目录
 PART ⅠOverview of the Financial Environment
  Chapter 1 Role of Financial Markets and Institutions
   Overview of Financial Markets
    Money versus Capital Markets
    Primary versus Secondary Markets
    Organized versus Over-the-counter Markets
   Securities Traded in Financial Markets
    Money Market Securities
    Capital Market Securities
    Derivative Securities
   Valuation of Securities in Financial Markets
    Market Pricing of Securities
    Market Efficiency
   Financial Market Regulation
    Disclosure
    Other Regulations
   Financial Market Globalization
    Role of the Foreign Exchange Market
    Foreign Exchange Rates
   Role of Financial Institutions in Financial Markets
    Role of Depository Institutions
    Role of Nondepository financial Institutions
    Comparison of Roles among Financial Institutions
   Overview of Financial Institutions
    Competition between Financial Institutions
    Consolidation of Financial Institutions
    Participation in Financial Markets
   Global Expansion by Financial Institutions
   Summary
   Questions and Applications
  Chapter 2 Determination of Interest Rates
   Loanable Funds Theory
    Household Demand for Loanable Funds
    Business Demand for Loanable Funds
    Government Demand for Loanable Funds
    Foreign Demand for Loanable Funds
    Aggregate Demand for Loanable Funds
    Supply of Loanable Funds
    Equilibrium Interest Rate
   Economic Forces That Affect Interest Rates
    Impact of Economic Growth on Interest Rates
    Impact of Inflation on Interest Rates
    Impact of the Money Supply on Interest Rates
    Impact of the Budget Deficit on Interest Rates
    Impact of Foreign Flows of Funds on Interest Rates
    Summary of Forces That Affect Interest Rates
   Evaluation of Interest Rates over Time
   Forecasting Interest Rates
   Summary
   Questions and Applications
   Problems
  Chapter 3 Structure of Interest Rates
   Characteristics of Debt Securities That Cause Their Yields to Vary
    Credit (Default) Risk
    Liquidity
    Tax Status
    Term to Maturity
    Special Provisions
   Explaining Actual Yield Differentials
    Yield Differentials of Money Market Securities
    Yield Differentials of Capital Market Securities
   Estimating the Appropriate Yield
   A Closer Look at the Term Structure
    Pure Expectations Theory
    liquidity Premium Theory
    Segmented Markets Theory
    Research on Term Structure Theories
    Integrating the Theories of the Term Structure
    Uses of the Term Structure
    Impact of Debt Management on Term Structure
    Impact of September 11 on the Term Structure
    Historical Review of the Term Structure
   International Structure of Interest Rates
   Summary
   Questions and Applications
   Problems
   Integ rative Problem: Interest Rate Forecasts and Investment Decisions
 PART Ⅱ The Fed and Monetary Policy
  Chapter 4 Functions of the Fed
   Organization of the Fed
    Federal Reserve District Banks
    Member Banks
    Board of Governors
    Federal Open Market Committee (FOMC)
    Advisory Committees
    Integration of Federal Reserve Components
   Monetary Policy Tools
    Open Market Operations
    Adjusting the Discount Rate
    Adjusting the Reserve Requirement Ratio
    Comparison of Monetary Policy Tools
   Impact of Technical Factors on Funds
   Fed Control of the Money Supply
    limitations of Controlling Money Supply
   Monetary Control Act of 1980
   Global Monetary Policy
    A Single Euro Zone Monetary Policy
    Global Central Bank Coordination
   Summary
   Questions and Applications
  Chapter Monetary Theory and Policy
   Monetary Theory
    Pure Keynesian Theory
    Quantity Theory and the Monetarist Approach
    Theory of Rational Expectations
    Which Theory is Correct?
