Finance and accounting Books

Book SynopsisKeen to try your hand at financial spread betting? Perhaps you re already investing in shares and looking for other strategies to maximise your profits. Or maybe you ve just heard the buzz and want to find out what all the fuss is about.Table of ContentsIntroduction 1 Part I: Getting Started with Financial Spread Betting 7 Chapter 1: Deciding Whether Financial Spread Betting Is For You 9 Chapter 2: Setting Yourself Up for Success 25 Chapter 3: Making the Most of Financial Spread Betting 35 Part II: Touring the Spread Betting Marketplace 47 Chapter 4: Spread Betting on Share Markets 49 Chapter 5: Taking on the World of Foreign Exchange 63 Chapter 6: Following the Big Guns: Spread Betting on Indexes 77 Chapter 7: Venturing into Commodities and Interest Rate Products 91 Part III: Keeping Risk Under Control 107 Chapter 8: Managing Risk: Your Key to Trading Survival 109 Chapter 9: Mastering Position Sizing 123 Part IV: Trading Strategies 131 Chapter 10: Making Informed Decisions Based on the Economy 133 Chapter 11: Understanding Trading Methods 151 Chapter 12: Taking Lessons from Hedge Funds 169 Chapter 13: Ah! Technical Analysis 179 Chapter 14: Charting Spread Bets with Software 195 Part V: Knowing Where You’re Going 207 Chapter 15: Analysing Your Trading Behaviour 209 Chapter 16: Developing a Trading Plan 217 Chapter 17: Tracking Your Progress 231 Part VI: The Part of Tens 239 Chapter 18: Ten Common Mistakes Beginners Make When Spread Betting 241 Chapter 19: Ten Lessons for Dealing with Leverage 247 Chapter 20: Ten Ways to Plan Your Trades 253 Appendix A: Glossary 259 Index 279

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Book SynopsisMathematics and Statistics for Financial Risk Management is a practical guide to modern financial risk management for both practitioners and academics. Now in its second edition with more topics, more sample problems and more real world examples, this popular guide to financial risk management introduces readers to practical quantitative techniques for analyzing and managing financial risk. In a concise and easy-to-read style, each chapter introduces a different topic in mathematics or statistics.As different techniques are introduced, sample problems and application sections demonstrate how these techniques can be applied to actual risk management problems. Exercises at the end of each chapter and the accompanying solutions at the end of the book allow readers to practice the techniques they are learning and monitor their progress.A companion Web site includes interactive Excel spreadsheet examples and templates. Mathematics and Statistics for FinanciTable of ContentsPreface ix What’s New in the Second Edition xi Acknowledgments xiii Chapter 1 Some Basic Math 1 Logarithms 1 Log Returns 2 Compounding 3 Limited Liability 4 Graphing Log Returns 5 Continuously Compounded Returns 6 Combinatorics 8 Discount Factors 9 Geometric Series 9 Problems 14 Chapter 2 Probabilities 15 Discrete Random Variables 15 Continuous Random Variables 15 Mutually Exclusive Events 21 Independent Events 22 Probability Matrices 22 Conditional Probability 24 Problems 26 Chapter 3 Basic Statistics 29 Averages 29 Expectations 34 Variance and Standard Deviation 39 Standardized Variables 41 Covariance 42 Correlation 43 Application: Portfolio Variance and Hedging 44 Moments 47 Skewness 48 Kurtosis 51 Coskewness and Cokurtosis 53 Best Linear Unbiased Estimator (BLUE) 57 Problems 58 Chapter 4 Distributions 61 Parametric Distributions 61 Uniform Distribution 61 Bernoulli Distribution 63 Binomial Distribution 65 Poisson Distribution 68 Normal Distribution 69 Lognormal Distribution 72 Central Limit Theorem 73 Application: Monte Carlo Simulations Part I: Creating Normal Random Variables 76 Chi-Squared Distribution 77 Student’s t Distribution 78 F-Distribution 79 Triangular Distribution 81 Beta Distribution 82 Mixture Distributions 83 Problems 86 Chapter 5 Multivariate Distributions and Copulas 89 Multivariate Distributions 89 Copulas 97 Problems 111 Chapter 6 Bayesian Analysis 113 Overview 113 Bayes’ Theorem 113 Bayes versus Frequentists 119 Many-State Problems 120 Continuous Distributions 124 Bayesian Networks 128 Bayesian Networks versus Correlation Matrices 130 Problems 132 Chapter 7 Hypothesis Testing and Confidence Intervals 135 Sample Mean Revisited 135 Sample Variance Revisited 137 Confidence Intervals 137 Hypothesis Testing 139 Chebyshev’s Inequality 142 Application: VaR 142 Problems 152 Chapter 8 Matrix Algebra 155 Matrix Notation 155 Matrix Operations 156 Application: Transition Matrices 163 Application: Monte Carlo Simulations Part II: Cholesky Decomposition 165 Problems 168 Chapter 9 Vector Spaces 169 Vectors Revisited 169 Orthogonality 172 Rotation 177 Principal Component Analysis 181 Application: The Dynamic Term Structure of Interest Rates 185 Application: The Structure of Global Equity Markets 191 Problems 193 Chapter 10 Linear Regression Analysis 195 Linear Regression (One Regressor) 195 Linear Regression (Multivariate) 203 Application: Factor Analysis 208 Application: Stress Testing 211 Problems 212 Chapter 11 Time Series Models 215 Random Walks 215 Drift-Diffusion Model 216 Autoregression 217 Variance and Autocorrelation 222 Stationarity 223 Moving Average 227 Continuous Models 228 Application: GARCH 230 Application: Jump-Diffusion Model 232 Application: Interest Rate Models 232 Problems 234 Chapter 12 Decay Factors 237 Mean 237 Variance 243 Weighted Least Squares 244 Other Possibilities 245 Application: Hybrid VaR 245 Problems 247 Appendix A Binary Numbers 249 Appendix B Taylor Expansions 251 Appendix C Vector Spaces 253 Appendix D Greek Alphabet 255 Appendix E Common Abbreviations 257 Appendix F Copulas 259 Answers 263 References 303 About the Author 305 About the Companion Website 307 Index 309

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Book SynopsisThe proven business principles of Warren Buffett Warren Buffett is one of the most admired and prolific investors and managers in corporate America. Warren Buffett on Business is a timeless guide to strategies that can help you run a successful business. This book is a one-of-a-kind collection of Buffett''s letters to the shareholders of Berkshire Hathaway written over the past few decades, and in a clear, simple style distills the basic principles of sound business practices. Through Buffett''s own remarkable words, this practical management handbook shares valuable insights on communicating with, and treating employees and shareholders fairly; responsible corporate governance; ethical behavior; patience and perseverance; admitting mistakes; and having a passion for work. Contains priceless pearls of business and management wisdom, woven into a delightful narrative Designed in an accessible manner and organized by business and managTable of ContentsAcknowledgments ix Introduction xi Chapter 1 Shareholders as Partners 1 "Although our form is corporate, our attitude is partnership." Chapter 2 Corporate Culture 5 "It takes 20 years to build a reputation and fi ve minutes to ruin it. If you think about that, you'll do things differently." Chapter 3 Corporate Governance 15 "At Berkshire, board members travel the same road as shareholders." Chapter 4 Berkshire Managers 29 "They love their businesses, they think like owners, and they exude integrity and ability." Chapter 5 Communication 33 "As managers, Charlie and I want to give to our owners the financial information and commentary we would wish to receive if our positions were reversed." Chapter 6 Acquisition of Nebraska Furniture Mart 43 "We gave Mrs. B a check for $55 million and she gave us her word. That made for an even exchange." Chapter 7 Acquisition of GEICO 51 "The security I like best" Chapter 8 Acquisition of General Reinsurance 57 "Long ago, Mark Twain said: 'A man who tries to carry a cat home by its tail will learn a lesson that can be learned in no other way.' If Twain were around now, he might try winding up a derivatives business. After a few days, he would opt for cats." Chapter 9 The Assessment and Management of Risk 71 "Don't think, however, that we have lost our appetite for risk. We remain prepared to lose $6 billion in a single event, if we have been paid appropriately for assuming that risk." Chapter 10 Executive Compensation 77 "At Berkshire . . . I am a one man compensation committee who determines the salaries for the CEOs of around 40 significant operating businesses. How much time does this aspect of my job take? Virtually none. How many CEOs have voluntarily left us for other jobs in our 42-year history? Precisely none." Chapter 11 Time Management 83 "When my mother got to be eighty the most important thing in how long you live is how long your parents live. I got her an exercise bike, put her on a strict diet, and she's just piling up the years for me." Chapter 12 How to Manage a Crisis 87 ". . . I will attempt to do it in the manner of a fellow that has never met a lawyer." Chapter 13 Management Principles and Practices 99 "Simple, old and few." Chapter 14 Executive Behavior 131 "Many CEOs attain their positions because they possess an abundance of animal spirits and egos. . . . When such a CEO is encouraged by his advisors to make deals, he responds such as would a teenage boy who is encouraged by his father to have a normal sex life. It's not a push he needs." Chapter 15 Mistakes I've Made 141 "I can look back on every year in terms of mistakes I've made. The dumbest mistake I ever made was, will probably be in the future." Chapter 16 Personal Investing 151 "Your goal as an investor should simply be to purchase, at a rational price, a part interest in an easily understandable business whose earnings are virtually certain to be higher fi ve, ten, and fi fteen years from now." Chapter 17 Buffett, the Teacher 165 "If I talk to 50–60 year olds, basically they want to be entertained by my predictions and if I talk to 20 year olds or even 25 year olds, they ask me the questions on their minds. . . . The idea is that they listen and you may change some lives." Chapter 18 Humor and Stories 175 "In the words of the prophet Mae West: too much of a good thing is wonderful." Appendix A Warren E. Buffett, A Chronological History 181 Appendix B Berkshire Hathaway Inc., An Owner's Manual, Owner-Related Business Principles, January 1999 189 Appendix C Berkshire Hathaway Inc., Code of Business Conduct and Ethics 201 Appendix D July 23, 2008, Memo to Berkshire Hathaway Managers 209 Appendix E Berkshire Hathaway Inc., Corporate Governance Guidelines, as Amended on February 27, 2006 213 Appendix F Intrinsic Value 219 Appendix G The Superinvestors of Graham-and-Doddsville 223 Appendix H Berkshire's Corporate Performance versus the S&P 500 237 Appendix I Berkshire Hathaway Common Stock—Year-End Stock Prices 241 Notes 243 About the Author 259

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Book SynopsisA plain English guide to high frequency trading and off-exchange trading practices In Dark Pools & High Frequency Trading For Dummies, senior private banker Jukka Vaananen has created an indispensable and friendly guide to what really goes on inside dark pools, what rewards you can reap as an investor and how wider stock markets and pricing may be affected by dark pools. Written with the classic For Dummies style that has become a hallmark of the brand, Vaananen makes this complex material easy to understand with an insider''s look into the topic. The book takes a detailed look at the pros and the cons of trading in dark pools, and how this type of trading differs from more traditional routes. It also examines how dark pools are currently regulated, and how the regulatory landscape may be changing. Learn what types of dark pools exist, and how a typical transaction works Discover the rules and regulations for dark pools, and some of Table of ContentsIntroduction 1 Part I: Getting Started with Dark Pools 5 Chapter 1: Focusing on Dark Pools and High Frequency Trading, Just the Basics 7 Chapter 2: Taking a Dip into Dark Pools 15 Chapter 3: Grappling with the Ins and Outs of Securities Markets 25 Part II: Diving into Dark Pool Markets 37 Chapter 4: Introducing Dark Pool Providers 39 Chapter 5: Meeting the Players and Places 53 Chapter 6: Regulating Dark Pools 65 Part III: Coming to Grips with Automated Trading 77 Chapter 7: Comprehending Automated Trading 79 Chapter 8: Grasping Standard Order Types 93 Chapter 9: Identifying the Special Order Types 105 Chapter 10: Delving into High Frequency Trading 119 Chapter 11: Understanding Key High Frequency Trading Strategies 133 Part IV: Being Aware of the Risks of Dark Pools 147 Chapter 12: Jockeying Too Much for Position 149 Chapter 13: The Ins and Outs of Flash Crashes 163 Part V: The Part of Tens 181 Chapter 14: Ten of the Best Dark Pool/HFT Websites 183 Chapter 15: Ten Ways to Swim Safely in Dark Pools 191 Chapter 16: Ten Common Algorithmic Strategies 199 Chapter 17: Ten Things to Know About Market Microstructure 207 Index 215

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Book SynopsisAn essential guide to real-world derivatives trading FX Derivatives Trader School is the definitive guide to the technical and practical knowledge required for successful foreign exchange derivatives trading.Table of ContentsPreface xi Acknowledgments xiii Part I The Basics 1 Chapter 1 Introduction to Foreign Exchange 3 Chapter 2 Introduction to FX Derivatives 11 Chapter 3 Introduction to Trading 19 Practical A Building a Trading Simulator in Excel 27 Chapter 4 FX Derivatives Market Structure 39 Chapter 5 The Black-Scholes Framework 57 Practical B Building a Numerical Integration Option Pricer in Excel 69 Chapter 6 Vanilla FX Derivatives Greeks 77 Practical C Building a Black-Scholes Option Pricer in Excel 91 Chapter 7 Vanilla FX Derivatives Pricing 103 Chapter 8 Vanilla FX Derivatives Structures 121 Chapter 9 Vanilla FX Derivatives Risk Management 137 Chapter 10 Vanilla FX Derivatives Miscellaneous Topics 159 Practical D Generating Tenor Dates in Excel 165 Part II The Volatility Surface 169 Chapter 11 ATM Curve Construction 171 Practical E Constructing an ATM Curve in Excel 193 Chapter 12 Volatility Smile Market Instruments and Exposures 205 Practical F Constructing a Volatility Smile in Excel 233 Chapter 13 Probability Density Functions 241 Practical G Generating a Probability Density Function from Option Prices in Excel 253 Part III Vanilla FX Derivatives Trading 261 Chapter 14 Vanilla FX Derivatives Trading Exposures 263 Chapter 15 Vanilla FX Derivatives Trading Topics 293 Chapter 16 ATM Volatility and Correlation 313 Chapter 17 FX Derivatives Market Analysis 323 Part IV Exotic FX Derivatives 355 Chapter 18 Exotic FX Derivatives Pricing 357 Chapter 19 FX Derivatives Pricing Models 375 Chapter 20 Exotic FX Derivatives Product Classification 387 Chapter 21 European Digital Options 399 Chapter 22 European Barrier Options 413 Chapter 23 Touch Options 423 Chapter 24 American Barrier Options 439 Chapter 25 Exotic FX Derivatives Trading Topics 461 Chapter 26 Window Barrier and Discrete Barrier Options 473 Practical H Building a Monte Carlo Option Pricer in Excel 485 Chapter 27 Vanilla Variations 497 Chapter 28 Accrual and Target Redemption Options 515 Chapter 29 Asian Options 527 Chapter 30 Multi-Asset Options 539 Chapter 31 Miscellaneous Options 555 Further Reading 573 About the Companion Website 575 Index 577

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Book SynopsisThe ultimate behind-the-curtain look at the hedge fund industry, unlocking the most valuable stories, secrets, and lessons directly from those who have played the game best.Table of ContentsForeword: The Less Mysterious World of Hedge Funds by Mohamed A. El-Erian, CEO and Co-CIO of PIMCO ix Preface xv Disclaimer xxiii Chapter 1: The Global Macro Maven: Ray Dalio, Bridgewater Associates 1 Chapter 2: Man versus Machine: Pierre Lagrange and Tim Wong, Man Group/AHL 25 Chapter 3: The Risk Arbitrageur: John Paulson, Paulson & Co. 39 Chapter 4: Distressed Debt’s Value Seekers: Marc Lasry and Sonia Gardner, Avenue Capital Group 75 Chapter 5: The Fearless First Mover: David Tepper, Appaloosa Management 93 Chapter 6: The Activist Answer: William A. Ackman, Pershing Square Capital Management 115 Chapter 7: The Poison Pen: Daniel Loeb, Third Point 155 Chapter 8: The Cynical Sleuth: James Chanos, Kynikos Associates LP 173 Chapter 9: The Derivatives Pioneer: Boaz Weinstein, Saba Capital Management 193 Afterword: Myron S. Scholes, 1997 Nobel Laureate in Economics and Co-Author of the Black-Scholes Option Pricing Model 203 Appendix 211 References 225 Acknowledgments 237 About the Author 240 Index 241

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Book SynopsisSTAY A STEP AHEAD OF THE MARKETS BY REJECTING GUESSES ABOUT THE FUTURE AND TRUSTING TECHNIQUES THAT WORK Today there are as many investment opinions as there are people. But as many a scorned investor can attest, predicting the future isn't easy.Table of ContentsForeword xi Preface xv Acknowledgments xvii Chapter 1 Being Right or Making Money 1Ned Davis Bad News about Forecasting (Being Right) 1 Good News about Making Money 5 Being Right and Other Investment Techniques Are Overrated and Are Not the Keys to Success 6 The Four Real Keys to Making Money 7 The Battle for Investment Survival and Handling Mistakes 12 Stories of Five Successful Winners 14 Making Our Own Reality 19 The Ned Davis Research Response to All This 22 Timing Models 23 What Is Contrary Opinion and How to Use It 29 History and Risk Management 32 The Rest of the Book 36 Notes 39 Chapter 2 The Model‐Building Process 41Ned Davis The Model‐Building Process 41 Where to Start: Model Inputs 41 Sentiment and Valuation Indicators 42 Monetary Indicators 43 Economic Indicators 47 Internal Indicators 47 Moving Averages 48 Crossings and Slopes 49 Momentum 54 Putting Indicators Together 55 Conclusion 57 Chapter 3 A Stock Market Model 59Loren Flath A Stock Market Model 59 Overview of the Fab Five 63 Tape Component 64 The Final Tape Component 73 The Sentiment Component 74 Sentiment Summary 87 The Monetary Model 87 Monetary Component Summary 96 Fab Five Combo Component 97 Combo Model Summary 103 Summing Up the Fab Five 104 How We Use the Fab Five 104 Chapter 4 A Simple Model for Bonds 105Loren Flath A Slight Modification 109 Summary 113 Chapter 5 Potential Bear Market in 2014; Bearish Secular Residue and Then Buying Opportunity 115Ned Davis Preparing for a (Say, 20 Percent) Bear Market 115 Sentiment and Valuation Indicators, If One Wanted to Be Bearish 115 Other Sentiment Indicators 120 Valuation Problems 124 Trend Indicators to Plan for a Potential Pullback—Follow the Leaders 130 More Leading Indicators of Market Peaks 132 Four‐Year Presidential Cycle Risks 136 Macro Backdrop: Debt Bubble Update 139 Watching Fed Policy to Prepare for a Major Pullback in 2014 147 What Do Demographics Say? 151 Chapter 6 The Aging World: Economic and Market Implications 155Alejandra Grindal Global Population View 155 Why Is the Population Getting Older? 159 Demographic Developments 161 Implications of Aging Populations 165 Ways to Offset a Declining Workforce 172 Conclusion 177 Chapter 7 United States Energy Independence –A Game-Changer 179John LaForge What the United States Consumes 181 The Thorn in the Side of Energy Independence—Oil and Transportation 183 Choosing the Right Fuel 195 Why Electric Could Be a Game-Changer 198 Why Electric Has Yet to Take Off 199 How Far Ned Could Go 200 Nat Gas—An Indirect Play on Electric 202 The Immediate Impact of Abundant U.S. Energy Resources 209 A Potential Headache for the U.S. Manufacturing Resurgence 212 Conclusion 215 About the Authors 217 About the Contributors 219 Index 223

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Book SynopsisSupercharge options analytics and hedging using the power of Python Derivatives Analytics with Python shows you how to implement market-consistent valuation and hedging approaches using advanced financial models, efficient numerical techniques, and the powerful capabilities of the Python programming language. This unique guide offers detailed explanations of all theory, methods, and processes, giving you the background and tools necessary to value stock index options from a sound foundation. You''ll find and use self-contained Python scripts and modules and learn how to apply Python to advanced data and derivatives analytics as you benefit from the 5,000+ lines of code that are provided to help you reproduce the results and graphics presented. Coverage includes market data analysis, risk-neutral valuation, Monte Carlo simulation, model calibration, valuation, and dynamic hedging, with models that exhibit stochastic volatility, jump components, stochastic short rates, Table of ContentsList of Tables xi List of Figures xiii Preface xvii Chapter 1 A Quick Tour 1 1.1 Market-Based Valuation 1 1.2 Structure of the Book 2 1.3 Why Python? 3 1.4 Further Reading 4 Part One The Market Chapter 2 What is Market-Based Valuation? 9 2.1 Options and their Value 9 2.2 Vanilla vs. Exotic Instruments 13 2.3 Risks Affecting Equity Derivatives 14 2.3.1 Market Risks 14 2.3.2 Other Risks 15 2.4 Hedging 16 2.5 Market-Based Valuation as a Process 17 Chapter 3 Market Stylized Facts 19 3.1 Introduction 19 3.2 Volatility, Correlation and Co. 19 3.3 Normal Returns as the Benchmark Case 21 3.4 Indices and Stocks 25 3.4.1 Stylized Facts 25 3.4.2 DAX Index Returns 26 3.5 Option Markets 30 3.5.1 Bid/Ask Spreads 31 3.5.2 Implied Volatility Surface 31 3.6 Short Rates 33 3.7 Conclusions 36 3.8 Python Scripts 37 3.8.1 GBM Analysis 37 3.8.2 DAX Analysis 40 3.8.3 BSM Implied Volatilities 41 3.8.4 EURO STOXX 50 Implied Volatilities 43 3.8.5 Euribor Analysis 45 Part Two Theoretical Valuation Chapter 4 Risk-Neutral Valuation 49 4.1 Introduction 49 4.2 Discrete-Time Uncertainty 50 4.3 Discrete Market Model 54 4.3.1 Primitives 54 4.3.2 Basic Definitions 55 4.4 Central Results in Discrete Time 57 4.5 Continuous-Time Case 61 4.6 Conclusions 66 4.7 Proofs 66 4.7.1 Proof of Lemma 1 66 4.7.2 Proof of Proposition 1 67 4.7.3 Proof of Theorem 1 68 Chapter 5 Complete Market Models 71 5.1 Introduction 71 5.2 Black-Scholes-Merton Model 72 5.2.1 Market Model 72 5.2.2 The Fundamental PDE 72 5.2.3 European Options 74 5.3 Greeks in the BSM Model 76 5.4 Cox-Ross-Rubinstein Model 81 5.5 Conclustions 84 5.6 Proofs and Python Scripts 84 5.6.1 Itô’s Lemma 84 5.6.2 Script for BSM Option Valuation 85 5.6.3 Script for BSM Call Greeks 88 5.6.4 Script for CRR Option Valuation 92 Chapter 6 Fourier-Based Option Pricing 95 6.1 Introduction 95 6.2 The Pricing Problem 96 6.3 Fourier Transforms 97 6.4 Fourier-Based Option Pricing 98 6.4.1 Lewis (2001) Approach 98 6.4.2 Carr-Madan (1999) Approach 101 6.5 Numerical Evaluation 103 6.5.1 Fourier Series 103 6.5.2 Fast Fourier Transform 105 6.6 Applications 107 6.6.1 Black-Scholes-Merton (1973) Model 107 6.6.2 Merton (1976) Model 108 6.6.3 Discrete Market Model 110 6.7 Conclusions 114 6.8 Python Scripts 114 6.8.1 BSM Call Valuation via Fourier Approach 114 6.8.2 Fourier Series 119 6.8.3 Roots of Unity 120 6.8.4 Convolution 121 6.8.5 Module with Parameters 122 6.8.6 Call Value by Convolution 123 6.8.7 Option Pricing by Convolution 123 6.8.8 Option Pricing by DFT 124 6.8.9 Speed Test of DFT 125 Chapter 7 Valuation of American Options by Simulation 127 7.1 Introduction 127 7.2 Financial Model 128 7.3 American Option Valuation 128 7.3.1 Problem Formulations 128 7.3.2 Valuation Algorithms 130 7.4 Numerical Results 132 7.4.1 American Put Option 132 7.4.2 American Short Condor Spread 135 7.5 Conclusions 136 7.6 Python Scripts 137 7.6.1 Binomial Valuation 137 7.6.2 Monte Carlo Valuation with LSM 139 7.6.3 Primal and Dual LSM Algorithms 140 Part Three Market-Based Valuation Chapter 8 A First Example of Market-Based Valuation 147 8.1 Introduction 147 8.2 Market Model 147 8.3 Valuation 148 8.4 Calibration 149 8.5 Simulation 149 8.6 Conclusions 155 8.7 Python Scripts 155 8.7.1 Valuation by Numerical Integration 155 8.7.2 Valuation by FFT 157 8.7.3 Calibration to Three Maturities 160 8.7.4 Calibration to Short Maturity 163 8.7.5 Valuation by MCS 165 Chapter 9 General Model Framework 169 9.1 Introduction 169 9.2 The Framework 169 9.3 Features of the Framework 170 9.4 Zero-Coupon Bond Valuation 172 9.5 European Option Valuation 173 9.5.1 PDE Approach 173 9.5.2 Transform Methods 175 9.5.3 Monte Carlo Simulation 176 9.6 Conclusions 177 9.7 Proofs and Python Scripts 177 9.7.1 Itô’s Lemma 177 9.7.2 Python Script for Bond Valuation 178 9.7.3 Python Script for European Call Valuation 180 Chapter 10 Monte Carlo Simulation 187 10.1 Introduction 187 10.2 Valuation of Zero-Coupon Bonds 188 10.3 Valuation of European Options 192 10.4 Valuation of American Options 196 10.4.1 Numerical Results 198 10.4.2 Higher Accuracy vs. Lower Speed 201 10.5 Conclusions 203 10.6 Python Scripts 204 10.6.1 General Zero-Coupon Bond Valuation 204 10.6.2 CIR85 Simulation and Valuation 205 10.6.3 Automated Valuation of European Options by Monte Carlo Simulation 209 10.6.4 Automated Valuation of American Put Options by Monte Carlo Simulation 215 Chapter 11 Model Calibration 223 11.1 Introduction 223 11.2 General Considerations 223 11.2.1 Why Calibration at All? 224 11.2.2 Which Role Do Different Model Components Play? 226 11.2.3 What Objective Function? 227 11.2.4 What Market Data? 228 11.2.5 What Optimization Algorithm? 229 11.3 Calibration of Short Rate Component 230 11.3.1 Theoretical Foundations 230 11.3.2 Calibration to Euribor Rates 231 11.4 Calibration of Equity Component 233 11.4.1 Valuation via Fourier Transform Method 235 11.4.2 Calibration to EURO STOXX 50 Option Quotes 236 11.4.3 Calibration of H93 Model 236 11.4.4 Calibration of Jump Component 237 11.4.5 Complete Calibration of BCC97 Model 239 11.4.6 Calibration to Implied Volatilities 240 11.5 Conclusions 243 11.6 Python Scripts for Cox-Ingersoll-Ross Model 243 11.6.1 Calibration of CIR85 243 11.6.2 Calibration of H93 Stochastic Volatility Model 248 11.6.3 Comparison of Implied Volatilities 251 11.6.4 Calibration of Jump-Diffusion Part of BCC97 252 11.6.5 Calibration of Complete Model of BCC97 256 11.6.6 Calibration of BCC97 Model to Implied Volatilities 258 Chapter 12 Simulation and Valuation in the General Model Framework 263 12.1 Introduction 263 12.2 Simulation of BCC97 Model 263 12.3 Valuation of Equity Options 266 12.3.1 European Options 266 12.3.2 American Options 268 12.4 Conclusions 268 12.5 Python Scripts 269 12.5.1 Simulating the BCC97 Model 269 12.5.2 Valuation of European Call Options by MCS 274 12.5.3 Valuation of American Call Options by MCS 275 Chapter 13 Dynamic Hedging 279 13.1 Introduction 279 13.2 Hedging Study for BSM Model 280 13.3 Hedging Study for BCC97 Model 285 13.4 Conclusions 289 13.5 Python Scripts 289 13.5.1 LSM Delta Hedging in BSM (Single Path) 289 13.5.2 LSM Delta Hedging in BSM (Multiple Paths) 293 13.5.3 LSM Algorithm for American Put in BCC97 295 13.5.4 LSM Delta Hedging in BCC97 (Single Path) 300 Chapter 14 Executive Summary 303 Appendix A Python in a Nutshell 305 A.1 Python Fundamentals 305 A.1.1 Installing Python Packages 305 A.1.2 First Steps with Python 306 A.1.3 Array Operations 310 A.1.4 Random Numbers 313 A.1.5 Plotting 314 A.2 European Option Pricing 316 A.2.1 Black-Scholes-Merton Approach 316 A.2.2 Cox-Ross-Rubinstein Approach 318 A.2.3 Monte Carlo Approach 323 A.3 Selected Financial Topics 325 A.3.1 Approximation 325 A.3.2 Optimization 328 A.3.3 Numerical Integration 329 A.4 Advanced Python Topics 330 A.4.1 Classes and Objects 330 A.4.2 Basic Input-Output Operations 332 A.4.3 Interacting with Spreadsheets 334 A.5 Rapid Financial Engineering 336 Bibliography 341 Index 347

