Financial institutions & markets:
Gespeichert in:
| 1. Verfasser: | |
|---|---|
| Format: | Buch |
| Sprache: | English |
| Veröffentlicht: |
[Independence, KY]
South-Western Cengage Learning
2012
|
| Ausgabe: | 10. ed., internat. ed. |
| Schlagworte: | |
| Online-Zugang: | Inhaltsverzeichnis |
| Beschreibung: | Includes index |
| Beschreibung: | XXXV, 714 S. graph. Darst. 25 cm |
| ISBN: | 9780538482172 0538482176 |
Internformat
MARC
| LEADER | 00000nam a2200000 c 4500 | ||
|---|---|---|---|
| 001 | BV039965242 | ||
| 003 | DE-604 | ||
| 005 | 20211104 | ||
| 007 | t | ||
| 008 | 120316s2012 d||| |||| 00||| eng d | ||
| 020 | |a 9780538482172 |9 978-0-538-48217-2 | ||
| 020 | |a 0538482176 |9 0-538-48217-6 | ||
| 035 | |a (OCoLC)785853396 | ||
| 035 | |a (DE-599)BVBBV039965242 | ||
| 040 | |a DE-604 |b ger | ||
| 041 | 0 | |a eng | |
| 049 | |a DE-523 |a DE-188 |a DE-858 |a DE-Aug4 | ||
| 082 | 0 | |a 332 |2 23 | |
| 084 | |a QK 600 |0 (DE-625)141666: |2 rvk | ||
| 084 | |a QK 640 |0 (DE-625)141673: |2 rvk | ||
| 100 | 1 | |a Madura, Jeff |e Verfasser |0 (DE-588)170157768 |4 aut | |
| 245 | 1 | 0 | |a Financial institutions & markets |c Jeff Madura |
| 246 | 1 | 3 | |a Financial institutions and markets |
| 250 | |a 10. ed., internat. ed. | ||
| 264 | 1 | |a [Independence, KY] |b South-Western Cengage Learning |c 2012 | |
| 300 | |a XXXV, 714 S. |b graph. Darst. |c 25 cm | ||
| 336 | |b txt |2 rdacontent | ||
| 337 | |b n |2 rdamedia | ||
| 338 | |b nc |2 rdacarrier | ||
| 500 | |a Includes index | ||
| 650 | 0 | 7 | |a Kreditwesen |0 (DE-588)4032950-1 |2 gnd |9 rswk-swf |
| 650 | 0 | 7 | |a Kreditmarkt |0 (DE-588)4073788-3 |2 gnd |9 rswk-swf |
| 651 | 7 | |a USA |0 (DE-588)4078704-7 |2 gnd |9 rswk-swf | |
| 689 | 0 | 0 | |a Kreditmarkt |0 (DE-588)4073788-3 |D s |
| 689 | 0 | |5 DE-604 | |
| 689 | 1 | 0 | |a USA |0 (DE-588)4078704-7 |D g |
| 689 | 1 | 1 | |a Kreditmarkt |0 (DE-588)4073788-3 |D s |
| 689 | 1 | |5 DE-188 | |
| 689 | 2 | 0 | |a USA |0 (DE-588)4078704-7 |D g |
| 689 | 2 | 1 | |a Kreditwesen |0 (DE-588)4032950-1 |D s |
| 689 | 2 | |5 DE-188 | |
| 856 | 4 | 2 | |m SWB Datenaustausch |q application/pdf |u http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=024822898&sequence=000001&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |3 Inhaltsverzeichnis |
| 999 | |a oai:aleph.bib-bvb.de:BVB01-024822898 | ||
Datensatz im Suchindex
| _version_ | 1804148941667696640 |
|---|---|
| adam_text | IMAGE 1
BRIEF CONTENTS
PREFACE XXVII ABOUT THE AUTHOR XXXV PART 1: OVERVIEW OF THE FINANCIAL
ENVIRONMENT 1 THE ROLE OF FINANCIAL MARKETS AND INSTITUTIONS 3 2
INTEREST RATE DETERMINATION 25 3 INTEREST RATE STRUCTURE 45
PART 2: THE FED AND MONETARY POLICY 4 THE FED AND ITS FUNCTIONS 75 5
MONETARY POLICY 95
PART 3: DEBT SECURITY MARKETS 119 6 MONEY MARKETS 121 7 BPND MARKETS 147
8 VALUATION AND RISK OF BONDS 169 9 MORTGAGE MARKETS 195
PART 4: EQUITY MARKETS 217 10 INVESTOR MONITORING AND STOCK OFFERINGS
219 11 VALUATION AND RISK OF STOCKS 251 1 2 MARKET MICROSTRUCTURE AND
STRATEGIES 277
PART 5: DERIVATIVE SECURITY MARKETS 1 3 FINANCIAL FUTURES MARKETS 297 14
OPTION MARKETS 321 1 5 INTEREST RATE DERIVATIVE MARKETS 351 1 6 FOREIGN
EXCHANGE DERIVATIVE MARKETS 379
PART 6: COMMERCIAL BANKING 407 17 COMMERCIAL BANK OPERATIONS 409 18
REGULATION OF BANKS 431 19 BANK MANAGEMENT 453 20 BANK PERFORMANCE 481
PART 7: NONBANK OPERATIONS 499 21 THRIFT OPERATIONS 501 22 FINANCE
COMPANY OPERATIONS 523 23 MUTUAL FUND OPERATIONS 535
24 SECURITIES OPERATIONS 565 25 PENSION FUND AND INSURANCE OPERATIONS
587
73
295
IMAGE 2
VI BRIEF CONTENTS
CHAPTER EXERCISES 623 CHAPTER APPENDICES 651 APPENDIX A: COMPREHENSIVE
PROJECT 677 APPENDIX B: USING EXCEL TO CONDUCT ANALYSES 687
GLOSSARY 691 INDEX 701
IMAGE 3
CONTENTS
PREFACE XXVII ABOUT THE AUTHOR XXXV PART 1: OVERVIEW OF THE FINANCIAL
ENVIRONMENT 1
1: THE ROLE OF FINANCIAL MARKETS AND INSTITUTIONS 3
ROLE OF FINANCIAL MARKETS, 3 ACCOMMODATING CORPORATE FINANCE NEEDS, 4
ACCOMMODATING INVESTMENT NEEDS, 4 PRIMARY VERSUS SECONDARY MARKETS, 4
SECURITIES TRADED IN FINANCIAL MARKETS, 5
MONEY MARKET SECURITIES, 5 CAPITAL MARKET SECURITIES, 5 DERIVATIVE
SECURITIES, 7 VALUATION OF SECURITIES, 7 SECURITIES REGULATIONS, 9
INTERNATIONAL SECURITIES TRANSACTIONS, 10 ROLE OF FINANCIAL
INSTITUTIONS, 10
ROLE OF DEPOSITORY INSTITUTIONS, 10 ROLE OF NONDEPOSITORY FINANCIAL
INSTITUTIONS, 12 COMPARISON OF ROLES AMONG FINANCIAL INSTITUTIONS, 13
HOW THE INTERNET FACILITATES ROLES OF FINANCIAL INSTITUTIONS, 14
RELATIVE IMPORTANCE OF FINANCIAL INSTITUTIONS, 15
CONSOLIDATION OF FINANCIAL INSTITUTIONS, 15 CREDIT CRISIS FOR FINANCIAL
INSTITUTIONS, 17 SYSTEMIC RISK DURING THE CREDIT CRISIS, 17
GOVERNMENT RESPONSE TO THE CREDIT CRISIS, 18 SUMMARY, 19 POINT
COUNTER-POINT: WILL COMPUTER TECHNOLOGY CAUSE FINANCIAL INTERMEDIARIES
TO BECOME EXTINCT? 19 QUESTIONS AND APPLICATIONS, 20
ADVANCED QUESTIONS, 20 INTERPRETING FINANCIAL NEWS, 21 MANAGING IN
FINANCIAL MARKETS, 21 ONLINE ARTICLES WITH REAL-WORLD EXAMPLES, 22 TERM
PAPER ON THE CREDIT CRISIS, 23
2: INTEREST RATE DETERMINATION LOANABLE FUNDS THEORY, 25 HOUSEHOLD
DEMAND FOR LOANABLE FUNDS, 25 BUSINESS DEMAND FOR LOANABLE FUNDS, 26
25
V II
IMAGE 4
VIII CONTENTS
GOVERNMENT DEMAND FOR LOANABLE FUNDS, 27 FOREIGN DEMAND FOR LOANABLE
FUNDS, 28 AGGREGATE DEMAND FOR LOANABLE FUNDS, 29 SUPPLY OF LOANABLE