   Tradeoff Faced by the Fed
    Impact of Other Forces on the Tradeoff
   Economic Indicators Monitored by the Fed
    Indicators of Economic Growth
    Indicators of Inflation
    How the Fed Uses Indicators
   Lags in Monetary Policy
   Assessing the Impact of Monetary Policy
    Forecasting Money Supply Movements
    Forecasting the Impact of Monetary Policy
   Integrating Monetary and Fiscal Policies
    History
    Monetizing the Debt
    Market Assessment of Integrated Policies
   Global Effects of Monetary Policy
    Impact of the Dollar
    Impact of Global Economic Conditions
    Transmission of Interest Rates
    Fed Policy during the Asian Crisis
   Summary
   Questions and Applications
  Integrative Problem: Fed Watching
 PART Ⅲ Debt Security Markets
  Chapter Money Markets
   Money Market Securities
    Treasury Bills
    Commercial Paper
    Negotiable Certificates of Deposit (NCDs)
    Repurchase Agreements
    Federal Funds
    Banker's Acceptances
   Institutional Use of Money Markets
   Valuation of Money Market Securities
    Explaining Money Market Price Movements
    Induators of Future Money Market Security Prices
   Risk of Money Market Securities
    Measuring Risk
   Interaction among Money Market Yields
   Globalization of Money Markets
    Eurodollar Deposits and Euronotes
    Euro-Commercial Paper
    Performance of Foreign Money Market Securities
   Summary
   Questions and Applications
   Problems
  Chapter Bond Markets
   Background on Bonds
    Bond Yields
   Treasury and Federal Agency Bonds
    Treasury Bond Auction
    Trading Treasury Bonds
    Treasury Bond Quotations
    Stripped Treasury Bonds
    Inflation-Indexed Treasury Bonds
    Brady Bonds
    Federal Agency Bonds
   Municipal Bonds
    Trading and Quotations
   Corporate Bonds
    Private Placements of Corporate Bonds
    Characteristics of Corporate Bonds
    Trading Corporate Bonds
    Corporate Bond Quotations
    Junk Bonds
    How Corporate Bonds Facilitate Restructuring
   Institutional Use of Bond Markets
   Globalization of Bond Markets
    Eurobond Market
    Tax Effects
    Summary
    Questions and Applications
  Chapter Bond Valuation and Risk
   Bond Valuation Process
    Bond valuation with a Present Value Table
    Impact of the Discount Rate on Bond Valuation
    Impact of the Timing of Payments on Bond Valuation
    Valuation of Bonds with Semiannual Payments
    Use of Annuity Tables for Valuation
   Relationships Between Coupon Rate, Required Return, and Bond Price
    Implications for Financial Institutions
   Explaining Bond Price Movements
    Factors That Affect the Risk-Free Rate
    Factors That Affect the Credit (Default) Risk Premium
    Summary of Factors Affecting Bond Prices
   Sensitivity of Bond Prices to Interest Rate Movements
    Bond Price Elasticity
    Duration
   Bond Investment Strategies Used by Investors
    Matching Strategy
    Laddered Strategy
    Barbell Strategy
    Interest Rate Strategy
   Return and Risk of International Bonds
    Influence of Foreign Interest Rate Movements
    Influence of Credit Risk
    Influence of Exchange Rate Fluctuations
    International Bond Diversification
   Summary
   Questions and Applications
   Problems
   APPENDIX 8: Forecasting Bond Prices and Yields
    Forecasting Bond Portfolio Values
    Forecasting Bond Portfolio Returns
  Chapter 9 Mortgage Markets
   Background on Mortgages
   Residential Mortgage Characteristics
    Insured versus Conventional Mortgages
    Fixed-Rate versus Adjustable-Rate Mortgages
    Mortgage Maturities
   Creative Mortgage Financing
    Graduated-Payment Mortgage (GPM)
    Growing-Equity Mortgage
    Second Mortgage
    Shared-Appreciation Mortgage
   Activities in the Mortgage Market
    How the Secondary Market Facilitates Mortgage Activities
    Unbundling of Mortgage Activities
   Institutional Use of Mortgage Markets
   Valuation of Mortgages
    Factors That Affect the Risk-Free Interest Rate
    Factors That Affect the Risk Premium
    Summary of Factors Affecting Mortgage Prices
    Indicators of Changes in Mortgages Prices
   Risk from Investing in Mortgages
