Equity Markets In Action: The Fundamentals Of Liquidity, Market Structure & Trading + Cd

An in-depth look at the nature of market making and exchanges From theory to practicalities, this is a comprehensive, up-to-date handbook and reference on how markets work and the nuances of trading. It includes a CD with an interactive trading simulation. Robert A. Schwartz, PhD (New York, NY), is Marvin M. Speiser Professor of Finance and University Distinguished Professor in the Zicklin School of Business, Baruch College, CUNY. Reto Francioni, PhD (Zurich, Switzerland), is President and Chairman of the Board of SWX, the Swiss Stock Exchange, and former co-CEO of Consors Discount Broker AG, Nuremberg.

Schwartz and Francioni add liquidity to the traditional measures of risk and return in the analysis of markets and portfolios. This important book includes a comprehensive and readable account of the sources of liquidity and illiquidity. A chapter and companion CD-ROM provide a simulated market in which the reader can practice trading. All in all, this is a very appealing book.
––Harry Markowitz Nobel Laureate in Economics, President, Harry Markowitz Company

This work deals comprehensively with the foundations of securities markets: information, trading, price discovery, market institutions, and architecture as they have been impacted by changing technology and competition. I highly recommend it as a valuable source and aid to understanding the dynamics of securities markets.
––Vernon L. Smith Nobel Laureate in Economics, George Mason University

Whether academic, dilettante, or market professional, everything you could possibly want to know about the functioning of equity markets is in this book.
––David Verey Chairman, Blackstone Group, UK

In a timely work by two recognized experts, Schwartz and Francioni provide an intellectual road map for anyone interested in the revolution sweeping global equity markets.
––Frank Hatheway Chief Economist, The NASDAQ Stock Market, Inc.

Schwartz and Francioni have provided a well organized and clearly articulated path through the intricacies of equity markets in the United States and Europe. Both newcomers to the subject and longtime professionals will find it a very enlightening read.
––Mr. Jean-Francois Théodore Président Directeur Générale, Euronext Paris S.A.

Technology was the crucial engine for changes in the international capital markets during the last twenty years. Robert Schwartz and Reto Francioni masterfully succeed in presenting both modern theoretical and practical aspects of the transformation in one book. I am sure that this book will find a lot of enthusiastic readers!
––Friedrich von Metzler Frankfurt Managing Partner, B. Metzler seel. Sohn & Co.

Equity Markets in Action......Page 4 Contents......Page 10 Preface......Page 12 CHAPTER 1 The Role of an Equity Market......Page 16 CHAPTER 2 From Information to Prices......Page 48 CHAPTER 3 Liquidity......Page 74 CHAPTER 4 What We Want from Our Markets......Page 96 CHAPTER 5 Institutional Order Flow......Page 129 CHAPTER 6 Order-Driven Markets......Page 171 CHAPTER 7 Intermediated Markets......Page 206 CHAPTER 8 The Evolving Scene in the United States......Page 228 CHAPTER 9 The Evolving Scene in Europe......Page 258 CHAPTER 10 Clearing and Settlement......Page 279 CHAPTER 11 Regulation......Page 306 CHAPTER 12 Simulated Trading......Page 357 APPENDIX A Prices and Returns......Page 376 APPENDIX B From Portfolio Decisions to Trading in a Frictionless Environment......Page 385 APPENDIX C Dimensions of Informational Efficiency......Page 427 APPENDIX D The Concept of Self-Regulation......Page 439 Selected Readings......Page 449 About the Authors......Page 464 About the CD-ROM......Page 466 Index......Page 469 Reading all about market structure, trade clearance and settlement, and other foundational elements of today's markets gives exactly the in-depth knowledge -- on electronic trading, the role of market makers, the impact of economic forces, and other behind-the-scenes aspects of market architecture -- that is essential if one is to operate successfully in today's highly dynamic trading environment. Because the most valuable market lessons occur in the heat of the trading moment, the book's accompanying CD-ROM provides real-life trading sessions to help traders hone their knowledge and decision-making skills. Simulations provide hands-on practice in making split-second tactical trading decisions. Equity Markets in Action is a detailed look at the foundations of today's markets, and will provide all traders -- whether professional or independent -- with new insights and answers into the dynamics of the marketplace. This work deals comprehensively with the foundations of securities markets: information, trading, price discovery, market institutions, and architecture as they have been impacted by changing technology and competition. This important book includes a comprehensive and readable account of the sources of liquidity and illiquidity. A chapter and companion CD-ROM provide a simulated market in which the reader can practice trading "Equity Markets in Action is a detailed look at the foundations of today's markets, and will provide all traders - whether professional or independent - with new insights and answers into the dynamics of the marketplace."--BOOK JACKET. A securities exchange is an organized and supervised marketplace where trades are made based on an approved set of rules and regulations.