Fundamentals of Financial Instruments: An Introduction to Stocks, Bonds, Foreign Exchange, and Derivatives [Hardcover]

Fundamentals of Financial Instruments deals with the global financial markets and the instruments in which they trade. While most books on finance tend to be heavily mathematical, this book emphasizes the concepts in a logical, sequential fashion, introducing mathematical concepts only at the relevant times. As a result, the reader gains conceptual clarity reinforced by just the right level of technical detail to ensure a comprehensive exposure to the skills needed in the financial world.

• Establishes a strong foundation for understanding global markets
• Acts as an invaluable resource for those considering a career in the financial markets
• Offers an accessible yet in-depth treatise on modern financial instruments
• Presents a logical navigational path for a typical student of finance who is attempting to come to terms with the intricacies of the subject

Covering the fundamentals of various types of assets in a single volume, Fundamentals of Financial Instruments is a compact yet comprehensive one-stop reference for students and professionals in finance and economics.

Acknowledgments xv

Chapter 1 An Introduction to Financial Institutions, Instruments, and Markets 1

The Role of an Economic System 1

A Command Economy 2

A Market Economy 3

Classification of Economic Units 4

An Economys Relationship with the External World 7

The Balance of Trade 9

The Current Account Balance 9

Financial Assets 10

Primary Markets and Secondary Markets 22

Exchanges lS}