    Interest Rate Risk
    Prepayment Risk
    Credit Risk
    Measuring Risk
   Use of Mortgage-Backed Securities
    Ginnie Mae Mortgage-Backed Securities
    Fannie Mae Mortgage-Backed Securities
    Publicly Issued Pass-Through Securities (PIPs)
    Participation Certificates (PC)s
    Collateralized Mortgage Obligations (CMOs)
    Mortgage-Backed Securities for Small Investors
   Globalization of Mortgage Markets
   Summary
   Questions and Applications
   Integrative Problem: Asset Allocation
 PART Ⅳ Equity Markets
  Chapter Stock Offerings and Investor Monitoring
   Background on Stock
    Ownership and Voting Rights
    Preferred Stock
    Issuer Participation in Slock Markets
   Initial Public Offerings
    Process of Going Public
    Underwriter Efforts to Ensure Price Stability
    Timing of IPOs
    Initial Returns of IPOs
    Long-Term Performance Following IPOs
   Secondary Stock Offerings
    Shelf-Registration
   Stock Exchanges
    Organized Exchanges
    Over-the-counter Market
    Consolidation of Stock Exchanges
    Late Trading Provided by Exchanges
    Stock Quotations Provided by Exchanges
    Stock Index Quotations
   Investor Participation in the Secondary Market
    How Investor Decisions Affect the Stock Price
    Types of Investors
   Monitoring by Investors
    Shareholder Activism
   The Corporate Monitoring Role
    Stock Repurchases
    Market for Corporate Control
    Barriers to Corporate Control
   Globalization of Stock Markets
    Foreign Stock Offerings in the United States
    International Placement Process
    Global Stock Exchanges
    Emerging Stock Markets
    Methods Used to Invest in Foreign Stocks
   Summary
   Questions and Applications
  Chapter Stock Valuation and Risk
   Stock Valuation Methods
    Price-Earnings (PE) Method
    Dividend Discount Model
    Adjusting the Dividend Discount Model
   Determining the Required Rate of Return to Value Slocks
    Capital Asset Pricing Model
    Arbitrage Pricing Model
   Factors That Affect Stock Prices
    Economic Factors
    Market-Related Factors
    Firm-Specific Factors
    Integration of Factors Affecting Stock Prices
   Role of Analysts in Valuing Stocks
    Conflicts of Interest
    Impact of Disclosure Regulations
    Unbiased Analyst Rating Services
   Stock Risk
    Measures of Risk
   Applying Value at Risk
    Methods of Determining the Maximum Expected Loss
    Deriving the Maximum Dollar Loss
    Common Adjustments to the Value-at-Risk Applications
   Forecasting Stock Price Volatility and Beta
    Methods of Forecasting Stock Price Volatility
    Forecasting a Stock Portfolio's Volatility
    Forecasting a Stock Portfolio's Beta
   Stock Performance Measurement
    Sharpe Index
    Treynor Index
   Stock Market Efficiency
    Forms of Efficiency
    Tests of the Efficient Market Hypothesis
   Foreign Stock Valuation, Performance, and Efficiency
    Valuation of Foreign Stocks
    Measuring Performance from Investing in Foreign Stocks
    Performance from Global Diversification
    International Market Efficiency
   Summary
   Questions and Applications
   Problems
   APPENDIX 11 A: Stock Valuation: Lessons from Enron's Demise
  Chapter Market Microstructure and Strategies
   Stock Market Transactions
    Placing an Order
    Margin Trading
    Short Selling
    Investing in Stock Indexes
   How Trades are Executed
    Floor Brokers
    Specialists and Market-Makers
    Electronic Communication Networks (ECNs)
    Program Trading
   Regulation of Stock Trading
    Circuit Breakers
    Securities and Exchange Commission (SEC)
   How Barriers to International Stock Trading Have Decreased
    Reduction in Transaction Costs
    Reduction in Information Costs
    Reduction in Exchange Rate Risk
   Summary
   Questions and Applications
   Problems
   Integrative Problem: Stock Market Analysis
 PART Ⅴ Derivative Security Markets
  Chapter Financial Futures Markets
   Background on Financial Futures
    Steps Involved in Trading Futures
    Purpose of Trading Financial Futures
   Interpreting Financial Futures Tables
   Valuation of Financial Futures
    Impact of the Opportunity Costs