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Book SynopsisDive into algo trading with step-by-step tutorials and expert insight Machine Trading is a practical guide to building your algorithmic trading business. Written by a recognized trader with major institution expertise, this book provides step-by-step instruction on quantitative trading and the latest technologies available even outside the Wall Street sphere. You''ll discover the latest platforms that are becoming increasingly easy to use, gain access to new markets, and learn new quantitative strategies that are applicable to stocks, options, futures, currencies, and even bitcoins. The companion website provides downloadable software codes, and you''ll learn to design your own proprietary tools using MATLAB. The author''s experiences provide deep insight into both the business and human side of systematic trading and money management, and his evolution from proprietary trader to fund manager contains valuable lessons for investors at any level. Algorithmic trading Table of ContentsPreface ix Chapter 1 The Basics of Algorithmic Trading 1 Chapter 2 Factor Models 27 Chapter 3 Time-Series Analysis 59 Chapter 4 Artificial Intelligence Techniques 83 Chapter 5 Options Strategies 119 Chapter 6 Intraday Trading and Market Microstructure 159 Chapter 7 Bitcoins 201 Chapter 8 Algorithmic Trading Is Good for Body and Soul 215 Bibliography 227 About the Author 235 Index 237

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Book SynopsisThe legal, financial, and business primer to the M&A process Mergers and Acquisitions offers accessible step-by-step guidance through the M&A process to provide the legal and financial background required to navigate these deals successfully. From the initial engagement letter to the final acquisition agreement, this book delves into the mechanics of the process from beginning to end, favoring practical advice and actionable steps over theoretical concepts. Coverage includes deal structure, corporate structuring considerations, tax issues, public companies, leveraged buyouts, troubled businesses and more, with a uniquely solution-oriented approach to the M&A process. This updated second edition features new discussion on cross-border transactions and pseudo M&A deals, and the companion websites provides checklists and sample forms to facilitate organization and follow-through. Mergers and acquisitions are complex, and problems can present themselves at each stage ofTable of ContentsPreface xi Acknowledgments xv Chapter 1 Structuring Fundamentals 1 Basic Corporate Finance Concepts 1 Reasons for Acquisitions 7 Three Basic Acquisition Structures 11 Structuring Considerations: Overview 14 Chapter 2 The Acquisition Process 20 Overview 20 Valuation of the Business 27 Investment Bank Engagement Letters 30 Confidentiality Agreements 35 Letters of Intent 37 Stay Bonuses and Other Employee Retention Arrangements 39 Business and Legal Due Diligence 42 Intellectual Property Due Diligence 55 From Signing to Closing 66 Appendixes 67 Chapter 3 Corporate (Nontax) Structuring Considerations 69 Business Objectives and Other Nontax Structuring Considerations 69 Acquisition Structure Diagrams 78 Forms of Acquisition Consideration 78 Debt 83 Cash, Stock, and Earnouts 96 Successor Liability and the De Facto Merger Doctrine 101 Securities Law Compliance 104 Antitrust Compliance: Hart-Scott-Rodino Act 114 Equity Compensation 120 Incentive Stock Options 126 Employment Agreements and Noncompetition Covenants 130 Indemnification 136 Employment and Benefits Law 138 Acquisition Accounting 140 Recapitalization Accounting 144 Appendixes 145 Chapter 4 Tax Considerations 146 Taxable Versus Tax-Free Transactions: Overview of Relevant Situations 146 Detailed Analysis of the Positions of the Target and Its Owners and of the Buyer 148 Taxable Transactions and Their Tax Effects 150 Tax-Free Transactions 154 Special Situations 159 Golden Parachute Tax 164 Chapter 5 The Definitive Acquisition Agreement 169 Economic Terms 169 Representations and Warranties 184 Covenants 196 Additional Agreements 199 Conditions to Closing 200 Survival of Representations and Indemnification 201 Termination 206 Miscellaneous 206 Representing Targets: A Summary 207 Appendixes 210 Chapter 6 Acquisitions of Public Companies 211 Public-to-Public Mergers: What is Different? 211 Case Law–Developed Fiduciary Duties and Standards of Review 214 Evolution of Fiduciary Duty Case Law and Judicial Review 220 Securities Laws and Public Company Acquisitions 237 Anti-Takeover Devices 247 Appendix 256 Chapter 7 Leveraged Buyouts (Structural and Tax Issues) and Acquisitions of a Troubled Business (Creditors’ Rights and Bankruptcy) 257 Leveraged Buyouts: Structural and Tax Issues 257 Acquisition of a Troubled Business Generally 263 Fraudulent Transfers 265 Acquisitions Out of Bankruptcy 272 Chapter 8 International M&A 282 Cross-Border Acquisitions 282 Chapter 9 Joint Ventures 292 Reasons for Joint Ventures 292 Types of Joint Ventures 293 Typical Joint Venture Terms 295 Appendix 304 About the Website 305 Index 307

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Book SynopsisGet your finances in order with smart budgeting and money mindfulness You Only Live Once is the guide to achieving your best life through smart money moves. Before you even begin making a budget, you need to think about why. Where do you see yourself financially in ten years? Five years? This time next year? What does money do for you? Once you know your destination, you can begin charting your course. Step-by-step guidance walks you through the budgeting process, and shows you how to plan your financial path to point toward your goals. You''ll learn how to prioritize spending, how to save efficiently, and how to take advantage of simple tools you didn''t know you had. Next comes the most important part: taking control. You need to really look at how you perceive and use money day-to-day. Chances are, changing a few habits could give you some breathing room and help you reach your goals sooner. You work hard for your money, yet there never seems to be enough.Table of ContentsPreface ix Acknowledgments xv About the Author xix Introduction 1 Part I On the Road to Financial Wellness 5 Chapter 1 Are You Living YOLO? 7 The Millennial Experience 7 The YOLO Mindset 8 Chapter 2 Financial Education and Living Your Dream Lifestyle 11 What Is Financial Education? 13 The ACT Process 14 Part II Awareness 15 Chapter 3 Know Where You're Starting From 17 Your Money Mindset 18 What Is Your Relationship with Money? 19 How Is Your Spending Contributing to Your Life? 20 How Are You Using Your Time? 22 Cultivate a Wealthy Money Mindset 23 Chapter 4 Know Where You Want to Go 31 Clarify Your Values 32 Have a Vision for Your Life 35 Follow a Money Philosophy 38 Chapter 5 Getting What You Want 41 Change Your Financial Behaviors and Habits 41 The Habit of Spending 42 The Habit of Saving 43 Get in the Know 45 Part III Creating a Plan 63 Chapter 6 Building a Lifestyle Budget and Spending Plan 67 Dealing with Your Fear of Lifestyle Change 70 Living the YOLO Lifestyle 74 The YOLO Budget 77 Chapter 7 Using the Purposeful Money Strategy to Spend and Save 97 Dual Checking Accounts Method 98 The Purposeful Savings Method 101 Chapter 8 Improving Credit Use and Eliminating Debt Forever 111 Credit Card Debt 115 Using the Debt Avalanche Method 117 Using the Debt Snowball Method 118 Part IV Taking Control 121 Chapter 9 Creating a Purposeful Life 123 Finding Happiness 124 Increasing Your Awareness 126 Organizing Your Finances 128 Managing Your Time 130 Having Better Conversations 132 Improving Financial Relationships 134 Chapter 10 Spending Rules 137 Spending Mindfully 138 Spend Less Than You Earn 139 Pay Less for Every Purchase 139 Spend on Loves, Not Likes 140 Use Credit Purposefully 142 Chapter 11 Living Mindfully 145 Building Your Freedom Fund 146 Don't Quit Your Job 148 Traveling the World 151 Lending Money to Family and Friends 152 Making Money with Money: Investing 153 Protecting Your Legacy: Insurance 155 Finding an Expert 156 Conclusion 159 Index 161

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Book SynopsisHave you always known what you wanted to be in life? What are some watershed moments that made you who you are? When did you get on track to become a successful CEO? It started with three questions at Davos. The younger Peter Vanham looked to the answers from the elite leaders he asked to validate his own career choice, and the rich, private wisdom he received revealed more about building a career than he'd found anywhere else. He shares it all with you in Before I Was CEO. For everyone who lays awake at night wondering if they're heading up or down the corporate ladder, this collection of personal stories from a remarkable group of the most accomplished men and women in business today proves everyone can put themselves in the C-suite by taking a variety of different pathsit's all how you do it. Some found opportunity through adversity and others came by their big-break moments through serendipity. A group of them walked away fTable of ContentsForeword xi Introduction xv Part I: Adversity 1 Chapter 1: Finding True North 3 The Story of Orit Gadiesh, Bain & Company 4 The Story of David Kenny, IBM 9 Lessons Learned 14 Endnotes 18 Chapter 2: The Dot-Com Crisis 19 The Story of Kris Gopalakrishnan, Infosys 22 The Story of David Kenny, IBM (cont’d) 26 The Story of Raf Keustermans, Plumbee 28 The Unraveling & Lessons Learned 30 Part II: Opportunities 39 Chapter 3: Living the American Dream 41 The Story of Alberto Vitale, Random House 41 Lesson Learned 55 Endnotes 57 Chapter 4: Serendipity 59 The Story of Geoffrey Garrett, The Wharton School 61 The Story of Peter Henry, NYU Stern 68 Lessons Learned 75 Endnotes 76 Part III: Off the Beaten Track 77 Chapter 5: A Shining Path 79 The Story of Paul Bulcke, Nestle 80 Lessons Learned 90 Chapter 6: Brewing in the Brousse 92 The Story of Jean-Francois van Boxmeer, Heineken 92 Lessons Learned 104 Endnotes 109 Part IV: Breaking Free and Coming Home 111 Chapter 7: Breaking Free 113 The Story of Rick Goings, Tupperware Brands 114 The Story of Susan Cameron, Reynolds American Inc. 121 Lessons Learned 129 Endnotes 131 Chapter 8: Coming Home 132 The Story of Barry Salzberg, Deloitte 133 The Story of Johan Aurik, A.T. Kearney 139 The Story of Steve Davis, PATH 144 Lessons Learned 149 Endnotes 150 Part V: Role Models 151 Chapter 9: Father’s Footsteps 153 The Story of Richard Edelman, Edelman 155 The Story of Andrew Likierman, London Business School 159 The Story of Chris Burggraeve, Vicomte 165 165 Lessons Learned 174 Endnotes 176 Chapter 10: Practical Advice 178 The Story of Gail McGovern, American Red Cross 179 The Story of Patrick De Maeseneire, Jacobs Holding 184 Conclusions 195 What They Didn’t Need 195 Building a Career from Interests 196 Climbing the Ladder 198 Learning to Deal with Failure 198 Leaving Home 199 Making Informed Choices 200 Valuing the Importance of Family 201 Surfing theWaves of History 202 Setting Aside Your CEO Ambitions 204 Remembering Lessons Learned 205 Endnote 206 About the Author 207 Acknowledgments 208 Index 211

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Book SynopsisExplore the deadly elegance of finance''s hidden powerhouse The Money Formula takes you inside the engine room of the global economy to explore the little-understood world of quantitative finance, and show how the future of our economy rests on the backs of this all-but-impenetrable industry. Written not from a post-crisis perspective but from a preventative point of view this book traces the development of financial derivatives from bonds to credit default swaps, and shows how mathematical formulas went beyond pricing to expand their use to the point where they dwarfed the real economy. You''ll learn how the deadly allure of their ice-cold beauty has misled generations of economists and investors, and how continued reliance on these formulas can either assist future economic development, or send the global economy into the financial equivalent of a cardiac arrest. Rather than rehash tales of post-crisis fallout, this book focuses on preventing the next oneTrade Review"Anyone interested in investment theory (and that should be everyone working in financial services) would find it worth reading." (International Investment, June 2017)"Irrevent and fun, it is at the same time very rigorous in explaining how soem fairly basic mathematics has hijacked the world of finance." (Marketing Moving, June 2017) “a great description of what has happened, a thorough explanation of what is currently going on, and a solid argument for what should be done in the future.” (Significance, April 2018)Table of ContentsAcknowledgements ix About the Authors xi Introduction xiii Chapter 1 Early Models 1 Chapter 2 Going Random 15 Chapter 3 Risk Management 35 Chapter 4 Market Makers 61 Chapter 5 Deriving Derivatives 83 Chapter 6 What Quants Do 109 Chapter 7 The Rewrite 135 Chapter 8 No Laws, Only Toys 149 Chapter 9 How to Abuse the System 169 Chapter 10 Systemic Threat 189 Epilogue: Keep it Simple 207 Bibliography 227 Index 237

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Book SynopsisYou are paying much more in tax than you think you are What Everyone Needs to Know About Tax takes an entertaining and informative look at the UK tax system in all its glory to show you just how much you pay, how the money is collected and how it affects ordinary people every day.Trade Review"...chock full of essential information and interesting fact. I can highly recommend it to anyone who wants to get a grip of the complex UK tax system." (Frost Magazine, March 2017)Table of ContentsAbout the author xi Introduction xiii 1 Taxes on your income and earnings 1 Income tax and national insurance 1 National insurance contributions 3 Paying tax 7 Taxes on high earners 10 The Laffer curve 13 Sports, prizes and betting 16 With betting, the tax inspector always wins 18 The poverty trap 20 2 Taxes on what you spend 23 Value added tax 23 How VAT works 27 Zero rated and exempt from VAT 30 Europe, Brexit and VAT 32 Customs and excise 34 Excise duties 36 Fuel duty and green taxes 41 Oil and gas extraction 44 Green taxes 45 Global warming 47 3 Taxes on what you own 51 Capital gains tax 51 Paying capital gains tax 54 Taxes on homes and property 56 Inheritance tax 57 Stamp duty land tax 59 Council tax 62 Buy to let 63 The mansion tax and wealth taxes 65 Taxes on pensions and saving 67 Other ways to save 71 How to live comfortably while paying almost no tax at all 72 4 Taxes on business 77 Taxing business 77 Tax on the self]employed and small businesses 78 Tax on companies 79 Personal service companies 81 The tradesman’s entrance 84 Multinationals and international tax 86 Territorial taxes 88 Tax havens 90 A bit of BEPS 91 Where does big business make its profits? 93 Tax competition 97 Taxing what you can’t touch 99 Taxes on financial transactions 103 5 Taxes evaded, avoided and reformed 107 Film finance: how governments encourage planning, avoidance and evasion 107 Tax evasion 113 Tax avoidance and the general anti]abuse rule 117 A changing climate 119 Avoiding income tax 122 The new fight against aggressive avoidance 124 Tax planning 126 Tax reform 128 1. Stop cutting income tax and start cutting national insurance 130 2. Start the 45% tax rate at £100,000 instead of £150,000 130 3. Tax companies according to their accounting profits 130 4. Expand the scope of VAT 131 5. Introduce a minimum income tax rate for the wealthy while abolishing most income tax anti-avoidance rules and incentives 131 Conclusion: the Three Golden Rules of tax 133 The First Golden Rule: Lots of small taxes together add up to make big tax bills 133 The Second Golden Rule: No matter what name is on the bill, all taxes are ultimately suffered by human beings 134 The Third Golden Rule: Taxes are kept as invisible as possible 135 Index 139

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Book SynopsisThe easy way to get your head around company finance Having an understanding of your company's finances is crucial for both small business owners and corporate managers with budget responsibilities. Understanding Business Accounting For Dummies simplifies the key elements of UK business accounting, covering everything from evaluating profit margins to writing financial reports. Fully updated to cover the emergence of IFRS and dealing with foreign exchange, this new edition thoroughly outlines the essentials of business accounting. With comprehensive guidance and helpful strategies, this book makes light work of the financial fundamentals you need to move up the corporate ladder Use the latest technology to manage the bottom line Control profit and cash flow Budget with confidence Make sense of financial statements Survive an audit If you're ready to balance your budget, boost your profit margiTable of ContentsIntroduction 1 Part 1: Accounting Basics 7 Chapter 1: Introducing Accounting to Non-Accountants 9 Chapter 2: Bookkeeping 101: From Shoe Boxes to the Cloud 31 Chapter 3: Taxes, Taxes and More Taxes 53 Chapter 4: Accounting and Your Personal Finances 69 Part 2: Getting a Grip on Financial Statements 87 Chapter 5: Profit Mechanics 89 Chapter 6: The Balance Sheet from the Profit and Loss Account Viewpoint 111 Chapter 7: Cash Flows and the Cash Flow Statement 133 Chapter 8: Funding the Business 153 Part 3: Accounting in Managing a Business 177 Chapter 9: Managing Profit Performance 179 Chapter 10: Business Budgeting 199 Chapter 11: Choosing the Right Ownership Structure 221 Chapter 12: Cost Conundrums 239 Chapter 13: Choosing Accounting Methods 257 Part 4: Financial Reports in the Outside World 281 Chapter 14: How Investors Read a Financial Report. 283 Chapter 15: Professional Auditors and Advisors 315 Part 5: The Part of Tens 331 Chapter 16: Ten Ways Sav V Y Business Managers Use Accounting 333 Chapter 17: Ten (plus One) Questions Investors Should Ask When Reading a Financial Report 349 Chapter 18: Ten Ways to Get a Better Handle on the Financial Future 363 Appendix: Glossary: Slashing through the Accounting Jargon Jungle 375 Index 389

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Book SynopsisExamine the depth and breadth of financial technologyThis comprehensive, hands-on guide is the go-to source for everything you need to confidently navigate the ever-changing scene of this booming industry.FinTech For Dummieswill shed light on this rapidly changing landscape making it an invaluable source of information for anybody working in or interested in this space. This book provides insights, knowledge and guidance from industry experts Steve O'Hanlon and Susanne Chishti on the following: Gaining insight fastest growing market segment of the financial marketsLearning the core decision making to effect a growth planSecuring knowledge of the fastest growing fintech companies in the worldNavigating the fintech worldThe ingredients into building a FinTech companyTable of ContentsIntroduction 1 About This Book 1 Foolish Assumptions 2 Icons Used in This Book 2 Beyond the Book 3 Where to Go from Here 3 Part 1: Getting to Know Fintech 5 Chapter 1: Navigating the FinTech Landscape 7 What Is FinTech, Anyway? 8 Analyzing FinTech’s Dimensions 10 Understanding What Has Changed in FinTech 13 Highlighting the Size of Global FinTech 15 Discovering a Few Important FinTech Terms 18 Chapter 2: Understanding What’s Disrupting the Financial Industry (and Why) 21 Providing Trust and Value 22 Trust 22 Value 23 Weighing Wall Street against Silicon Valley: Where Disruptors Live 25 Examining the Role of BigTech 28 BigTech and payment platforms 28 BigTech partnership opportunities 29 How BigTech can help utilize data 29 Barriers to greater BigTech participation 30 Understanding Where the Disruptions are Happening 32 Banks 33 Asset managers 34 Insurance 34 Regulation and legal work 35 Payments 36 Looking for the Opportunities 36 Partnership opportunities 36 Exploiting digitalization with AI 37 Enhancing data portability 37 Chapter 3: The Role of Regulation in FinTech 39 Supervising FinTech 40 Understanding that location matters 40 Recognizing that more regulations are coming 42 Leveling the playing field 42 Examining Vendor Risk Issues 44 Introducing the Regulators 45 The United States of America 45 The United Kingdom and Europe 47 Investigating Regulatory Changes 51 Payment Services Directives 51 The General Data Protection Regulation 52 Highlighting RegTech Opportunities 55 Part 2: Learning the Technology 57 Chapter 4: Defining the Tech Underpinning FinTech 59 Finding a Fix in FinTech 60 What’s the problem? 60 Why FinTech now? 61 Creating API Strategies 62 Understanding the concept 62 Looking at API benefits 63 Developing an API strategy 64 Including REST and RAML 65 Trying tips for API success 66 Reviewing APIs and security vulnerabilities 66 Understanding Event-Driven Software 67 Testing and implementation 69 Language support 70 Building on Agile: Microservices and More 71 Waterfall development 71 Agile design 73 Microservices 74 Bundling Efficiencies: Batch Processing 80 Improving Data Management 81 Distinguishing the types of data 81 Validating, enhancing, and cleansing data 83 Making enterprise data management more efficient 83 Working with CPUs and GPUs 85 Comparing CPUs and GPUs 85 Planning for success 86 Estimating the potential improvement 87 Choosing a Programming Language 88 Python 89 Julia 91 R 92 Chapter 5: Confronting the Compute Conundrum 93 Determining Compute Requirements 93 In-memory computing 94 Virtualization 95 Making Sense of DApps 95 Comparing DApps to traditional applications 96 Understanding blockchain 99 Knowing where to find DApps 100 Connecting DApps, Artificial Intelligence, and FinTech 102 Looking at permissioned blockchain 103 Understanding Quantum Computing 104 How quantum computing works 105 The drawbacks of quantum computing 106 How quantum computing fits into FinTech 107 Chapter 6: Calling Up the Cloud 109 Getting to Know the Cloud 110 Looking at the cloud’s key traits 111 Checking out the benefits of the cloud environment 111 Introducing types of cloud services 112 Choosing between private and public clouds 117 Cloud bursting 120 Developing an Optimal Cloud Strategy 121 Reviewing data security and encryption 121 Surveying data states 124 Considering cloud scalability 125 Understanding cloud-based virtualization 126 Using self-service provisioning 127 Monitoring performance 128 Evaluating potential security risk on the cloud 129 Understanding Privacy Compliance and Government Requirements 131 Data protection laws 132 Data localization laws 132 Data sovereignty laws 133 Access to information laws 133 Seeing How FinTech Helps with Cloud Strategies 133 Chapter 7: Understanding Blockchain beyond Bitcoin 135 Understanding the Basics of Blockchain 136 Mining and consensus 137 Smart contracts and DApps 138 Blockchain network types 139 Discovering How Blockchain Technology Works 140 Decentralization 141 Security 142 Transparency 146 Looking at Blockchain’s Role in FinTech 147 Chapter 8: Acclimating to the App Mentality 151 Introducing Types of FinTech Apps 152 Surveying the FinTech App Landscape 153 Digital banking 153 Wealth management 153 Payments and peer-to-peer money transfer 154 Lending 154 Looking at the Nonretail Side of FinTech Apps 155 RegTech 155 Capital markets trading 156 Building a GUI Framework 157 Introducing the GUI 158 Getting the GUI right 159 Establishing the Requirements Needed in the Development of an App 160 Chapter 9: Breaking Down BI Tools 163 Taking a Strategic Approach to BI 163 Exploring BI Tools 165 Online analytical processing 165 Querying and reporting 167 Data mining 167 Data visualization 168 Business activity monitoring 169 Data warehousing 170 Digital dashboards 171 Choosing the Right BI Tools for FinTech 172 General BI applications 173 Niche BI applications 174 Chapter 10: Reviewing the Role of Open Source 175 Defining Open Source 176 The open source community 176 Free versus open source 177 Looking at Open Source Development Processes 179 Beginning a project 179 Discussing and documenting 180 Perusing the Pros of Open Source 181 Reduced cost 182 Flexibility 183 Freedom 184 Development speed 184 Considering the Cons of Open Source 186 An untraditional support model 186 Time and resources for maintenance 187 The possibility of uneven documentation 187 Security risks 188 Sustainability issues 191 Licensing issues 191 Other concerns to consider 192 Evaluating Open Source Solutions 192 Developing your own solution 193 Finding help for the right open source solution 194 Introducing open innovation 196 Chapter 11: Grasping Data Management Fundamentals 197 Looking at FinTech’s Role in Helping Companies Manage Their Data 198 Understanding ETL: Extract, Transform, and Load 199 Going over the steps 199 Reviewing ETL software requirements 200 Managing Market Data 201 Cleansing and normalizing market data 202 Segmenting and storing market data 203 Dealing with Databases 204 Data warehouses 204 Data lakes 205 Maintaining Data Lineage 206 Breaking Down Big Data 207 Differentiating between Structured and Unstructured Data 208 Comparing SQL and NoSQL 209 SQL databases 209 NoSQL Databases 210 Chapter 12: Adapting for Future Technologies 211 Harnessing the Power of Artificial Intelligence 211 Defining AI 213 Breaking down artificial neural networks 214 Exploring how AI fits into FinTech 215 Leveraging Machine Learning 216 Supervised learning 216 Reinforcement learning 217 Unsupervised learning 217 Making the Most of Chat Bots 217 Checking Out Alternative Data Sources 218 Companies and devices involved in alternative data 219 Alternative data in the financial industry 220 Sourcing, compliance, and regulation 220 Part 3: Working With Fintech Companies 223 Chapter 13: Deciding Whether to Build, Buy, or Partner 225 Transforming Your Company Digitally 226 Exploring Reasons to Build or Buy 228 Looking at reasons to build 229 Checking out reasons to buy 230 Finding the balance between new and legacy software 232 Finding a FinTech Partner 234 Weighing the pros and cons of partnership 235 Researching and scouting potential FinTech partners 236 Working with partners on evolving solutions 239 Describing the Licensing Models 241 Subscription 241 Perpetual 242 Term 243 Source code transactions 243 An open source approach 244 Chapter 14: Managing Integration with Legacy Systems 247 Understanding and Tackling the Challenges of Legacy Infrastructures 248 Comparing old and modern systems 248 Determining whether a legacy system is too old 249 Estimating the cost of doing nothing 250 Discovering how FinTech can help 251 Planning for success 252 Walking through the Technical Steps of Updating a Legacy System 253 Noting areas of concern 253 Making your plan 253 Assembling the team 254 Implementing the plan 256 Avoiding the pitfalls 257 Simplifying Integration with Microservices Architecture 258 The benefits of microservices 258 Migration strategy options 259 Chapter 15: Preparing Your Team for a Successful Project 261 Assembling a Transformation Team 262 Recruiting the right team members 263 Counting on communication 264 Shifting the leadership paradigm 264 Assigning roles 265 Setting Realistic Expectations and Timelines 268 Supporting Change Agents 269 Retaining Good Employees during Change 272 Why employees leave 272 Retention strategies that work 273 Career paths and organizational change 274 Understanding Data-Driven Decision-Making 275 Breaking the Silos 277 Chapter 16: Investing in FinTech Companies 279 Understanding the Players 280 Challenging financial institutions 281 Offering collaborative solutions to financial institutions 281 Navigating the Investor Landscape 282 Crowdfunding 282 Angel investors 284 Venture capital 285 Corporate venture capital 286 Private equity 287 Conducting Due Diligence 288 Performing primary research 288 Doing secondary research 289 Analyzing data 290 Evaluating a Company’s Growth Strategies 291 Studying the competition 291 Listening to customers 292 Asking about technology 292 Inspiring innovation 292 Considering a Company’s Culture 293 Chapter 17: Figuring Out the FinTech Endgame 295 Bringing the Board Up to Speed on FinTech 296 Noting the challenges that financial boards face 297 Embracing digital transformation 298 Developing digital skills 300 Figuring out how to participate 301 Looking into the Future of FinTech 303 Authentication methods 303 Voice technology 304 Artificial intelligence 305 Identifying Industry-Driven Networks, Accelerators, and Incubators 306 The FinTech Innovation Lab 306 Startupbootcamp FinTech 306 Techstars 307 FINTECH Circle 307 Level39 308 Mulling Over Mergers and Acquisitions 308 Consolidation 309 Corporate venturing strategies 310 Part 4: The Part of Tens 313 Chapter 18: Ten Symptoms of Ailing Legacy Technology 315 A Band-Aid Overload 315 A Lack of Backward Compatibility 316 Incompatibility with Other Systems 317 Disparate Data 318 Spreadsheet Risk 319 Latency 321 Increasing Demand for Support and Maintenance 322 Short-Term Gains and Long-Term Pains 323 A Shrinking Talent Pool 323 Lost Market Opportunities 323 Chapter 19: Ten Questions for Determining Whether to Build or Buy 327 Is This Functionality Core to Our Business? 327 Is the Application Unique? 328 Which Approach is More Cost-Effective? 328 Should This Application Be Built? 329 What are the Risks of Building versus Buying? 330 When Does Open Source Make Sense? 331 When Does Building Make Sense? 332 How Can We Accelerate a Build? 333 When Does Buying Make Sense? 334 How Do We Select a Vendor and a Product? 335 Chapter 20: Ten Considerations When Using Open Source Technology 337 Your Business Model 338 Open Source Community Health 338 Tech Support 339 Security 340 Code Audits 341 Reliability 342 Hidden Costs 343 Updates and Upgrades 345 Potential Hardware Impact 346 Legal Considerations 347 Appendix: Building A Fintech Company From the Ground Up 351 Index 361

