Financial Markets: Vol 1 Stocks, bonds, money markets; IPOS, auctions, trading (buying and selling), short selling, transaction costs, cu - Paperback

by James Upson (Author), Thomas H. McInish (Author)

This book is written for market professionals and students who seek knowledge concerning financial markets. We focus on all four types of financial products: equities (stocks and warrants), debt instruments (bond and money market instruments), foreign exchange, and derivatives. We believe that in today's financial environment everyone must have a basic understanding of each of these markets. More and more individual investors are managing their own retirement portfolios. Both individuals and institutions are investing across borders so that it is not wise to only consider foreign exchange in international finance books and courses. Volume 1 comprises five chapters. Chapter 1 describes the ways that equities and debt are created, including initial public offerings, private placements, and auctions. All financial assets have certain characteristics in common. All four product types are traded in markets, and, fortunately, the ways in which they are traded are limited. Chapter 2 describes the various trading venues such as exchanges and alternative trading systems and how trading is conducted such as in batch or call sessions and in continuous markets. Chapter 3 explains the various types of transactions costs associated with trading financial assets. We cover both explicit transactions costs such as commissions and implicit transactions costs such as the cost resulting from needing to execute an order quickly. Chapter 4 discusses a topic that is frequently overlooked-clearing and settlement. Clearing and settlement involve the exchange of the financial assets and funds that result from trading. Historically, this topic has not been considered important for domestic investors. But as investors invest globally they encounter a wider variety of clearing and settlement practices. Also, the risks involved in clearing and settlement are greater in some markets than in others. Hence, the authors believe that understanding of this topic is essential for today's finance professionals and individual investors. Chapter 5 deals with the regulation of financial markets. The particular institutions that regulate each market vary from country to country. But countries are increasingly coordinating their regulation of financial markets. During the crisis of 2008 governments worldwide cooperated in instituting bans of short selling. And efforts to combat money laundering and other financial crimes now have a worldwide scope.

Author Biography

Thomas H. McInish has published more than 100 articles in leading professional (Journal of Portfolio Management, Sloan Management Review) and scholarly (Journal of Finance, Journal of Financial Economics) journals. His book, Corporate Spin-Offs was cited as an Outstanding Academic Book by Choice, a publication of the Association for College and Research Libraries. One of Financial Management's "100 Most Prolific Authors in 15 Finance Journals," he also served as a financial analyst for a regional brokerage firm and for a subsidiary of a major paper manufacturer. Dr. McInish is a pioneer in the study of market microstructure and his article on intraday stock patterns, originally published in the Journal of Finance, has been republished in the series The International Library of Critical Writings in Financial Economics. Dr. McInish has visited financial institutions in more than 50 countries and has held visiting appointments at The University of Sydney, the University of New South Wales and Nanyang Technological University (Singapore) among others. Dr. McInish is currently Professor and Wunderlich Chair of Finance at The University of Memphis. He earned a Ph.D. from the University of Pittsburgh and is a Chartered Financial Analyst (CFA). James E. Upson's primary research and teaching interests are in capital market operations and investments. Currently, he is Assistant Professor of Finance at the University of Texas at El Paso where he teaches undergraduate and graduate classes. He has published in leading journals such as the Journal of Quantitative and Financial Analysis and the Journal of Financial Markets. Previously, Dr. Upson supervised a large engineering staff in the automotive industry where he was employed for more than 14 years. Dr. Upson earned a Ph.D. in business administration (finance) from The University of Memphis, an M.B.A. from the University of Southern Indiana, and a B.S. Mechanical Engineering from Purdue.