   Explaining Price Movements of Bond Futures Contracts
   Speculating with Interest Rate Futures
    Impact of Leverage
   Closing Out the Futures Position
   Hedging with Interest Rate Futures
    Using Interest Rate Futures to Create a Short Hedge
    Using Interest Rate Futures to Create a Long Hedge
    Hedging Net Exposure
   Bond Index Futures
   Stock Index Futures
    Valuing Stock Index Futures Contracts
    Speculating with Stock Index Futures
    Hedging with Stock Index Futures
    Dynamic Asset Allocation with Stock Index Futures
    Prices of Stock Index Futures versus Stocks
    Arbitrage with Stock Index Futures
    Circuit Breakers on Stock Index Futures
   Risk of Trading Futures Contracts
    Market Risk
    Basis Risk
    liquidity Risk
    Credit Risk
    Prepayment Risk
    Operational Risk
   Regulation in the Futures Markets
   Institutional Use of Futures Markets
   Globalization of Futures Markets
    Non-US Participation in US. Futures Contracts
    Foreign Stock Index Futures
    Currency Futures Contracts
   Summary
   Questions and Applications
   Problems
  Chapter Options Markets
   Background on Options
    Markets Used to Trade Options
    How Option Trades Are Executed
    Types of Orders
    Stock Option Quotations
   Speculating with Stock Options
    Speculating with Call Options
    Speculating with Put Options
   Determinants of Stock Option Premiums
    Determinants of Call Option Premiums
    Determinants of Put Option Premiums
   Explaining Change In Option Premiums
    Indicators Monitored by Participants in the Options Market
   Hedging with Stock Options
    Hedging with Call Options
    Hedging with Put Options
   Using Options to Measure a Stock's Risk
   Stock Index Options
    Hedging with Stock Index Options
    Dynamic Asset Allocation with Stock Index Options
    Using Index Options to Measure the Market's Risk
   Options on Futures Contracts
    Speculating with Options on Futures
   Hedging with Options on Futures
    Hedging with Options on Interest Rate Futures
    Hedging with Options on Stock Index Futures
   Institutional Use of Options Markets
   Globalization of Options Markets
    Currency Options Contracts
   Summary
   Questions and Applications
   Problems
   APPENDIX 14: Option Valuation
  Chapter Interest Rate Derivative Markets
   Background
   Participation by Financial Institutions
   Types of Interest Rate Swaps
    Plain Vanilla Swaps
    Forward Swaps
    Callable Swaps
    Putable Swaps
    Extendable Swaps
    Zero-Coupon-for-Floating Swaps
    Rate-Capped Swaps
    Equity Swaps
    Other Types of Swaps
   Risk of Interest Rate Swaps
    Basis Risk
    Credit Risk
    Sovereign Risk
   Pricing Interest Rate Swaps
    Prevailing Market Interest Rates
    Availability of Counterparties
    Credit and Sovereign Risk
   Factors Affecting the Performance of Interest Rate Swaps
    Indicators Monitored by Participants in the Swap Market
   Interest Rate Caps, Floors, and Collars
    Interest Rate Caps
    Interest Rate Floors
    Interest Rate Collars
   Globalization of Swap Markets
    Currency Swaps
    Risk of Currency Swaps
   Summary
   Questions and Applications
   Problems
  Chapter 16 Foreign Exchange Derivative Markets
   Background on Foreign Exchange Markets
    Institutional Use of Foreign Exchange Markets
    Exchange Rate Quotations
    Types of Exchange Rate Systems
   Factors Affecting Exchange Rates
    Differential Inflation Rates
    Differential Interest Rates
    Central Bank Intervention
    Indirect Intervention
    Foreign Exchange Contracts
   Movements in Exchange Rates
   Forecasting Exchange Rates
    Technical Forecasting
    Fundamental Forecasting
    Market-Based Forecasting
    Mixed Forecasting
   Forecasting Exchange Rate Volatility
   Speculation in Foreign Exchange Markets
   Foreign Exchange Derivatives
    Forward Contracts
    Currency Futures Contracts
    Currency Swaps
    Currency Options Contracts
    Use of Foreign Exchange Derivatives for Speculating
   International Arbitrage
    Locational Arbitrage
    Covered Interest Arbitrage
