Finance and accounting Books

Book SynopsisDevelop ETF expertise with this straightforward guide Investing in ETFs For Dummies has all the basics you need to make calculated and profitable choices when investing in exchange-traded funds. ETFs make it possible for investors to quickly and easily gain exposure to wide swaths of the market. There are funds that are linked to popular market indices like the S&P 500, there are quirky thematic funds that allow you to invest in stuff like video game technology or breakfast commodities, and there's everything in between. This updated guide helps you sift through it all, covering the pros and cons of ETF investing and walking you through new and time-tested ETF strategies. Add some ETFs to your portfolio and profit in any market environment, thanks to this simple Dummies guide. Figure out what ETFs are and learn the ins and outs of the ETF marketplaceLearn to research ETFs and weigh the risks so you can make informed tradesDiscover the latest ETF products, providers, and strategiesGain Table of ContentsIntroduction 1 Part 1: Getting Started with ETFs 5 Chapter 1: ETFs: No Longer the New Kid on the Block 7 Chapter 2: Introducing the ETF Players 31 Part 2: Familiarizing Yourself with Different ETFs 57 Chapter 3: ETFs for Large Growth and Large Value 59 Chapter 4: ETFs for Small Growth and Small Value 77 Chapter 5: Around the World: Global and International ETFs 91 Chapter 6: Sector Investing and Different Specialized Stocks 111 Chapter 7: For Your Interest: Bond ETFs 127 Chapter 8: REITs, Commodities, and Active ETFs 143 Part 3: Making the Most of Your ETF Portfolio 165 Chapter 9: Checking Out Sample ETF Portfolio Menus 167 Chapter 10: Getting a Handle on Risk, Return, and Diversification 191 Chapter 11: Exercising Patience and Discovering Exceptions 211 Part 4: The Part of Tens 233 Chapter 12: Ten Common Questions about ETFs 235 Chapter 13: Ten Typical Mistakes Most Investors Make 241 Index 247

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Book SynopsisThe standard reference for fixed income portfolio managersâfully updated with new analytical frameworks Fixed Income Mathematics is known around the world as the leading guide to understanding the concepts, valuation models for bonds with embedded option, mortgage-backed securities, asset-backed securities, and other fixed income instruments, and portfolio analytics.Fixed Income Mathematics begins with basic concepts of the mathematics of finance, then systematically builds on them to reveal state-of-the-art methodologies for evaluating them and managing fixed-income portfolios. Concepts are illustrated with numerical examples and graphs, and you need only a basic knowledge of elementary algebra to understand them.This new edition includes several entirely new chaptersâRisk-Adjusted Returns, Empirical Duration, Analysis of Floating-Rate Securities, Holdings-Based Return Attribution Analysis, Returns-Based Style Attribution Analysis, Mea