FUNDS, 29 EQUILIBRIUM INTEREST RATE, 31 FACTORS THAT AFFECT INTEREST
RATES, 33
IMPACT OF ECONOMIC GROWTH ON INTEREST RATES, 33 IMPACT OF INFLATION ON
INTEREST RATES, 33 IMPACT OF MONETARY POLICY ON INTEREST RATES, 35
IMPACT OF THE BUDGET DEFICIT ON INTEREST RATES, 36 IMPACT OF FOREIGN
FLOWS OF FUNDS ON INTEREST RATES, 36
SUMMARY OF FORCES THAT AFFECT INTEREST RATES, 38 FORECASTING INTEREST
RATES, 38 SUMMARY, 41 POINT COUNTER-POINT: DOES A LARGE FISCAL BUDGET
DEFICIT RESULT IN HIGHER INTEREST RATES? 41
QUESTIONS AND APPLICATIONS, 41 ADVANCED QUESTIONS, 42 INTERPRETING
FINANCIAL NEWS, 43 MANAGING IN FINANCIAL MARKETS, 43 PROBLEMS, 43 ONLINE
ARTICLES WITH REAL-WORLD EXAMPLES, 43
3: INTEREST RATE STRUCTURE 45
WHY DEBT SECURITY YIELDS VARY, 45 CREDIT (DEFAULT) RISK, 45 LIQUIDITY,
47 TAX STATUS, 47
TERM TO MATURITY, 48 EXPLAINING ACTUAL YIELD DIFFERENTIALS, 49 YIELD
DIFFERENTIALS OF MONEY MARKET SECURITIES, 49 YIELD DIFFERENTIALS OF
CAPITAL MARKET SECURITIES, 50 ESTIMATING THE APPROPRIATE YIELD, 51 A
CLOSER LOOK AT THE TERM STRUCTURE, 52
PURE EXPECTATIONS THEORY, 52
USING THE WALL STREET JOURNAL: YIELD CURVE, 53
LIQUIDITY PREMIUM THEORY, 58 SEGMENTED MARKETS THEORY, 59 RESEARCH ON
TERM STRUCTURE THEORIES, 61 INTEGRATING THE THEORIES OF TERM STRUCTURE,
61
USE OF THE TERM STRUCTURE, 62 WHY THE SLOPE OF THE YIELD CURVE CHANGES,
63 HOW THE YIELD CURVE HAS CHANGED OVER TIME, 64 INTERNATIONAL STRUCTURE
OF INTEREST RATES, 64 SUMMARY, 66
POINT COUNTER-POINT: SHOULD A YIELD CURVE INFLUENCE A BORROWER S
PREFERRED MATURITY OF A LOAN? 67 QUESTIONS AND APPLICATIONS, 67 ADVANCED
QUESTIONS, 67
INTERPRETING FINANCIAL NEWS, 68 MANAGING IN FINANCIAL MARKETS, 68
IMAGE 5
CONTENTS IX
PROBLEMS, 69 ONLINE ARTICLES WITH REAL-WORLD EXAMPLES, 70
PART 1 INTEGRATIVE PROBLEM: INTEREST RATE FORECASTS AND INVESTMENT
DECISIONS, 71
PART 2: THE FED AND MONETARY POLICY 73
4: THE FED AND ITS FUNCTIONS 75
OVERVIEW, 75 ORGANIZATIONAL STRUCTURE OF THE FED, 75 FEDERAL RESERVE
DISTRICT BANKS, 76 MEMBER BANKS, 76
BOARD OF GOVERNORS, 76 FEDERAL OPEN MARKET COMMITTEE, 78 ADVISORY
COMMITTEES, 78 INTEGRATION OF FEDERAL RESERVE COMPONENTS, 78
CONSUMER FINANCIAL PROTECTION BUREAU, 78 HOW THE FED CONTROLS MONEY
SUPPLY, 78 OPEN MARKET OPERATIONS, 79 ROLE OF THE FED S TRADING DESK, 81
HOW FED OPERATIONS AFFECT ALL INTEREST RATES, 84 ADJUSTING THE RESERVE
REQUIREMENT RATIO, 85 ADJUSTING THE FED S LOAN RATE, 86 THE FED S
LENDING ROLE DURING THE CREDIT CRISIS, 87
FACILITIES CREATED BY THE FED, 88 GLOBAL MONETARY POLICY, 88 A SINGLE
EUROZONE MONETARY POLICY, 89 GLOBAL CENTRAL BANK COORDINATION, 90
SUMMARY, 91 POINT COUNTER-POINT: SHOULD THERE BE A GLOBAL CENTRAL BANK?,
91 QUESTIONS AND APPLICATIONS, 91
INTERPRETING FINANCIAL NEWS, 92 MANAGING IN FINANCIAL MARKETS, 92 ONLINE
ARTICLES WITH REAL-WORLD EXAMPLES, 93
5: MONETARY POLICY 95
MECHANICS OF MONETARY POLICY, 95 MONITORING INDICATORS OF ECONOMIC
GROWTH, 95 MONITORING INDICATORS OF INFLATION, 97 IMPLEMENTING THE
PROPER MONETARY POLICY, 97 LIMITATIONS OF MONETARY POLICY, 101
TRADE-OFF IN MONETARY POLICY, 103 IMPACT OF OTHER FORCES ON THE
TRADE-OFF, 103 SHIFTS IN MONETARY POLICY OVER TIME, 105 HOW MONETARY
POLICY RESPONDS TO FISCAL POLICY, 106
PROPOSALS TO FOCUS ON INFLATION, 106 MONITORING THE IMPACT OF MONETARY
POLICY, 108 IMPACT ON FINANCIAL MARKETS, 109 IMPACT ON FINANCIAL
INSTITUTIONS, 111
IMAGE 6
X CONTENTS
GLOBAL MONETARY POLICY, 111 IMPACT OF THE DOLLAR, 111 IMPACT OF GLOBAL
ECONOMIC CONDITIONS, 111 TRANSMISSION OF INTEREST RATES, 112
IMPACT OF THE CRISIS IN GREECE ON EUROPEAN MONETARY POLICY, 112 SUMMARY,
113 POINT COUNTER-POINT: CAN THE FED PREVENT U.S. RECESSIONS? 113
QUESTIONS AND APPLICATIONS, 114
ADVANCED QUESTIONS, 114 INTERPRETING FINANCIAL NEWS, 115 MANAGING IN
FINANCIAL MARKETS, 115 ONLINE ARTICLES WITH REAL-WORLD EXAMPLES, 115
PART 2 INTEGRATIVE PROBLEM: FED WATCHING, 117
PART 3: DEBT SECURITY MARKETS 119
6: MONEY MARKETS 121
MONEY MARKET SECURITIES, 121 TREASURY BILLS, 122 COMMERCIAL PAPER, 125
NEGOTIABLE CERTIFICATES OF DEPOSIT, 127
USING THE WALL STREET JOURNAL: KEY INTEREST RATES, 128
REPURCHASE AGREEMENTS, 129 FEDERAL FUNDS, 130 BANKER S ACCEPTANCES, 130
INSTITUTIONAL USE OF MONEY MARKETS, 132 VALUATION OF MONEY MARKET
SECURITIES, 134
IMPACT OF CHANGES IN CREDIT RISK, 135 INTEREST RATE RISK, 137
GLOBALIZATION OF MONEY MARKETS, 138 EURODOLLAR SECURITIES, 139
INTERNATIONAL INTERBANK MARKET, 140 PERFORMANCE OF FOREIGN MONEY MARKET
SECURITIES, 141 SUMMARY, 142 POINT COUNTER-POINT: SHOULD FIRMS INVEST IN
MONEY MARKET SECURITIES? 142
QUESTIONS AND APPLICATIONS, 143 ADVANCED QUESTIONS, 143 INTERPRETING
FINANCIAL NEWS, 144 MANAGING IN FINANCIAL MARKETS, 144 PROBLEMS, 144
ONLINE ARTICLES WITH REAL-WORLD EXAMPLES, 145
7: BOND MARKETS 147
BACKGROUND ON BONDS, 147 INSTITUTIONAL PARTICIPATION IN BOND MARKETS,
147 BOND YIELDS, 148 TREASURY AND FEDERAL AGENCY BONDS, 149
TREASURY BOND AUCTIONS, 150 TRADING TREASURY BONDS, 150 STRIPPED
TREASURY BONDS, 151
IMAGE 7
CONTENTS XI
INFLATION-INDEXED TREASURY BONDS, 151 SAVINGS BONDS, 151 FEDERAL AGENCY
BONDS, 152 MUNICIPAL BONDS, 152
CREDIT RISK OF MUNICIPAL BONDS, 152 VARIABLE-RATE MUNICIPAL BONDS, 153
TAX ADVANTAGES OF MUNICIPAL BONDS, 153 TRADING AND QUOTATIONS OF
MUNICIPAL BONDS, 154
YIELDS OFFERED ON MUNICIPAL BONDS, 154 CORPORATE BONDS, 155 CORPORATE
BOND OFFERINGS, 155 CHARACTERISTICS OF CORPORATE BONDS, 156