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Book SynopsisTable of ContentsFOREWORD BY JOHN C. BOGLE xi PREFACE: THE HISTORY OF THE BOGLEHEADS’ THREE-FUND PORTFOLIO xvii ACKNOWLEDGMENTS xxv CHAPTER 1: THE INVESTMENT INDUSTRY 1 CHAPTER 2: JOHN C. BOGLE—THE INVESTOR’S BEST FRIEND 5 CHAPTER 3: JOHN BOGLE INTRODUCES THREE TOTAL MARKET INDEX FUNDS 9 CHAPTER 4: TWENTY BENEFITS OF TOTAL MARKET INDEX FUNDS (IN NO PARTICULAR ORDER) 13 Benefit1: No Advisor Risk 14 Benefit2: No Asset Bloat 17 Benefit3: No Index Front Running 19 Benefit4: No Fund Manager Risk 20 Benefit5: No Individual Stock Risk 22 Benefit6: No Overlap 24 Benefit7: No Sector Risk 25 Benefit8: No Style Drift 26 Benefit9: Low Tracking Error 27 Benefit10: Above-Average Return 28 Benefit11: Simplifi ed Contributions and Withdrawals 32 Benefit12: The Benefitof Consistency 33 Benefit13: Low Turnover 34 Benefit14: Low Costs 35 Benefit15: Maximum Diversifi cation (lower risk) 38 Benefit16: Portfolio Effi ciency (best risk/return ratio) 39 Benefit17: Low Maintenance 40 Benefit18: Easy to Rebalance 41 Benefit19: Tax Effi ciency 42 Benefit20: Simplicity (for investors, caregivers, and heirs) 44 CHAPTER 5: GETTING STARTED 49 CHAPTER 6: STAY THE COURSE 59 APPENDIX I: WHAT EXPERTS SAY 63 APPENDIX II: MEET THE BOGLEHEADS 69 GLOSSARY OF FINANCIAL TERMS 75 INDEX 79

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Book SynopsisTable of ContentsList of Spreadsheets xix List of Appendices xxi Acknowledgements xxiii About the Author xxv Section 1 Basics 1 Introduction 3 2 Derivatives 5 2.1 Introduction 5 2.2 The Derivatives Market 6 2.2.1 Exchange-traded and OTC Derivatives 6 2.2.2 Clearing 8 2.2.3 Market Overview 9 2.2.4 Market Participants and Collateralisation 11 2.2.5 Banks and End Users 14 2.2.6 ISDA Documentation 16 2.2.7 Credit Derivatives 17 2.2.8 Financial Weapons of Mass Destruction 18 2.2.9 The Lehman Brothers Bankruptcy 19 2.3 Derivative Risks 20 2.3.1 Market Risk 21 2.3.2 Credit Risk 21 2.3.3 Operational and Legal Risk 22 2.3.4 Liquidity Risk 22 2.3.5 Integration of Risk Types 23 2.3.6 Counterparty Risk 23 2.4 Systemic Risk of Derivatives 24 2.4.1 Overview 24 2.4.2 Special Purpose Vehicles 24 2.4.3 Derivatives Product Companies 25 2.4.4 Monolines and CDPCs 26 2.5 The Global Financial Crisis and Central Clearing of OTC Derivatives 28 2.5.1 OTC Derivatives and the Crisis 28 2.5.2 OTC Derivatives Clearing 29 2.5.3 CCPs in the Global Financial Crisis 31 2.5.4 The Clearing Mandate 32 2.5.5 Bilateral Margin Requirements 33 2.5.6 CCPs in Context 34 2.6 Derivatives Risk Modelling 36 2.6.1 Value-at-risk 36 2.6.2 Models 38 2.6.3 Correlation and Dependency 39 3 Counterparty Risk and Beyond 41 3.1 Counterparty Risk 41 3.1.1 Counterparty Risk Versus Lending Risk 41 3.1.2 Settlement, Pre-settlement, and Margin Period of Risk 42 3.1.3 Mitigating Counterparty Risk 45 3.1.4 Product Type 46 3.1.5 Credit Limits 48 3.1.6 Credit Value Adjustment 50 3.1.7 What Does CVA Represent? 51 3.1.8 Hedging Counterparty Risk and the CVA Desk 52 3.2 Beyond Counterparty Risk 54 3.2.1 Overview 54 3.2.2 Economic Costs of a Derivative 54 3.2.3 xVA Terms 55 3.3 Components of xVA 57 3.3.1 Overview 57 3.3.2 Valuation and Mark-to-market 57 3.3.3 Replacement Cost and Credit Exposure 58 3.3.4 Default Probability, Credit Migration, and Credit Spreads 59 3.3.5 Recovery and Loss Given Default 60 3.3.6 Funding, Collateral, and Capital Costs 61 4 Regulation 63 4.1 Regulation and the Global Financial Crisis 63 4.2 Capital Requirements 64 4.2.1 Overview 64 4.2.2 Capital Ratios 65 4.2.3 Risk Type 67 4.2.4 Market Risk Capital 68 4.2.5 CVA Capital 69 4.2.6 CCR Capital 70 4.2.7 Leverage Ratio 70 4.2.8 Capital Floors 71 4.2.9 Large Exposure Framework 72 4.2.10 Bank Stress Tests 73 4.2.11 Prudent Valuation 73 4.3 Liquidity 73 4.3.1 Overview 73 4.3.2 High-quality Liquid Assets 74 4.3.3 Liquidity Coverage Ratio 75 4.3.4 Net Stable Funding Ratio 76 4.4 Clearing and Margining 77 4.4.1 Central Clearing 77 4.4.2 Bilateral Margin Requirements 81 4.4.3 Exemptions 82 4.4.4 CCP Capital Requirements 84 5 What is xVA? 85 5.1 Overview 85 5.2 Analysis of xVA 86 5.2.1 Definition 86 5.2.2 Components 86 5.2.3 Why Valuation Adjustments? 87 5.2.4 Mark-to-market and xVA as a Cost (and Benefit) 88 5.2.5 xVAs by Transaction Type 90 5.2.6 Overlaps and Portfolio Effects 91 5.2.7 CVA is the Least Real Valuation Adjustment 92 5.3 Valuation 93 5.3.1 Price and Value 93 5.3.2 xVA Markets 94 5.3.3 Accounting Standards 95 5.3.4 Accounting Trends 98 5.3.5 Totem 99 5.3.6 Contractual Terms and Value 100 5.4 Pricing 100 5.4.1 Reality or Creating the Right Incentive? 100 5.4.2 Approach for Capital 101 5.4.3 Approach to Regulatory Ratios 102 5.4.4 Lack of Arbitrage 104 5.4.5 Entry and Exit Pricing 105 5.4.6 xVA Quantification 106 5.4.7 Special Cases 106 Section 2 Risk Mitigation 6 Netting, Close-Out, and Related Aspects 111 6.1 Overview 111 6.2 Cash Flow Netting 112 6.2.1 Payment Netting 112 6.2.2 Currency Netting and CLS 113 6.2.3 Clearing Rings 114 6.2.4 Portfolio Compression 115 6.2.5 Compression Algorithm 118 6.2.6 Benefits of Cashflow Netting 120 6.3 Value Netting 121 6.3.1 Overview 121 6.3.2 Close-out Netting 121 6.3.3 Payment Under Close-out 122 6.3.4 Close-out and xVA 124 6.3.5 ISDA Definitions 125 6.3.6 Set-off 129 6.4 The Impact of Netting 130 6.4.1 Risk Reduction 130 6.4.2 The Impact of Netting 131 6.4.3 Multilateral Netting and Bifurcation 132 6.4.4 Netting Impact on Other Creditors 135 7 Margin (Collateral) and Settlement 137 7.1 Termination and Reset Features 137 7.1.1 Break Clauses 137 7.1.2 Resettable Transactions 140 7.2 Basics of Margin/Collateral 141 7.2.1 Terminology 141 7.2.2 Rationale 142 7.2.3 Variation Margin and Initial Margin 144 7.2.4 Method of Transfer and Remuneration 145 7.2.5 Rehypothecation and Segregation 147 7.2.6 Settle to Market 150 7.2.7 Valuation Agent, Disputes, and Reconciliations 151 7.3 Margin Terms 152 7.3.1 The Credit Support Annex 152 7.3.2 Types of CSA 153 7.3.3 Margin Call Frequency 154 7.3.4 Threshold, Initial Margin, and the Minimum Transfer Amount 155 7.3.5 Margin Types and Haircuts 157 7.3.6 Credit Support Amount Calculations 161 7.3.7 Impact of Margin on Exposure 163 7.3.8 Traditional Margin Practices in Bilateral and Centrally-cleared Markets 165 7.4 Bilateral Margin Requirements 166 7.4.1 General Requirements 166 7.4.2 Phase-in and Coverage 168 7.4.3 Initial Margin and Haircut Calculations 169 7.4.4 Eligible Assets and Haircuts 171 7.4.5 Implementation and Impact of the Requirements 172 7.5 Impact of Margin 173 7.5.1 Impact on Other Creditors 173 7.5.2 Market Risk and Margin Period of Risk 174 7.5.3 Liquidity, FX, and Wrong-way Risks 178 7.5.4 Legal and Operational Risks 179 7.6 Margin and Funding 180 7.6.1 Overview 180 7.6.2 Margin and Funding Liquidity Risk 181 8 Central Clearing 185 8.1 Evolution of Central Clearing 185 8.1.1 Exchange Trading 185 8.1.2 Evolution of Complete Clearing 186 8.1.3 What is a CCP? 187 8.2 Mechanics of Central Clearing 189 8.2.1 Landscape 189 8.2.2 Novation 191 8.2.3 Multilateral Offset and Compression 192 8.2.4 Margin and Default Funds 194 8.2.5 Clearing Relationships 195 8.3 CCP Risk Management 197 8.3.1 Overview and Membership Requirements 197 8.3.2 Margin 198 8.3.3 Default Scenarios and Margin Period of Risk 199 8.3.4 The Loss Waterfall 202 8.3.5 Comparing Bilateral and Central Clearing 204 8.4 Initial Margin and Default Funds 205 8.4.1 Coverage of Initial Margin and Default Funds 205 8.4.2 Default Fund Versus Initial Margin 206 8.4.3 Default Fund Coverage 207 8.5 Impact of Central Clearing 209 8.5.1 Advantages and Disadvantages of Central Clearing 209 8.5.2 Will Mandatory Clearing Kill Credit Value Adjustment? 210 9 Initial Margin Methodologies 213 9.1 Role of Initial Margin 213 9.1.1 Purpose 213 9.1.2 Margin Period of Risk 215 9.1.3 Coverage: Quantitative and Qualitative 217 9.1.4 Haircuts 218 9.1.5 Linkage to Credit Quality 218 9.1.6 Cross-margining 220 9.2 Initial Margin Approaches 222 9.2.1 Simple Approaches 222 9.2.2 SPAN® 223 9.2.3 Value-at-risk and Expected Shortfall 227 9.3 Historical Simulation 229 9.3.1 Overview 229 9.3.2 Look-back Period 230 9.3.3 Relative and Absolute Returns 231 9.3.4 Volatility Scaling 233 9.3.5 Procyclicality 234 9.3.6 Current CCP Methodologies 239 9.3.7 Computational Considerations 241 9.4 Bilateral Margin and SIMM 242 9.4.1 Overview 242 9.4.2 Standard Schedules 244 9.4.3 Variance-covariance Approaches 245 9.4.4 The ISDA SIMM 249 9.4.5 Implementation of Bilateral Margin Requirements 252 10 The Impact and Risk of Clearing and Margining 255 10.1 Risks of Central Clearing 256 10.1.1 Historical CCP Problems 256 10.1.2 The 1987 Stock Market Crash 258 10.1.3 The 2018 Nasdaq Case 259 10.1.4 Risks Faced by CCPs 260 10.1.5 Risks Caused by CCPs 261 10.2 Analysis of a CCP Loss Structure 262 10.2.1 Review of the Loss Waterfall 262 10.2.2 Impact of Default Fund Exposure 264 10.2.3 The Prisoner’s Dilemma and AIPs 265 10.2.4 Other Loss Allocation Methods 267 10.3 Impact of Margin 271 10.3.1 Background and Historical Examples 271 10.3.2 Variation Margin 273 10.3.3 Initial Margin 275 10.3.4 Cost and xVA 276 10.3.5 Seniority 277 10.3.6 Bilateral and Cleared Markets 277 Section 3 Building Blocks 11 Future Value and Exposure 283 11.1 Credit Exposure 283 11.1.1 Positive and Negative Exposure 283 11.1.2 Definition of Value 284 11.1.3 Current and Potential Future Exposure 285 11.1.4 Nature of Exposure 286 11.1.5 Metrics 288 11.2 Drivers of Exposure 292 11.2.1 Future Uncertainty 292 11.2.2 Cash Flow Frequency 293 11.2.3 Curve Shape 294 11.2.4 Moneyness 297 11.2.5 Combination of Profiles 298 11.2.6 Optionality 299 11.2.7 Credit Derivatives 300 11.3 Aggregation, Portfolio Effects, and the Impact of Collateralisation 302 11.3.1 The Impact of Aggregation on Exposure 302 11.3.2 Off-market Portfolios 304 11.3.3 Impact of Margin 305 11.4 Funding, Rehypothecation, and Segregation 308 11.4.1 Funding Costs and Benefits 308 11.4.2 Differences Between Funding and Credit Exposure 309 11.4.3 Impact of Segregation and Rehypothecation 310 11.4.4 Impact of Margin on Exposure and Funding 312 12 Credit Spreads, Default Probabilities, and LGDs 315 12.1 Default Probability 315 12.1.1 Real World and Risk Neutral 315 12.1.2 CVA and Risk-neutral Default Probabilities 316 12.1.3 Defining Risk-neutral Default Probabilities 319 12.1.4 Loss Given Default 321 12.2 Credit Curve Mapping 323 12.2.1 Overview 323 12.2.2 The CDS Market 324 12.2.3 Loss Given Default 326 12.2.4 General Approach 327 12.3 Generic Curve Construction 330 12.3.1 General Approach 330 12.3.2 Intersection (Bucketing) Approach 332 12.3.3 Cross-section Methodology 334 12.3.4 Curve Shape, Interpolation, and Indices 336 12.3.5 Third-party Providers 337 12.3.6 Hedging 338 13 Regulatory Methodologies 339 13.1 Overview 339 13.2 Credit Risk (Default Risk) Capital 341 13.2.1 Standardised Approach 341 13.2.2 Internal Ratings-based Approach 342 13.2.3 Guarantees 343 13.3 CVA (Market Risk) Capital 343 13.3.1 The CVA Capital Charge 343 13.3.2 Standardised CVA Risk Capital Charge 344 13.3.3 BA-CVA 345 13.3.4 Advanced CVA Capital Risk Charge 348 13.3.5 SA-CVA 351 13.3.6 Capital Relief and EU Exemptions 355 13.4 Exposure Calculation Methodologies 356 13.4.1 Exposure at Default 356 13.4.2 Current Exposure Method 358 13.4.3 Standardised Approach for Counterparty Credit Risk 361 13.4.4 Broader Impact of SA-CCR 366 13.4.5 The Internal Model Method 367 13.4.6 The Leverage Ratio 372 13.4.7 Wrong-way Risk 373 13.5 Examples 374 13.5.1 Comparison of EAD Methods 374 13.5.2 Comparison of Capital Charges 377 13.5.3 Impact of Hedges 379 13.6 Central Counterparty Capital Requirements 384 13.6.1 Background 384 13.6.2 Trade Exposure 385 13.6.3 Default Fund Exposure 385 13.6.4 Client Clearing 386 14 Funding, Margin, and Capital Costs 389 14.1 Bank Financing 389 14.2 Capital 391 14.2.1 Minimum Capital Ratios and Capital Costs 391 14.2.2 Leverage Ratio 393 14.2.3 Cost of Capital 394 14.3 Funding 394 14.3.1 Overview 394 14.3.2 Cost of Funding 398 14.3.3 The Risk-free Rate, IBOR, and OIS 400 14.3.4 IBOR Transition 402 14.3.5 Funding Spreads 403 14.3.6 NSFR and LCR 406 14.3.7 Accounting 406 15 Quantifying Exposure 409 15.1 Methods for Quantifying Exposure 409 15.1.1 Overview 409 15.1.2 Parametric Approaches 410 15.1.3 Semianalytical Methods 411 15.1.4 Monte Carlo Simulation 414 15.2 Exposure Allocation 414 15.2.1 Overview 414 15.2.2 Incremental and Marginal Exposure 414 15.2.3 Impact of Dependency 417 15.3 Monte Carlo Methodology 419 15.3.1 Basic Framework 419 15.3.2 Revaluation, Cash Flow Bucketing, and Scaling 421 15.3.3 Risk-neutral or Physical Measure 423 15.3.4 Aggregation Level 429 15.4 Choice of Models 430 15.4.1 Overview 430 15.4.2 Interest Rates 432 15.4.3 Foreign Exchange 435 15.4.4 Other Asset Classes 437 15.4.5 Correlations, Proxies, and Extrapolation 437 15.5 Modelling Margin (Collateral) 439 15.5.1 Overview 439 15.5.2 Margin Period of Risk 441 15.5.3 Modelling Approach 442 15.5.4 Initial Margin 445 15.6 Examples 448 15.6.1 Interest Rate Swap Example 448 15.6.2 Trade-level Exposures 450 15.6.3 Portfolio Exposures 452 15.6.4 Notional Resets 456 15.6.5 Impact of Variation Margin 457 15.6.6 Impact of Initial Margin 460 Section 4 The xVAs 16 The Starting Point and Discounting 465 16.1 The Starting Point 465 16.1.1 Basic Valuation 465 16.1.2 Perfect Collateralisation 466 16.1.3 Collateral or OIS Discounting 467 16.2 ColVA and Discounting 469 16.2.1 Definition of ColVA 469 16.2.2 Asymmetry 470 16.2.3 Cheapest-to-deliver Optionality 473 16.2.4 Non-cash Margin 478 16.2.5 The End of ColVA 479 16.3 Beyond Perfect Collateralisation – xVA 480 16.3.1 Overview 480 16.3.2 Definition of xVA Terms 482 17 CVA 485 17.1 Overview 485 17.2 Credit Value Adjustment 486 17.2.1 CVA Compared to Traditional Credit Pricing 486 17.2.2 Direct and Path-wise CVA Formulas 487 17.2.3 CVA as a Spread 492 17.2.4 Special Cases 493 17.2.5 Credit Spread Effects 493 17.2.6 Loss Given Default 495 17.3 Debt Value Adjustment 498 17.3.1 Accounting Background 498 17.3.2 DVA, Price, and Value 499 17.3.3 Bilateral CVA Formula 500 17.3.4 Close-out and Default Correlation 502 17.3.5 The Use of DVA 503 17.4 CVA Allocation 506 17.4.1 Incremental CVA 506 17.4.2 Marginal CVA 509 17.5 Impact of Margin 510 17.5.1 Overview 510 17.5.2 Example 511 17.5.3 Initial Margin 512 17.5.4 CVA to CCPs 513 17.6 Wrong-way Risk 514 17.6.1 Overview 514 17.6.2 Quantification of WWR in CVA 516 17.6.3 Wrong-way Risk Models 518 17.6.4 Jump Approaches 522 17.6.5 Credit Derivatives 524 17.6.6 Collateralisation and WWR 525 17.6.7 Central Clearing and WWR 526 18 FVA 529 18.1 Overview 529 18.2 FVA and Discounting 530 18.2.1 Market Practice 530 18.2.2 Source of Funding Costs and Benefits 531 18.2.3 Definition of FVA 534 18.2.4 Symmetric FVA Formula 535 18.2.5 CVA/DVA/FVA Framework 539 18.2.6 The FVA Debate 546 18.2.7 Funding Costs and FVA Accounting 548 18.3 Asymmetric FVA 551 18.3.1 Overview 551 18.3.2 Asymmetric FVA 552 18.3.3 FVA Allocation 555 18.3.4 NSFR Invariance 558 18.3.5 Funding Strategies 560 18.3.6 LCR Costs 561 18.3.7 Funding and Wrong-way Risk 563 19 KVA 565 19.1 Overview 565 19.2 Capital Value Adjustment (KVA) 566 19.2.1 Return on Capital 566 19.2.2 KVA Formula 567 19.2.3 Capital Profiles 568 19.2.4 KVA Example 572 19.2.5 Implementation of KVA 573 19.2.6 The Leverage Ratio 575 19.3 Management of KVA 577 19.3.1 Current Treatment of KVA by Banks 577 19.3.2 Optimal KVA Management 580 19.3.3 Discounting 585 19.3.4 KVA Accounting 585 19.4 KVA Overlaps 587 19.4.1 CVA and KVA 587 19.4.2 FVA and KVA 589 20 MVA 591 20.1 Overview 591 20.2 Initial Margin Funding Costs 594 20.2.1 Introduction 594 20.2.2 MVA Formula 594 20.2.3 EIM Term 595 20.2.4 Computation Challenges 599 20.2.5 Pricing and MVA Example 600 20.3 MVA 602 20.3.1 A Need to Charge MVA? 602 20.3.2 Accounting MVA 603 20.3.3 Contingent MVA 603 20.3.4 CCP Basis 604 20.4 Link to KVA 606 20.4.1 Overview 606 20.4.2 Example 607 21 Actively Managing xVA and the Role of an xVA Desk 609 21.1 The Role of an xVA Desk 609 21.1.1 Motivation 609 21.1.2 Charging Structure and Coverage 611 21.1.3 Time Decay 614 21.1.4 Profit Centre or Utility? 615 21.1.5 Pricing 617 21.2 Hedging 619 21.2.1 Overview 619 21.2.2 Sensitivities 621 21.2.3 Gamma, Cross-gamma, Tail Risk, and Rebalancing 625 21.2.4 Market Practice 627 21.2.5 Jump to Default Risk 629 21.2.6 Beta Hedging 630 21.2.7 Risk Limits and P&L Explain 631 21.2.8 Examples 633 21.2.9 Impact on Capital 634 21.2.10 Pushing xVA into Base Value 638 21.3 Operation of an xVA Desk 638 21.3.1 Interaction with a Treasury 638 21.3.2 Capital 640 21.3.3 Systems and Quantification 641 21.3.4 xVA Optimisation 645 Glossary 649 References 653 Index 667

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Book SynopsisA step-by-step, comprehensive approach to private equity and private debt Private Capital Investing: The Handbook of Private Debt and Private Equity is a practical manual on investing in the two of the most common alternative asset classes (private equity and private debt) and provides a unique insight on how principal investors analyze investment opportunities. Unlike other textbooks available in the market, Private Capital Investing covers the various phases that principal investors follow when analyzing a private investment opportunity. The book combines academic rigor with the practical approach used by leading institutional investors. Chapters are filled with practical examples, Excel workbooks (downloadable from the book website), examples of legal clauses and contracts, and Q&A. Cases are referred at the end of every chapter to test the learning of the reader. Instructors will find referrals to both third-party cases or cases written by the author. Covers analytical tools Includes the most common methods used to structure a debt facility and a private equity transaction Looks at the main legal aspects of a transaction Walks readers through the different phases of a transaction from origination to closing Bridging the gap between academic study and practical application, Private Capital Investing enables the reader to be able to start working in private equity or private debt without the need for any further training. It is intended for undergraduates and MBA students, practitioners in the investment banking, consulting and private equity business with prior academic background in corporate finance and accounting.Table of ContentsAbout the Author xi Acknowledgements xiii About the Companion Site xv Introduction 1 The Rise of Private Markets (Alternative Assets) in the Investors’ Allocation 2 The Rise of Private Markets as a Favoured Alternative Source of Company Financing 4 Private Equity 6 Private Debt 8 Deal Phases and Book Organisation 10 Chapter 1 Closed End Funds 13 A Close Up on Private Equity and Private Debt Partnerships 13 Cash Flows, J Curve, and Returns 16 Financial Returns 19 References and Further Reading 22 Suggested Cases 22 Chapter 2 Debt Products 23 Introduction 23 Definition and Some Useful Classifications 24 Pure Debt Instruments 29 High-yield Bonds 37 Mezzanine 39 Unitranche 43 A Close Up on Syndicated Lending 50 References and Further Reading 52 Suggested Cases 52 Chapter 3 Equity Products 53 Introduction 53 Ordinary Shares 54 Preference Shares 55 Convertibles 57 Other Equity Instruments 64 References and Further Reading 70 Suggested Cases 70 Chapter 4 Business Due Diligence 71 Introduction 71 Macro Factors 71 Industry Risk Analysis 73 Company Analysis 83 Summary Steps for a Strategic Analysis of a Business Plan 90 References and Further Reading 91 Suggested Cases 91 Chapter 5 Accounting Due Diligence 93 Introduction 93 Quality of Earnings 93 Ratio Analysis 101 Cash Flow Analysis 106 Creative Accounting 115 References and Further Reading 123 Suggested Cases 123 Chapter 6 Business Plan 125 Introduction 125 Pro-forma Financials 125 Profit and Loss Projections 126 Balance Sheet Projections 127 Putting it all Together: Modelling Cash, Short-term Debt, Net Income, and Shareholders’ Equity 128 Sensitivity Analysis 128 Consistency Checks 129 References and Further Reading 133 Suggested Cases 133 Chapter 7 Valuation 135 Introduction 135 Fundamentals #1: Price and Value 135 Fundamentals #2: Enterprise Value and Equity Value 136 Fundamentals #3: Market Values vs. Book Values 140 Discounted Cash Valuation Method 140 Discounted Cash Valuation: WACC Approach 140 Discounted Cash Flow Valuation: Adjuster Present Value Method 144 Comparables Valuation Method 147 References and Further Reading 156 Suggested Cases 156 Chapter 8 Growth Equity 157 Introduction 157 Differences between Venture Capital, Growth Equity, and LBO 157 Instruments 159 Fundamentals #1: Pre-money and Post-money Valuation 160 Fundamentals #2: Capitalisation Table 165 Fundamentals #3: Dilution and Equity Stake Calculation 165 Fundamentals #4: Anti-dilution Provisions 167 Fundamentals #5: Structuring for Exit (Ordinary Shares vs. Other Instruments) 169 Fundamentals #6: Redemption 172 Fundamentals #7: The Growth Capital Method (Adapted from the Venture Capital Method) 173 Fundamentals #8: Calculation of the Price per Share 176 Fundamentals #9: Put and Call Options 176 References and Further Reading 184 Suggested Cases 184 Chapter 9 Leveraged Buyout 185 Introduction 185 LBO: Key Concepts 187 LBO Analysis 199 References and Further Reading 215 Suggested Cases 215 Chapter 10 Management of the Portfolio Companies and Exit 217 Introduction 217 Reporting 217 Monitoring 218 Value Creation 218 Exit 220 IPO 222 Trade Sale 223 Secondary/Tertiary Sale to Financial Buyers 223 Other Exit Routes (Share Buyback, Options, Recap) 224 References and Further Reading 225 Suggested Cases 225 Chapter 11 Private Debt 227 Introduction 227 Structuring a Credit Facility 227 Sanity Checks 240 Structuring a Loan Facility: A Modelling Example 246 References and Further Reading 246 Suggested Cases 246 Chapter 12 Legal Documentation 247 Introduction 247 Private Debt Legal Documentation 249 Private Equity Legal Documentation 256 References and Further Reading 264 Appendix 12.1: Example of an Equity Term Sheet 265 Appendix 12.2: Example of a Debt Term Sheet 277 Chapter 13 Distress Symptoms and Remedies 287 Early Warning Signals 287 Causes 288 Restructuring Options 290 Financing Solutions 291 Legal Alternatives 294 References and Further Reading 297 Suggested Cases 298 Index 299