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Book SynopsisAn accessible guide to the essential issues of corporate finance While you can find numerous books focused on the topic of corporate finance, few offer the type of information managers need to help them make important decisions day in and day out.Trade Reviewmarches the reader through the very practical issues that affect value. (Financial Times, November 2010).Table of ContentsAbout the Authors ix Preface xi Acknowledgments xv Part One The Four Cornerstones 1 Why Value Value? 3Many companies make decisions that compromise value in the name of creating value. But with courage and independence, executives can apply the four cornerstones of finance to make sound decisions that lead to lasting value creation. 2 The Core of Value 15Return on capital and growth are the twin drivers of value creation, but they rarely matter equally. Sometimes raising returns matters more, whereas other times accelerating growth matters more. 3 The Conservation of Value 29You can create the illusion of value or you can create real value. Sometimes acquisitions and financial engineering schemes create value, and sometimes they don’t. No matter how you slice the financial pie, only improving cash flow creates value. 4 The Expectations Treadmill 41No company can perpetually outperform the stock market’s expectations. When a company outperforms, expectations rise, forcing it to do better just to keep up. The treadmill explains why the share prices of high performing companies sometimes falter, and vice versa. 5 The Best Owner 51No company has an objective, inherent value. A target business is worth one amount to one owner and other amounts to other potential owners—depending on their relative abilities to generate cash flow from the business. Part Two The Stock Market 6 Who Is the Stock Market? 63Conventional wisdom segments investors into pigeonholes like growth and value, but these distinctions are erroneous. There’s a more insightful way to classify investors, and doing so culls out those who matter most to the value-minded executive. 7 The Stock Market and the Real Economy 73The performance of stock markets and real economies are typically aligned, hardly ever perfectly aligned, and rarely very misaligned. Executives and investors who understand this are better able to make value-creating decisions. 8 Stock Market Bubbles 89Stock market bubbles are rare and usually confined to specific industry sectors and companies. Knowing why and when bubbles occur can keep management focused on making sound strategic decisions based on a company’s intrinsic value. 9 Earnings Management 103Trying to smooth earnings is a fool’s game that can backfire and, in some cases, destroy value. Creating value in the longer run sometimes necessitates decisions that reduce earnings in the shorter run. Part Three Managing Value Creation 10 Return on Capital 119A company can’t sustain a high return on capital in the absence of an attractive industry structure and a clear competitive advantage. Yet it’s surprising how few executives can pinpoint the competitive advantages that drive their companies’ returns. 11 Growth 139It’s difficult to create value without growing, but growth alone doesn’t necessarily create value. It all depends on what type of growth a company achieves and what the returns on that growth are. 12 The Business Portfolio 153A company’s destiny is largely synonymous with the businesses it owns, and actively managed portfolios outperform passively managed portfolios. Sometimes companies can create value by selling even high-performing businesses. 13 Mergers and Acquisitions 169Most acquisitions create value, but typically the acquirer’s shareholders only get a small portion of that value, while the lion’s share goes to the target’s shareholders. But there are archetypal ways that acquirers can create value. 14 Risk 183Nothing in business is more clear yet complex than the imperative to manage risk. Clear because risk matters greatly to the company, its board, its investors, and its decision makers. Complex because each of these groups has a different perspective. 15 Capital Structure 197Getting capital structure right is important but doesn’t necessarily create value—while getting capital structure wrong can destroy tremendous value. When it comes to financial structures, companies are best to keep them as simple as possible. 16 Investor Communications 209Good investor communications can ensure that a company’s share price doesn’t become misaligned with its intrinsic value. And communication isn’t just one way: executives should listen selectively to the right investors as much as they tell investors about the company. 17 Managing for Value 223It’s not easy to strike the right balance between shorter-term financial results and longer-term value creation—especially in large, complex corporations. The trick is to cut through the clutter by making your management processes more granular and transparent. Appendix A The Math of Value 237 Appendix B The Use of Earnings Multiples 241 Index 245

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Book Synopsis* Option Trading, is the first comprehensive guide to trading options covering historical background, to contract types and market structure, to volatility measurement and forecasting, options strategies, and hedging techniques.Table of ContentsPreface xi Professional Trading xii The Role of Mathematics xiv The Structure of this Book xvi Acknowledgments xix CHAPTER 1 History 1 Summary 6 CHAPTER 2 Introduction to Options 7 Options 9 Specifications for an Option Contract 9 Uses of Options 11 Market Structure 14 Summary 20 CHAPTER 3 Arbitrage Bounds for Option Prices 21 American Options Compared to European Options 25 Absolute Maximum and Minimum Values 25 Summary 39 CHAPTER 4 Pricing Models 41 General Modeling Principles 42 Choice of Dependent Variables 45 The Binomial Model 48 The Black-Scholes-Merton (BSM) Model 55 Summary 61 CHAPTER 5 The Solution of theBlack-Scholes-Merton (BSM) Equation 63 Delta 67 Gamma 72 Theta 76 Vega 80 Summary 88 CHAPTER 6 Option Strategies 89 Forecasting and Strategy Selection 89 The Strategies 93 Summary 116 CHAPTER 7 Volatility Estimation 117 Defining and Measuring Volatility 119 Forecasting Volatility 129 Volatility in Context 132 Summary 136 CHAPTER 8 Implied Volatility 137 The Implied Volatility Curve 138 Parameterizing and Measuring the Implied Volatility Curve 142 The Implied Volatility Curve as a Function of Expiration 145 Implied Volatility Dynamics 146 Summary 151 CHAPTER 9 General Principles of Trading and Hedging 153 Edge 154 Hedging 156 Trade Sizing and Leverage 158 Scalability and Breadth 163 Summary 164 CHAPTER 10 Market Making Techniques 165 Market Structure 166 Market Making 169 Trading Based on Order-Book Information 181 Summary 189 CHAPTER 11 Volatility Trading 191 Hedging 192 Hedging in Practice 193 The P/L Distribution of Hedged Option Positions 203 Summary 213 CHAPTER 12 Expiration Trading 215 Pinning 215 Pin Risk 219 Forward Risk 221 Exercising the Wrong Options 221 Irrelevance of the Greeks 223 Expiring at a Short Strike 224 Summary 225 CHAPTER 13 Risk Management 227 Example of Position Repair 228 Inventory 232 Delta 234 Gamma 234 Vega 238 Correlation 240 Rho 242 Stock Risk: Dividends and Buy-in Risk 242 The Early Exercise of Options 243 Summary 248 Conclusion 249 APPENDIX A Distributions 253 Example 253 Moments and the “Shape” of Distributions 254 APPENDIX B Correlation 263 Glossary 271 Index 285

