The Economist Guide to Financial Markets: Why They Exist and How They Work (Economist Books)

Extensively revised and updated following the fallout from the global financial crisis, the 6th edition of this highly regarded book brings the reader right up to speed with the latest financial market developments, and provides a clear and incisive guide to a complex world that even those who work in it often find hard to understand. In chapters on the markets that deal with money, foreign exchange, equities, bonds, commodities, financial futures, options and other derivatives, the book examines why these markets exist, how they work, and who trades in them, and gives a run-down of the factors that affect prices and rates. Business history is littered with disasters that occurred because people involved their firms with financial instruments they didn't properly understand. If they had had this book they might have avoided their mistakes. For anyone wishing to understand financial markets, there is no better guide. Extensively revised and updated following the fallout from the global financial crisis, the sixth edition of this highly regarded book brings the reader right up to speed with the latest financial market developments, and provides a clear and incisive guide to a complex world that even those who work in it often find hard to understand. WC With chapters on the markets that deal with money, foreign exchange, equities, bonds, commodities, financial futures, options and other derivatives, it looks at why these markets exist, how they work and who trades in them, and it gives a run-down of the factors that affect prices and rates. Business history is littered with disasters that occurred because people involved their firms with financial instruments they didn't properly understand "This fully updated and revised sixth edition of the Guide to financial markets provides a clear explanation of the different markets. It goes well beyond stocks and bonds to explain the purposes and uses of equity futures and options, securitised instruments, and innovations such as the credit derivatives that can help manage risk but can also prove toxic when not used carefully"--Page 4 of cover "This fully updated and revised sixth edition of the Guide to financial markets provides a clear explanation of the different markets. It goes well beyond stocks and bonds to explain the purposes and uses of equity futures and options, securitised instruments, and innovations such as the credit derivatives that can help manage risk but can also prove toxic when not used carefully"--Cover page 4 Why markets matter Foreign-exchange markets Money markets Bond markets Securitisation International fixed-income markets Equity markets Futures and options markets Derivatives markets.