SECONDARY MARKET FOR CORPORATE BONDS, 159 JUNK BONDS, 160 HOW CORPORATE
BONDS FINANCE RESTRUCTURING, 160
USING THE WALL STREET JOURNAL: BOND YIELD QUOTATIONS, 162
GLOBALIZATION OF BOND MARKETS, 163 GLOBAL GOVERNMENT DEBT MARKETS, 163
EUROBOND MARKET, 164 OTHER TYPES OF LONG-TERM DEBT SECURITIES, 164
STRUCTURED NOTES, 164 EXCHANGE-TRADED NOTES, 165 AUCTION-RATE
SECURITIES, 165 SUMMARY, 166 POINT COUNTER-POINT: SHOULD FINANCIAL
INSTITUTIONS INVEST IN JUNK BONDS? 166 QUESTIONS AND APPLICATIONS, 167
ADVANCED QUESTIONS, 167 INTERPRETING FINANCIAL NEWS, 167 MANAGING IN
FINANCIAL MARKETS, 168 PROBLEMS, 168 ONLINE ARTICLES WITH REAL-WORLD
EXAMPLES, 168
8: VALUATION AND RISK OF BONDS 169
BOND VALUATION PROCESS, 169 IMPACT OF THE DISCOUNT RATE ON BOND
VALUATION, 170 IMPACT OF THE TIMING OF PAYMENTS ON BOND VALUATION, 171
VALUATION OF BONDS WITH SEMIANNUAL PAYMENTS, 171 RELATIONSHIPS BETWEEN
COUPON RATE, REQUIRED RETURN, AND BOND PRICE, 172 EXPLAINING BOND PRICE
MOVEMENTS, 173
FACTORS THAT AFFECT THE RISK-FREE RATE, 174 FACTORS THAT AFFECT THE
CREDIT (DEFAULT) RISK PREMIUM, 175 SUMMARY OF FACTORS AFFECTING BOND
PRICES, 177 IMPLICATIONS FOR FINANCIAL INSTITUTIONS, 177 SENSITIVITY OF
BOND PRICES TO INTEREST RATE MOVEMENTS, 179
BOND PRICE ELASTICITY, 179 DURATION, 181 BOND INVESTMENT STRATEGIES, 184
MATCHING STRATEGY, 184
LADDERED STRATEGY, 184 BARBELL STRATEGY, 184 INTEREST RATE STRATEGY, 185
IMAGE 8
XII CONTENTS
VALUATION AND RISK OF INTERNATIONAL BONDS, 185 INFLUENCE OF FOREIGN
INTEREST RATE MOVEMENTS, 186 INFLUENCE OF CREDIT RISK, 186 INFLUENCE OF
EXCHANGE RATE FLUCTUATIONS, 186
INTERNATIONAL BOND DIVERSIFICATION, 187 SUMMARY, 188 POINT
COUNTER-POINT: DOES GOVERNANCE OF FIRMS AFFECT THE PRICES OF THEIR
BONDS? 188 QUESTIONS AND APPLICATIONS, 188
ADVANCED QUESTIONS, 189 INTERPRETING FINANCIAL NEWS, 190 MANAGING IN
FINANCIAL MARKETS, 190 PROBLEMS, 191 ONLINE ARTICLES WITH REAL-WORLD
EXAMPLES, 193
9: MORTGAGE MARKETS 195
BACKGROUND ON MORTGAGES, 195 HOW MORTGAGE MARKETS FACILITATE THE FLOW OF
FUNDS, 195 CRITERIA USED TO MEASURE CREDITWORTHINESS, 197
CLASSIFICATIONS OF MORTGAGES, 197 TYPES OF RESIDENTIAL MORTGAGES, 198
FIXED-RATE MORTGAGES, 198 ADJUSTABLE-RATE MORTGAGES, 199
GRADUATED-PAYMENT MORTGAGES, 200 GROWING-EQUITY MORTGAGES, 201 SECOND
MORTGAGES, 201
SHARED-APPRECIATION MORTGAGES, 201 BALLOON-PAYMENT MORTGAGES, 201
VALUATION AND RISK OF MORTGAGES, 201 RISK FROM INVESTING IN MORTGAGES,
202
MORTGAGE-BACKED SECURITIES, 203 THE SECURITIZATION PROCESS, 203 TYPES OF
MORTGAGE-BACKED SECURITIES, 203 VALUATION OF MORTGAGE-BACKED SECURITIES,
206 MORTGAGE CREDIT CRISIS, 206
IMPACT OF THE CREDIT CRISIS ON FANNIE MAE AND FREDDIE MAC, 207 SYSTEMIC
RISK DUE TO THE CREDIT CRISIS, 208 WHO IS TO BLAME?, 209 GOVERNMENT
PROGRAMS IMPLEMENTED IN RESPONSE TO THE CRISIS, 210
GOVERNMENT BAILOUT OF FINANCIAL INSTITUTIONS, 211 FINANCIAL REFORM ACT,
211 SUMMARY, 212 POINT COUNTER-POINT: IS THE TRADING OF MORTGAGES
SIMILAR TO THE TRADING OF CORPORATE
BONDS? 212 QUESTIONS AND APPLICATIONS, 212 ADVANCED QUESTIONS, 213
INTERPRETING FINANCIAL NEWS, 214 MANAGING IN FINANCIAL MARKETS, 214
PROBLEM, 214 ONLINE ARTICLES WITH REAL-WORLD EXAMPLES, 214
PART 3 INTEGRATIVE PROBLEM: ASSET ALLOCATION, 215
IMAGE 9
CONTENTS XIII
PART 4: EQUITY MARKETS 217
10: INVESTOR MONITORING AND STOCK OFFERINGS 219
PRIVATE EQUITY, 219 FINANCING BY VENTURE CAPITAL FUNDS, 219 FINANCING BY
PRIVATE EQUITY FUNDS, 220 PUBLIC EQUITY, 220
OWNERSHIP AND VOTING RIGHTS, 222 PREFERRED STOCK, 222 PARTICIPATION IN
STOCK MARKETS, 222 INITIAL PUBLIC OFFERINGS, 224
PROCESS OF GOING PUBLIC, 224 UNDERWRITER EFFORTS TO ENSURE PRICE
STABILITY, 226 TIMING OF IPOS, 226 INITIAL RETURNS OF IPOS, 227
GOOGLE S IPO, 227
USING THE WALL STREET JOURNAL: IPOS, 228
ABUSES IN THE IPO MARKET, 230 LONG-TERM PERFORMANCE FOLLOWING IPOS, 230
IMPACT OF THE SARBANES-OXLEY ACT ON IPOS, 231 STOCK OFFERINGS AND
REPURCHASES, 231
SECONDARY STOCK OFFERINGS, 231 STOCK REPURCHASES, 232 STOCK EXCHANGES,
232 ORGANIZED EXCHANGES, 232
OVER-THE-COUNTER MARKET, 233 EXTENDED TRADING SESSIONS, 234 STOCK
QUOTATIONS PROVIDED BY EXCHANGES, 234
USING THE WALL STREET JOURNAL: LATE TRADING, 235
STOCK INDEX QUOTATIONS, 236 MONITORING PUBLICLY TRADED COMPANIES, 237
USING THE WALL STREET JOURNAL: STOCK INDEXES, 238
ROLE OF ANALYSTS, 238 ACCOUNTING IRREGULARITIES, 239 SARBANES-OXLEY ACT,
239
SHAREHOLDER ACTIVISM, 240 LIMITED POWER OF GOVERNANCE, 242 MARKET FOR
CORPORATE CONTROL, 242 USE OFLBOS TO ACHIEVE CORPORATE CONTROL, 243
BARRIERS TO THE MARKET FOR CORPORATE CONTROL, 243 GLOBALIZATION OF STOCK
MARKETS, 244 PRIVATIZATION, 244
EMERGING STOCK MARKETS, 244 VARIATION IN CHARACTERISTICS ACROSS STOCK
MARKETS, 245 METHODS USED TO INVEST IN FOREIGN STOCKS, 245 SUMMARY, 246
POINT COUNTER-POINT: SHOULD A STOCK EXCHANGE ENFORCE SOME GOVERNANCE
STANDARDS ON THE FIRMS LISTED ON THE EXCHANGE? 247 QUESTIONS AND
APPLICATIONS, 247 ADVANCED QUESTIONS, 248
IMAGE 10
XIV CONTENTS
INTERPRETING FINANCIAL NEWS, 248 MANAGING IN FINANCIAL MARKETS, 248
PROBLEM, 248 ONLINE ARTICLES WITH REAL-WORLD EXAMPLES, 248
1 1: VALUATION AND RISK OF STOCKS 251
STOCK VALUATION METHODS, 251 PRICE-EARNINGS METHOD, 251 DIVIDEND
DISCOUNT MODEL, 252 ADJUSTED DIVIDEND DISCOUNT MODEL, 253 FREE CASH FLOW
MODEL, 254
REQUIRED RATE OF RETURN ON STOCKS, 255 CAPITAL ASSET PRICING MODEL, 255
FACTORS THAT AFFECT STOCK PRICES, 256 ECONOMIC FACTORS, 256