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Book SynopsisThe Logical Trader presents a simple trading methodology that any trader, anywhere can implement to trade anything. The "ACD Method" offers price points at which to buy and sell determined by the opening range of virtually any stock or commodity.Table of ContentsForword by Paul Tudor Jones. Introduction. Know Your ACDs. The Pivot Concept. Putting It Together: ACD and Pivot Ranges. Macro ACD. LOGICAL TRADER: MIDTERM. Pivot Moving Averages. The Advanced Trader. The ACD Version of "Ripley's Believe It or Not!" Trader Interviews. Appendix. Glossary. Index.

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Book SynopsisDesigned for non-majors, Accounting: What the Numbers Mean, guides students through the basics: what accounting information is, how it is developed, how it is used, and what it means. Financial statements are examined to learn what they do and do not communicate, enhancing the student's decision-making and problem-solving abilities from a user perspective. This approach benefits a variety of non-accounting majors, including students focusing on other areas of business or nonbusiness programs such as engineering, behavioral sciences, public administration, or prelaw.Table of ContentsChapter 1: Accounting—Present and Past 2Part 1: Financial AccountingChapter 2: Financial Statements and Accounting Concepts/Principles Chapter 3: Fundamental Interpretations Made from Financial Statement Data Chapter 4: The Bookkeeping Process and Transaction Analysis Chapter 5: Accounting for and Presentation of Current Assets Chapter 6: Accounting for and Presentation of Property, Plant, and Equipment, and Other Noncurrent Assets Chapter 7: Accounting for and Presentation of Liabilities Chapter 8: Accounting for and Presentation of Stockholders’ Equity Chapter 9: The Income Statement and the Statement of Cash Flows Chapter 10: Corporate Governance, Notes to the Financial Statements, and Other Disclosures Chapter 11: Financial Statement Analysis Part 2: Managerial AccountingChapter 12: Managerial Accounting and Cost–Volume–Profit Relationships Chapter 13: Cost Accounting and Reporting Chapter 14: Cost Planning Chapter 15: Cost Control Chapter 16: Costs for Decision Making Epilogue: Accounting—The Future Appendix: Campbell Soup Company 2020

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Book SynopsisBuffett''s Early Investments investigates ten investments that legendary investor Warren Buffett made in the 1950s and 1960s ? earning him his first millions ? and uncovers unique insights in the process.Using the same documents Buffett used when he made these investments, the author reveals the fascinating inside stories of:- How Philadelphia and Reading, Buffett?s largest investment in 1954, transformed from a declining coal company to a diversified conglomerate whose stock went up twentyfold due to the intervention of Buffett?s mentor, Ben Graham.- How Buffett and Charlie Munger made their first formal investment together in Hochschild-Kohn.- How corporate governance issues actually presented serious risk to Buffett?s 1966 investment in Walt Disney.Other investments analyzed include American Express, British Columbia Power, Cleveland Worsted Mills, Greif Bros, Marshall-Wells, Studebaker, and Union Street Railway. Not all of these investments worked out?this book shows why.Buffett?s Early Investments helps readers understand how history?s greatest ever investor really made his returns in the years where he produced his best numbers.

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Book SynopsisReal Estate Principles: A Value Approach demonstrates how value is central to virtually all real estate decision-making. Students using Ling and Archer should finish the course with a value-oriented framework and a set of valuation and decision-making tools that can be applied in a variety of real-world situations. The key to making sound investment decisions is to understand how property values are created, maintained, increased, or destroyed. Since the launch of Real Estate Principles: A Value Approach, significant and lasting changes have come upon the world of real estate. This is very true in real estate finance and capital sources where most of the traditional lenders have been transformed or displaced, giving way to a radically different set of players in mortgage finance. There has been change with profound and far-reaching implications in a world where it is understandable that property values can go down as well as up. This realization will color Table of ContentsPART 1: SETTING THE STAGE Chapter 1: The Nature of Real Estate and Real Estate Markets PART 2: LEGAL AND REGULATORY DETERMINANTS OF VALUE Chapter 2: Legal Foundations to Value Chapter 3: Conveying Real Property Interests Chapter 4: Government Controls and Real Estate Markets PART 3: MARKET VALUATION AND APPRAISAL Chapter 5: Market Determinants of ValueChapter 6: Forecasting Ownership Benefits and Value: Market Research Chapter 7: Valuation Using the Sales Comparison and Cost Approaches Chapter 8: Valuation Using the Income Approach PART 4: FINANCING HOME OWNERSHIP Chapter 9: Real Estate Finance: The Laws and Contracts Chapter 10: Residential Mortgage Types and Borrower Decisions Chapter 11: Sources of Funds for Residential Mortgages PART 5: BROKERING AND CLOSING THE TRANSACTION Chapter 12: Real Estate Brokerage and Listing Contracts Chapter 13: Contracts for Sale and Closing PART 6: TIME, OPPORTUNITY COST, AND VALUE DECISIONS Chapter 14: The Effects of Time and Risk on Value Chapter 15: Mortgage Calculations and Decisions PART 7: FINANCING AND INVESTING IN COMMERCIAL REAL ESTATE Chapter 16: Commercial Mortgage Types and Decisions Chapter 17: Sources of Commercial Debt and Equity CapitalChapter 18: Investment Decisions: Ratios Chapter 19: Investment Decisions: NPV and IRR Chapter 20: Income Taxation and ValuePART 8: CREATING AND MAINTAINING VALUEChapter 21: Enhancing Value Through Ongoing Management Chapter 22: Leases and Property Types Chapter 23: Development: The Dynamics of Creating Value 