   Explaining Price Movements of Foreign Exchange Derivatives
    Indicators of Foreign Exchange Derivative Prices
   Summary
   Questions and Applications
   Problems
   APPENDIX 16A: Impact of the Asian Crisis on Foreign Exchange Markets and Other Financial Markets
   APPENDIX 16B: Currency Option Pricing
   Integrative Problem: Choosing among Derivative Securities
   G-1 Glossary
 PART ⅠOverview of the Financial Environment
  Chapter 1 Role of Financial Markets and Institutions
   Overview of Financial Markets
    Money versus Capital Markets
    Primary versus Secondary Markets
    Organized versus Over-the-counter Markets
   Securities Traded in Financial Markets
    Money Market Securities
    Capital Market Securities
    Derivative Securities
   Valuation of Securities in Financial Markets
    Market Pricing of Securities
    Market Efficiency
   Financial Market Regulation
    Disclosure
    Other Regulations
   Financial Market Globalization
    Role of the Foreign Exchange Market
    Foreign Exchange Rates
   Role of Financial Institutions in Financial Markets
    Role of Depository Institutions
    Role of Nondepository financial Institutions
    Comparison of Roles among Financial Institutions
   Overview of Financial Institutions
    Competition between Financial Institutions
    Consolidation of Financial Institutions
    Participation in Financial Markets
   Global Expansion by Financial Institutions
   Summary
   Questions and Applications
  Chapter 2 Determination of Interest Rates
   Loanable Funds Theory
    Household Demand for Loanable Funds
    Business Demand for Loanable Funds
    Government Demand for Loanable Funds
    Foreign Demand for Loanable Funds
    Aggregate Demand for Loanable Funds
    Supply of Loanable Funds
    Equilibrium Interest Rate
   Economic Forces That Affect Interest Rates
    Impact of Economic Growth on Interest Rates
    Impact of Inflation on Interest Rates
    Impact of the Money Supply on Interest Rates
    Impact of the Budget Deficit on Interest Rates
    Impact of Foreign Flows of Funds on Interest Rates
    Summary of Forces That Affect Interest Rates
   Evaluation of Interest Rates over Time
   Forecasting Interest Rates
   Summary
   Questions and Applications
   Problems
  Chapter 3 Structure of Interest Rates
   Characteristics of Debt Securities That Cause Their Yields to Vary
    Credit (Default) Risk
    Liquidity
    Tax Status
    Term to Maturity
    Special Provisions
   Explaining Actual Yield Differentials
    Yield Differentials of Money Market Securities
    Yield Differentials of Capital Market Securities
   Estimating the Appropriate Yield
   A Closer Look at the Term Structure
    Pure Expectations Theory
    liquidity Premium Theory
    Segmented Markets Theory
    Research on Term Structure Theories
    Integrating the Theories of the Term Structure
    Uses of the Term Structure
    Impact of Debt Management on Term Structure
    Impact of September 11 on the Term Structure
    Historical Review of the Term Structure
   International Structure of Interest Rates
   Summary
   Questions and Applications
   Problems
   Integ rative Problem: Interest Rate Forecasts and Investment Decisions
 PART Ⅱ The Fed and Monetary Policy
  Chapter 4 Functions of the Fed
   Organization of the Fed
    Federal Reserve District Banks
    Member Banks
    Board of Governors
    Federal Open Market Committee (FOMC)
    Advisory Committees
    Integration of Federal Reserve Components
   Monetary Policy Tools
    Open Market Operations
    Adjusting the Discount Rate
    Adjusting the Reserve Requirement Ratio
    Comparison of Monetary Policy Tools
   Impact of Technical Factors on Funds
   Fed Control of the Money Supply
    limitations of Controlling Money Supply
   Monetary Control Act of 1980
   Global Monetary Policy
    A Single Euro Zone Monetary Policy
    Global Central Bank Coordination
   Summary
   Questions and Applications
  Chapter Monetary Theory and Policy
   Monetary Theory
    Pure Keynesian Theory
    Quantity Theory and the Monetarist Approach
    Theory of Rational Expectations
    Which Theory is Correct?