MARKET-RELATED FACTORS, 258 FIRM-SPECIFIC FACTORS, 258
USING THE WALL STREET JOURNAL: BIGGEST STOCK GAINS AND LOSSES, 259
INTEGRATION OF FACTORS AFFECTING STOCK PRICES, 259 STOCK RISK, 261
VOLATILITY OF A STOCK, 261
BETA OF A STOCK, 263 VALUE AT RISK, 265 RISK-ADJUSTED STOCK PERFORMANCE,
267 SHARPE INDEX, 267
TREYNOR INDEX, 267 STOCK MARKET EFFICIENCY, 268 FORMS OF EFFICIENCY, 268
TESTS OF THE EFFICIENT MARKET HYPOTHESIS, 269
FOREIGN STOCK VALUATION AND PERFORMANCE, 270 VALUATION OF FOREIGN
STOCKS, 270 INTERNATIONAL MARKET EFFICIENCY, 270 MEASURING PERFORMANCE
FROM INVESTING IN FOREIGN STOCKS, 271 PERFORMANCE FROM GLOBAL
DIVERSIFICATION, 271 SUMMARY, 272 POINT COUNTER-POINT: IS THE STOCK
MARKET EFFICIENT?, 272 QUESTIONS AND APPLICATIONS, 273
ADVANCED QUESTIONS, 273 INTERPRETING FINANCIAL NEWS, 274 MANAGING IN
FINANCIAL MARKETS, 274 PROBLEMS, 274 ONLINE ARTICLES WITH REAL-WORLD
EXAMPLES, 276
12: MARKET MICROSTRUCTURE AND STRATEGIES 277
STOCK MARKET TRANSACTIONS, 277 PLACING AN ORDER, 277 MARGIN TRADING, 278
SHORT SELLING, 280
IMAGE 11
CONTENTS XV
HOW STOCK TRANSACTIONS ARE EXECUTED, 283 FLOOR BROKERS, 283
MARKET-MAKERS, 283 THE SPREAD ON STOCK TRANSACTIONS, 284 ELECTRONIC
COMMUNICATION NETWORKS, 285 PROGRAM TRADING, 286
REGULATION OF STOCK TRADING, 287 CIRCUIT BREAKERS, 287 TRADING HALTS,
287 SECURITIES AND EXCHANGE COMMISSION, 288 TRADING INTERNATIONAL
STOCKS, 289
REDUCTION IN TRANSACTION COSTS, 289 REDUCTION IN INFORMATION COSTS, 290
REDUCTION IN EXCHANGE RATE RISK, 290 SUMMARY, 290 POINT COUNTER-POINT:
IS A MARKET-MAKER NEEDED? 291 QUESTIONS AND APPLICATIONS, 291 ADVANCED
QUESTIONS, 291 INTERPRETING FINANCIAL NEWS, 292 MANAGING IN FINANCIAL
MARKETS, 292 PROBLEMS, 292 ONLINE ARTICLES WITH REAL-WORLD EXAMPLES, 292
PART 4 INTEGRATIVE PROBLEM: STOCK MARKET ANALYSIS, 293
PART 5: DERIVATIVE SECURITY MARKETS 295
1 3: FINANCIAL FUTURES MARKETS 2 97
BACKGROUND ON FINANCIAL FUTURES, 297 PURPOSE OF TRADING FINANCIAL
FUTURES, 297 INSTITUTIONAL TRADING OF FUTURES CONTRACTS, 298 STRUCTURE
OF THE FUTURES MARKET, 299
TRADING FUTURES, 299
USING THE WALL STREET JOURNAL: INTEREST RATE FUTURES, 300
INTEREST RATE FUTURES CONTRACTS, 301 VALUING INTEREST RATE FUTURES, 301
SPECULATING IN INTEREST RATE FUTURES, 302 HEDGING WITH INTEREST RATE
FUTURES, 304 STOCK INDEX FUTURES, 307
VALUING STOCK INDEX FUTURES, 308
USING THE WALL STREET JOURNAL: INDEX FUTURES, 309
SPECULATING IN STOCK INDEX FUTURES, 309 HEDGING WITH STOCK INDEX
FUTURES, 309 DYNAMIC ASSET ALLOCATION WITH STOCK INDEX FUTURES, 311
ARBITRAGE WITH STOCK INDEX FUTURES, 311
CIRCUIT BREAKERS ON STOCK INDEX FUTURES, 312 SINGLE STOCK FUTURES, 312
RISK OF TRADING FUTURES CONTRACTS, 313 MARKET RISK, 313
BASIS RISK, 313
IMAGE 12
XVI CONTENTS
LIQUIDITY RISK, 313 CREDIT RISK, 314 PREPAYMENT RISK, 314 OPERATIONAL
RISK, 314 EXPOSURE OF FUTURES MARKET TO SYSTEMIC RISK, 314 GLOBALIZATION
OF FUTURES MARKETS, 315
NON-U.S. PARTICIPATION IN U.S. FUTURES CONTRACTS, 315 FOREIGN STOCK
INDEX FUTURES, 315 CURRENCY FUTURES CONTRACTS, 316 SUMMARY, 316
POINT COUNTER-POINT: HAS THE FUTURES MARKET CREATED MORE UNCERTAINTY FOR
STOCKS? 317 QUESTIONS AND APPLICATIONS, 317 ADVANCED QUESTIONS, 318
INTERPRETING FINANCIAL NEWS, 318
MANAGING IN FINANCIAL MARKETS, 318 PROBLEMS, 318 ONLINE ARTICLES WITH
REAL-WORLD EXAMPLES, 320
14: OPTION MARKETS 321
BACKGROUND ON OPTIONS, 321 COMPARISON OF OPTIONS AND FUTURES, 322
INSTITUTIONAL USE OF OPTIONS, 322 MARKETS USED TO TRADE OPTIONS, 322
HOW OPTION TRADES ARE EXECUTED, 323 TYPES OF ORDERS, 324 STOCK OPTION
QUOTATIONS, 324 DETERMINANTS OF STOCK OPTION PREMIUMS, 325
DETERMINANTS OF CALL OPTION PREMIUMS, 325 DETERMINANTS OF PUT OPTION
PREMIUMS, 326 HOW OPTION PRICING CAN BE USED TO DERIVE A
STOCK SVOLATILITY, 327
EXPLAINING CHANGES IN OPTION PREMIUMS, 327 SPECULATING WITH STOCK
OPTIONS, 329 SPECULATING WITH CALL OPTIONS, 329 SPECULATING WITH PUT
OPTIONS, 331
EXCESSIVE RISK FROM SPECULATION, 332 HEDGING WITH STOCK OPTIONS, 334
HEDGING WITH COVERED CALL OPTIONS, 334
HEDGING WITH PUT OPTIONS, 334 OPTIONS ON ETFS AND STOCK INDEXES, 336
HEDGING WITH STOCK INDEX OPTIONS, 336
DYNAMIC ASSET ALLOCATION WITH STOCK INDEX OPTIONS, 337 USING INDEX
OPTIONS TO MEASURE THE MARKET S RISK, 338 OPTIONS ON FUTURES CONTRACTS,
338 SPECULATING WITH OPTIONS ON FUTURES, 339
HEDGING WITH OPTIONS ON INTEREST RATE FUTURES, 341 HEDGING WITH OPTIONS
ON STOCK INDEX FUTURES, 342 OPTIONS AS EXECUTIVE COMPENSATION, 343
LIMITATIONS OF OPTION COMPENSATION, 343 GLOBALIZATION OF OPTIONS
MARKETS, 344
CURRENCY OPTIONS CONTRACTS, 344 SUMMARY, 345
IMAGE 13
CONTENTS XVII
POINT COUNTER-POINT: IF YOU WERE A MAJOR SHAREHOLDER OF A PUBLICLY
TRADED FIRM, WOULD YOU PREFER THAT STOCK OPTIONS BE TRADED ON THAT
STOCK? 345 QUESTIONS AND APPLICATIONS, 345 ADVANCED QUESTIONS, 346
INTERPRETING FINANCIAL NEWS, 346 MANAGING IN FINANCIAL MARKETS, 347
PROBLEMS, 347 ONLINE ARTICLES WITH REAL-WORLD EXAMPLES, 349
15: INTEREST RATE DERIVATIVE MARKETS 351
BACKGROUND, 351 USE OF SWAPS FOR HEDGING, 352 USE OF SWAPS FOR
SPECULATING, 353 PARTICIPATION BY FINANCIAL INSTITUTIONS, 353 TYPES OF
INTEREST RATE SWAPS, 354
PLAIN VANILLA SWAPS, 354 FORWARD SWAPS, 356 CALLABLE SWAPS, 357
PUTABLE SWAPS, 357 EXTENDABLE SWAPS, 358 ZERO-COUPON-FOR-FLOATING SWAPS,
359
RATE-CAPPED SWAPS, 359 EQUITY SWAPS, 360 OTHER TYPES OF SWAPS, 360 RISKS
OF INTEREST RATE SWAPS, 362