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Book SynopsisTable of ContentsAcknowledgements ix About the Author xi Introduction 1 Part I What are Private Equity, Private Debt and Private Real Assets? Chapter 1 Private Equity as an Economic Driver: An Historical Perspective 15 Chapter 2 Modern Private Equity – A French Invention? 39 Part II The Private Markets Ecosystem Chapter 3 Private Markets: A Business System Perspective 85 Chapter 4 The Universe of Investment 145 Chapter 5 The Process of Investment: A Matter of Trust and Mutual Interest 245 Part III Private Markets in Teenage Time: Trend Setting, Fads and Responsibilities Chapter 6 Private Markets Evolution: Trends or Buzzes? 267 Chapter 7 Private Equity and Ethics: A Culture Clash 287 Chapter 8 General Conclusion: Private Markets Today and Tomorrow 309 Template 1 (Fund): Architecture of the Private Placement Memorandum of a Private Equity Fund 329 Template 2 (Fund): Structure of a Limited Partnership Agreement 331 Template 3 (Fund): Due Diligence Checklist 335 Template 4 (Fund): Quarterly Report Template 339 Template 5 (Company): Non-Disclosure Agreement 343 Template 6 (Company): Business Plan 347 Template 7 (Company): Term Sheet 353 Business Case: Kroton Educacional SA – A Private Equity Operation Can Hide Another One 363 Exhibits 379 Glossary 389 Bibliography 425 Index 439

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Book SynopsisAchieving the Sustainable Development Goals through Finance, Technology and Law Reform Achieving the SDGs requires a fundamental rethink from businesses and governments across the globe. To make the ambitious goals a reality, trillions of dollars need to be harnessed to mobilise finance and accelerate progress towards the SDGs. Bringing together leaders from the World Bank, the financial and business sectors, the startup community and academia, this important, topically relevant volume explains what the SDGs are, how they came about and how they can be accelerated. Real-world case studies and authoritative insights address how to direct investment of existing financial resources and re-align the global financial system to reflect the SDGs. In depth chapters discuss how financial institutions, such as UBS Wealth Management, Manulife Asset Management and Moody's Rating Agency are supporting the SDGs. The opportunities arising from Blockchain, Big Data, DigiTable of ContentsAbout the Editors xvii Notes on Contributors xix Foreword xxix Foreword: Implementation of the SDGs xxxi Preface xxxv Introduction 1 Part One: Overview and Context 9 Part Two: Where Will the Money Come From? Financing the SDGs 10 Part Three: Technology, Innovation, and Entrepreneurship 12 Part Four: Facilitating the SDGs by Legal Infrastructure Reform 15 Part I Overview and Context 17 1 The UN and Goal Setting: From the MDGs to the SDGs 19Alma Pekmezovic Introduction 19 What is Development? 20 Is There a Right to Development? 22 Measuring Economic Development 22 Measuring Non-Economic Aspects of Development 23 The Sustainable Development Goals (SDGs) 24 Situating the SDGs in the International Legal Framework 28 Theories of Development: Towards a New Theory of Sustainable Development 29 Economic Theories of Development 30 Cultural Theories of Development 30 Geographic Theories of Development 31 Institutional Theories of Development 32 A New Theory of Sustainable Development 34 Measuring Progress Towards the SDGs 34 Conclusions 35 2 SDGs and the Role of International Financial Institutions 37Suresh Nanwani Introduction 37 Response and Implementation of the SDGs by IFIs 38 Project Processing and Actions Taken by IFIs to Implement the SDGs, and Responses from Other Development Actors 44 Conclusion and Recommendations for IFIs to Meet SDG Goals and Targets 48 3 Towards a New Global Narrative for the Sustainable Development Goals 53Iason Gabriel and Varun Gauri Introduction 53 How SMART Are the SDGs? 55 Goals That Stretch 59 Goals That Inspire 62 Sloganising the SDGs 64 Towards a New Global Narrative? 66 Conclusion 69 4 Overcoming Scarcity: The Paradox of Abundance: Harnessing Digitalisation in Financing Sustainable Development 71Simon Zadek Scarcity: The Paradox of Abundance 71 Financing: A Systemic Challenge 72 Action on System Design 74 Digital Financing of the SDGs 76 Dilemmas: Digitalisation and Dark Financing 80 Sizing the Prize 82 What Next? 84 Concluding Comments 85 Part II Where Will the Money Come From? Financing the SDGs 87 5 The New Framework for Financing the 2030 Agenda for Sustainable Development and the SDGs 89Alma Pekmezovic Introduction 89 Sources of Development Finance 90 Domestic Public and Private Sources 90 Domestic Resource Mobilisation (DRM) 90 International Public and Private Finance 93 The Role of International Official Development Assistance (ODA) 94 Private Philanthropy 95 Sovereign Wealth Funds, Pension Funds, Insurance Companies, and Investment Funds 96 Barriers to Greater Private Investment 97 The Role of Private and Blended Finance in Development 98 The Development Impact and Risks of Blended Finance 100 An Overview of Blended Finance Mechanisms 101 Innovative Financing Tools: Social Impact Bonds (SIBs) and Development Impact Bonds (DIBs) 102 Best Practices for Engaging the Private Sector 105 Conclusions 105 6 The Contribution of the International Private Sector to a More Sustainable Future 107Martin Blessing and Tom Naratil Ready and Able to Invest 108 Commercial and Investment Benefits 109 What is Needed to Mobilise Private Sector Money? 110 Partnerships for a More Sustainable Future 112 Partnerships to Rationalise Sustainable Investment Markets 112 Partnerships to Democratise Sustainable Investment Markets 116 7 Re-Orienting the Global Financial System Towards Sustainability 121Alma Pekmezovic Introduction 121 Background 123 The Legal and Regulatory Framework 125 Company Reporting: Sustainability Disclosure Requirements 128 Institutional Investors: Responsible Investing and Investing for Impact 132 Fiduciary Duties of Institutional Investors and Other Financial Intermediaries 136 Fostering Long-Term Sustainability 140 Conclusion 142 8 How Asset Managers Can Better Align Public Markets Investing with the SDGs 143Emily Chew and Margaret Childe Why the SDGs Could Transform Sustainability Investing 143 Implementing the SDGs as an Analytical Framework to Align Investing with the SDGs 145 Objectives of Manulife Investment Management’s Approach to SDG-Aligned Investing 145 SDG Assessment Methodology Overview 147 Investable Themes 147 SDG Alignment Assessment 150 Exclusions 152 Applying the SDG Analytical Framework to the S&P 500 Index 152 The Current State of Corporate Goals with Respect to SDG Impact 153 The Current Opportunity Capture of SDG-Related Profit Opportunities 156 Areas in which Corporate Operational Conduct is Most Strongly Aligned with SDG Impact 159 What SDG Developments Can We Expect in the Public Markets Investor Community in 2020 and Beyond? 161 SDG-aligned Investing is Expected to Become Easier 162 Corporate Reporting on the SDGs Will Improve 163 Constructive Dialogue or Engagement with Companies is Necessary to Achieve the SDGs 163 A Call to Action 164 Disclaimer 165 9 The Significance of Sustainable Development Goals for Government Credit Quality 167Alastair Wilson Environmental Preservation Influences Credit Quality, Including Through the Impact of Climate Change on Growth and Institutions’ Resilience to It 168 Social Risks Such as Poverty and Inequality Feed into Economic and Institutional Strength 170 Strong Institutions Are Closely Related to Ratings and Ratings Factors 174 SDGs Influence Government Credit Quality Through Different Channels, to Varying Degrees 176 Part III Technology, Innovation, and Entrepreneurship 177 10 FinTech for Financial Inclusion: Driving Sustainable Growth 179Dirk A. Zetzsche, Ross P. Buckley, and Douglas W. Arner Introduction 179 Financial Inclusion and Sustainability: Introducing the Long-Term Perspective 180 Financial Inclusion: Why It Matters 180 Two Sides of the Same Coin 181 FinTech as a Tool for the SDGs 181 FT4FI Initiatives 183 Four Pillars of Digital Financial Transformation 184 Experiences and Lessons 184 Financial Inclusion Initiatives Since 2008: G20 184 Financial Inclusion Initiatives Since 2008: AFI 185 FinTech and Financial Inclusion: The Foundation of Digital Financial Transformation 185 Pillar I: Digital ID and eKYC: Establishing the Foundation 186 Example: The Indian Aadhaar System 186 IrisGuard 187 Regional Approaches: eIDAS in the EU 188 eKYC and KYC Utilities 188 Example 1: South Africa Web-Based KYC Database 188 Example 2: India’s e-KYC System 188 Example 3: eIDAS and eKYC 189 Synthesising the Lessons 189 Pillar II: Open Electronic Payment Systems: Building Connectivity 189 Mobile Money 190 Designing Regulatory Infrastructure for an Open Electronic Payments System 191 Pillar III: Account Opening and Electronic Government Provision of Services: Expanding Usage 192 Electronic Payment: Government Salaries and Transfers 193 Electronic Payment and Provision: Other Core Services 194 Pillar IV: Design of Financial Market Infrastructure and Systems: Enabling New Wider Development 195 Transforming Credit Provision: From Collateral and Microfinance to Cash Flow 195 Adding Insurance and Investments to Savings and Credit 196 M-Akiba 197 Building Better Financial Infrastructure 198 The EU Example: GDPR, PSD2, MiFID2 198 Developing a Comprehensive Strategy 198 Strategic Approach 198 The Challenge of Technology 198 Regulatory Sandboxes, Piloting, and Test-and-Learn Approaches 199 Balancing Inclusion with Other Regulatory Objectives 201 Designing Regulatory Systems: The Example of Mexico 201 Towards Inclusive and Sustainable Growth 202 11 Financing and Self-Financing of SDGs through Financial Technology, Legal, and Fiscal Tools 205Jon Truby Introduction 205 Self-Sufficient Financing and Achievement of SDGs through Tax Reform 207 Shifting the Tax Burden to Create a Double Dividend 207 Base Erosion and Digital Services Taxation 208 Digitisation of Tax Administration 209 Amendment of the Chicago Convention 210 Self-Sufficient Financing of SDGs through Financial Technology 212 Digitisation of Money 212 Digital Identity 214 Financing SDG 7 and Related Goals through Financial Technology 215 Offsetting Investments in Energy-Intensive Digital Currencies 215 Digital Token Investments 216 Conclusion 217 12 SDG Challenges in G20 Countries 219Guillaume Lafortune and Guido Schmidt-Traub Introduction 219 The SDGs as Problem-Solving Tools for Transformative Actions and Policies 229 Long-Term Planning and Back-Casting 230 Data and Monitoring 231 Financing 232 Technology Missions 233 Conclusion 234 13 The Future-Fit Business Benchmark: Flourishing Business in a Truly Sustainable Future 235Geoff Kendall and Martin Rich Introduction 235 The Journey Ahead 236 The World We Want 236 The World We Have (and How We Got Here) 236 The World We Can Create 238 Why a Systems View is Good for Business 240 A Star to Steer By 243 Current Assessment Methods Are Flawed 243 Starting with the End in Mind 244 How Much is Enough? 244 A Holistic View of Future-Fitness 245 A Practical Tool 246 Future-Fit Break-Even Goals 246 Future-Fit Positive Pursuits 248 Engaging Stakeholders More Effectively 250 Conclusion 251 14 Financing for Youth Entrepreneurship in Sustainable Development 253Inna Amesheva, Alex Clark, and Julian Payne The Role of Young Entrepreneurs in Sustainable Development 253 The Needs of Young Entrepreneurs Working on the SDGs 254 Barriers to Innovation and Scale 254 Supporting Young Entrepreneurs Working on the SDGs 257 The Financing Options Available to Young Entrepreneurs Working on the SDGs 258 Sources and Instruments of Finance for Young Entrepreneurs 259 Bridging the Gap Between Young Entrepreneurs and the SDGs 262 Sectoral Coverage 262 Geographical Coverage 264 Beyond Banks: Alternative Financial Structures for Youth-oriented Sustainable Development Initiatives 266 Prioritising Financial Interventions for Youth Entrepreneurs and the SDGs 267 Non-financial Services 268 Developing a Robust Investment Pipeline 270 Designing Youth-focused Funding Vehicles for the SDGs 271 15 Transparency in the Supply Chain 275Julia Walker Introduction 275 Supplier prequalification tools 279 Emerging Technology in Supply Chains 281 The diamond industry 282 Summary 284 Part IV Facilitating the SDGs by Legal Infrastructure Reform 285 16 Facilitating Sustainable Development Goal 8 by Legal Reform Measures 287Gordon Walker Introduction 287 Contextual Issues 288 Legal Traditions 288 Regulators and Policymakers 289 Implementation Problems 290 Capital Formation for Micro-, Small-, and Medium-Sized Enterprises 291 Meta-Strategy: The Promise of e-Government 291 The SDGs and Domestic Policy Formation 292 Facilitating SDG 8 by Law Reform 293 Hong Kong 293 Fundraising Law in Hong Kong: A Brief Overview 294 Safe Harbours in the 17th Schedule of CWUMPO 295 ECF and P2PL in Hong Kong 296 Supporting FinTech and MSME Fundraising Solutions in Papua New Guinea 297 Survey of Papua New Guinea Legislation 297 Offers Excluded from the Prospectus Requirements: CMA, Schedule 6 298 Issues Excluded from the Prospectus Requirements: CMA, Schedule 7 299 Securities Commission Power to Amend Schedules: CMA, Section 470 299 Legal Reform Opportunities for ECF and P2PL in PNG 299 Conclusion 300 17 Facilitating SDGs by Tax System Reform 303Benjamin Walker Introduction 303 Sustainable Development Goals 304 Goal 3: Good Health and Well-Being 304 Goal 8: Decent Work and Economic Growth 304 Goal 10: Reduce Inequality within and among Countries 305 Goal 12: Ensure Sustainable Consumption and Production Patterns 307 Goal 16: Peace, Justice and Strong Institutions 308 Goal 17: Strengthen the Means of Implementation and Revitalize Global Partnership for Sustainable Development 309 A Wider Picture of Development 310 Taxes and Economic Development 310 Tax Effort 311 Taxes and Spending 312 Taxes and Technology 313 Blockchain 313 Artificial Intelligence 314 Tax Law Reform 314 Recent Developments 316 Conclusion 316 18 Facilitating the SDGs by Competition and Consumer Law and Policy Reform: Aspirations and Challenges in Papua New Guinea 317Brent Fisse Introduction 317 Proposed PNG Competition and Consumer Reforms and SDGs 318 Tailoring Law and Policy to the Particular Needs and Circumstances of PNG 320 Removing Statutory and Regulatory Barriers to Entry 322 Designing Competition Rules That Are Practical and Avoid Excessive Technicality 324 Harnessing Consumer Protection Laws to Protect and Promote Small Business 327 Using Enforcement Mechanisms That Have Some Chance of Working in PNG 329 Conclusion 331 Resolution Adopted by the General Assembly on 25 September 2015 333 Transforming Our World: The 2030 Agenda for Sustainable Development 333 Preamble 333 People 334 Declaration 335 Introduction 335 Our vision 336 Our shared principles and commitments 336 Our world today 337 The new Agenda 339 Means of implementation 344 Follow-up and review 346 A call for action to change our world 347 Sustainable Development Goals and targets 347 Goal 1. End poverty in all its forms everywhere 349 Goal 2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture 350 Goal 3. Ensure healthy lives and promote well-being for all at all ages 351 Goal 4. Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all 352 Goal 5. Achieve gender equality and empower all women and girls 353 Goal 6. Ensure availability and sustainable management of water and sanitation for all 354 Goal 7. Ensure access to affordable, reliable, sustainable and modern energy for all 354 Goal 8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all 355 Goal 9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation 356 Goal 10. Reduce inequality within and among countries 357 Goal 11. Make cities and human settlements inclusive, safe, resilient and sustainable 357 Goal 12. Ensure sustainable consumption and production patterns 358 Goal 13. Take urgent action to combat climate change and its impacts 359 Goal 14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development 360 Goal 15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss 361 Goal 16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels 362 Goal 17. Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development 363 Finance 363 Technology 363 Capacity-building 364 Trade 364 Systemic issues 364 Means of implementation and the Global Partnership 365 Follow-up and review 369 National level 371 Regional level 372 Global level 372 Index 375

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Book SynopsisWritten by prominent thought leaders in the global fintech and legal space, The LegalTech Book aggregates diverse expertise into a single, informative volume. Key industry developments are explained in detail, and critical insights from cutting-edge practitioners offer first-hand information and lessons learned. Coverage includes: The current status of LegalTech, why now is the time for it to boom, the drivers behind it, and how it relates to FinTech, RegTech, InsurTech, WealthTech and PayTech Applications of AI, machine learning and deep learning in the practice of law; e-discovery and due diligence; AI as a legal predictor LegalTech making the law accessible to all; online courts, online dispute resolution The Uberization of the law; hiring and firing through apps Lawbots; social media meets legal advice To what extent does LegalTech make lawyers redundant or more efficient? Cryptocurrencies, distributed ledger technology and the law The Internet of Things, data privacy, autoTable of ContentsPreface viii About the Editors xi Acknowledgements xiii 1. An Introduction to LegalTech: The Law Boosted by AI and Technology We are Voyagers 6 Mapping and Classifying LegalTechs 11 Educating for Disruption, Innovation and Legal Technology 15 An Introduction to Mapping and Classifying LegalTech 18 In-House Counsel Can Drive Industry Change Through Legal Technology 21 The Role of LegalTech in Financial Services: A Case Study 24 How Artificial Intelligence is Transforming the Legal Profession 27 Can the Law Keep Up with the Growth of AI? 30 Fairness, Accountability and Transparency – Trust in AI and Machine Learning 35 The Chiron Imperative – A Framework of Six Human-in-the-Loop Paradigms to Create Wise and Just AI-Human Centaurs 38 Lawyers’ Ethical Responsibility to Leverage AI in the Practice of Law 43 Dispute Resolution 2.0: The Era of BIG Data, AI and Analytics 46 Why All LegalTech Roads “Point” to a Platform Strategy 50 An Introduction to the Internet of Things 53 2. Law and Data Technology and the Law – Data and the Law 60 I Make the Rules, Why Should I Care About LegalTech? 63 From Legal Documents to Legal Data 67 Acquisitive Information Extraction Framework for Legal Domain 70 Legal Expert Systems 74 Tech vs Law: Consent 76 New Privacy Laws Require Changed Operations on Commercial Websites 78 Dealing with Tensions Between the Blockchain and the GDPR 83 Rise of the Legalbots: How In-House Teams and Business Lines Benefit 87 AI is Changing Boardroom Dynamics 90 Cloud Computing Contracts 93 3. Technology vs Law LegalTech in Our Daily Lives 102 The Evolution of the Legal Marketplace 105 Technology and In-House Counsel 108 Smart Home or Spy Home? 111 Cybersecurity: Myths and the Hero’s Journey 114 Legal Talent Platform Economy – The Beginning of the End? 120 Can Intelligence Be Appropriated: Ownership Over AI 122 The Electronic Creation Right (ECR) 125 4. Cryptocurrencies, Distributed Ledger Technology and the Law Distributed Ledger Technology and the Legal Profession 132 Cryptoasset Regulation: Clarification and Guidance 136 The Legal Implications of Digital Security Offerings 139 Cryptoassets and Market Abuse 142 Cryptosecurities: Traditional Financial Instruments on a Distributed Ledger 145 The Use of Digital Tokens for the Boost of Supply Chain Finance 149 5. Smart Contracts and Applications LegalTech’s Impact on the Role and Job of a Lawyer 156 Smart(er) Contracts – Digitizing Contracts for a New Age 160 Smart Contract and Traditional Contract 165 Getting Smart: Blockchain and Smart Contracts 167 Legal Prose to Code: Restructuring Contract Templates for Blockchain Automation 170 The Legal Framework of Pay-Per-Use Financing 175 6. Legal Technology: Increasing or Impeding Access to Justice? Legal Technology: Increasing or Impeding Access to Justice? 182 The Crucial Role of LegalTech in Access to Justice 185 Digitizing Disputes 187 Humanize with LawTech Lawyering 190 From Fair Hearing to FairTech Hearing: Improving Access to Justice in the UK Asylum and Immigration Process 193 The Dark Side of Technology in Law: Avoiding the Pitfalls 196 Closing the Justice Gap – Technology is Not the First Step 199 Combining AI and Digitization of Judgments for Access to Justice 202 7. LegalTech Around the World Legal Implications of Artificial Intelligence in China 208 Mapping LegalTech Adoption and Skill Demand 211 A Case Study of Adoption of Legal Technology in a Non-Western Market 215 Why Now s the Time for LegalTech to Boom 218 8. The Future of LegalTech LegalTech’s Legacy? 224 Back to the Future: How LegalTech is Changing the Law Firm 227 How Much Disruption Can We Handle? 230 The Role of RegTech in Delivering Better Regulatory Compliance 232 Creating Supervised Independence for FinTech Companies via Regulatory Sandboxes 237 Patterns of Speech: A Future of AI-Authored Legal Reasoning and Arguments? 240 From Innovation Frenzy to Productivity Steadiness 243 The Humans Strike Back: The Fall of the Robots in LegalTech’s Future 245 List of Contributors 247 Index 255