   Tradeoff Faced by the Fed
    Impact of Other Forces on the Tradeoff
   Economic Indicators Monitored by the Fed
    Indicators of Economic Growth
    Indicators of Inflation
    How the Fed Uses Indicators
   Lags in Monetary Policy
   Assessing the Impact of Monetary Policy
    Forecasting Money Supply Movements
    Forecasting the Impact of Monetary Policy
   Integrating Monetary and Fiscal Policies
    History
    Monetizing the Debt
    Market Assessment of Integrated Policies
   Global Effects of Monetary Policy
    Impact of the Dollar
    Impact of Global Economic Conditions
    Transmission of Interest Rates
    Fed Policy during the Asian Crisis
   Summary
   Questions and Applications
  Integrative Problem: Fed Watching
 PART Ⅲ Debt Security Markets
  Chapter Money Markets
   Money Market Securities
    Treasury Bills
    Commercial Paper
    Negotiable Certificates of Deposit (NCDs)
    Repurchase Agreements
    Federal Funds
    Banker's Acceptances
   Institutional Use of Money Markets
   Valuation of Money Market Securities
    Explaining Money Market Price Movements
    Induators of Future Money Market Security Prices
   Risk of Money Market Securities
    Measuring Risk
   Interaction among Money Market Yields
   Globalization of Money Markets
    Eurodollar Deposits and Euronotes
    Euro-Commercial Paper
    Performance of Foreign Money Market Securities
   Summary
   Questions and Applications
   Problems
  Chapter Bond Markets
   Background on Bonds
    Bond Yields
   Treasury and Federal Agency Bonds
    Treasury Bond Auction
    Trading Treasury Bonds
    Treasury Bond Quotations
    Stripped Treasury Bonds
    Inflation-Indexed Treasury Bonds
    Brady Bonds
    Federal Agency Bonds
   Municipal Bonds
    Trading and Quotations
   Corporate Bonds
    Private Placements of Corporate Bonds
    Characteristics of Corporate Bonds
    Trading Corporate Bonds
    Corporate Bond Quotations
    Junk Bonds
    How Corporate Bonds Facilitate Restructuring
   Institutional Use of Bond Markets
   Globalization of Bond Markets
    Eurobond Market
    Tax Effects
    Summary
    Questions and Applications
  Chapter Bond Valuation and Risk
   Bond Valuation Process
    Bond valuation with a Present Value Table
    Impact of the Discount Rate on Bond Valuation
    Impact of the Timing of Payments on Bond Valuation
    Valuation of Bonds with Semiannual Payments
    Use of Annuity Tables for Valuation
   Relationships Between Coupon Rate, Required Return, and Bond Price
    Implications for Financial Institutions
   Explaining Bond Price Movements
    Factors That Affect the Risk-Free Rate
    Factors That Affect the Credit (Default) Risk Premium
    Summary of Factors Affecting Bond Prices
   Sensitivity of Bond Prices to Interest Rate Movements
    Bond Price Elasticity
    Duration
   Bond Investment Strategies Used by Investors
    Matching Strategy
    Laddered Strategy
    Barbell Strategy
    Interest Rate Strategy
   Return and Risk of International Bonds
    Influence of Foreign Interest Rate Movements
    Influence of Credit Risk
    Influence of Exchange Rate Fluctuations
    International Bond Diversification
   Summary
   Questions and Applications
   Problems
   APPENDIX 8: Forecasting Bond Prices and Yields
    Forecasting Bond Portfolio Values
    Forecasting Bond Portfolio Returns
  Chapter 9 Mortgage Markets
   Background on Mortgages
   Residential Mortgage Characteristics
    Insured versus Conventional Mortgages
    Fixed-Rate versus Adjustable-Rate Mortgages
    Mortgage Maturities
   Creative Mortgage Financing
    Graduated-Payment Mortgage (GPM)
    Growing-Equity Mortgage
    Second Mortgage
    Shared-Appreciation Mortgage
   Activities in the Mortgage Market
    How the Secondary Market Facilitates Mortgage Activities
    Unbundling of Mortgage Activities
   Institutional Use of Mortgage Markets
   Valuation of Mortgages
    Factors That Affect the Risk-Free Interest Rate
    Factors That Affect the Risk Premium
    Summary of Factors Affecting Mortgage Prices
    Indicators of Changes in Mortgages Prices
   Risk from Investing in Mortgages
    Interest Rate Risk
    Prepayment Risk
    Credit Risk
    Measuring Risk
   Use of Mortgage-Backed Securities