BASIS RISK, 362 CREDIT RISK, 362 SOVEREIGN RISK, 363 PRICING INTEREST
RATE SWAPS, 363
PREVAILING MARKET INTEREST RATES, 363 AVAILABILITY OF COUNTERPARTIES,
363 CREDIT AND SOVEREIGN RISK, 364 PERFORMANCE OF INTEREST RATE SWAPS,
364 INTEREST RATE CAPS, FLOORS, AND COLLARS, 365
INTEREST RATE CAPS, 365 INTEREST RATE FLOORS, 366 INTEREST RATE COLLARS,
366 CREDIT DEFAULT SWAPS, 368
SECONDARY MARKET FOR CDS CONTRACTS, 369 COLLATERAL ON CDS CONTRACTS, 369
PAYMENTS ON A CREDIT DEFAULT SWAP, 369 HOW CDS CONTRACTS AFFECT
DEBTOR-CREDITOR NEGOTIATIONS, 369 DEVELOPMENT OF THE CDS MARKET, 369
IMPACT OF THE CREDIT CRISIS ON THE CDS MARKET, 370 REFORM OF CDS
CONTRACTS, 371 GLOBALIZATION OF SWAP MARKETS, 372 CURRENCY SWAPS, 372
SUMMARY, 375
POINT COUNTER-POINT: SHOULD FINANCIAL INSTITUTIONS ENGAGE IN INTEREST
RATE SWAPS FOR SPECULATIVE PURPOSES? 375 QUESTIONS AND APPLICATIONS, 375
IMAGE 14
XVIII CONTENTS
ADVANCED QUESTIONS, 376 INTERPRETING FINANCIAL NEWS, 377 MANAGING IN
FINANCIAL MARKETS, 377 PROBLEMS, 377 ONLINE ARTICLES WITH REAL-WORLD
EXAMPLES, 378
16: FOREIGN EXCHANGE DERIVATIVE AAARKETS 379
FOREIGN EXCHANGE MARKETS, 379 INSTITUTIONAL USE OF FOREIGN EXCHANGE
MARKETS, 379 EXCHANGE RATE QUOTATIONS, 380 TYPES OF EXCHANGE RATE
SYSTEMS, 381 EUROZONE ARRANGEMENT, 382 FACTORS AFFECTING EXCHANGE RATES,
383
DIFFERENTIAL INFLATION RATES, 383 DIFFERENTIAL INTEREST RATES, 383
CENTRAL BANK INTERVENTION, 384 FORECASTING EXCHANGE RATES, 386
TECHNICAL FORECASTING, 386 FUNDAMENTAL FORECASTING, 386 MARKET-BASED
FORECASTING, 386 MIXED FORECASTING, 387 FOREIGN EXCHANGE DERIVATIVES,
387
FORWARD CONTRACTS, 387 CURRENCY FUTURES CONTRACTS, 388
USING THE WALL STREET JOURNAL: CURRENCY FUTURES, 389
CURRENCY SWAPS, 389 CURRENCY OPTIONS CONTRACTS, 389 USE OF FOREIGN
EXCHANGE DERIVATIVES FOR HEDGING, 390 USE OF FOREIGN EXCHANGE
DERIVATIVES FOR SPECULATING, 390 INTERNATIONAL ARBITRAGE, 392
LOCATIONAL ARBITRAGE, 392 TRIANGULAR ARBITRAGE, 392 COVERED INTEREST
ARBITRAGE, 393 SUMMARY, 394 POINT COUNTER-POINT: DO FINANCIAL
INSTITUTIONS NEED TO CONSIDER FOREIGN EXCHANGE MARKET
CONDITIONS WHEN MAKING DOMESTIC SECURITY MARKET DECISIONS? 395 QUESTIONS
AND APPLICATIONS, 395 ADVANCED QUESTIONS, 396 INTERPRETING FINANCIAL
NEWS, 396
MANAGING IN FINANCIAL MARKETS, 396 PROBLEMS, 396 ONLINE ARTICLES WITH
REAL-WORLD EXAMPLES, 397
PART 5 INTEGRATIVE PROBLEM: CHOOSING AMONG DERIVATIVE SECURITIES, 398
MIDTERM SELF-EXAM, 400
PART 6: COMMERCIAL BANKING 407
17: COMMERCIAL BANK OPERATIONS 4 09
BACKGROUND ON COMMERCIAL BANKS, 409 BANK MARKET STRUCTURE, 409
IMAGE 15
CONTENTS XIX
BANK SOURCES OF FUNDS, 410 TRANSACTION DEPOSITS, 411 SAVINGS DEPOSITS,
411 TIME DEPOSITS, 411 MONEY MARKET DEPOSIT ACCOUNTS, 412 FEDERAL FUNDS
PURCHASED, 412 BORROWING FROM THE FEDERAL RESERVE BANKS, 413 REPURCHASE
AGREEMENTS, 413 EURODOLLAR BORROWINGS, 414 BONDS ISSUED BY THE BANK, 414
BANK CAPITAL, 414 DISTRIBUTION OF BANK SOURCES OF FUNDS, 415 USES OF
FUNDS BY BANKS, 415
CASH, 416 BANK LOANS, 416 USING THE WALL STREET JOURNAL: BANK RATES, 420
INVESTMENT IN SECURITIES, 420 FEDERAL FUNDS SOLD, 421 REPURCHASE
AGREEMENTS, 421 EURODOLLAR LOANS, 422 FIXED ASSETS, 422 PROPRIETARY
TRADING, 422
SUMMARY OF BANK USES OF FUNDS, 422 OFF-BALANCE SHEET ACTIVITIES, 424
LOAN COMMITMENTS, 424
STANDBY LETTERS OF CREDIT, 425 FORWARD CONTRACTS ON CURRENCIES, 425
INTEREST RATE SWAP CONTRACTS, 425 CREDIT DEFAULT SWAP CONTRACTS, 426
INTERNATIONAL BANKING, 426
GLOBAL COMPETITION IN FOREIGN COUNTRIES, 426 IMPACT OF THE EURO ON
GLOBAL COMPETITION, 427 SUMMARY, 427 POINT COUNTER-POINT: SHOULD BANKS
ENGAGE IN OTHER FINANCIAL SERVICES BESIDES
BANKING? 427 QUESTIONS AND APPLICATIONS, 428 INTERPRETING FINANCIAL
NEWS, 428 MANAGING IN FINANCIAL MARKETS, 428 ONLINE ARTICLES WITH
REAL-WORLD EXAMPLES, 429
18: REGULATION OF BANKS 431
BACKGROUND, 431 REGULATORY STRUCTURE, 431 REGULATORS, 432 REGULATION OF
BANK OWNERSHIP, 432
REGULATION OF BANK OPERATIONS, 432 REGULATION OF DEPOSIT INSURANCE, 432
REGULATION OF DEPOSITS, 433 REGULATION OF BANK LOANS, 434
REGULATION OF BANK INVESTMENT IN SECURITIES, 435 REGULATION OF
SECURITIES SERVICES, 435
IMAGE 16
XX CONTENTS
REGULATION OF INSURANCE SERVICES, 436 REGULATION OF OFF-BALANCE SHEET
TRANSACTIONS, 436 REGULATION OF THE ACCOUNTING PROCESS, 437 REGULATION
OF CAPITAL, 437
BASEL I ACCORD, 438 BASEL II FRAMEWORK, 438 BASEL III FRAMEWORK, 439 USE
OF THE VAR METHOD TO DETERMINE CAPITAL REQUIREMENTS, 439 HOW REGULATORS
MONITOR BANKS, 441
CAMELS RATINGS, 441 CORRECTIVE ACTION BY REGULATORS, 444 FUNDING THE
CLOSURE OF FAILING BANKS, 444 GOVERNMENT RESCUE OF FAILING BANKS, 445
ARGUMENT FOR GOVERNMENT RESCUE, 445 ARGUMENT AGAINST GOVERNMENT RESCUE,
445 GOVERNMENT RESCUE OF BEAR STEARNS, 446 FAILURE OF LEHMAN AND RESCUE
OFAIG, 446 FINANCIAL REFORM ACT OF 2010, 447
MORTGAGE ORIGINATION, 447 SALES OF MORTGAGE-BACKED SECURITIES, 447
FINANCIAL STABILITY OVERSIGHT COUNCIL, 447 ORDERLY LIQUIDATION, 447
CONSUMER FINANCIAL PROTECTION BUREAU, 448 LIMITS ON BANK PROPRIETARY
TRADING, 448 TRADING OF DERIVATIVE SECURITIES, 448 GLOBAL BANK
REGULATIONS, 448 SUMMARY, 449
POINT COUNTER-POINT: SHOULD REGULATORS INTERVENE TO TAKE OVER WEAK
BANKS? 449 QUESTIONS AND APPLICATIONS, 449 INTERPRETING FINANCIAL NEWS,
450 MANAGING IN FINANCIAL MARKETS, 450
ONLINE ARTICLES WITH REAL-WORLD EXAMPLES, 451
19: BANK MANAGEMENT 453
BANK GOALS, STRATEGY, AND GOVERNANCE, 453 ALIGNING MANAGERIAL