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Book SynopsisKidwell''s Financial Institutions, 12th Edition presents a balanced introduction to the operation, mechanics, and structure of the U.S. financial system, emphasizing its institutions, markets, and financial instruments. The text discusses complex topics in a clear and concise fashion with an emphasis on Real World data, and people and event boxes, as well as personal finance examples to help retain topical interest.Table of Contents TABLE OF CONTENTS Part I The Financial System 1 Chapter 1 An Overview of Financial Markets and Institutions 3 Chapter Preview 4 Learning Objectives 4 1.1 The Financial System 4 1.2 Financial Markets and Direct Financing 7 Do You Understand? 10 People & Events: A Brief Examination of the Causes and Effects of the Global Financial Crisis of 2007 and 2008 11 1.3 Types of Financial Markets 12 1.4 The Money Markets 14 1.5 The Capital Markets 15 Do You Understand? 17 1.6 Financial Intermediaries and Indirect Financing 17 Do You Understand? 22 1.7 Types of Financial Intermediaries 23 Do You Understand? 27 1.8 The Risks Financial Institutions Manage 28 1.9 Regulation of the Financial System 29 People & Events: Systemically Risky Banks: What is the Solution? 33 1.10 Ethics and the Financial System 33 Do You Understand? 35 Summary of Learning Objectives 35 Key Terms 36 Questions and Problems 36 Chapter 2 The Federal Reserve and Its Powers 38 Chapter Preview 39 Learning Objectives 39 2.1 Origins of the Federal Reserve System 39 People & Events: Banking before 1933, Banking from 1933 to 1980, and Banking in the Modern Era 43 2.2 The Current Structure of the Fed 44 2.3 Monetary Powers of the Board of Governors 47 2.4 The Fed’s Regulatory Powers 47 2.5 Independence of the Fed 51 Do You Understand? 53 2.6 The Fed’s Balance Sheet 53 2.7 The Fed’s Role in Check Clearing and the Growth of Electronic Payments 59 Learning by Doing 2.1: Computing a Bank’s Excess Reserve Position 60 2.8 Federal Reserve Tools of Monetary Policy 61 People & Events: The Challenges of Fed Chair Janet Yellen 62 Learning by Doing 2.2: Calculating a Bank’s Reserve Position 66 Summary of Learning Objectives 69 Key Terms 69 Questions and Problems 69 Chapter 3 The Fed and Interest Rates 71 Chapter Preview 72 Learning Objectives 72 3.1 Federal Reserve Control of the Money Supply 72 3.2 The Fed’s Influence on Interest Rates 75 3.3 The Treasury Department and Fiscal Policy 79 Do You Understand? 81 3.4 Goals of Monetary Policy 82 People & Events: The Fed as Lender of Last Resort During the Financial Crisis 87 3.5 The Fed and the Economy 88 People & Events: Black Monday 91 3.6 Complications of Monetary Policy 91 3.7 Anatomy of a Financial Crisis 93 People & Events: Good Work If You Can Get It: Executive Bonuses During Bailouts? 100 Do You Understand? 101 Summary of Learning Objectives 102 Key Terms 102 Questions and Problems 102 Part II How Interest Rates are Determined 105 Chapter 4 The Level of Interest Rates 107 Chapter Preview 108 Learning Objectives 108 4.1 What are Interest Rates? 108 4.2 The Real Rate of Interest 109 4.3 Loanable Funds Theory of Interest 111 Do You Understand? 114 4.4 Price Expectations and Interest Rates 114 4.5 A Restatement of the Fisher Equation 116 People & Events: What Is the Actual Inflation Rate? 117 Do You Understand? 121 People & Events: Estimating the Expected Rate of Inflation from TIPS 122 4.6 Forecasting Interest Rates 122 4.7 Interest Rates and Currency Values 124 Summary of Learning Objectives 125 Key Terms 126 Questions and Problems 126 Chapter 5 Bond Prices and Interest Rate Risk 127 Chapter Preview 128 Learning Objectives 128 5.1 The Time Value of Money 128 Do You Understand? 130 5.2 Bond Pricing 131 People & Events: Bond Market Liquidity and the Volcker Rule 132 Learning by Doing 5.1: Calculating the Price of a Bond Using a Financial Calculator 135 5.3 Bond Yields 136 Learning by Doing 5.2: Calculating the Yield‐to‐Maturity on a Bond 137 Do You Understand? 140 5.4 Important Bond Pricing Relationships 140 5.5 Interest Rate Risk and Duration 144 Learning by Doing 5.3: Calculating the Duration of a Bond 146 People & Events: Betting the Farm on Interest Rates and Losing 155 Do You Understand? 156 Summary of Learning Objectives 156 Key Terms 157 Questions and Problems 157 Chapter 6 The Structure of Interest Rates 159 Chapter Preview 160 Learning Objectives 160 6.1 The Term Structure of Interest Rates 160 Learning by Doing 6.1: Using the Term Structure Formula to Calculate Implied Forward Rates 165 Do You Understand? 171 People & Events: More on Forecasting Future Interest Rates 172 6.2 Default Risk 172 6.3 Tax Treatment 176 People & Events: The Credit‐Rating Club 177 Do You Understand? 180 6.4 Marketability 180 6.5 Options on Debt Securities 180 6.6 Behavior of Interest Rates over the Business Cycle 183 Do You Understand? 185 Summary of Learning Objectives 185 Key Terms 186 Questions and Problems 186 Part III Financial Markets 189 Chapter 7 Money Markets 191 Chapter Preview 192 Learning Objectives 192 7.1 How the Money Markets Work 192 7.2 Economic Role of the Money Markets 193 7.3 Features of Money Market Instruments 194 7.4 Treasury Bills 194 Learning by Doing 7.1: Calculating the Discount Yield 199 Learning by Doing 7.2: Calculating the Bond Equivalent Yield 199 Do You Understand? 200 7.5 Federal Agency Securities 201 7.6 Federal Funds 203 7.7 Other Major Money Market Instruments 205 People & Events: Lehman Brothers’ “Creative” Accounting: Repos 105 and 108 207 7.8 Money Market Participants 211 7.9 The Impact of the 2007–2008 Financial Crisis on the Money Markets 213 People & Events: How Breaking the Buck (Almost) Broke the Commercial Paper Market 216 Do You Understand? 217 Summary of Learning Objectives 218 Key Terms 219 Questions and Problems 219 Chapter 8 Bond Markets 220 Chapter Preview 221 Learning Objectives 221 8.1 Functions of the Capital Markets 221 8.2 The U.S. Government and Agency Securities 223 People & Events: What Do Negative Yields on TIPS Tell Us? 226 Do You Understand? 227 8.3 State and Local Government Bonds 227 People & Events: Build America Bonds Keep Municipal Finance Going During the Crisis 232 8.4 Corporate Bonds 232 Do You Understand? 237 8.5 Financial Guarantees 237 8.6 Securitized Credit Instruments 238 8.7 Capital Market Regulators 240 8.8 Bond Markets Around the World are Increasingly Linked 241 8.9 The Impact of the 2007–2008 Financial Crisis on the Bond Markets 242 Do You Understand? 244 Summary of Learning Objectives 244 Key Terms 245 Questions and Problems 245 Chapter 9 Mortgage Markets and Mortgage‐Backed Securities 247 Chapter Preview 248 Learning Objectives 248 9.1 The Unique Nature of Mortgage Markets 249 9.2 Types of Mortgages 249 9.3 Mortgage Qualifying 257 Learning by Doing 9.1: Determining How Much Home You Can Buy 259 Do You Understand? 260 9.4 Mortgage‐Backed Securities 261 9.5 Mortgage Prepayment Risk and Other MBS 265 Do You Understand? 270 9.6 Participants in the Mortgage Markets 271 People & Events: The Rise and Fall of Fannie and Freddie 273 Do You Understand? 274 9.7 Relationship Between Mortgage Markets and the Capital Markets 275 Summary of Learning Objectives 276 Key Terms 277 Questions and Problems 278 Chapter 10 Equity Markets 279 Chapter Preview 280 Learning Objectives 280 10.1 What are Equity Securities? 280 10.2 Equity Markets 282 People & Events: The Retail Brokerage Industry 287 10.3 Equity Trading 287 10.4 Global Stock Markets 291 10.5 Large-Scale and High Frequency Trading 292 People & Events: High Speed Trading and the Demise of Knight Capital Group in 45 Minutes 293 10.6 Regulation of Equity Markets 294 Do You Understand? 294 10.7 Stock Market Indexes 295 People & Events: Circuit Breakers, Black Monday, and the Flash Crash 296 Summary of Learning Objectives 297 Key Terms 298 Questions and Problems 299 Chapter 11 Derivatives Markets 300 Chapter Preview 301 Learning Objectives 301 11.1 The Nature of Derivative Securities 301 11.2 Forward Markets 302 11.3 Futures Markets 304 Do You Understand? 311 11.4 Uses of the Financial Futures Markets 311 Learning by Doing 11.1: Hedging Risk in a Stock Portfolio 313 11.5 Risks in the Futures Markets 318 Do You Understand? 319 11.6 Options Markets 319 Do You Understand? 325 11.7 Swap Markets 326 People & Events: Swap Market Regulation 329 Summary of Learning Objectives 330 Key Terms 331 Questions and Problems 331 Chapter 12 International Markets 332 Chapter Preview 333 Learning Objectives 333 12.1 The Difficulties of International Trade 333 12.2 Exchange Rates 334 12.3 Balance of Payments 337 12.4 Foreign Exchange Markets 341 12.5 Spot and Forward Transactions 343 Learning by Doing 12.1: Using Forward Contracts to Hedge Exchange Rate Risks 343 People & Events: The Big Mac Test of Purchasing Power Parity 345 12.6 Capital Flows and Exchange Rates 346 Do You Understand? 349 People & Events: The Greek Crisis and Lessons for the U.S. 350 12.7 Government Intervention in Foreign Exchange Markets 351 Learning by Doing 12.2: Using Purchasing Power Parity to Determine the Expected Exchange Rate 353 12.8 Financing International Trade 354 Do You Understand? 355 12.9 International Money and Capital Markets 355 12.10 The Globalization of Financial Markets 358 Summary of Learning Objectives 360 Key Terms 360 Questions and Problems 361 Part IV Commercial Banking 363 Chapter 13 Commercial Bank Operations 365 Chapter Preview 366 Learning Objectives 366 13.1 An Overview of the Banking Industry 366 13.2 Balance Sheet for a Commercial Bank 369 13.3 The Source of Bank Funds 370 Do You Understand? 375 13.4 Bank Uses of Funds: Bank Investments and Cash Assets 376 13.5 Bank Uses of Funds: Loans and Leases 378 13.6 Loan Pricing 381 13.7 Analysis of Loan Credit Risk 384 People & Events: What’s Your Score? 385 Do You Understand? 386 13.8 Fee‐Based Services 386 13.9 Off‐Balance‐Sheet Banking 387 Do You Understand? 391 13.10 Bank Earnings 392 13.11 Bank Performance 396 Do You Understand? 397 Summary of Learning Objectives 398 Key Terms 398 Questions and Problems 399 Chapter 14 International Banking 400 Chapter Preview 401 Learning Objectives 401 14.1 Development of International Banking 401 14.2 Regulation of Overseas Banking Activities 404 14.3 Delivery of Overseas Banking Services 406 Do You Understand? 409 14.4 International Lending 409 People & Events: The LIBOR Scandal 411 Do You Understand? 416 14.5 Foreign Banks in the United States 416 14.6 Future Directions of International Banking 420 Summary of Learning Objectives 420 Key Terms 421 Questions and Problems 421 Chapter 15 Regulation of Financial Institutions 422 Chapter Preview 423 Learning Objectives 423 15.1 Reasons for Regulation 423 15.2 Bank Failures and Regulation 426 People & Events: WaMu and the Destructive “Power of Yes” 431 15.3 Safety and Soundness Regulation: Deposit Insurance 432 Do You Understand? 434 15.4 Deposit Insurance Issues 435 Do You Understand? 438 15.5 Safety and Soundness Regulation: Capital Requirements 439 Do You Understand? 447 15.6 Bank Examinations 447 15.7 Structure and Competition Regulations 450 15.8 Consumer Protection Regulations 452 People & Events: Excerpts from “What are the FDIC’s primary new responsibilities under the new law?” 454 15.9 Bank Regulators 456 Do You Understand? 458 Summary of Learning Objectives 459 Key Terms 459 Questions and Problems 460 Part V Financial Institutions 463 Chapter 16 Thrift Institutions and Finance Companies 465 Chapter Preview 466 Learning Objectives 466 16.1 Historical Development of Savings Institutions 467 16.2 Operations of Savings Institutions 470 Do You Understand? 478 16.3 Credit Unions 478 People & Events: Demographic Change Brings Opportunity 479 16.4 Thrift Institutions Around the Globe 484 People & Events: Commercial Banks Versus Credit Unions 485 Do You Understand? 486 16.5 Finance Companies 486 People & Events: GE Divests Much of Its Finance Company Business 488 Do You Understand? 494 Summary of Learning Objectives 494 Key Terms 495 Questions and Problems 495 Chapter 17 Insurance Companies and Pension Funds 496 Chapter Preview 497 Learning Objectives 497 17.1 Insurance 497 People & Events: 9/11 and Katrina: Insurance Coverage Disputes 499 17.2 The Insurance Industry 501 People & Events: The Rise, Fall, and Return of American International Group (AIG) 503 Do You Understand? 508 17.3 Life and Health Insurance Products 508 Learning by Doing 17.1: Calculating Policyholders’ Surplus 514 Do You Understand? 515 17.4 Property and Liability Insurance Products 515 Learning by Doing 17.2: Measuring Insurance Company Profitability with the Combined Ratio 518 Do You Understand? 519 17.5 Pensions 519 Do You Understand? 524 Summary of Learning Objectives 524 Key Terms 525 Questions and Problems 526 Chapter 18 Investment Banking 527 Chapter Preview 528 Learning Objectives 528 18.1 The Relationship Between Commercial and Investment Banking 528 18.2 Primary Services of an Investment Bank 533 People & Events: Where, Oh, Where Have All the Investment Banks Gone? 534 Do You Understand? 543 18.3 Private Equity 543 Learning by Doing 18.1: Evaluating a Venture Capital Investment 546 Do You Understand? 548 Summary of Learning Objectives 548 Key Terms 549 Questions and Problems 549 Chapter 19 Investment Companies 551 Chapter Preview 552 Learning Objectives 552 19.1 Investment Companies 552 19.2 Open‐End Mutual Funds 553 Learning by Doing 19.1: Calculating Net Asset Value 554 People & Events: Money Market Mutual Funds Breaking the Buck 563 19.3 Closed‐End Mutual Funds 566 19.4 Exchange‐Traded Funds 567 Do You Understand? 572 19.5 Hedge Funds 572 People & Events: Hedge Funds and the Dodd‐Frank Wall Street Reform and Consumer Protection Act 573 Do You Understand? 576 19.6 Real Estate Investment Trusts 576 Summary of Learning Objectives 578 Key Terms 579 Questions and Problems 579 Chapter 20 Risk Management in Financial Institutions 580 Chapter Preview 581 Learning Objectives 581 20.1 The Dilemma: Profitability Versus Safety 581 20.2 Liquidity Management 583 Do You Understand? 586 People & Events: Operational Risk 587 20.3 Managing Credit Risk 587 People & Events: Counterparty Controversy: AIG and Its Risky Risk Management 591 Do You Understand? 593 20.4 Measuring and Assessing Interest Rate Risk 593 20.5 Hedging Interest Rate Risk 602 Learning by Doing 20.1: Measuring Interest Rate Risk 608 Do You Understand? 611 Summary of Learning Objectives 611 Key Terms 612 Questions and Problems 612 Glossary 613 Index 637

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Book SynopsisManage the art of bookkeeping Do you need to get up and running on bookkeeping basics and the latest tools and technology used in the field? You''ve come to the right place!Bookkeeping All-In-One For Dummiesis your go-to guide for all things bookkeeping. Bringing you accessible information on the new technologies and programs, it cuts through confusing jargon and gives you friendly instruction you can use right away. Inside, you'll learn how to keep track of transactions, unravel up-to-date tax information, recognize your assets, and so much more. Covers all the new techniques and programs in the bookkeeping field Shows you how to manage assets and liabilities Explains how to track business transactions accurately with ledgers and journals Helps you make sense of accounting and bookkeeping basics Get all the info you need to jumpstart your career as a bookkeeper!Table of ContentsIntroduction 1 Book 1: Keeping the Books 5 Chapter 1: Basic Bookkeeping 7 Chapter 2: Charting the Accounts 25 Chapter 3: The General Ledger 39 Chapter 4: Keeping Journals 51 Chapter 5: Controlling Your Records 67 Chapter 6: Computer Options for Bookkeeping 85 Chapter 7: Financial Statements and Accounting Standards 95 Book 2: Accounting and Financial Reports 119 Chapter 1: Financial Report Basics 121 Chapter 2: Reporting Profit. 145 Chapter 3: Exploring Business Structures 167 Chapter 4: The Balance Sheet: Assets, Liabilities, and Equity 187 Chapter 5: The Income Statement 203 Chapter 6: The Statement of Cash Flows 219 Chapter 7: Getting a Financial Report Ready 233 Chapter 8: Accounting Alternatives 257 Book 3: Day-to-Day Bookkeeping 277 Chapter 1: Buying and Tracking Your Purchases 279 Chapter 2: Counting Your Sales 297 Chapter 3: Employee Payroll and Benefits 325 Chapter 4: Employer-Paid Taxes and Government Payroll Reporting 345 Book 4: Preparing for Year’s End 359 Chapter 1: Depreciating Your Assets 361 Chapter 2: Paying and Collecting Interest 371 Chapter 3: Proving Out the Cash 383 Chapter 4: Closing the Journals 397 Chapter 5: Checking Your Accuracy 409 Chapter 6: Adjusting the Books 419 Book 5: Accounting and Managing Your Business 431 Chapter 1: Managing Profit 433 Chapter 2: Budgeting 455 Chapter 3: Cost Accounting 477 Chapter 4: Filing and Paying Business Taxes 501 Chapter 5: Prepping the Books for a New Accounting Cycle 509 Index 517

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Book SynopsisStop making a living and start making a life with The New Retirementality In 2000, when top financial philosopher and bestselling author Mitch Anthony first presented a new way of thinking about retirement, it was novel, and many critics didn''t buy into it. Originally written to get the attention of baby boomers, Mitch ended up starting a revolution by showing us that everything we had read about retirement was wrongwe needed a new retirementality. Fast-forward to today, when most of us are facing a very different retirement: fewer pensions, escalating healthcare costs, and inadequate savings. For many of us, retirement may never happen, or it will take place much later than we expected. Far from being full of doom and gloom, The New Retirementality, Fifth Edition, offers a message of hope, along with a roadmap for navigating the choppy waters of retirement planning. While most books focus on Return on Investment, Mitch shows us that Return on Table of ContentsPreface xi Acknowledgments xiii Chapter 1 A Short History of Retirement 1 Crossing the Bridge 8 Chapter 2 Removing Artificial Finish Lines 9 Dates of Extraction 11 What Made Jack Dull? 13 Motivated by Autonomy 14 Illusions, Delusions, and Hype 16 Chapter 3 No Longer One and Done 19 Stages of Grief? 20 The Four Stages of LEAN 21 The Balance Sheet 28 Forced or Phased? 28 Advocates Needed 30 Chapter 4 The New IRA: Individual Retirement Attitude 33 Assume You Will Work Longer 36 Assume You Will Live Longer 37 Assume That There Will Be Improvisational Challenges 39 Chapter 5 Boredom Isn’t on Anyone’s Bucket List 43 Monotone Living 44 How You’re Wired 45 When Frustration Replaces Fascination 45 Realistic Expectations 46 For Better or Worse but Not for Lunch 49 Losing Your Identity 49 The Rearview Mirror 50 Chapter 6 A New Mind-Set: Retire on Purpose 53 ”I’m Done” 55 ”I Have To” 55 ”I’m Inspired” 56 Meaningful Pursuits: A Midlife Crisis Gone Horribly Right 58 Enduring Attitudes 63 Chapter 7 Money is Only Part of the Equation: Investing Yourself, Then Your Money 67 A Very Long Trip 69 Where from Here? 71 Chapter 8 The Retirement That Works 79 Redefining Work 80 Longevity Works 83 Ready, Set, Engage 84 Retirement Planning That Works 86 Chapter 9 Extending Your Stay by Staying on the Edge 89 Staying in Your Zone 90 Yes Sir, Kiddo 91 Ageism on the Radar 93 The Teaching Bridge 94 Advantages of Underemployment 95 EntreMature 96 Chapter 10 Super-Septs: How 70 Became the New 50 101 Feeling as Fact 102 Your View of You 103 Turning the Corner 107 A New Season 108 Chapter 11 Redefining You: What’s Your Retirementality? 109 New Spin on Re-tiring 110 Chapter 12 Redefining Rich: Bridging the Gap between Means and Meaning 121 The Seven Meaningful Intangibles 124 The Stewardship of Money 130 Chapter 13 Maslow Meets Retirement 133 More Than Just Money 134 Our Hierarchy of Financial Needs 136 Paying the Bills 140 Chapter 14 Advice from Retirementors 143 The Realities of Retirement 143 Retiremyths 146 Vacation: Balancing Work and Play 151 The Best (and Worst) Experiences 153 Allocation 154 Chapter 15 From Aging to S-Aging 157 A Sense of Mastery 158 The Vitamin Cs of Successful Aging 160 Challenge Your Body, Mind, and Spirit 166 Chapter 16 Don’t Go It Alone 169 We Don’t Always Know What We Don’t Know 170 We are Tempted to Follow the Crowd 171 Individual Investors Historically Underperform the Indexes because They React Emotionally to Market Events 172 It is Time-Consuming and Stressful to Manage Money on a Day-to-Day or Week-to-Week Basis 172 Holding Your Ground 174 Finding a Wealth-Building Partner 175 A Personal Safety Net 177 Notes 179 About the Author 187 Index 189

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Book SynopsisTable of ContentsAbout the Author xiii Acknowledgments xv Introduction xvii Chapter 1 The Great KPI Misunderstanding 3 The Four Types of Performance Measures 3 Number of Measures Required: The 10/80/10 Rule 13 Difference between KRIs and KPIs and RIs and PIs 15 The Lead and Lag Confusion 16 Have a Mix of 60 Percent Past, 20 Percent Current, and 20 Percent Future-Oriented Measures 17 Importance of Timely Measurement 20 Where Are You in Your Journey with Performance Measures? 21 Chapter 2 The Myths of Performance Measurement 25 The Myths Surrounding Performance Measures 25 The Myths around the Balanced Scorecard 30 Chapter 3 Background to the Winning KPI Methodology 41 Winning KPI Methodology 41 Seven Foundation Stones of the Winning KPIs Process 46 Implementation Variations and Shortcuts for Small to Medium-Sized Enterprises 56 Chapter 4 Leading and Selling the Change 63 Steve Zaffron and Dave Logan: Why So Many Initiatives Fail 63 Harry Mills: The Importance of Self-Persuasion 64 John Kotter: How to Lead Change Successfully 65 Learn to Sell by Appreciating the Emotional Drivers of the Buyer 67 Selling the KPI Project 70 Selling the Winning KPIs to the Organization’s Staff 75 Delivering Bulletproof PowerPoint Presentations 79 PDF Download 83 Chapter 5 Getting the CEO and Senior Management Committed to the Change 85 CEO and Senior Management Commitment 85 Guidelines for the External KPI Facilitator 91 PDF Download 94 Chapter 6 Up-Skill In-House Resources to Manage the KPI Project 97 Establishing a Winning KPI Project Team 97 PDF Download 111 Chapter 7 Finding Your Organization’s Critical Success Factors 115 Why Critical Success Factors Are So Important 118 Relationship between CSFs and KPIs 123 Common Misunderstandings 124 Task 1: Wording the Success Factors and the External Outcomes 127 Task 2: Determining the Critical Success Factors in a Two-Day Workshop 130 Task 3: Presenting the Critical Success Factors to the Staff 141 Task 4: Get the CSFs on the Wall in Every Workplace 143 PDF Download 144 Chapter 8 Characteristics of Meaningful Measures 149 Common Measurement Traps 149 Wisdom on Measures from Other Authors 149 Rules for Designing Measures 154 Suggested Exercises to Improve Measure Design 156 PDF Download 165 Chapter 9 Designing and Refining Measures 167 Running the Two-Day Performance Measures Workshop 169 Refining Performance Measures after the Workshops 181 Teams Select Their Relevant Performance Measures 185 Finding the KRIs That Need to Be Reported to the Board 187 The KPI Team Ascertaining the Winning KPIs 190 PDF Download 191 Chapter 10 Reporting Performance Measures 195 Develop the Reporting Framework at All Levels 195 The Common Faults with Reporting 196 Designing an Appropriate Reporting Regime 197 Reporting the KPIs to Management and Staff 206 Reporting RIs and PIs to Management 210 Reporting Performance Measures to Staff 215 Reporting Performance Measures to the Board 216 Reporting Team Performance Measures 221 The Performance Reporting Portfolio 223 PDF Download 224 Chapter 11 Ongoing Support and Refinement of KPIs and CSFs 227 Facilitate the Ongoing Support and Refinement of KPIs and CSFs 229 PDF Download 235 Chapter 12 Implementation Case Studies and Lessons 237 Recent Case Studies 237 Previously Reported Case Studies 243 Implementation Lessons 256 Comparison to Other KPI Methodologies 267 PDF Download 273 Appendix Performance Measures Database 275 Index 323

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Book SynopsisTable of ContentsPart I Learning Objectives, Summary Overview, and Problems 1 Chapter 1 Introduction to Financial Statement Analysis 3 Learning Outcomes 3 Summary Overview 3 Problems 5 Chapter 2 Financial Reporting Standards 9 Learning Outcomes 9 Summary Overview 9 Problems 10 Chapter 3 Understanding Income Statements 13 Learning Outcomes 13 Summary Overview 14 Problems 15 Chapter 4 Understanding Balance Sheets 21 Learning Outcomes 21 Summary Overview 21 Problems 23 Chapter 5 Understanding Cash Flow Statements 29 Learning Outcomes 29 Summary Overview 29 Problems 30 Chapter 6 Financial Analysis Techniques 37 Learning Outcomes 37 Summary Overview 37 Problems 38 Chapter 7 Inventories 45 Learning Outcomes 45 Summary Overview 45 Problems 47 Chapter 8 Long-Lived Assets 63 Learning Outcomes 63 Summary Overview 64 Problems 65 Chapter 9 Income Taxes 77 Learning Outcomes 77 Summary Overview 77 Problems 78 Chapter 10 Non-Current (Long-Term) Liabilities 83 Learning Outcomes 83 Summary Overview 83 Problems 85 Chapter 11 Financial Reporting Quality 91 Learning Outcomes 91 Summary Overview 91 Problems 93 Chapter 12 Applications of Financial Statement Analysis 97 Learning Outcomes 97 Summary Overview 97 Problems 98 Chapter 13 Intercorporate Investments 101 Learning Outcomes 101 Summary Overview 101 Problems 102 Chapter 14 Employee Compensation: Post-Employment and Share-Based 113 Learning Outcomes 113 Summary Overview 113 Problems 115 Chapter 15 Multinational Operations 125 Learning Outcomes 125 Summary Overview 125 Problems 127 Chapter 16 Analysis of Financial Institutions 139 Learning Outcomes 139 Summary Overview 139 Problems 140 Chapter 17 Evaluating Quality of Financial Reports 149 Learning Outcomes 149 Summary Overview 149 Problems 151 Chapter 18 Integration of Financial Statement Analysis Techniques 157 Learning Outcomes 157 Summary Overview 157 Problems 158 Part II Solutions 161 Chapter 1 Introduction to Financial Statement Analysis 163 Solutions 163 Chapter 2 Financial Reporting Standards 165 Solutions 165 Chapter 3 Understanding Income Statements 167 Solutions 167 Chapter 4 Understanding Balance Sheets 171 Solutions 171 Chapter 5 Understanding Cash Flow Statements 175 Solutions 175 Chapter 6 Financial Analysis Techniques 179 Solutions 179 Chapter 7 Inventories 183 Solutions 183 Chapter 8 Long-Lived Assets 191 Solutions 191 Chapter 9 Income Taxes 197 Solutions 197 Chapter 10 Non-Current (Long-Term) Liabilities 199 Solutions 199 Chapter 11 Financial Reporting Quality 207 Solutions 207 Chapter 12 Applications of Financial Statement Analysis 211 Solutions 211 Chapter 13 Intercorporate Investments 213 Solutions 213 Chapter 14 Employee Compensation: Post-Employment and Share-Based 219 Solutions 219 Chapter 15 Multinational Operations 225 Solutions 225 Chapter 16 Analysis of Financial Institutions 233 Solutions 233 Chapter 17 Evaluating Quality of Financial Reports 241 Solutions 241 Chapter 18 Integration of Financial Statement Analysis Techniques 245 Solutions 245 About the CFA Program 247