    Ginnie Mae Mortgage-Backed Securities
    Fannie Mae Mortgage-Backed Securities
    Publicly Issued Pass-Through Securities (PIPs)
    Participation Certificates (PC)s
    Collateralized Mortgage Obligations (CMOs)
    Mortgage-Backed Securities for Small Investors
   Globalization of Mortgage Markets
   Summary
   Questions and Applications
   Integrative Problem: Asset Allocation
 PART Ⅳ Equity Markets
  Chapter Stock Offerings and Investor Monitoring
   Background on Stock
    Ownership and Voting Rights
    Preferred Stock
    Issuer Participation in Slock Markets
   Initial Public Offerings
    Process of Going Public
    Underwriter Efforts to Ensure Price Stability
    Timing of IPOs
    Initial Returns of IPOs
    Long-Term Performance Following IPOs
   Secondary Stock Offerings
    Shelf-Registration
   Stock Exchanges
    Organized Exchanges
    Over-the-counter Market
    Consolidation of Stock Exchanges
    Late Trading Provided by Exchanges
    Stock Quotations Provided by Exchanges
    Stock Index Quotations
   Investor Participation in the Secondary Market
    How Investor Decisions Affect the Stock Price
    Types of Investors
   Monitoring by Investors
    Shareholder Activism
   The Corporate Monitoring Role
    Stock Repurchases
    Market for Corporate Control
    Barriers to Corporate Control
   Globalization of Stock Markets
    Foreign Stock Offerings in the United States
    International Placement Process
    Global Stock Exchanges
    Emerging Stock Markets
    Methods Used to Invest in Foreign Stocks
   Summary
   Questions and Applications
  Chapter Stock Valuation and Risk
   Stock Valuation Methods
    Price-Earnings (PE) Method
    Dividend Discount Model
    Adjusting the Dividend Discount Model
   Determining the Required Rate of Return to Value Slocks
    Capital Asset Pricing Model
    Arbitrage Pricing Model
   Factors That Affect Stock Prices
    Economic Factors
    Market-Related Factors
    Firm-Specific Factors
    Integration of Factors Affecting Stock Prices
   Role of Analysts in Valuing Stocks
    Conflicts of Interest
    Impact of Disclosure Regulations
    Unbiased Analyst Rating Services
   Stock Risk
    Measures of Risk
   Applying Value at Risk
    Methods of Determining the Maximum Expected Loss
    Deriving the Maximum Dollar Loss
    Common Adjustments to the Value-at-Risk Applications
   Forecasting Stock Price Volatility and Beta
    Methods of Forecasting Stock Price Volatility
    Forecasting a Stock Portfolio's Volatility
    Forecasting a Stock Portfolio's Beta
   Stock Performance Measurement
    Sharpe Index
    Treynor Index
   Stock Market Efficiency
    Forms of Efficiency
    Tests of the Efficient Market Hypothesis
   Foreign Stock Valuation, Performance, and Efficiency
    Valuation of Foreign Stocks
    Measuring Performance from Investing in Foreign Stocks
    Performance from Global Diversification
    International Market Efficiency
   Summary
   Questions and Applications
   Problems
   APPENDIX 11 A: Stock Valuation: Lessons from Enron's Demise
  Chapter Market Microstructure and Strategies
   Stock Market Transactions
    Placing an Order
    Margin Trading
    Short Selling
    Investing in Stock Indexes
   How Trades are Executed
    Floor Brokers
    Specialists and Market-Makers
    Electronic Communication Networks (ECNs)
    Program Trading
   Regulation of Stock Trading
    Circuit Breakers
    Securities and Exchange Commission (SEC)
   How Barriers to International Stock Trading Have Decreased
    Reduction in Transaction Costs
    Reduction in Information Costs
    Reduction in Exchange Rate Risk
   Summary
   Questions and Applications
   Problems
   Integrative Problem: Stock Market Analysis
 PART Ⅴ Derivative Security Markets
  Chapter Financial Futures Markets
   Background on Financial Futures
    Steps Involved in Trading Futures
    Purpose of Trading Financial Futures
   Interpreting Financial Futures Tables
   Valuation of Financial Futures
    Impact of the Opportunity Costs
   Explaining Price Movements of Bond Futures Contracts
   Speculating with Interest Rate Futures
    Impact of Leverage
   Closing Out the Futures Position
   Hedging with Interest Rate Futures
    Using Interest Rate Futures to Create a Short Hedge