COMPENSATION WITH BANK GOALS, 453 BANK STRATEGY, 453 BANK GOVERNANCE BY
THE BOARD OF DIRECTORS, 454
OTHER FORMS OF BANK GOVERNANCE, 455 MANAGING LIQUIDITY, 455 USE OF
SECURITIZATION TO BOOST LIQUIDITY, 455 LIQUIDITY PROBLEMS, 456 MANAGING
INTEREST RATE RISK, 456
METHODS USED TO ASSESS INTEREST RATE RISK, 457 WHETHER TO HEDGE INTEREST
RATE RISK, 461 METHODS USED TO REDUCE INTEREST RATE RISK, 463
INTERNATIONAL INTEREST RATE RISK, 466 MANAGING CREDIT RISK, 466
MEASURING CREDIT RISK, 466 TRADE-OFF BETWEEN CREDIT RISK AND RETURN, 467
REDUCING CREDIT RISK, 468
IMAGE 17
CONTENTS XXI
MANAGING MARKET RISK, 469 MEASURING MARKET RISK, 470 METHODS USED TO
REDUCE MARKET RISK, 470 INTEGRATED BANK MANAGEMENT, 470
APPLICATION, 471 MANAGING RISK OF INTERNATIONAL OPERATIONS, 474 EXCHANGE
RATE RISK, 474 SETTLEMENT RISK, 475
SUMMARY, 475 POINT COUNTER-POINT: CAN BANK FAILURES BE AVOIDED? 475
QUESTIONS AND APPLICATIONS, 476 ADVANCED QUESTIONS, 476
INTERPRETING FINANCIAL NEWS, 477 MANAGING IN FINANCIAL MARKETS, 477
PROBLEMS, 477 ONLINE ARTICLES WITH REAL-WORLD EXAMPLES, 480
20: BANK PERFORMANCE 481
VALUATION OF A COMMERCIAL BANK, 481 FACTORS THAT AFFECT CASH FLOWS, 481
FACTORS THAT AFFECT THE REQUIRED RATE OF RETURN BY INVESTORS, 483 IMPACT
OF THE CREDIT CRISIS ON BANK VALUATIONS, 484 PERFORMANCE OF BANKS IN
AGGREGATE, 484
INTEREST INCOME AND EXPENSES, 485 NONINTEREST INCOME AND EXPENSES, 487
NET INCOME, 488 HOW TO EVALUATE A BANK S PERFORMANCE, 488
EXAMINATION OF RETURN ON ASSETS, 489 APPLICATION, 490 SUMMARY, 492 POINT
COUNTER-POINT: DOES A BANK S INCOME STATEMENT CLEARLY INDICATE THE
BANK S
PERFORMANCE? 492 QUESTIONS AND APPLICATIONS, 492 INTERPRETING FINANCIAL
NEWS, 493 MANAGING IN FINANCIAL MARKETS, 493 PROBLEM, 493
ONLINE ARTICLES WITH REAL-WORLD EXAMPLES, 494
PART 6 INTEGRATIVE PROBLEM: FORECASTING BANK PERFORMANCE, 495
PART 7: NONBANK OPERATIONS 499
2 1: THRIFT OPERATIONS 501
BACKGROUND ON SAVINGS INSTITUTIONS, 501 OWNERSHIP OF SAVINGS
INSTITUTIONS, 501 REGULATION OF SAVINGS INSTITUTIONS, 502 SOURCES AND
USES OF FUNDS, 502
SOURCES OF FUNDS, 502 USES OF FUNDS, 504 BALANCE SHEET OF SAVINGS
INSTITUTIONS, 504 INTERACTION WITH OTHER FINANCIAL INSTITUTIONS, 505
IMAGE 18
XXII CONTENTS
PARTICIPATION IN FINANCIAL MARKETS, 506 EXPOSURE TO RISK, 507 LIQUIDITY
RISK, 507 CREDIT RISK, 507
INTEREST RATE RISK, 507 MANAGEMENT OF INTEREST RATE RISK, 508
ADJUSTABLE-RATE MORTGAGES, 509
INTEREST RATE FUTURES CONTRACTS, 510 INTEREST RATE SWAPS, 510
CONCLUSIONS ABOUT MANAGING INTEREST RATE RISK, 510 VALUATION OF A
SAVINGS INSTITUTION, 510
FACTORS THAT AFFECT CASH FLOWS, 511 FACTORS THAT AFFECT THE REQUIRED
RATE OF RETURN, 511 EXPOSURE OF SAVINGS INSTITUTIONS TO CRISES, 513
SAVINGS INSTITUTION CRISIS IN THE LATE 1980S, 513
CREDIT CRISIS OF 2008-2009, 514 REFORM IN RESPONSE TO THE CREDIT CRISIS,
515 CREDIT UNIONS, 516 OWNERSHIP OF CREDIT UNIONS, 516
ADVANTAGES AND DISADVANTAGES OF CREDIT UNIONS, 516 DEPOSIT INSURANCE FOR
CREDIT UNIONS, 517 REGULATORY ASSESSMENT OF CREDIT UNIONS, 517 CREDIT
UNION SOURCES OF FUNDS, 517
CREDIT UNION USES OF FUNDS, 518 EXPOSURE OF CREDIT UNIONS TO RISK, 518
SUMMARY, 519 POINT COUNTER-POINT: CAN ALL SAVINGS INSTITUTIONS AVOID
FAILURE? 519
QUESTIONS AND APPLICATIONS, 520 INTERPRETING FINANCIAL NEWS, 521
MANAGING IN FINANCIAL MARKETS, 521 ONLINE ARTICLES WITH REAL-WORLD
EXAMPLES, 521
22: FINANCE COMPANY OPERATIONS 523
TYPES OF FINANCE COMPANIES, 523 CONSUMER FINANCE COMPANIES, 523 BUSINESS
FINANCE COMPANIES, 523 CAPTIVE FINANCE SUBSIDIARIES, 524 SOURCES AND
USES OF FUNDS, 524
SOURCES OF FUNDS, 524 USES OF FINANCE COMPANY FUNDS, 525 INTERACTION
WITH OTHER FINANCIAL INSTITUTIONS, 527 EXPOSURE OF FINANCE COMPANIES TO
RISK, 528
LIQUIDITY RISK, 528 INTEREST RATE RISK, 528 CREDIT RISK, 529 VALUATION
OF A FINANCE COMPANY, 529
FACTORS THAT AFFECT CASH FLOWS, 529 FACTORS THAT AFFECT THE REQUIRED
RATE OF RETURN, 530 MULTINATIONAL FINANCE COMPANIES, 530 SUMMARY, 531
POINT COUNTER-POINT: WILL FINANCE COMPANIES BE REPLACED BY BANKS? 532
IMAGE 19
CONTENTS XXIII
QUESTIONS AND APPLICATIONS, 532 INTERPRETING FINANCIAL NEWS, 532
MANAGING IN FINANCIAL MARKETS, 532 ONLINE ARTICLES WITH REAL-WORLD
EXAMPLES, 533
23: MUTUAL FUND OPERATIONS 535
BACKGROUND ON MUTUAL FUNDS, 535 PRICING SHARES OF THE MUTUAL FUND, 537
MUTUAL FUND DISTRIBUTIONS TO SHAREHOLDERS, 537 REGULATION OF MUTUAL
FUNDS, 537
MANAGEMENT OF MUTUAL FUNDS, 538 EXPENSES INCURRED BY MUTUAL FUND
SHAREHOLDERS, 539 GOVERNANCE OF MUTUAL FUNDS, 541 MUTUAL FUND
CATEGORIES, 542 STOCK MUTUAL FUND CATEGORIES, 543 BOND MUTUAL FUND
CATEGORIES, 544 ASSET ALLOCATION FUNDS, 545
GROWTH AND SIZE OF MUTUAL FUNDS, 545 PERFORMANCE OF MUTUAL FUNDS, 546
VALUATION OF STOCK MUTUAL FUNDS, 546 VALUATION OF BOND MUTUAL FUNDS, 548
USING THE WALL STREET JOURNAL: PERFORMANCE OF MUTUAL FUNDS, 549
PERFORMANCE FROM DIVERSIFYING AMONG FUNDS, 549 RESEARCH ON MUTUAL FUND
PERFORMANCE, 549 MONEY MARKET FUNDS, 550 ASSET COMPOSITION OF MONEY
MARKET FUNDS, 550
RISK OF MONEY MARKET FUNDS, 552 MANAGEMENT OF MONEY MARKET FUNDS, 552
OTHER TYPES OF FUNDS, 553 CLOSED-END FUNDS, 553
EXCHANGE-TRADED FUNDS, 554 USING THE WALL STREET JOURNAL:
EXCHANGE-TRADED FUNDS, 555
VENTURE CAPITAL FUNDS, 556 PRIVATE EQUITY FUNDS, 556 HEDGE FUNDS, 557
REAL ESTATE INVESTMENT TRUSTS, 560 SUMMARY, 561
POINT COUNTER-POINT: SHOULD MUTUAL FUNDS BE SUBJECT TO MORE REGULATION?