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Book SynopsisTable of ContentsForeword xix Preface xxi Acknowledgments xxv Chapter 1 Introduction to the Family Office 1 Kirby Rosplock, PhD A Macro View of Global Wealth 2 Billionaire Update 7 How Much Do I Really Need to Fund a Family Office? 10 Purpose and Definition of the Family Office 11 Historical Background of the Family Office 12 Family Office from the Industrial Age to Current 13 Key Roles of the Family Office 16 The Executor and Trusted Advisor 16 The Guardian and Watchman 17 The Librarian and Guru 19 Family Office Orientation to Family, Strategy, and Operations 19 Conclusion and Final Thoughts 24 Notes 24 Chapter 2 Family Office Evolution: Inceptions and Archetypes 27 Kirby Rosplock, PhD Inception of a Family Office 27 Scale: How Much Is Enough? 28 Impact of the Family Business on the Family Office 30 Attractions and Challenges with Embedded Family Offices 30 Separating the Family Office from the Family Business 32 Sudden Wealth 33 The Investment-Focused Family Office 34 Family Offices Through the Back Door 35 Family Business Exit and Liquidity Event 36 Family Office Archetypes 37 The Founder’s Family Office 37 The Virtual, Administrative, and Compliance Family Office 38 The Philanthropic Family Office 39 The Direct Investment and Investment Offices 39 The Family Business–Focused Family Office 40 The Multigenerational-Focused Family Office 41 Mathile Case Study 42 Background: Inception 42 Evolution of the Family Office: Strategic Planning Cycles 43 A Multigenerational Perspective 44 Alignment, Urgency, and Action 45 Discovery and Steps 47 Involving Outside Experts 48 Conclusion and Final Thoughts 49 Notes 50 Chapter 3 Comparing Family Office Solutions: Multi- and Single-Family Offices 53 Kirby Rosplock, PhD Trends in the Family Office Landscape 54 Determining Family Wealth Management Needs 58 Why the Single-Family Office Solution? 59 Why the Multi-Family Office Solution? 65 Questions to Ask During the Evaluation Process 68 Pathways to Selecting a Multi-Family Office 74 Godspeed Case Study 75 Introduction 75 Background of the Family and Family Office 75 A Trigger and Decision for a New Direction 76 Journey to Find What Is Next 76 Decision-Making Process 77 Final Cut 78 Key Insights and Outcomes 80 Conclusion and Final Thoughts 81 Notes 82 Chapter 4 Family Values, Mission, and Vision and the Family Office 83 Kirby Rosplock, PhD Introduction to Values 83 The Process of Exploring Values 85 Values Statement 86 Mission Statement 87 Values, Mission, and the Family Office 88 The Importance of Vision 89 Elements for Successful Family Office Visioning 92 Building Your Family Office Vision 94 Pitcairn Family Case Study 95 Five Steps to Creating a Family Vision 98 Step 1: Clarifying the Process and Expectations 99 Step 2: Vision Retreat Pre-Planning 99 Step 3: Staging a Vision Retreat 100 Step 4: Timing for a Vision Retreat 100 Step 5: Aligning Vision and the Strategic Plan 100 Conclusion and Final Thoughts 101 Notes 102 Chapter 5 Establishing and Structuring of Family Offices 103 Ivan A. Sacks, Esq., Partner, Withers Bergman LLP William J. Kambas, Esq., Partner, Withers Bergman LLP Question 1: What Legal Form Should the Family Office Take? 105 Choice of Entity 107 Deciding Between an LLC and a C Corporation 107 Case in Point 113 Question 2: Who Should Pay for Establishing and Operating the Family Office? 114 Question 3: Who Should Own the Family Office and How? 116 Legal Ownership 117 Beneficial Ownership 117 Models of Ownership 117 Question 4: Who Should Manage the Family Office and How? 119 Structuring the Legal Formalities 120 Structuring the Scope of Services 122 Family Philanthropy, Legacy, and Social Capital 125 Managing Regulatory and Estate Planning Concerns 125 Question 5: How Are Family Offices Structured to Optimize Tax Efficiency? 126 Tax Deductibility of Services Provided by the Family Office 129 State and Local Tax 131 Question 6: Can a Family Office Be Structured to Manage Risk? 132 Case in Point 132 Risk Management Through Architecture 133 People-Oriented Risk Management 133 Balance Sheet, Cash Flow, and Economic Risk Management 133 Question 7: What Is the Process of Establishing and Structuring a Family Office? 134 Conclusion and Final Thoughts 136 Notes 137 Chapter 6 Strategic Planning for the Family Office 139 Kirby Rosplock, PhD Creating a Family Office Strategic Plan 140 Discovery 141 The Family Capital Review 142 The Family Background 143 The Advisor Network Review 145 The Estate Plan Review 145 Mapping and Summarizing Legal Entities 146 Family Office Stress Tests 147 Risk and Insurance Management Considerations 150 Family Office Risk Assessment and Insurance Planning 151 Family Member Risk and Insurance Planning 154 Overview of Capital Sufficiency Analysis 155 Simple vs. Sophisticated Approach 156 Using Capital Sufficiency in the Family Office 156 Case in Point: Doryman Family 157 Key Takeaways 164 Conclusion and Final Thoughts 165 Notes 166 Chapter 7 Legal and Compliance Standards and Practices for Family Offices 167 David S. Guin, Esq., Partner and US Commercial Practice Group Leader, Withers Bergman LLP Regulations Affecting Family Offices: Dodd-Frank Act 167 Case in Point 169 The Single-Family Office Exemption 170 Case in Point 174 Clients of the Family Office May Need to Report Beneficial Ownership of Securities of Publicly Reporting Companies 175 How to Report Beneficial Ownership 176 Ownership of Securities in the Ordinary Course of Business 176 Passive Ownership of Less than 20 Percent of a Class of Securities 176 Other Acquisitions 177 Clients of the Family Office May Need to Report Beneficial Ownership as Insiders of Publicly Reporting Companies 177 Reporting Insider Status on Form 3, Form 4, or Form 5 178 How Do I Determine Beneficial Ownership in a Multi-Tiered Family Holding Structure? 179 Are You an Institutional Investment Manager? (The Answer May Surprise You.) 180 What Is an Institutional Investment Manager? 181 Reporting on Form 13F 181 Determining If the $100 Million Threshold Has Been Met 183 Confidential Treatment 184 Are You a Large Trader? 184 The SEC Gets Personal About Insider Trading 186 Compliance Policies 188 What Are the Components of a Good Compliance Policy? 189 Document Retention Policies 190 What Are the Components of a Good Document Retention Policy? 192 The Compliance Function: In-House Versus Outsourced 192 Special Issues for Family Offices When Considering Regulatory Requirements 193 Conclusion and Final Thoughts 194 Notes 194 Chapter 8 Investment Management and the Family Office 197 Kirby Rosplock, PhD Family Office Investment Management 198 Concentration 199 Measuring Success 200 Lifestyle and Legacy 201 Time Horizon 203 Hurdles to Growing Wealth 205 Family Office Investing: Paradigm Shift 206 Passive Versus Active Asset Management 208 A Practical Approach to Asset Allocation 209 The Investment Process in a Family Office 210 Investment Review 210 Investment Governance 211 Investment Objectives 214 The Investment Policy Statement 214 Investment Committee 217 Why Would a Family Establish an Investment Committee (IC)? 218 How Does a Family Establish an Investment Committee? 218 How Does an Investment Committee Usually Operate? 218 Strategic and Tactical Asset Allocation, Manager Selection, and Investment Monitoring 221 CIO Function: In-House Versus Outsourced 223 Conclusion and Final Thoughts 227 Notes 228 Chapter 9 Family Office Operations and Information Technology 231 John Rosplock, COO and CFO, Tamarind Partners, Inc. Robert Kaufold, President and Chief Risk Officer, Cauldera LLC Family Needs Drive Family Office Systems 232 Family Office Operations 233 Accounting 233 Reporting 233 Financial Reporting 235 Data and Decision Archiving 236 Family Office Management 238 Security 239 Other Technology 239 Assessing Operational Complexity 240 Simple to Complex Systems 242 Complex System Technology 244 Operations Lens to Insourcing Versus Outsourcing 247 Technology Considerations: Buy or Build 249 New Technology Due Diligence and Onboarding 250 Keys to Success 254 Conclusion and Final Thoughts 255 Notes 256 Chapter 10 Family Office Talent, Compensation, and Recruitment 257 Kirby Rosplock, PhD Introduction 258 Family Office Staffing 259 Single-Family Office Organizational Chart 261 Gender and Family Office Executives 267 Recruiting Family Office Talent 268 Finding a Good Chemistry and Culture Fit 269 Background Checks 271 Compensation 272 Methods for Determining Annual Incentives 274 Managing Family Office Talent 276 Role Clarity and Job Description 276 Reporting Hierarchy and Authority 276 Performance Management 277 Communication and Trust 278 Recruiting Internationally 278 Case Study: Setting Up the Office 279 Family or Non-Family at the Helm 280 Family Member Compensation 281 Conclusion and Final Thoughts 282 Notes 282 Chapter 11 Governance Issues for the Family Office 285 Barbara Hauser, JD, Independent Family Advisor Kirby Rosplock, PhD Governance Issues for the Family Office Itself 286 Benefits of a Good Board 286 Importance of Independent Directors 288 Interim Stage of Advisory Board 289 Accountability to the Family 289 Participation in Long-Term Strategy 289 Next Generation Issues to Address 290 Succession Planning for the Family Office and Its Executives 290 Governance for the Family Itself 293 Analysis of Existing Decision-Making Process 295 Hallmarks of Good Governance: Transparency, Accountability, and Participation 296 Benefits of the Family Creating Its Own Governance Process and Structure 297 How to Create the Family Governance 298 Family Councils 299 Family Constitutions 300 Kettering Family Governance Case Study 302 Conclusion and Final Thoughts 308 Notes 309 Chapter 12 Family Education and the Family Office 311 Kirby Rosplock, PhD Stewardship of Wealth 313 Psychology of Wealth and Child Development 314 Elsa’s Story 316 Overcoming Communication Challenges 317 Case Study: Waithram Family 319 Clear Expectations and the Power of Inherited Wealth 322 Inspiring Entrepreneurship and the Next Generation 325 Case Study: Jennifer’s Story 326 The Power, Influence, and Inspiration of Mentors 327 Creating a Family Education Plan 329 Conclusion and Final Thoughts 332 Notes 333 Chapter 13 Family Entrepreneurship and the Family Bank 335 Warner King Babcock Kirby Rosplock, PhD What Is a Family Bank? 335 Two Mindsets to Your Family Bank 338 Establishing and Funding a Family Bank? 339 Five Principles for Family Banks 340 Democratize 340 Harmonize 340 Customize 341 Flexibilize 342 Professionalize 342 Mini-Case Study: Intra-Family Financing of New Family Businesses 343 Organizing a Family Bank 344 Entity Choice 345 Evolution of Family Banks: From Simple to Complex 346 Mini-Case Study: A Family Bank Designed to Develop the Next Generation 349 Good Governance: Family Bank Boards, Committees, and Trustees 350 Mini-Case Study: Family Bank Without Good Governance 351 Limitations of Trusts 352 The Role of the Family Office 353 The Role of Outside Experts 354 Tax and Legal Considerations of Family Banks 355 The Anderson Family Case Study 355 Conclusion and Final Thoughts 358 Notes 359 Chapter 14 Legacy, Philanthropy, and Impact Investing 361 Kirby Rosplock, PhD Introduction to Legacy 362 A Generational Lens to Legacy 362 Defining Legacy 364 Financial Legacy 365 Social Legacy 366 Philanthropic Legacy 367 Philanthropy, Impact, and Sustainable Investing 368 Opportunities and Challenges of Philanthropy, Impact, and Sustainable Investing 371 Family Philanthropy and Foundations 373 The Root Family Legacy and Evolving Their Philanthropy 374 The Family Office Supporting Family Philanthropy 377 Cordes Family Case Study 378 Conclusion and Final Thoughts 385 Notes 386 Chapter 15 Private Trust Companies: Creating the Ideal Trustee 389 Miles Padgett, Partner, Kozusko Harris Duncan Don Kozusko, Partner, Kozusko Harris Duncan The Broader View 389 What Is a Private Trust Company? 389 What Are the Differences Between a Private Trust Company and a Commercial Trust Company? 390 Why Do Families Consider Creating a PTC? 392 What Are the Key Considerations to Be Addressed Prior to Pursuing a PTC? 392 Steps to Creating a PTC 398 Choice of Regulatory Regime 398 Geographical Convenience 400 Substantive Trust Laws 401 Trust Company Laws 402 Public Policy Environment 404 Trust and Trust Company Taxes 405 Achieving Success in a PTC: Setting Priorities 405 Fostering Beneficiary Development Should Be the Primary Objective of the PTC 406 Principles and Practices for a Successful Private Trust Company 408 The Parable Family 409 Conclusion and Final Thoughts 415 Notes 416 Appendix A: Family Office Complexity Assessment 419 Appendix B: Family Office Technology Segments 423 About the Author 425 About the Contributors 427 Index 431

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Book SynopsisImprove your personal and professional life with compelling strategies and practical advice Don''t Push Too Many Trolleys: And Other Tips from Navigating Life and Business teaches readers ten crucial principles required to succeed in life and business. Written by Ying Tan, Founder and CEO of a multimillion pound financial services company, Don't Push Too Many Trolleys imparts sage advice suitable for anyone, at any stage of their life. The author describes the attitudes, lessons, and traits that allowed him to become one of the youngest Vice Presidents ever at Goldman Sachs. He shows readers how he built a company from the ground up to create one of the most influential and powerful financial services companies in the UK. Full of concrete strategies and practical advice, this book provides: A deeply personal and humble perspective on success in life and business Actionable advice that makes a real difference in the pursuit of Table of ContentsPreface ix Acknowledgements xi Prologue: The Anfield Dream xiii Introduction 1 Part I To Be Inspired 13 1 Being a Son, Brother and Grandson 15 2 Being a Husband and Father 25 Part II Good Principles from Navigating Life and Business 33 3 Keep Life in Perspective 35 4 Don’t Push Too Many Trolleys 43 5 Take Responsibility for Your Life 57 6 Do Your Due Diligence 65 7 Always Have a Plan 83 8 Set the Right Goals for You 97 9 Be Ambitious, Not Greedy 113 10 The Best Rewards Are the Hardest Won 127 11 Mind Your Manners 145 12 Stay in the Game 157 Part III To Be Inspiring 177 13 Being a Boss 179 14 Building a Loyal Team 185 15 Team Talk 195 Part IV The Future 207 16 Professional Goals 209 17 Personal Goals 213 Epilogue: A Legacy 219

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Book SynopsisBring your financial planning to life by bringing life to your financial planning. Life-Centered Financial Planning: How to Deliver Value That Will Never Be Undervalued shows financial planners and advisors how to radically improve the service they provide to their clients by tying their decisions and strategies to their clients' life events, stages, and goals. Written by distinguished financial professionals Mitch Anthony and Paul Armson, Life-Centered Financial Planning provides readers with practical advice and concrete strategies to revolutionize their organization and client service by: Focusing on what matters most to clients, rather than maximizing assets under management or pushing products Understanding that a strong financial plan means more than simply accumulating as much money as possible Building a business model that is good for everyone involved: the financial advisor, clients, and the organization Moving from being a commodity to being your client's trusted advisor The book is perfect for any financial planner or advisor who wishes to adapt to the radical redefinition of financial services taking place today.Table of ContentsPreface xiii Acknowledgments xvii Part I: The End of Financial Services As We Know It 1 Chapter 1: The Masquerade Party is Over 3 Financial Advice in Flux 6 Expanding Your Reach 8 Comprehension of Context 8 Narrative and Understanding 9 Emotional Connectivity 9 Chapter 2: Erosive Value Propositions 11 Vacuous and Vaporous 13 Very Brief History of Distrust 15 Change Your Mindset 18 Tracking Your Client’s Life 19 Chapter 3: Deprogramming Advisory Magical Thinking 21 The Crystal Ball 22 Indiana Jones and the Temple of Doom 23 RIP Comparison 24 Chapter 4: Misplaced Value 31 Becoming Financially Independent is Easy 32 Change Your Focus 35 Are You Embarrassed Easily? 36 Understanding the Three Hats You Wear 37 The Third Hat: Financial Adviser 37 The Second Hat: Financial Planner 38 The First Hat: Life Planner 38 Chapter 5: The Bottom Line is Not a Number 41 The Human Elements 42 The Central Question 43 Building Relationships: The Roles You Will Play 44 Return on Life™ (ROL) Manifesto 46 What We Need to Know and Continue to Know 47 Your Bottom Line 48 Part II: Making the Shift to Life-Centered Financial Planning 51 Chapter 6: From Money Centered to Life Centered 53 It’s All about Discovery 57 The Past 57 The Present 58 The Future 59 A Tale of Two Advisers 60 Adviser A 60 Adviser B 61 The Journey That is Life 64 Chapter 7: Values That Value 67 Decommoditize 68 Core Values 70 Organization: We will help bring order to your financial life. 71 Accountability: We will help you follow through on your financial commitments. 72 Objectivity: We will provide insight from the outside to help you avoid emotionally driven decisions in important money matters. 72 Proactivity: We will help you anticipate the key transitions in your life so that you will be financially prepared for them. 73 Education: We will explore the specific knowledge you will need to succeed in your situation. 73 Partnership: We will work with you to help you achieve the best life possible. 74 Making the Leap 75 Chapter 8: Soft Skills Are Really the Hard Stuff 77 The Self-Centered Self-Delusion 80 The Empathy Report Card 82 “I Feel You, Man” 83 Pathways to Resonance 85 Roadblocks to Resonance 86 You Gotta Serve Somebody 87 Chapter 9: Answers Get Questioned, Questions Get Answered 91 Monologos 91 Dialogos 92 Really Smart People 94 Meaningful Questions 95 Don’t Dive Deep Out of the Blue 96 Establish Context for What You’re Going to Be Asking 97 Anchor the Story; Link the Story You Hear to the Service You’ll Be Delivering 98 Questions for the Quest 98 Chapter 10: Delivering Reality Checks 103 Reality Check 1: Your Clients Need to Know Where Their Money is Going 103 Client Habits 104 Reality Check 2: Your Clients Need to Be Responsible for Their Own Assumptions 106 Financial Independence versus Financial Dependence 107 Reality Check 3: Your Clients Need to Understand That What They Do with Their Income Impacts Their Life Outcome 109 Part III: The Dialogues of the Future 117 Chapter 11: What’s Your Fiscalosophy? 119 Organically Speaking 120 Past→Path Forward→Pathos 121 Understanding Their Drivers 122 Chapter 12: What is Your Return on Life? 131 Resetting the Focus 141 Chapter 13: Money in Motion 143 What Was I Thinking? 144 Come Back from the Future: Life Transitions 145 The Here and Now, and Near Horizon 147 Transitioning to Transitions 148 The Ongoing Conversation—Life Unfolding 152 Cause or Effect 153 Chapter 14: Retirement Reframed 155 Individually Speaking 156 Retirement Staging 156 Step 1: Observing 157 Step 2: Visioning 158 Step 3: Working 161 Step 4: Personalization 165 New Heroes for a New Era: Retirementors 168 Chapter 15: Personal Values and Account Values 171 Scrambled Signals 172 Locate Your Values 173 The Time is upon Us 174 Righteous Profits, Happy World 175 Chapter 16: Enough Already… 185 Certain Uncertainties 187 Three Types of Clients 188 Not Enough 188 Got Too Much 189 The Just Rights 190 Epilogue 195 Appendix: Return on LifeTM (ROL) Manifesto 197 About the Authors 199 Index 203

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Book SynopsisTable of ContentsForeword to the Second Edition by Robert S. Kaplan Foreword to the First Edition by Robert S. Kaplan Part I: Overview and Drivers of Enterprise Risk Management Chapter 1: Enterprise Risk Management: An Introduction and Overview Chapter 2: A Brief History of Risk Management Chapter 3: Strategic Risk Management: The Third Paradigm Chapter 4: The Role of the Board of Directors and Senior Management in Enterprise Risk Management Chapter 5: How to Teach Enterprise Risk Management: A Learner-Centered Activities Approach Chapter 6: The Role of the Board in Risk Management Oversight Part II: Enterprise Risk Management, Culture, and Control Chapter 7: ERM Frameworks Chapter 8: Becoming the Lamp Bearer: The Emerging Roles of the Chief Risk Officer Chapter 9: Creating a Risk-Aware Culture Chapter 10: Key Risk Indicators Chapter 11: Decision Risk Management Chapter 12: Increasing Adoption of Enterprise Risk Management in the U.S. Federal Government Chapter 13: Toolmaking in Risk Management: The Case of Core Values and the Formalization of “Risk Appetite” Chapter 14: Incorporating Risk Acumen and Enterprise Risk Management into Innovation Approaches Chapter 15: Scenario Planning as an Enrichment of ERM Chapter 16: Unconscious Bias and Risk Management Chapter 17: Cognitive Bias: A Practical Approach Part III: Enterprise Risk Tools and Techniques Chapter 18: Risk Appetite and Tolerance in Competitive Strategy Chapter 19: How to Plan and Run a Risk Management Workshop Chapter 20: How to Prepare a Risk Profile Chapter 21: How to Allocate Resources Based on Risk Chapter 22: Quantitative Risk Assessment in ERM Chapter 23: Risk Appetite Chapter 24: Organizational Decision Making Chapter 25: The Challenges of and Solutions for Implementing Enterprise Risk Management Part IV: Types of Risk Chapter 26: Market Risk Management and Common Elements with Credit Risk Management Chapter 27: Credit Risk Management Chapter 28: Operational Risk Management Chapter 29: Managing Financial Risk and Its Interaction with Enterprise Risk Management Chapter 30: Climate Change Risk Chapter 31: Cybersecurity: Risks and Governance Chapter 32: Foreign Exchange Risk Management Chapter 33: Risk Management and Outsourcing Chapter 34: Leveraging ERM for Growth Chapter 35: Commercial and D&O Insurance for Large Corporations Chapter 36: Managing Risk Associated with Project Delivery: A How-To Guide Part V: Special Topics and Case Studies Chapter 37: The Rise and Evolution of the Chief Risk Officer: Enterprise Risk Management at Hydro One Chapter 38: Enterprise Risk Management in the Public Sector: A First Look at the U.S. Department of Commerce Chapter 39: A Review of Academic Research on Enterprise Risk Management Chapter 40: Lessons from the Academy: ERM Implementation in the University Setting Chapter 41: Enterprise Risk Management: Lessons from the Field Chapter 42: Financial Reporting and Disclosure Risk Management Chapter 43: Directors and Risk: Whither the Best Practices: Evidence from Canada

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Book SynopsisOrganize and plan for your family business's continued, intergenerational success Continuity Model Generation: Integrating Wealth, Strategy, Talent, and Governance Plans delivers a cohesive and comprehensive plan for family business leaders who seek to improve the chances of sustaining success across generations. Incorporating four distinctbut closely relatedplans, Continuity Model Generation shows family businesses how to manage their strategy, their wealth, their talent, and their governance to achieve multi-generational success. The book also offers: A coherent framework (Continuity Canvas) for the integration of its multiple plans affecting every critical aspect of the family-owned or controlled businessStraightforward and practical frameworks, meta-frameworks, and cornerstones to ground your family business's strategyA variety of templates, checklists, and forms to organize your thinking and strategy Ideal for business-owning families, as well as their stakeholders and those who advise them, Continuity Model Generation: Integrating Wealth, Strategy, Talent, and Governance Plans is required reading for anyone interested in maintaining and developing family-based wealth.Table of ContentsList of Illustrations xi List of Illustrated Tables xiii List of Configuration Plans xv Acknowledgments and Appreciation xvii Introduction to the Continuity Model Generation xxi Part I: 21 Frameworks and 6 Meta-Frameworks 1 Keystone Meta-Framework 3 Four Foundational Theoretical Approaches 3 Two Complementary Logics 15 Three Circles Framework 18 Familial Meta-Framework 25 The Big Tent Framework 25 RIPCC Best Practice Dimensions 28 Four Ps Framework 30 Four Cs Framework 32 Individual Meta-Framework 39 Five Servant Leadership Dimensions 39 Four Tests Framework 43 Four Leadership Priorities 45 Four Exit Strategies 48 Generational Meta-Framework 51 Four Ls Framework 51 Four Ownership Stages 55 Four Entrepreneurship Principles 60 Tactical Meta-Framework 63 Family Enterprise Heterogeneity Frameworks 63 Four Rs Framework 66 Four Strategy Dimensions Framework 69 Fundamental Meta-Framework 73 Four Trust Dimensions 73 Five-Stage Life Cycle Framework 76 Church and State Framework 79 Four Innovation Capabilities 82 Part II: The Continuity Canvas 85 Strategy: Strategic Planning for Continuity 87 Strategic Planning for Continuity I: Collecting and Collating Basic Information 87 Strategic Planning for Continuity II: Cornerstone Concept Equals a Quadruple-Bottom- Line Scorecard 91 Financial Perspective 93 Social Perspective 98 Environmental Perspective 103 Talent Perspective 108 Talent: Successors’ Talent Development Planning for Continuity 115 Successors’ Talent Development Planning for Continuity I: Collecting and Collating Basic Information 129 Successors’ Talent Development Planning for Continuity II: Cornerstone Concept Equals Develop an Informed Individual Philosophy of Stewardship 131 Values – History – Legacy 133 Financial Literacy and Value Creation 137 Governance Role Preparation 145 Individual Development 150 Wealth: Asset, Wealth, and Estate Planning for Continuity 155 Asset, Wealth and Estate Planning for Continuity I: Collecting and Collating Basic Information 156 Asset, Wealth, and Estate Planning for Continuity II: Cornerstone Concept Equals Produce a Handwritten Individual Legacy Statement 158 Governance: Governance Planning for Continuity 169 Governance Planning for Continuity I: Collecting and Collating Basic information 169 Governance Planning for Continuity II: Cornerstone Concept Equals Craft the Family’s Governance Philosophy 171 Business Governance 173 Family Governance 183 Ownership Governance 185 The Foundation 192 Part III: Configuring a Plan for the Plans 197 Configuration Plan One 199 Configuration Plan Two 203 Configuration Plan Three 205 Configuration Plan Four 207 Part IV: Appendix 209 Educating Educators 211 A Program Example 215 Part One: Frameworks and Meta-Frameworks 215 Part Two: Four Plans and Cornerstone Concepts for Continuity 218 Part Three: Presenting Configuration Examples 222 Part Four: Developing Your Own Continuity Canvas and Cornerstone Concepts 223 References and Further Readings 225 Index 231

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Book SynopsisGet thestraight goods onhow to builda thriving side hustle fromsomeone who's been there before InClever Girl Finance: The Side Hustle Guide, celebrated finance expert, influencer, CEO, and author BolaSokunbideliversyour own personalkey to unlocking more money, more freedom, and more security in your life.You'll find out how to achieve financial prosperityby leveraging a side hustle business to increase your income and build wealth. You'll discover how to: Build your confidence, eliminate your fears, and strengthen your focusEstablish a strong foundation for your new business, even without prior experienceCreate a solid plan to brand, market, and grow a business your customers won't be able to get enough ofWrite arealistic financial plan for your side hustle and to create long-term wealth Perfect forthosewith a side hustle dream andsome energy to spare,Clever Girl Finance: The Side Hustle Guidewill also earn a place in the libraries of anyone who's ever thought about building a successful and profitable side hustle from the ground up but didn't know where to start.Table of ContentsAbout the Author 2 Acknowledgments 4 It’s Time to Make Your Side Hustle Dreams a Reality! 8 How to Use This Book 11 CHAPTER 1: Getting Prepared to Win 13 Challenging the Fear That Holds You Back 15 Get Prepared to Build a Successful Business 21 My Side Hustle Business Story 29 What Not to Expect from Your Side Hustle 38 Meet Camilla Banks 43 CHAPTER 2: Laying Out Your Business Idea 48 What’s It Gonna Be? Brainstorming Your Business Ideas 50 Doing Your Research: Google Is Your Friend 57 Establishing Your Business Vision and Mission 61 Meet Vickii Onabolu 65 CHAPTER 3: Your Business Plan 70 Creating a Business Plan That Makes Sense to You 72 What Legal Structure Do You Need? 79 Who Is Your Business for, and Why Should They Buy from You? 89 Defining Your Products and Services 97 Assessing Your Competition 101 Meet Tiwa Lawrence 107 CHAPTER 4: Building Your Brand and Marketing Your Business 115 Developing the Look and Feel of Your Brand 117 Creating a Marketable Brand Story 129 Your Online Presence and Content Strategy 133 Your Marketing Strategy and Leveling Up Your Game 148 Meet Kalyn Johnson Chandler 156 CHAPTER 5: Business Finances—Let’s Talk Money! 162 Laying Out Your Startup Costs and Operating Expenses 164 Your Business Budget: An Essential Part of Your Business Success 174 Analyzing Your Business Finances: Breaking Even, Profit, and Loss 186 Pricing Your Products and Services 193 Money Mistakes to Avoid while Building Wealth with Your Side Hustle 200 Meet Sahirenys Pierce 210 CHAPTER 6: In It to Win It! 215 Leveraging Metrics in Your Business 217 Managing Your Time: Tips and Tools to Help 225 Who Do You Need on Your Team? 231 Meet Emilie Aries 238 CHAPTER 7: Plan for Growth 243 Staying Consistent and Persevering through Seasons 245 Prioritizing Self-Care 250 Meet Ebony Ruffin 253 In Closing 258

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Book SynopsisSTRATEGIC RISK MANAGEMENT Having just experienced a global pandemic that sent equity markets into a tailspin in March 2020, risk management is a more relevant topic than ever. It remains, however, an often poorly understood afterthought. Many portfolios are designed without any thought given to risk management before they are handed off to a dedicatedbut separaterisk management team. In Strategic Risk Management: Designing Portfolios and Managing Risk, Campbell R. Harvey, Sandy Rattray, and Otto Van Hemert deliver a reimagining of the risk management process. The book envisions a marriage between the investment and risk processes, an approach that has proven successful at the world's largest publicly listed hedge fund, Man Group. The authors provide readers with a new framework for portfolio design that includes defensive strategies, drawdown risk controls, volatility targeting, and actively timing rebalancing trades. You will learn about how the book's new approach to risk management fared during the recent market drawdown at the height of the COVID-19 pandemic. You will also discover why the traditional risk weighting approach only works on certain classes of assets. The book shows you how to accurately evaluate the costs of defensive strategies and which ones offer the best and most cost-effective protection against market downturns. Finally, you will learn how to obtain a more balanced return stream by targeting volatility rather than a constant notional exposure and gain a deeper understanding of concepts like portfolio rebalancing. Perfect for people working in the asset management industry and financial policy makers, Strategic Risk Management: Designing Portfolios and Managing Risk will also earn a place in the libraries of economics and finance scholars, as well as casual readers who take an active approach to investing in their savings or pension assets. PRAISE FOR STRATEGIC RISK MANAGEMENTStrategic Risk Management shows how to fully embed risk management into the portfolio management process as an equal partner to alpha. This should clearly be best practice for all asset managers.Jase Auby, Chief Investment Officer, the Teacher Retirement System of TexasThis book shows the power of integrating risk and investment management, rather than applying risk management as an afterthought to satisfy set limits. I was pleased to shepherd some of the key ideas in this book through the publication process at The Journal of Portfolio Management.Frank J. Fabozzi, Editor, The Journal of Portfolio ManagementFinancial markets today are quite different from those of the last century. Understanding leverage, correlations, tails, and other risk parameters of a portfolio is at least as important as work on signals and alpha. In that sense, bringing risk management from control' to front office' should be a priority for asset managers. This book explains how to do it.Marko Kolanovic, Chief Global Market Strategist, J.P. MorganA powerful new approach to risk management in volatile and uncertain marketsWhile the COVID-19 pandemic threw the importance of effective risk management into sharp relief, many investment firms hang on to a traditional and outdated model of risk management. Using siloed and independent portfolio management and risk monitoring teams, these firms miss out on the opportunities presented by integrated risk management. Strategic Risk Management: Designing Portfolios and Managing Risk delivers a fresh approach to risk management in difficult market conditions. The accomplished author team advocates for the amalgamationofportfolio design and risk monitoring teams, incorporating risk management into every aspect of portfolio design. The book provides a roadmap for the crucial aspects of portfolio design, including defensive strategies, drawdown risk controls, volatility targeting, and actively timing rebalancing trades. You will discover how these techniques helped the authors achieve remarkable results during the market drawdown in the midst of the COVID-19 pandemic and how they can help you protect your assets against unpredictablebut inevitablefuture bear markets. Ideal for professionals in the asset management industry, Strategic Risk Management: Designing Portfolios and Managing Risk is a valuable resource for financial policy makers, economics and finance scholars, and anyone with even a passing interest in taking an active role in investing for their future.Table of ContentsForeword by Martin Leibowitz Preface by Sandy Rattray Chapter 1: Seeking Crisis Alpha Chapter 2: Can Portfolios Be Crisis Proofed? Chapter 3: Risk Management via Volatility Targeting Chapter 4: Strategic Rebalancing Chapter 5: Drawdown Control Chapter 6: Man versus Machine Chapter 7: Out-of-Sample Evidence from the COVID-19 Equity Sellof Notes Index