    Using Interest Rate Futures to Create a Long Hedge
    Hedging Net Exposure
   Bond Index Futures
   Stock Index Futures
    Valuing Stock Index Futures Contracts
    Speculating with Stock Index Futures
    Hedging with Stock Index Futures
    Dynamic Asset Allocation with Stock Index Futures
    Prices of Stock Index Futures versus Stocks
    Arbitrage with Stock Index Futures
    Circuit Breakers on Stock Index Futures
   Risk of Trading Futures Contracts
    Market Risk
    Basis Risk
    liquidity Risk
    Credit Risk
    Prepayment Risk
    Operational Risk
   Regulation in the Futures Markets
   Institutional Use of Futures Markets
   Globalization of Futures Markets
    Non-US Participation in US. Futures Contracts
    Foreign Stock Index Futures
    Currency Futures Contracts
   Summary
   Questions and Applications
   Problems
  Chapter Options Markets
   Background on Options
    Markets Used to Trade Options
    How Option Trades Are Executed
    Types of Orders
    Stock Option Quotations
   Speculating with Stock Options
    Speculating with Call Options
    Speculating with Put Options
   Determinants of Stock Option Premiums
    Determinants of Call Option Premiums
    Determinants of Put Option Premiums
   Explaining Change In Option Premiums
    Indicators Monitored by Participants in the Options Market
   Hedging with Stock Options
    Hedging with Call Options
    Hedging with Put Options
   Using Options to Measure a Stock's Risk
   Stock Index Options
    Hedging with Stock Index Options
    Dynamic Asset Allocation with Stock Index Options
    Using Index Options to Measure the Market's Risk
   Options on Futures Contracts
    Speculating with Options on Futures
   Hedging with Options on Futures
    Hedging with Options on Interest Rate Futures
    Hedging with Options on Stock Index Futures
   Institutional Use of Options Markets
   Globalization of Options Markets
    Currency Options Contracts
   Summary
   Questions and Applications
   Problems
   APPENDIX 14: Option Valuation
  Chapter Interest Rate Derivative Markets
   Background
   Participation by Financial Institutions
   Types of Interest Rate Swaps
    Plain Vanilla Swaps
    Forward Swaps
    Callable Swaps
    Putable Swaps
    Extendable Swaps
    Zero-Coupon-for-Floating Swaps
    Rate-Capped Swaps
    Equity Swaps
    Other Types of Swaps
   Risk of Interest Rate Swaps
    Basis Risk
    Credit Risk
    Sovereign Risk
   Pricing Interest Rate Swaps
    Prevailing Market Interest Rates
    Availability of Counterparties
    Credit and Sovereign Risk
   Factors Affecting the Performance of Interest Rate Swaps
    Indicators Monitored by Participants in the Swap Market
   Interest Rate Caps, Floors, and Collars
    Interest Rate Caps
    Interest Rate Floors
    Interest Rate Collars
   Globalization of Swap Markets
    Currency Swaps
    Risk of Currency Swaps
   Summary
   Questions and Applications
   Problems
  Chapter 16 Foreign Exchange Derivative Markets
   Background on Foreign Exchange Markets
    Institutional Use of Foreign Exchange Markets
    Exchange Rate Quotations
    Types of Exchange Rate Systems
   Factors Affecting Exchange Rates
    Differential Inflation Rates
    Differential Interest Rates
    Central Bank Intervention
    Indirect Intervention
    Foreign Exchange Contracts
   Movements in Exchange Rates
   Forecasting Exchange Rates
    Technical Forecasting
    Fundamental Forecasting
    Market-Based Forecasting
    Mixed Forecasting
   Forecasting Exchange Rate Volatility
   Speculation in Foreign Exchange Markets
   Foreign Exchange Derivatives
    Forward Contracts
    Currency Futures Contracts
    Currency Swaps
    Currency Options Contracts
    Use of Foreign Exchange Derivatives for Speculating
   International Arbitrage
    Locational Arbitrage
    Covered Interest Arbitrage
   Explaining Price Movements of Foreign Exchange Derivatives
    Indicators of Foreign Exchange Derivative Prices
   Summary
   Questions and Applications
   Problems
   APPENDIX 16A: Impact of the Asian Crisis on Foreign Exchange Markets and Other Financial Markets
   APPENDIX 16B: Currency Option Pricing
   Integrative Problem: Choosing among Derivative Securities
   G-1 Glossary