjects: Arbitrage and financial swaps. These complicated topics are presented with a number of practical exercises to understand by its readers. NEWLINENEWLINENEWLINEA brief discussion of risk and financial assets, with an account on risk is presented in chapter 8, and has been taken to discuss these topics in a simple way and as short as possible. The concept of risk and uncertainty are evaluated by using the statistical techniques such as variance, covariance mathematical expectation and correlation. NEWLINENEWLINENEWLINEThe last chapter 9 begins with the quotation of Alfred de Mosset ``Everything that was is no more. Everything that will be is not yet'' which leads the readers into the 21st century global financial market, with a remark on Asian crisis. NEWLINENEWLINENEWLINEThe book is concluded with an exhaustive glossary giving best collection of different financial terms and definitions. A good collection of references of recent research papers and books on global finance have been given at the end. NEWLINENEWLINENEWLINEThe book is useful for both the first year students of financial management as well as the persons who wants to know about the global finance and financial markets in general.