561 QUESTIONS AND APPLICATIONS, 561 ADVANCED QUESTIONS, 562 INTERPRETING
FINANCIAL NEWS, 562
MANAGING IN FINANCIAL MARKETS, 563 ONLINE ARTICLES WITH REAL-WORLD
EXAMPLES, 563
24: SECURITIES OPERATIONS 565
FUNCTIONS OF SECURITIES FIRMS, 565 FACILITATING STOCK OFFERINGS, 565
FACILITATING BOND OFFERINGS, 567 SECURITIZING MORTGAGES, 568 ADVISING
CORPORATIONS, 569
IMAGE 20
XXIV CONTENTS
FINANCING FOR CORPORATIONS, 570 PROVIDING BROKERAGE SERVICES, 571
OPERATING MUTUAL FUNDS, 571 PROPRIETARY TRADING, 571
SUMMARY OF SERVICES PROVIDED, 572 INTERACTION WITH OTHER FINANCIAL
INSTITUTIONS, 573 PARTICIPATION IN FINANCIAL MARKETS, 574 EXPANDING
FUNCTIONS INTERNATIONALLY, 574 REGULATION OF SECURITIES FIRMS, 575
STOCK EXCHANGE REGULATIONS, 575 REGULATORY EVENTS THAT AFFECTED
SECURITIES FIRMS, 576 EXPOSURE OF SECURITIES FIRMS TO RISK, 577 MARKET
RISK, 577
INTEREST RATE RISK, 578 CREDIT RISK, 578 EXCHANGE RATE RISK, 578 IMPACT
OF FINANCIAL LEVERAGE ON EXPOSURE TO RISK, 578 VALUATION OF A SECURITIES
FIRM, 579
FACTORS THAT AFFECT CASH FLOWS, 579 FACTORS THAT AFFECT THE REQUIRED
RATE OF RETURN, 580 IMPACT OF THE CREDIT CRISIS ON SECURITIES FIRMS, 580
GOVERNMENT ASSISTANCE TO BEAR STEARNS, 581
FAILURE OF LEHMAN BROTHERS, 583 IMPACT OF THE CRISIS ON REGULATORY
REFORM, 583 SUMMARY, 585 POINT COUNTER-POINT: SHOULD ANALYSTS BE
SEPARATED FROM SECURITIES FIRMS TO PREVENT CONFLICTS
OF INTEREST? 585 QUESTIONS AND APPLICATIONS, 585 INTERPRETING FINANCIAL
NEWS, 586 MANAGING IN FINANCIAL MARKETS, 586
ONLINE ARTICLES WITH REAL-WORLD EXAMPLES, 586
25: PENSION FUND AND INSURANCE OPERATIONS 587
BACKGROUND, 587 DETERMINANTS OF INSURANCE PREMIUMS, 587 INVESTMENTS BY
INSURANCE COMPANIES, 589 REGULATION OF INSURANCE COMPANIES, 589
LIFE INSURANCE OPERATIONS, 590 OWNERSHIP, 591 TYPES OF LIFE INSURANCE,
591 SOURCES OF FUNDS, 592
USES OF FUNDS, 593 ASSET MANAGEMENT OF LIFE INSURANCE COMPANIES, 595
INTERACTION WITH OTHER FINANCIAL INSTITUTIONS, 596 OTHER TYPES OF
INSURANCE OPERATIONS, 596
PROPERTY AND CASUALTY INSURANCE, 596 HEALTH CARE INSURANCE, 599 BUSINESS
INSURANCE, 599 BOND INSURANCE, 600
MORTGAGE INSURANCE, 600
IMAGE 21
CONTENTS XXV
EXPOSURE OF INSURANCE COMPANIES TO RISK, 601 INTEREST RATE RISK, 601
CREDIT RISK, 601 MARKET RISK, 601 LIQUIDITY RISK, 601 EXPOSURE TO RISK
DURING THE CREDIT CRISIS, 601
VALUATION OF AN INSURANCE COMPANY, 602 FACTORS THAT AFFECT CASH FLOWS,
602 FACTORS THAT AFFECT THE REQUIRED RATE OF RETURN BY INVESTORS, 603
INDICATORS OF VALUE AND PERFORMANCE, 603 BACKGROUND ON PENSION FUNDS,
605
PUBLIC VERSUS PRIVATE PENSION FUNDS, 605 DEFINED-BENEFIT VERSUS
DEFINED-CONTRIBUTION PLANS, 605 PENSION FUND PARTICIPATION IN FINANCIAL
MARKETS, 606 PENSION REGULATIONS, 607 PENSION FUND MANAGEMENT, 609
MANAGEMENT OF INSURED VERSUS TRUST PORTFOLIOS, 610 MANAGEMENT OF
PORTFOLIO RISK, 610 CORPORATE CONTROL BY PENSION FUNDS, 611 PERFORMANCE
OF PENSION FUNDS, 611
PENSION FUND S STOCK PORTFOLIO PERFORMANCE, 611 PENSION FUND S BOND
PORTFOLIO PERFORMANCE, 612 PERFORMANCE EVALUATION, 612 PERFORMANCE OF
PENSION PORTFOLIO MANAGERS, 613 SUMMARY, 613 POINT COUNTER-POINT: SHOULD
PENSION FUND MANAGERS BE MORE INVOLVED WITH CORPORATE
GOVERNANCE? 613 QUESTIONS AND APPLICATIONS, 614 INTERPRETING FINANCIAL
NEWS, 614 MANAGING IN FINANCIAL MARKETS, 615
ONLINE ARTICLES WITH REAL-WORLD EXAMPLES, 615
PART 7 INTEGRATIVE PROBLEM: ASSESSING THE INFLUENCE OF ECONOMIC
CONDITIONS ACROSS A FINANCIAL CONGLOMERATE S UNITS, 616
FINAL SELF-EXAM, 617
CHAPTER EXERCISES, 623
CHAPTER APPENDICES, 651 APPENDIX 8: FORECASTING BOND PRICES AND YIELDS,
651 APPENDIX 11: THE LINK BETWEEN ACCOUNTING AND STOCK VALUATION, 656
APPENDIX 14: OPTION VALUATION, 665
APPENDIX 16: CURRENCY OPTION PRICING, 673
APPENDIX A: COMPREHENSIVE PROJECT, 677
APPENDIX B: USING EXCEL TO CONDUCT ANALYSES, 687
GLOSSARY, 691
INDEX, 701
|
| any_adam_object | 1 |
| author | Madura, Jeff |
| author_GND | (DE-588)170157768 |
| author_facet | Madura, Jeff |
| author_role | aut |
| author_sort | Madura, Jeff |
| author_variant | j m jm |
| building | Verbundindex |
| bvnumber | BV039965242 |
| classification_rvk | QK 600 QK 640 |
| ctrlnum | (OCoLC)785853396 (DE-599)BVBBV039965242 |
| dewey-full | 332 |
| dewey-hundreds | 300 - Social sciences |
| dewey-ones | 332 - Financial economics |
| dewey-raw | 332 |
| dewey-search | 332 |
| dewey-sort | 3332 |
| dewey-tens | 330 - Economics |
| discipline | Wirtschaftswissenschaften |
| edition | 10. ed., internat. ed. |
| format | Book |
| fullrecord | <?xml version="1.0" encoding="UTF-8"?><collection xmlns="http://www.loc.gov/MARC21/slim"><record><leader>01779nam a2200481 c 4500</leader><controlfield tag="001">BV039965242</controlfield><controlfield tag="003">DE-604</controlfield><controlfield tag="005">20211104 </controlfield><controlfield tag="007">t</controlfield><controlfield tag="008">120316s2012 d||| |||| 00||| eng d</controlfield><datafield tag="020" ind1=" " ind2=" "><subfield code="a">9780538482172</subfield><subfield code="9">978-0-538-48217-2</subfield></datafield><datafield tag="020" ind1=" " ind2=" "><subfield code="a">0538482176</subfield><subfield code="9">0-538-48217-6</subfield></datafield><datafield tag="035" ind1=" " ind2=" "><subfield code="a">(OCoLC)785853396</subfield></datafield><datafield tag="035" ind1=" " ind2=" "><subfield code="a">(DE-599)BVBBV039965242</subfield></datafield><datafield tag="040" ind1=" " ind2=" "><subfield code="a">DE-604</subfield><subfield code="b">ger</subfield></datafield><datafield tag="041" ind1="0" ind2=" "><subfield code="a">eng</subfield></datafield><datafield tag="049" ind1=" " ind2=" "><subfield code="a">DE-523</subfield><subfield code="a">DE-188</subfield><subfield code="a">DE-858</subfield><subfield code="a">DE-Aug4</subfield></datafield><datafield tag="082" ind1="0" ind2=" "><subfield code="a">332</subfield><subfield code="2">23</subfield></datafield><datafield tag="084" ind1=" " ind2=" "><subfield code="a">QK 600</subfield><subfield code="0">(DE-625)141666:</subfield><subfield code="2">rvk</subfield></datafield><datafield tag="084" ind1=" " ind2=" "><subfield code="a">QK 640</subfield><subfield code="0">(DE-625)141673:</subfield><subfield code="2">rvk</subfield></datafield><datafield tag="100" ind1="1" ind2=" "><subfield code="a">Madura, Jeff</subfield><subfield code="e">Verfasser</subfield><subfield code="0">(DE-588)170157768</subfield><subfield code="4">aut</subfield></datafield><datafield tag="245" ind1="1" ind2="0"><subfield code="a">Financial institutions & markets</subfield><subfield code="c">Jeff Madura</subfield></datafield><datafield tag="246" ind1="1" ind2="3"><subfield code="a">Financial institutions and markets</subfield></datafield><datafield tag="250" ind1=" " ind2=" "><subfield code="a">10. ed., internat. ed.