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Book SynopsisTable of ContentsAbout the Authors vii Introduction 1 Target Audience 2 Content and Applications 2 Chapter 1 Comparable Companies Analysis 3 Questions 3 Answers and Rationale 28 Chapter 2 Precedent Transactions Analysis 55 Questions 55 Answers and Rationale 76 Chapter 3 Discounted Cash Flow Analysis 93 Questions 93 Answers and Rationale 120 Chapter 4 Leveraged Buyouts 149 Questions 149 Answers and Rationale 160 Chapter 5 LBO Analysis 169 Questions 169 Answers and Rationale 189 Chapter 6 Sell-Side M&A 205 Questions 205 Answers and Rationale 217 Chapter 7 Buy-Side M&A 225 Questions 225 Answers and Rationale 243 Chapter 8 Initial Public Offerings 259 Questions 259 Answers and Rationale 270 Chapter 9 The IPO Process 277 Questions 277 Answers and Rationale 288

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Book SynopsisTable of Contents1 The Financial Manager and the Firm 1.1 The Role of the Financial Manager 1.2 Forms of Business Organization 1.3 Managing the Financial Function 1.4 The Goal of the Firm 1.5 Agency Conflicts: Separation of Ownership and Control 1.6 The Importance of Ethics in Culture Summary of Learning Objectives/Self-Study Problems/ Solutions to Self-Study Problems/Discussion Questions/ Questions and Problems/Sample Test Problems Ethics Case—Incentives and Ethics: Cross-Selling at Wells Fargo 2 The Financial System and the Level of Interest Rates 2.1 The Financial System 2.2 Direct Financing 2.3 Types of Financial Markets 2.4 Market Efficiency 2.5 Financial Institutions and Indirect Financing 2.6 The Determinants of Interest Rate Levels Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/ Sample Test Problems 3 Financial Statements, Cash Flows, and Taxes 3.1 Financial Statements and Accounting Principles 3.2 The Balance Sheet 3.3 Market Value versus Book Value 3.4 The Income Statement and the Statement of Retained Earnings 3.5 The Statement of Cash Flows 3.6 Tying Together the Financial Statements 3.7 International Accounting Issues 3.8 Corporate Income Tax Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/ Sample Test Problems 4 Analyzing Financial Statements 4.1 Background for Financial Statement Analysis 4.2 Common-Size Financial Statements 4.3 Financial Ratios and Firm Performance 4.4 The Dupont System: A Diagnostic Tool 4.5 Selecting a Benchmark 4.6 Using Financial Ratios Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/ Sample Test Problems Ethics Case—A Sad Tale: The Demise of Arthur Andersen 5 The Time Value of Money 5.1 The Time Value of Money 5.2 Future Value and Compounding 5.3 Present Value and Discounting 5.4 Additional Concepts and Applications Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/ Sample Test Problems 6 Discounted Cash Flows and Valuation 6.1 Multiple Cash Flows 6.2 Level Cash Flows: Annuities 6.3 Level Cash Flows: Perpetuities 6.4 Cash Flows That Grow at a Constant Rate 6.5 The Effective Annual Interest Rate Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/ Sample Test Problems/Appendix: Deriving the Formula for the Present Value of an Ordinary Annuity/Problem Ethics Case—Buy It on Credit and Be True to Your University 7 Risk and Return 7.1 Risk and Return 7.2 Holding Period Returns 7.3 Expected Returns 7.4 Variance and Standard Deviation as Measures of Risk 7.5 Arithmetic Average and Geometric (Compounded) Average Returns 7.6 Risk and Diversification 7.7 Systematic Risk 7.8 The Capital Asset Pricing Model Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/ Sample Test Problems Ethics Case—Pay for Performance or Just More Pay? The Conflicting Case for CEO Pay 8 Bond Valuation and the Structure of Interest Rates 8.1 Corporate Bonds 8.2 Bond Valuation 8.3 Bond Yields 8.4 Interest Rate Risk 8.5 The Determinants of Corporate Borrowing Costs 8.6 The Term Structure of Interest Rates Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/ Sample Test Problems Ethics Case—The Subprime Mortgage Market Meltdown: How Did It Happen? 9 Stock Valuation 9.1 The Market for Stocks 9.2 Common and Preferred Stock 9.3 Common Stock Valuation 9.4 The General Dividend-Valuation Model 9.5 Stock Valuation: Some Simplifying Assumptions 9.6 The Relation between R and g 9.7 Valuing Preferred Stock Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/ Sample Test Problems Ethics Case—Insider Trading: Exploiting the System 10 The Fundamentals of Capital Budgeting 10.1 An Introduction to Capital Budgeting 10.2 Net Present Value 10.3 The Payback Period 10.4 The Accounting Rate of Return 10.5 Internal Rate of Return 10.6 Investment Decisions with Capital Rationing 10.7 Capital Budgeting in Practice Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/ Sample Test Problems Ethics Case—Going Green: Can Automakers Invest in Environmental Solutions? 11 Cash Flows and Capital Budgeting 11.1 Calculating Project Cash Flows 11.2 Estimating Cash Flows in Practice 11.3 Forecasting Free Cash Flows 11.4 Special Cases 11.5 Harvesting an Asset Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/ Sample Test Problems Ethics Case—Unilever’s Sustainable Living Plan 12 Evaluating Project Economics 12.1 Variable Costs, Fixed Costs, and Project Risk 12.2 Calculating Operating Leverage 12.3 Break-Even Analysis 12.4 The Economic Break-Even Point 12.5 Risk Analysis Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/ Sample Test Problems 13 The Cost of Capital 13.1 The Firm’s Overall Cost of Capital 13.2 The Cost of Debt 13.3 The Cost of Equity 13.4 Using the WACC in Practice Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/ Sample Test Problems 14 Working Capital Management 14.1 Working Capital Basics 14.2 The Operating and Cash Conversion Cycles 14.3 Working Capital Management Strategies 14.4 Accounts Receivable 14.5 Inventory Management 14.6 Cash Management and Budgeting 14.7 Financing Working Capital Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/ Sample Test Problems 15 How Firms Raise Capital 15.1 Bootstrapping 15.2 Venture Capital 15.3 Initial Public Offering 15.4 IPO Pricing and Cost 15.5 General Cash Offer by a Public Company 15.6 Private Markets and Bank Loans Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/ Sample Test Problems Ethics Case—Profiting from Death: “Janitor’s Insurance” 16 Capital Structure Policy 16.1 Capital Structure and Firm Value 16.2 The Benefits and Costs of Using Debt 16.3 Two Theories of Capital Structure 16.4 Practical Considerations in Choosing a Capital Structure Appendix: Leasing Summary of Learning Objective/Self-Study Problem/ Solution to Self-Study Problem/Discussion Questions/ Questions and Problems 17 Dividends, Stock Repurchases, and Payout Policy 17.1 Dividends 17.2 Stock Repurchases 17.3 Dividends and Firm Value 17.4 Stock Dividends and Stock Splits 17.5 Setting a Dividend Payout Summary of Learning Objectives/Self-Study Problems/ Solutions to Self-Study Problems/Discussion Questions/ Questions and Problems/Sample Test Problems 18 Business Formation, Growth, and Valuation 18.1 Starting a Business 18.2 The Role of the Business Plan 18.3 Valuing a Business 18.4 Important Issues in Valuation Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/ Sample Test Problems 19 Financial Planning and Managing Growth 19.1 Financial Planning 19.2 Financial Planning Models 19.3 A Better Financial Planning Model 19.4 Beyond the Basic Planning Models 19.5 Managing and Financing Growth Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems /Discussion Questions/Questions and Problems/ Sample Test Problems 20 Corporate Risk Management 20.1 Why Companies Manage Corporate Risks 20.2 Managing Operational, Business, and Financial Risks 20.3 Forwards and Futures 20.4 Swaps 20.5 Financial Options 20.6 Option Valuation 20.7 Real Options 20.8 Agency Costs Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/Sample Test Problems 21 International Financial Management 21.1 Introduction to International Financial Management 21.2 Foreign Exchange Markets 21.3 International Capital Budgeting 21.4 Global Money and Capital Markets 21.5 International Banking 21.6 Islamic Finance Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/ Sample Test Problems APPENDIX A Future Value and Present Value Tables APPENDIX B The 2017 Tax Cuts and Jobs Act: Implications for Cash Flow to Investors, the Cost of Capital, and Capital Structure GLOSSARY SUBJECT INDEX COMPANY INDEX

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Book SynopsisTarget high returns and greater consistency with this insightful guide from a leading investor The market volatility exacerbated by the COVID-19 pandemic has led many to question their exposure to risk in their own portfolios. But what should one do about it? In Risk Parity: How to Invest for All Market Environments, accomplished investment consultant Alex Shahidi delivers a powerful approach to portfolio management that reduces the potential for significant capital loss while maintaining an attractive expected return. The book focuses on allocating capital amongst four diverse asset classes: equities, commodities, Treasury bonds, and Treasury Inflation Protected Securities. You'll learn about: The nature of risk and why traditional approaches to risk management unnecessarily give up potential returns or inadequately protect against catastrophic market eventsWhy proper risk management is more important now than everHow to efficiently implement a risk parity approach Perfect for both individual and professional investors, Risk Parity is a must-have resource for anyone seeking to increase consistency in their portfolio by building a truly balanced asset allocation.Table of ContentsForeword ix Preface xi Acknowledgments xiii About the Author xv Introduction xvii Chapter 1 What Is Risk Parity? 1 Chapter 2 Two Steps to Build a Well-Balanced Portfolio 11 Chapter 3 Equities 21 Chapter 4 Treasuries 35 Chapter 5 TIPS 51 Chapter 6 Commodities 63 Chapter 7 Other Asset Classes 75 Chapter 8 Risk Parity Portfolio Summary 89 Chapter 9 Risk Parity Portfolio Historical Returns 99 Chapter 10 The Timeliness of Risk Parity 115 Chapter 11 The Rebalancing Boost 129 Chapter 12 Efficient Implementation 135 Chapter 13 When Does Risk Parity Underperform? 143 Chapter 14 FAQs 155 Chapter 15 Conclusion 173 Index 175

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From the basics down to investing, get the most out of your 401(k) and IRA in any economic environment When you’re ready to start setting aside (or withdrawing) money for your retirement—whenever that might be—401(k)s & IRAs For Dummies is here for you! It covers both types of retirement plans because they each have valuable tax benefits, and you may be able to contribute to both at the same time. With the practical advice in this book, you learn how to manage your accounts, minimize your investment risk, and maximize your returns. Sounds like a win-win, no matter your situation or where you’re at in life. Written by a well-known expert and ‘father of the 401 (k)’ , Ted Benna, 401(k)s & IRAs For Dummies helps you keep up with the ever-changing rules surrounding both retirement plans—including the rules from the SECURE and CARES Acts—and avoid the mistakes that can lead to higher taxes and penalties. Additional topics include: Tax strategies before and after retirement Required distributions and how much you need to take Penalties for taking money out early and how to avoid them What happens to your or your spouse’s retirement plan after death or divorce The rules for taking money out of an inherited plan Methods for calculating required minimum distributions Special tax benefits for conversions to Roth IRAs How to recharacterize IRA or Roth contributions Why IRA based plans are a better options for many small employers Helping solo entrepreneurs and other small businesses pick the right type of plan Whether you’re just starting to think about a retirement plan, planning when to retire, or you’re facing retirement, you’ll find useful and practical guidance in 401(k)s & IRAs For Dummies. Get your copy today!

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Book SynopsisPerfect for anyone seeking to get a firm handle on their personal finances, Financial Adulting is a must-have resource that demystifies and simplifies complex topics and makes understanding personal finance fun From the founder of The Fiscal Femme, a popular feminist money platform, and author of The 30-Day Money Cleanse, Ashley Feinstein Gerstley's Financial Adulting: Everything You Need to be a Financially Confident and Conscious Adult delivers an easy-to-follow, informative, and fun financial guide. From budgeting and consumer activism to retirement investing and paying down debt, you'll learn everything you need to know and do to be a financially savvy adult. In this important book, you'll: Master fundamental concepts, including dealing with student loans, maximizing your 401(k), and preparing for salary negotiationsUse a racial and feminist justice lens to tackle rarely discussed topics in money and equity and better understand deep-seated historic and systemic obstaclesRecognize that your circumstances, goals, and values are unique and require a custom approach in order to succeed financiallyReceive a simple step-by-step guide to reaching your financial goals while living a big, exciting, and meaningful lifeTable of ContentsPreface ix 1 What Is a Financial Adult? 1 2 Equity and Personal Finance 11 3 Your Money Goals 27 4 All About Income 41 5 Your Money Outflows 57 6 Consumer Activism 81 7 Work Optional (a.k.a. Retirement) 95 8 Become an Investor for Good 125 9 Buying a Home 155 10 Insurance 179 11 Tax Basics and Estate Planning 205 12 Your Credit Score 223 13 All About Debt 237 14 Become Your Own Money Coach 261 Notes 281 Acknowledgments 291 About The Author 295 Index 297

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Book SynopsisTable of ContentsForeword to the First Edition Preface Key Takeaways Chapter 1: What is an asset class Chapter 2: Fundamentals of asset allocation Chapter 3: The importance of asset allocation Chapter 4: Time diversification Chapter 5: Divergence Chapter 6: Correlation asymmetry Chapter 7: Error maximization Chapter 8: Factors Chapter 9: 1/N Chapter 10: Policy portfolios Chapter 11: The private equity leverage myth Chapter 12: Necessary conditions for mean-variance analysis Chapter 13: Forecasting Chapter 14: The stock-bond correlation Chapter 15: Constraints Chapter 16: Asset allocation versus factor investing Chapter 17: Illiquidity Chapter 18: Currency risk Chapter 19: Estimation error Chapter 20: Leverage versus concentration Chapter 21: Rebalancing Chapter 22: Regime shifts Chapter 23: Scenario analysis Chapter 24: Stress testing Chapter 25: Statistical and theoretical concepts Glossary Index

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Book SynopsisTable of ContentsInstructor and Student Resources xv About the Authors xix About the Editors xxi Foreword xxiii Acknowledgments xxv Disclaimer xxxiii Introduction 1 Structure of the Book 3 Part One: Valuation (Chapters 1–3) 3 Part Two: Leveraged Buyouts (Chapters 4 & 5) 5 Part Three: Mergers & Acquisitions (Chapters 6 & 7) 6 Part Four: Initial Public Offerings (Chapters 8 & 9) 8 ValueCo Summary Financial Information 9 Part One Valuation 11 Chapter 1 Comparable Companies Analysis 13 Summary of Comparable Companies Analysis Steps 14 Step I. Select the Universe of Comparable Companies 17 Study the Target 17 Identify Key Characteristics of the Target for Comparison Purposes 18 Screen for Comparable Companies 22 Step II. Locate The Necessary Financial Information 23 SEC Filings: 10-K, 10-Q, 8-K, and Proxy Statement 24 Equity Research 25 Press Releases and News Runs 26 Financial Information Services 26 Summary of Financial Data Primary Sources 27 Step III. Spread Key Statistics, Ratios, and Trading Multiples 28 Calculation of Key Financial Statistics and Ratios 28 Supplemental Financial Concepts and Calculations 42 Calculation of Key Trading Multiples 47 Step IV. Benchmark the Comparable Companies 50 Benchmark the Financial Statistics and Ratios 50 Benchmark the Trading Multiples 50 Step V. Determine Valuation 51 Valuation Implied by EV/EBITDA 52 Valuation Implied by P/E 52 Key Pros and Cons 54 Illustrative Comparable Companies Analysis for ValueCo 55 Step I. Select the Universe of Comparable Companies 55 Step II. Locate the Necessary Financial Information 57 Step III. Spread Key Statistics, Ratios, and Trading Multiples 57 Step IV. Benchmark the Comparable Companies 69 Step V. Determine Valuation 74 Chapter 1 Questions 75 Chapter 2 Precedent Transactions Analysis 79 Summary of Precedent Transactions Analysis Steps 80 Step I. Select the Universe of Comparable Acquisitions 83 Screen for Comparable Acquisitions 83 Examine Other Considerations 84 Step II. Locate the Necessary Deal-Related and Financial Information 86 Public Targets 86 Private Targets 89 Summary of Primary SEC Filings in M&A Transactions 90 Step III. Spread Key Statistics, Ratios, and Transaction Multiples 92 Calculation of Key Financial Statistics and Ratios 92 Calculation of Key Transaction Multiples 98 Step IV. Benchmark the Comparable Acquisitions 102 Step V. Determine Valuation 102 Key Pros and Cons 103 Illustrative Precedent Transaction Analysis for ValueCo 104 Step I. Select the Universe of Comparable Acquisitions 104 Step II. Locate the Necessary Deal-Related and Financial Information 105 Step III. Spread Key Statistics, Ratios, and Transaction Multiples 107 Step IV. Benchmark the Comparable Acquisitions 115 Step V. Determine Valuation 117 Chapter 2 Questions 118 Chapter 3 Discounted Cash Flow Analysis 123 Summary of Discounted Cash Flow Analysis Steps 124 Step I. Study the Target and Determine Key Performance Drivers 128 Study the Target 128 Determine Key Performance Drivers 128 Step II. Project Free Cash Flow 129 Considerations for Projecting Free Cash Flow 129 Projection of Sales, EBITDA, and EBIT 131 Projection of Free Cash Flow 133 Step III. Calculate Weighted Average Cost of Capital 139 Step III(a): Determine Target Capital Structure 140 Step III(b): Estimate Cost of Debt (rd) 141 Step III(c): Estimate Cost of Equity (re) 142 Step III(d): Calculate WACC 146 Step IV. Determine Terminal Value 146 Exit Multiple Method 147 Perpetuity Growth Method 147 Step V. Calculate Present Value and Determine Valuation 149 Calculate Present Value 149 Determine Valuation 151 Perform Sensitivity Analysis 153 Key Pros and Cons 154 Illustrative Discounted Cash Flow Analysis for ValueCo 155 Step I. Study the Target and Determine Key Performance Drivers 155 Step II. Project Free Cash Flow 155 Projection of Sales, EBITDA, and EBIT 157 Step III. Calculate Weighted Average Cost of Capital 162 Step IV. Determine Terminal Value 167 Step V. Calculate Present Value and Determine Valuation 169 Chapter 3 Questions 174 Part Two Leveraged Buyouts 179 Chapter 4 Leveraged Buyouts 181 Key Participants 183 Financial Sponsors 183 Investment Banks 184 Bank and Institutional Lenders 186 Bond Investors 187 Private Credit Funds 188 Target Management 188 Characteristics of a Strong LBO Candidate 189 Strong Cash Flow Generation 190 Leading and Defensible Market Positions 190 Growth Opportunities 190 Efficiency Enhancement Opportunities 191 Low Capex Requirements 191 Strong Asset Base 192 Proven Management Team 192 Economics of LBOs 193 Returns Analysis—Internal Rate of Return 193 Returns Analysis—Cash Return 194 How LBOs Generate Returns 194 How Leverage Is Used to Enhance Returns 196 Primary Exit/Monetization Strategies 199 Sale of Business 199 Initial Public Offering 200 Dividends / Dividend Recapitalization 200 Below Par Debt Repurchase 200 LBO Financing: Structure 201 LBO Financing: Primary Sources 204 Secured Debt 204 High Yield Bonds 208 Mezzanine Debt 210 Equity Contribution 211 LBO Financing: Selected Key Terms 214 Security 214 Seniority 214 Maturity 215 Coupon 216 Call Protection 217 Covenants 218 Term Sheets 221 LBO Financing: Determining Financing Structure 224 Chapter 4 Questions 229 Chapter 5 LBO Analysis 233 Financing Structure 233 Valuation 234 Step I. Locate and Analyze the Necessary Information 236 Step II. Build the Pre-LBO Model 236 Step II(a): Build Historical and Projected Income Statement through EBIT 237 Step II(b): Input Opening Balance Sheet and Project Balance Sheet Items 240 Step II(c): Build Cash Flow Statement through Investing Activities 242 Operating Activities 242 Step III. Input Transaction Structure 245 Step III(a): Enter Purchase Price Assumptions 245 Step III(b): Enter Financing Structure into Sources and Uses 247 Step III(c): Link Sources and Uses to Balance Sheet Adjustments Columns 248 Uses of Funds Links 251 Step IV. Complete the Post-LBO Model 254 Step IV(a): Build Debt Schedule 254 Step IV(b): Complete Pro Forma Income Statement from EBIT to Net Income 263 Step IV(c): Complete Pro Forma Balance Sheet 266 Step IV(d): Complete Pro Forma Cash Flow Statement 268 Step V. Perform LBO Analysis 270 Step V(a): Analyze Financing Structure 270 Step V(b): Perform Returns Analysis 272 Step V(c): Determine Valuation 276 Step V(d): Create Transaction Summary Page 277 Illustrative LBO Analysis for ValueCo 278 Chapter 5 Questions 288 Part Three Mergers & Acquisitions 293 Chapter 6 Sell-Side M&A 295 Auctions 296 Auction Structure 299 Organization and Preparation 299 Identify Seller Objectives and Determine Appropriate Sale Process 299 Perform Sell-Side Advisor Due Diligence and Preliminary Valuation Analysis 301 Select Buyer Universe 301 Prepare Marketing Materials 302 Prepare Confidentiality Agreement 305 First Round 306 Contact Prospective Buyers 306 Negotiate and Execute Confidentiality Agreement with Interested Parties 306 Distribute Confidential Information Memorandum and Initial Bid Procedures Letter 307 Prepare Management Presentation 308 Set Up Data Room 309 Prepare Stapled Financing Package (if applicable) 311 Receive Initial Bids and Select Buyers to Proceed to Second Round 311 Second Round 313 Conduct Management Presentations 313 Facilitate Site Visits 314 Provide Data Room Access and Respond to Diligence Requests 314 Distribute Final Bid Procedures Letter and Draft Definitive Agreement 315 Receive Final Bids 316 Negotiations 320 Evaluate Final Bids 320 Negotiate with Preferred Buyer(s) 320 Select Winning Bidder 320 Render Fairness Opinion (if required) 321 Receive Board/Owner Approval and Execute Definitive Agreement 321 Closing 322 Obtain Necessary Approvals 322 Shareholder Approval 323 Financing and Closing 325 Negotiated Sale 326 Chapter 6 Questions 328 Chapter 7 Buy-Side M&A 331 Buyer Motivation 332 Synergies 333 Cost Synergies 334 Revenue Synergies 334 Acquisition Strategies 335 Horizontal Integration 335 Vertical Integration 335 Conglomeration 336 Form of Financing 337 Cash on Hand 338 Debt Financing 338 Equity Financing 339 Debt vs. Equity Financing Summary—Acquirer Perspective 340 Deal Structure 340 Stock Sale 340 Asset Sale 343 Stock Sales Treated as Asset Sales for Tax Purposes 346 Buy-Side Valuation 349 Football Field 349 Analysis at Various Prices 352 Contribution Analysis 353 Merger Consequences Analysis 355 Purchase Price Assumptions 355 Balance Sheet Effects 360 Accretion/(Dilution) Analysis 365 Acquisition Scenarios—I) 50% Stock/50% Cash; II) 100% Cash; and III) 100% Stock 368 Illustrative Merger Consequences Analysis for the BuyerCo / ValueCo Transaction 373 Chapter 7 Questions 394 Part Four Initial Public Offerings 399 Chapter 8 Initial Public Offerings 401 Why Do Companies Go Public? 402 Characteristics of a Strong IPO Candidate 404 Attractive Industry 404 Strong Competitive Position 404 Growth Opportunities 405 Moat & Barriers to Entry 406 Healthy Financial Profile 406 Disruptive & Differentiated Solutions 407 Favorable Risk Profile 407 Proven Management Team 408 Key Participants 409 Investment Banks 409 Company Management 412 Current Owners / Investors 413 IPO Investors 413 Lawyers 414 Accountants 414 Exchange Partner 415 IPO Advisors 416 Vendors 416 Selected Key Terms 417 Offering Size 418 Primary / Secondary 419 Overallotment Option, a.k.a. “Greenshoe” 420 Syndicate Structure 421 Lock-up Provision 422 Listing Exchange 422 Gross Spread 423 Dual-Track Process 424 Special Purpose Acquisition Companies (SPACs) 427 Direct Listings 429 Post-IPO Equity Offerings 432 IPO Considerations 433 Chapter 8 Questions 435 Nasdaq Appendix 439 Chapter 9 The IPO Process 443 Organization and Preparation 445 Select IPO Team, Exchange Partner, and Assign Responsibilities 445 Manage Corporate Housekeeping 448 C Corp vs. Up-C Structure 453 Determine IPO Timing 455 Determine Offering Structure and Preliminary IPO Valuation 456 Host Organizational Meeting 459 Due Diligence, Drafting, and Filing 460 Perform Underwriter Due Diligence 460 Draft and File the Registration Statement 461 Prepare Other Key Transaction and Corporate Governance Documents 466 Coordinate with Equity Research 467 Respond to SEC Comments and File Amended Registration Statement 467 Marketing and Roadshow 468 Prepare Marketing Materials 468 Salesforce Teach-in 469 Conduct Roadshow 470 Build Order Book 473 Pricing and Allocation 475 Price the Offering 475 Allocate Shares to Investors 477 Closing 477 Chapter 9 Questions 479 Solutions to Selected Questions 485 Afterword 513 Bibliography and Recommended Reading 515 Index 521

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Book SynopsisTable of ContentsForeword xiii James E. Hughes, Jr. Acknowledgments xv Introduction xvii Assessing Your Family’s True Needs xxi Section 1 Thinking Through What Matters Most 1 Chapter 1 Four Profound Questions for Families 3 Ellen Miley Perry Chapter 2 Identifying Actionable Values for Family and Enterprise 7 Doug Baumoel and Blair Trippe Chapter 3 Values That Matter 13 Sharna Goldseker and Danielle Oristian York Chapter 4 A Framework for Family Wealth and Well-Being 19 Richard Franklin and Claudia Tordini Chapter 5 Understanding Identity and Social Power 27 Kofi Hope and Zahra Ebrahim Chapter 6 Tapping Character Strengths to Move Families Forward 33 Kristin Keffeler Chapter 7 Using the Ikigai Model to Foster a Legacy of Meaningful Engagement 39 Don Opatrny and Keith Michaelson Chapter 8 Stages of Wealth Integration 45 Courtney Pullen Chapter 9 Learning from Your Money History and Writing a New Story 51 Jill Shipley Chapter 10 Envisioning the Future 59 Jamie Traeger-Muney Section 2 Becoming a Learning Family 67 Chapter 11 Benchmarking Your Family Against Successful Global Families 69 Dennis Jaffe Chapter 12 Understanding the True Goals of Wealth Preparation 75 James Grubman Chapter 13 Advancing Flourishing: A 10x10 Learning Roadmap 81 Stacy Allred, Joan DiFuria, and Stephen Goldbart Chapter 14 Finding What’s Next for Your Family 97 Barton Parrott Chapter 15 Creating Impactful Learning Programs for Families 103 Greg Burrows and Ruth Steverlynck Chapter 16 Developing a Family Wealth Education Plan 111 Kirby Rosplock Chapter 17 Practical Tools for Building Healthy Families 119 Christian Stewart Section 3 Planning Thoughtfully 127 Chapter 18 Expressing Purpose in Your Trusts 129 John A. Warnick Chapter 19 Managing a Shared Family Property 137 Jamie Forbes Chapter 20 Creating a Family Bank 143 James E. Hughes, Jr. Chapter 21 Undertaking a Family Risk Assessment 147 Linda Bourn Chapter 22 Is Your Infrastructure Resilient? 155 Natasha Pearl Chapter 23 Creating a Family Owner’s Manual 161 Josh Kanter Chapter 24 Family Behavioral Health Wellness Assessment 167 Arden O’Connor Chapter 25 Building a Smart Aging Plan 173 Susan Hyatt Chapter 26 Managing the Risk of Diminished Capacity 179 Patricia Annino Chapter 27 Creating an Ethical Will 189 Scotty McLennan Section 4 Investing Wisely 197 Chapter 28 Monitoring Financial Capital with the “Four Horsemen” Graph 199 Scott Peppet Chapter 29 Keeping Goals in the Spotlight with Capital Sufficiency Analysis 203 Joe Calabrese Chapter 30 Constructing an Investment Portfolio to Support Family Goals 209 Jean Brunel and Voyt Krzychylkiewicz Chapter 31 Investment Education for Family Members 219 Jim Garland Section 5 Seeking Sound Advice 225 Chapter 32 Assessing Your Family’s Financial and Family Management Needs 227 Scott Hayman and Tom McCullough Chapter 33 Finding an Advisor Who Will Help Your Family Thrive for Generations 235 Kathy Lintz and Ned Rollhaus Chapter 34 Choosing Trustees with Care and Wisdom 241 Kim Kamin Chapter 35 Assessing Your Readiness for a (Family Enterprise) Leadership Coach 251 Greg McCann Chapter 36 Understanding Advisors’ Fees 255 Mark Pletts Section 6 Raising the Rising Generation 261 Chapter 37 Balancing Entitlement and Responsibility in Children’s Birthdays 263 Joline Godfrey Chapter 38 A Ritual to Send Children off to College 269 Andrew Doust Chapter 39 Developmental Life Lessons for Grandchildren 277 William (Bo) and Suzanne Huhn Chapter 40 Deciding If You Should Join the Family Business 281 Josh Baron and Rob Lachenauer Chapter 41 How Can You Ensure the Success of Your Successors? 287 Dean Fowler Chapter 42 The Intergenerational Dialogue 295 Susan Massenzio Section 7 Navigating Family Dynamics 299 Chapter 43 A Three-Step Process for Enhanced Communication 301 Keith Whitaker Chapter 44 Strengthening Your “Family Factor” to Deconstruct Conflict 305 Blair Trippe and Doug Baumoel Chapter 45 Using Genograms to Understand Family Patterns 311 Guillermo Salazar Chapter 46 Achieving New Insights and Possibilities through Generative Dialogue 317 Michelle Osry Chapter 47 How Powerful Are Your Questions? 323 Ian McDermott Chapter 48 Expectations versus Agreements 329 Mimi Ramsey and Stephanie Hardwick Chapter 49 Enhancing Sibling Relationships 335 Christian Stewart Chapter 50 Gamechanging 343 Matt Wesley Section 8 Making Shared Decisions 349 Chapter 51 Hats Off to You! 351 Lee Hausner Chapter 52 How to Balance Family Stability with Resilience over Generations 355 James Grubman Chapter 53 Making Better Decisions by Telling Stories That Have “Already Happened” 359 Stacy Allred Chapter 54 Democratizing Family Decision-Making 365 Barbara Hauser Chapter 55 Using RACI to Determine Roles and Responsibilities in a Complex Multigenerational Family Enterprise 369 Kathryn McCarthy Chapter 56 Creating Internal Controls and Policy and Procedures for a Family Office 377 Eugene Lipitz Chapter 57 Leading Successful Family Meetings 381 Katherine Grady and Wendy Ulaszek Chapter 58 Establishing Ground Rules for Family Meetings 387 Keith Whitaker Section 9 Giving Together 391 Chapter 59 Finding a Philanthropic Focus and Integrating the Rising Generation Perspective 393 Etienne Eichenberger, Małgorzata Smulowitz, and Peter Vogel Chapter 60 Facilitating Grandchild-Grandparent Philanthropy 401 James E. Hughes, Jr. Chapter 61 Helping Families Move Up the Philanthropic Curve 405 Leslie Pine Chapter 62 A Roadmap to Successful Philanthropy 411 Susan Winer Conclusion 415 Bios 417 Index 419

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Book SynopsisTable of ContentsPreface viii Frequently used symbols xii 1 Towards A Green, Responsible and Sustainable Corporate Finance 1 Section I Financial Analysis 17 Part One Fundamental Concepts In Financial Analysis 19 2 Cash Flow 21 3 Earnings 31 4 Capital Employed and Invested Capital 46 5 Walking Through From Earnings To Cash Flow 58 6 Getting To Grips With Consolidated Accounts 72 7 How To Cope With The Most Complex Points In Financial Accounts 90 Part Two Financial Analysis and Forecasting 117 8 How To Perform A Financial Analysis 119 9 Margin Analysis: Structure 144 10 Margin Analysis: Risks 167 11 Working Capital and Capital Expenditures 182 12 Financing 203 13 Return On Capital Employed and Return On Equity 219 14 Conclusion of Financial Analysis 238 Section II Investors and Markets 245 Part One Investment Decision Rules 247 15 The Financial Markets 249 16 The Time Value of Money and Net Present Value 270 17 The Internal Rate of Return 286 Part Two The Risk of Securities and The Required Rate of Return 299 18 Risk and Return 301 19 The Required Rate of Return 329 Part Three Financial Securities 347 20 Bonds 349 21 Other Debt Products 370 22 Shares 386 23 Options 406 24 Hybrid Securities 427 25 Selling Securities 445 Section III Value 469 26 Value and Corporate Finance 471 27 Measuring Value Creation 491 28 Investment Criteria 509 29 The Cost of Capital 525 30 Risk and Investment Analysis 542 31 Valuation Techniques 557 Section IV Corporate Financial Policies 589 Part One Capital Structure Policies 591 32 Capital Structure and The Theory of Perfect Capital Markets 593 33 Capital Structure, Taxes and Organisation Theories 605 34 Debt, Equity and Options Theory 621 35 Working Out Details: The Design of The Capital Structure 639 Part Two Equity Capital 659 36 Returning Cash To Shareholders 661 37 Distribution In Practice: Dividends and Share Buy-Backs 678 38 Share Issues 696 Part Three Debt Capital 709 39 Implementing A Debt Policy 711 Section V Financial Management 729 Part One Corporate Governance and Financial Engineering 731 40 Setting Up A Company and Financing Start-Ups 733 41 Shareholders 754 42 Choosing A Corporate Structure 779 43 Corporate Governance 795 44 Initial Public Offerings (IPOS) 807 45 Taking Control of A Company 819 46 Mergers and Demergers 842 47 Leveraged Buyouts (LBOS) 860 48 Bankruptcy and Restructuring 876 Part Two Managing Working Capital, Cash Flows, Financial Risks and Real Estate 889 49 Managing Working Capital 891 50 Cash Management 903 51 Managing Financial Risks 922 52 Managing Operational Real Estate 946 Epilogue – Finance and Strategy 958 Top 20 Largest Listed Companies 965 Contents 973 Index 983

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Book SynopsisTable of ContentsPreface xv Acknowledgements xvii About the CFA Institute Investment Series xix PART I: Fixed Income Essentials CHAPTER 1: Fixed Income Securities: Defining Elements 3 CHAPTER 2: Fixed Income Markets: Issuance, Trading, and Funding 45 CHAPTER 3: Introduction to Fixed-Income Valuation 91 CHAPTER 4: Introduction to Asset-Backed Securities 149 CHAPTER 5: Understanding Fixed-Income Risk and Return 201 CHAPTER 6: Fundamentals of Credit Analysis 257 PART II: Fixed Income Term Structure, Advanced Valuation, and Credit Analysis CHAPTER 7: The Term Structure and Interest Rate Dynamics 325 CHAPTER 8: The Arbitrage-Free Valuation Framework 377 CHAPTER 9: Valuation and Analysis of Bonds with Embedded Options 419 CHAPTER 10: Credit Analysis Models 487 CHAPTER 11: Credit Default Swaps 545 PART III: Fixed Income Portfolio Management CHAPTER 12: Overview of Fixed-Income Portfolio Management 575 CHAPTER 13: Liability-Driven and Index-Based Strategies 617 CHAPTER 14: Yield Curve Strategies 693 CHAPTER 15: Fixed-Income Active Management: Credit Strategies 743 Glossary 823 About the Editors 841 About the CFA Program 843 Index 845

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Book SynopsisAt last, a mindful book about money that anyone can appreciate and understand The Little Book of Zen Money: A Simple Path to Financial Peace of Mind delivers easy-to-follow steps for combining sensible saving strategies with mindfulness practices to achieving financial peace of mind. Finally, you can know how to fix your finances without feeling stressed out! In this book, you'll find out that sound financial strategy is far more straightforward than the financial industry wants you to think. It reveals the path to mindful money simplicity, showing readers how to adopt behaviors that encourage responsible saving and spending. You'll learn about: How to journal your spending and saving so you keep track of the money you have coming in and going outEasy mindfulness exercises, mantras, and meditations that keep you centered, rational, and calm when it comes to your moneySimple explanations of the financial industry and how to invest responsibly that anyone can understand Perfect for anyone who doesn't usually like books about money (or the complicated jargon they're often filled with), The Little Book of Zen Money proves that you don't need to be an expert, professional, or mathematician to get great financial advice.Table of ContentsPreface 9 Money 9 Zen 10 A Little Light 11 Seeing Emotions Directly 15 Zen Money 17 Introduction 19 Humans are warm 19 Money Is Cold 20 Money only appears complicated 21 Money Is Just A Tool 22 Zen Only Appears Simple 23 Wanting Nothing 26 Infinite Financial Security 28 A Simple Path To Financial Peace Of Mind 30 Here and Now 31 Chapter 1: Zen and the Art of Money Management 32 No Judgement 32 Money Stress 35 The Playground 35 The Fairytale Trove 37 The Mis-Education System 38 Best Times 42 Expensive Times 44 Fear Of Missing Out 49 Avoiding Bad Times 50 Money Can Buy Happiness - On Average 51 See Money Directly 52 Money Is A Tool 52 Time And Energy 54 The Jungle Is Neutral 55 Money Is Neutral 57 Money Management 58 The Simple Path 58 Through A Complex World 59 A Burning Forest 61 Education Is A Path 64 Begin With Small Steps 66 The Right Path For You 68 Is It A Path Or A MISSION? 70 Don’t Wobble 72 The Frame 73 The Podium 74 The Floating Buddha 76 Schrodinger’s Observation 79 A Better Frame 80 A Clearer Picture 82 How Much Is Too Much? 84 "Maslow's StairMaster" 84 Torches Of Freedom 87 The Thumb Treadmill 89 Be The Experiment 91 FIRE Worshippers 93 How Much Is Enough 96 Enough Steps 96 Stepping Off The Chocolate Treadmill 101 Maslow's Ensō 104 Zen 107 Scarcity 107 Living 108 The Zen Path 109 Chapter 2: The Path Is A MISSION 111 From Money To Now 113 The Money Step 115 Money Pots 116 Life 118 Store 120 What Money Isn’t 122 The Income Step 125 Three Sources Of Income 125 Working for someone else 126 Work for yourself 128 Work Stress 130 Work Plan 131 The Saving Step 134 Saving Always Comes First 134 The Predictability Of Not Saving Second 136 The Sound Of One Hand Saving 137 You Only Spend Once 140 The Profit Motive 142 Motivation 143 What Are We Saving For? 144 Two Steps: A Tiny One, and Half Again 146 The Spending Step 149 Not All Spending Is Bad 149 But Spending It All Might Be 150 The Save Or Spend Trade Off 151 How much? 155 We Need To Write Things Down 156 Beyond Good And Evil 158 The Investing Step 163 "I Want What She's Having" 164 The Confused Path 165 The Long-Term Power of Compounding 167 The Risk Of Not Investing 167 R-RISK 170 Small Regular Investments 174 The Owning Step 177 Freedom From Financial Concerns 177 Debt Is Not The End 179 Financially Free 181 A FIRE Of Your Own 182 The Now Step 188 The Boring Power Of Compounding 188 Live In The Present 191 Now 191 Chapter 3: The Path Is Practice 193 First Steps 193 Step 1: Saving Comes First 194 Step 2: Count to 10 194 Step 3: Write Down Your Spending 196 Step 4: Breathe more 198 Step 5: Collect Receipts 199 Step 6: Build The Faith 199 Step 7: Look Back, Look Ahead 201 Baby Steps 203 Step 8: Make a Zen Tracker 204 Step 9: Important… Notice 205 Step 10: Secret Zen Tracker 206 Step 11: Better Get A Bucket 207 Step 12: Imbue 209 Step 13: Degrees In Needs 211 Step 14: Think About The Week 212 Crawl 213 Step 15: What Is It Like? 214 Step 16: Easy As Pie 215 Step 17: Crawl Before You Walk 216 Step 18: What Else Could I Do? 218 Step 19: Triangular Breathing 219 Step 20: Take A Picture 220 Step 21: How Does This Feel? 221 Walk or it’s not about the money 224 Step 22 Sit. Walk. Don't wobble. 225 Step 23 Go for a walk 226 Step 24: Box Breathing 227 Step 25: Because you're worth it! 228 Step 26 Wobble! 229 Step 27 Give Yourself Permission 230 Step 28: Look Back Down The Path 232 You might be wrong 233 Step 29: Write This Down 234 Step 30: Who Have I Become? 235 Step 31: Zero Risk Fallacy 236 Step 32: Breath The Ocean 238 Step 33: Mindful Screen Use 239 Step 34: Mindful Spending 241 Step 35: Where Are You? 242 Challenges 243 Step 36: No Spend Days 244 Step 37: Fast Gains 244 Step 38: Breathe 246 Step 39: Work For Free 247 Step 40: Read Another Little Book 249 Step 41 Push Yourself To Breaking Point 250 Step 42: Analyse Your Finances 251 The Journey 254 43: Money And The Door 255 44: Cut Out The Income Middle Man 256 45: Saving Is An Action 257 46: Mindful Spending 257 47: Investing - Avoiding Scams 258 48: Owning 259 49: Now 260

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Book SynopsisAn irreplaceable roadmap to modern risk management fromrenowned experts on the subject Edited by a co-founder and the former Chief Risk Officer of BlackRockthe world's largest asset managerBlackRock's Guide to Fixed-Income Risk Management delivers an insightful blueprint to the implementation of a comprehensive investment risk management framework for buy-side firms. Leveraging the unprecedented academic and professional experience of current and former senior leaders in BlackRock's risk and portfolio management functions, as well as trading, financial modeling, and analytics experts, the book serves a practitioner's guide to investment risk management, leveraging BlackRock's risk management framework. The included chapters combine to provide chief investment officers, risk managers, portfolio managers, researchers, and compliance professionals an approach to investment risk management well-suited for today's and tomorrow's markets.The book also presents: Critical elements that underpin a strong risk management program and cultureFixed income risk management concepts and theories that can be applied to other asset classesLessons learned fromfinancial crises and the COVID-19 Pandemic Ideal for undergraduate students and students and scholars of business, finance, and risk management, BlackRock's Guide to Fixed-Income Risk Management is a one-of-a-kind combination of modern theory with proven, practical risk management strategies.Table of ContentsFrequently Used Abbreviations xvii Foreword xxi Preface xxiii Acknowledgments xxxi SECTION I An Approach to Fixed-Income Investment Risk Management 1 CHAPTER 1 An Investment Risk Management Paradigm 3Bennett W. Golub and Rick Flynn 1.1 Introduction 3 1.2 Elements of Risk Management 4 1.3 BlackRock’s Investment and Risk Management Approach 6 1.4 Introduction to the BlackRock Investment Risk Management Paradigm 7 CHAPTER 2 Parametric Approaches to Risk Management 11Bennett W. Golub and Leo M. Tilman 2.1 Introduction 11 2.2 Measuring Interest Rate Exposure: Analytical Approaches 12 2.3 Measuring Interest Rate Exposure: Empirical Approaches 30 2.4 Measuring Yield Curve Exposure 34 2.5 Measuring and Managing Volatility Related Risks 40 2.6 Measuring Credit Risk 47 2.7 Measuring Mortgage-Related Risks 50 2.8 Measuring Impact of Time 52 CHAPTER 3 Modeling Yield Curve Dynamics 59Bennett W. Golub and Leo M. Tilman 3.1 Probability Distributions of Systematic Risk Factors 59 3.2 Principal Component Analysis: Theory and Applications 61 3.3 Probability Distributions of Interest Rate Shocks 75 CHAPTER 4 Portfolio Risk: Estimation and Decomposition 81Amandeep Dhaliwal and Tom Booker 4.1 Introduction 81 4.2 Portfolio Volatility and Factor Structure 83 4.3 Covariance Matrix Estimation 85 4.4 Ex Ante Risk and VaR Methodologies 93 4.5 Introduction to Risk Decomposition 103 4.6 Alternative Approaches to Risk Decomposition 104 4.7 Risk Decomposition Using CTR 108 4.8 Risk Decomposition Through Time 116 4.9 Risk Decomposition: Summary 119 CHAPTER 5 Market-Driven Scenarios: An Approach for Plausible Scenario Construction 125Bennett W. Golub, David Greenberg, and Ronald Ratcliffe 5.1 Introduction 125 5.2 Implied Stress Testing Framework 127 5.3 Developing Useful Scenarios 134 5.4 A Market-Driven Scenario Example: Brexit 136 5.5 Conclusion 142 CHAPTER 6 A Framework to Quantify and Price Geopolitical Risks 145Catherine Kress, Carl Patchen, Ronald Ratcliffe, Eric Van Nostrand, and Kemin Yang 6.1 Introduction 145 6.2 Setting the Scene 146 6.3 BlackRock’s Framework for Analyzing Geopolitical Risks 149 6.4 Global Trade Deep Dive 149 6.5 What Is Already Priced In? 153 6.6 Taking Action 156 6.7 Caveats and Cautions 159 CHAPTER 7 Liquidity Risk Management 163Bennett W. Golub, Philip Sommer, Stefano Pasquali, Michael Huang, Kristen Walters, and Nikki Azznara 7.1 Introduction 163 7.2 A Brief History of Liquidity Risk Management 164 7.3 A Fund Liquidity Risk Framework 166 7.4 Asset Liquidity 166 7.5 Redemption Risk 169 7.6 Liquidity Stress Testing 170 7.7 Extraordinary Measures 171 7.8 Fixed-Income Data Availability Limitations 171 7.9 Conclusion 181 CHAPTER 8 Using Portfolio Optimization Techniques to Manage Risk 183Alex Ulitsky, Bennett W. Golub, Leo M. Tilman, and Jack Hattem 8.1 Risk Measurement Versus Risk Management 183 8.2 Typical Fixed-Income Hedges 185 8.3 Parametric Hedging Techniques 187 8.4 Generalized Approach to Hedging 189 8.5 Advanced Portfolio Optimization and Risk Management Techniques 207 CHAPTER 9 Risk Governance 219Bennett W. Golub 9.1 Introduction 219 9.2 Risk Scan Standard Framework 219 9.3 Risk and Performance Target (RPT) Framework 221 9.4 Governance 223 CHAPTER 10 Risk-Return Awareness and Behavioral Finance 225Emily Haisley and Nicky Lai 10.1 Introduction 225 10.2 Portfolio and Risk Manager Partnership 226 10.3 Behavioral Risk Management for Fixed Income 227 10.4 Decision-Making Analytics 229 10.5 Investment Process 235 10.6 Conclusion 241 CHAPTER 11 Performance Attribution 243Reade Ryan and Carol Yu 11.1 Introduction 243 11.2 Brinson Attribution and Beyond 244 11.3 Factor-Based Attribution 252 11.4 Equity Fundamental Factor-Based Attribution 256 CHAPTER 12 Performance Analysis 259Mark Paltrowitz, Mark Temple-Jones, Viola Dunne, and Christopher Calingo 12.1 Introduction 259 12.2 Performance Governance 260 12.3 Performance Metrics 260 12.4 Conclusion 266 CHAPTER 13 Evolving the Risk Management Paradigm 267Bennett W. Golub, Michael Huang, and Joe Buehlmeyer 13.1 Introduction 267 13.2 Traditional Buy-Side Risk Management Framework 268 13.3 Evolving the IRMP: In Pursuit of Investment Risk Management at Scale 268 13.4 Risk Governance 270 13.5 Supporting Risk Governance Through Technology 270 13.6 Implementing a Risk Governance Framework Through Aladdin 271 13.7 Aladdin's Risk Radar Example 271 13.8 Conclusion 276 SECTION II Fixed-Income Risk Management—Then and Now 277 CHAPTER 14 The Modernization of the Bond Market 279Daniel Veiner, Stephen Laipply, Carolyn Weinberg, Samara Cohen, Vasiliki Pachatouridi, and Hui Sien Koay 14.1 Charting the Evolution of Bond Markets 279 14.2 The Development of an Index-Based Ecosystem 285 14.3 Implications for Investing, Portfolio Management, and Risk Management 289 14.4 The Future State of Portfolio Construction 290 14.5 Conclusion 290 CHAPTER 15 The LIBOR Transition 293Jack Hattem 15.1 Introduction 293 15.2 Implications to Portfolio and Risk Management 295 15.3 Shift from LIBOR to SOFR 295 15.4 Risk Management Impact and Coordination 297 15.5 Reflections on a Benchmark Reforms 298 CHAPTER 16 Derivatives Reform: The Rise of Swap Execution Facilities and Central Counterparties 301Eileen Kiely and Jack Hattem 16.1 The Call for Change: 2008 Global Financial Crisis 301 16.2 The Value of Derivatives in Fixed-Income Portfolios 302 16.3 Trading Fixed-Income Derivatives: The Rise of SEFs 304 16.4 Clearing Fixed-Income Derivatives: The Rise of CCPs 305 16.5 CCP Risk Mitigation Techniques 306 16.6 The Call for Change: Market Participants Ask for Stronger CCPs 308 16.7 Conclusion 311 SECTION III Lessons from the Credit Crisis and Coronavirus Pandemic 313 CHAPTER 17 Risk Management Lessons Worth Remembering from the Credit Crisis of 2007–2009 315Bennett W. Golub and Conan Crum 17.1 Introduction 315 17.2 The Paramount Importance of Liquidity 316 17.3 Investors in Securitized Products Need to Look Past the Data to the Underlying Behavior of the Assets 326 17.4 Certification Is Useless During Systemic Events 331 17.5 Market Risk Can Change Dramatically 332 17.6 The Changing Nature of Market Risk 336 17.7 By the Time a Crisis Strikes, It’s Too Late to Start Preparing 337 17.8 Conclusion 338 CHAPTER 18 Reflections on Buy-Side Risk Management After (or Between) the Storms 341Bennett W. Golub and Conan Crum 18.1 Introduction 341 18.2 Risk Management Requires Institutional Buy-In 341 18.3 The Alignment and Management of Institutional Interests 342 18.4 Getting Risk Takers to Think Like Risk Managers 345 18.5 Independent Risk Management Organizations 345 18.6 Clearly Define Fiduciary Obligations 347 18.7 Bottom-Up Risk Management 348 18.8 Risk Models Require Constant Vigilance 349 18.9 Risk Management Does Not Mean Risk Avoidance 350 CHAPTER 19 Lessons Worth Considering from the COVID-19 Crisis 353Barbara Novick, Joanna Cound, Kate Fulton, and Winnie Pun 19.1 Introduction 353 19.2 Background 354 19.3 Core Principles Underpinning Recommendations 354 19.4 March 2020: Capital Markets Highlights and Official Sector Intervention 355 19.5 COVID-19 Lessons: What Worked and What Needs to be Addressed 357 19.6 Recommendations to Enhance the Resilience of Capital Markets 363 19.7 Concerns with Macroprudential Controls 368 19.8 Conclusion 369 19.9 Postscript 369 Notes 370 Bibliography 373 About the Website 383 About the Editor 385 About the Contributors 387 Index 391

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Book SynopsisAn in-depth and authoritative treatment of one of the most pressing topics of our time In Blockchain and Web3: Building the Cryptocurrency, Privacy, and Security Foundations of the Metaverse, two tech and finance experts deliver a comprehensive and accessible guide to the present and future of blockchain technology and how it will form the foundation of a new, better internet. To support a concept as bold as the Metaverse, we need several orders of magnitude more powerful computing capability, accessible at much lower latencies, across a multitude of devices and screens. You'll discover how blockchain can accelerate data flow, exchange, and transactions to create and transfer value around the world and, at the same time, how it can be used to protect user data privacy and security with decentralized web infrastructures. The book also includes: Discussions of how sovereign governments are entering the blockchain fray and how their entry, especially with CTable of ContentsForeword xi Acknowledgments xvii About the Authors xxiii Preface xxvii Part I Mega Convergence of Digital Technologies in Metaverse 1 Chapter 1 Metaverse: Convergence of Tech and Business Models 3 Chapter 2 Blockchain, the Backbone of Web3 33 Part II Blockchain Breakthroughs Set the Transaction, Privacy, and Security Foundation for the Digital Economy 69 Chapter 3 Cryptocurrencies and Tokenomics 71 Chapter 4 DeFi (Decentralized Finance): Bankless Metaverse 97 Chapter 5 NFTs, Creator Economy, and Open Metaverse 131 Chapter 6 Blockchain Gaming in Metaverse 157 Chapter 7 Metaverse Privacy: Blockchain vs. Big Tech 183 Chapter 8 Metaverse Security 217 Part III Three-Way War among Open Metaverse, Big Tech Walled Gardens, and Sovereign States 255 Chapter 9 Public Crypto, Government CBDC, and Big Tech Coin 257 Chapter 10 Web3 Creator Economy on Blockchain 289 Glossary 323 Index 349

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Book SynopsisTable of ContentsForeword xi Preface xv Acknowledgments xxiii About the Authors xxix The Keynote and the Workshop: How to Read This Book xxxiii I The Keynote 1 1 What Got You Here Won’t Get You There Thank Goodness! 3 2 We All Have a Story— Here’s a New One for You 11 3 Time- Driven Sucks Impact- Driven Matters 27 4 How Aretha Got It Right 41 5 This Could Be the Most Important Business Question Ever 47 6 Thank Goodness— A New Definition for ESG That Really Does Make a Difference 79 7 The Ongoing Upward Spiral—Perhaps a Different Kind of Legacy 87 II the Workshop 97 8 A Renaissance: The Subscription Economy 99 9 The Direct Primary Care Disrupters 107 10 Business Model Evolution 119 11 Purpose, Strategy, and Positioning 137 12 Marketing, Innovation, and Risk 151 13 Customer Transformations 167 14 Two Timeless Truths and Two Theories 179 15 Pricing the Relationship 189 16 Customer Segmentation and Pricing Tiers 205 17 Pricing the Portfolio 217 18 Measurements and Moral Hazards 239 19 Subscription Business Income Statement and KPIs 257 20 Knowledge Worker KPIs and the After- Action Review (AAR) 279 21 From Zero Defects to Zero Defections 297 22 Adoption Models 311 23 What’s Next? 327 References 335 Index 349

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