</subfield></datafield><datafield tag="264" ind1=" " ind2="1"><subfield code="a">[Independence, KY]</subfield><subfield code="b">South-Western Cengage Learning</subfield><subfield code="c">2012</subfield></datafield><datafield tag="300" ind1=" " ind2=" "><subfield code="a">XXXV, 714 S.</subfield><subfield code="b">graph. Darst.</subfield><subfield code="c">25 cm</subfield></datafield><datafield tag="336" ind1=" " ind2=" "><subfield code="b">txt</subfield><subfield code="2">rdacontent</subfield></datafield><datafield tag="337" ind1=" " ind2=" "><subfield code="b">n</subfield><subfield code="2">rdamedia</subfield></datafield><datafield tag="338" ind1=" " ind2=" "><subfield code="b">nc</subfield><subfield code="2">rdacarrier</subfield></datafield><datafield tag="500" ind1=" " ind2=" "><subfield code="a">Includes index</subfield></datafield><datafield tag="650" ind1="0" ind2="7"><subfield code="a">Kreditwesen</subfield><subfield code="0">(DE-588)4032950-1</subfield><subfield code="2">gnd</subfield><subfield code="9">rswk-swf</subfield></datafield><datafield tag="650" ind1="0" ind2="7"><subfield code="a">Kreditmarkt</subfield><subfield code="0">(DE-588)4073788-3</subfield><subfield code="2">gnd</subfield><subfield code="9">rswk-swf</subfield></datafield><datafield tag="651" ind1=" " ind2="7"><subfield code="a">USA</subfield><subfield code="0">(DE-588)4078704-7</subfield><subfield code="2">gnd</subfield><subfield code="9">rswk-swf</subfield></datafield><datafield tag="689" ind1="0" ind2="0"><subfield code="a">Kreditmarkt</subfield><subfield code="0">(DE-588)4073788-3</subfield><subfield code="D">s</subfield></datafield><datafield tag="689" ind1="0" ind2=" "><subfield code="5">DE-604</subfield></datafield><datafield tag="689" ind1="1" ind2="0"><subfield code="a">USA</subfield><subfield code="0">(DE-588)4078704-7</subfield><subfield code="D">g</subfield></datafield><datafield tag="689" ind1="1" ind2="1"><subfield code="a">Kreditmarkt</subfield><subfield code="0">(DE-588)4073788-3</subfield><subfield code="D">s</subfield></datafield><datafield tag="689" ind1="1" ind2=" "><subfield code="5">DE-188</subfield></datafield><datafield tag="689" ind1="2" ind2="0"><subfield code="a">USA</subfield><subfield code="0">(DE-588)4078704-7</subfield><subfield code="D">g</subfield></datafield><datafield tag="689" ind1="2" ind2="1"><subfield code="a">Kreditwesen</subfield><subfield code="0">(DE-588)4032950-1</subfield><subfield code="D">s</subfield></datafield><datafield tag="689" ind1="2" ind2=" "><subfield code="5">DE-188</subfield></datafield><datafield tag="856" ind1="4" ind2="2"><subfield code="m">SWB Datenaustausch</subfield><subfield code="q">application/pdf</subfield><subfield code="u">http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=024822898&sequence=000001&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA</subfield><subfield code="3">Inhaltsverzeichnis</subfield></datafield><datafield tag="999" ind1=" " ind2=" "><subfield code="a">oai:aleph.bib-bvb.de:BVB01-024822898</subfield></datafield></record></collection> |
| geographic | USA (DE-588)4078704-7 gnd |
| geographic_facet | USA |
| id | DE-604.BV039965242 |
| illustrated | Illustrated |
| indexdate | 2024-07-10T00:15:08Z |
| institution | BVB |
| isbn | 9780538482172 0538482176 |
| language | English |
| oai_aleph_id | oai:aleph.bib-bvb.de:BVB01-024822898 |
| oclc_num | 785853396 |
| open_access_boolean | |
| owner | DE-523 DE-188 DE-858 DE-Aug4 |
| owner_facet | DE-523 DE-188 DE-858 DE-Aug4 |
| physical | XXXV, 714 S. graph. Darst. 25 cm |
| publishDate | 2012 |
| publishDateSearch | 2012 |
| publishDateSort | 2012 |
| publisher | South-Western Cengage Learning |
| record_format | marc |
| spelling | Madura, Jeff Verfasser (DE-588)170157768 aut Financial institutions & markets Jeff Madura Financial institutions and markets 10. ed., internat. ed. [Independence, KY] South-Western Cengage Learning 2012 XXXV, 714 S. graph. Darst. 25 cm txt rdacontent n rdamedia nc rdacarrier Includes index Kreditwesen (DE-588)4032950-1 gnd rswk-swf Kreditmarkt (DE-588)4073788-3 gnd rswk-swf USA (DE-588)4078704-7 gnd rswk-swf Kreditmarkt (DE-588)4073788-3 s DE-604 USA (DE-588)4078704-7 g DE-188 Kreditwesen (DE-588)4032950-1 s SWB Datenaustausch application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=024822898&sequence=000001&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA Inhaltsverzeichnis |
| spellingShingle | Madura, Jeff Financial institutions & markets Kreditwesen (DE-588)4032950-1 gnd Kreditmarkt (DE-588)4073788-3 gnd |
| subject_GND | (DE-588)4032950-1 (DE-588)4073788-3 (DE-588)4078704-7 |
| title | Financial institutions & markets |
| title_alt | Financial institutions and markets |
| title_auth | Financial institutions & markets |
| title_exact_search | Financial institutions & markets |
| title_full | Financial institutions & markets Jeff Madura |
| title_fullStr | Financial institutions & markets Jeff Madura |
| title_full_unstemmed | Financial institutions & markets Jeff Madura |
| title_short | Financial institutions & markets |
| title_sort | financial institutions markets |
| topic | Kreditwesen (DE-588)4032950-1 gnd Kreditmarkt (DE-588)4073788-3 gnd |
| topic_facet | Kreditwesen Kreditmarkt USA |
| url | http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=024822898&sequence=000001&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |
| work_keys_str_mv | AT madurajeff financialinstitutionsmarkets AT madurajeff financialinstitutionsandmarkets |