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Book SynopsisAs the #1 best-sellerin Managerial Accounting, the 18th edition of Garrison/Noreen/Brewer''s ManagerialAccounting continues to innovate in the ways it sets up students for theirfuture career paths. Known for its clear and concise narrative, Garrison's 18thedition continues to be cutting edge through the incorporation of DataAnalytics Exercises, Integrated Excel, and a robust assessment package allincorporated and auto-gradable within Connect. New to this edition, follow anengaging continuing case featuring a real, mission driven company, HowdyHomemade Ice Cream. New franchise co-author, Norma Montague's contributionssharpened the diversity, inclusion, and ESG topic coverage throughout the textthrough the In Business boxes, Entrepreneur Spotlights, and language choicesfocused on eliminating generalizations and stereotypes around gender,abilities/disabilities, race/ethnicity, sexual orientation, diversity of names,and age.Table of ContentsPrologue:Managerial Accounting: An OverviewChapterOne: Managerial Accounting and Cost ConceptsChapterTwo: Job-Order Costing: Calculating Unit Product CostsChapterThree: Job-Order Costing: Cost Flows and External ReportingChapterFour: Process CostingChapterFive: Cost-Volume-Profit RelationshipsChapterSix: Variable Costing and Segment Reporting: Tools for ManagementChapterSeven: Activity-Based Costing: A Tool to Aid Decision MakingChapterEight: Master BudgetingChapterNine: Flexible Budgets and Performance AnalysisChapterTen: Standard Costs and VariancesChapterEleven: Responsibility Accounting SystemsChapterTwelve: Strategic Performance MeasurementChapterThirteen: Differential Analysis: The Key to Decision MakingChapterFourteen: Capital Budgeting DecisionsChapterFifteen: Statement of Cash FlowsChapterSixteen: Financial Statement AnalysisIntegration Exercises: An Overview

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Book SynopsisSeize the competitive edge through intelligent, differentiated capital allocationThe intelligent deployment of capital is one of the most effective ways to create long-term value. But despite this, there are very few capital allocation experts on the boards of the largest publicly traded companies, and academic research consistently finds that most firms deploy capital sub-optimally.Capital Allocation aims to educate senior leaders, board members, investors, students, and anyone interested in business on this important topic. Until now very little has been written on capital allocation outside of academia, even though the strategic deployment of excess capital is an increasingly significant source of competitive advantage for many companies.David Giroux, Chief Investment Officer for Equities and Multi-Asset and Head of Investment Strategy at T. Rowe Price, covers the entire gamut of capital allocation issues, including optimal capital structure, ca

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Book SynopsisBusiness valuation is the process of determining the value of a business enterprise or ownership interest. Business Valuation For Dummies is filled with expert guidance that business owners, managers at all levels, investors and students can use when determining the value of a business.Table of ContentsIntroduction 1 About This Book 1 Conventions Used in This Book 2 What You’re Not to Read 3 Foolish Assumptions 3 How This Book Is Organized 4 Part I: What Business Valuation Means 4 Part II: Getting Familiar with Valuation Tools, Principles, and Resources 4 Part III: If You’re Selling a Business 4 Part IV: If You’re Buying a Business 5 Part V: Don’t Try This at Home! Turning Things Over to the Valuation Experts 5 Part VI: The Part of Tens 5 Icons Used in This Book 6 Where to Go from Here 6 Part I: What Business Valuation Means 7 Chapter 1: The Value of Understanding Business Valuation 9 Basic Tenets and the Importance of Valuation for Businesspeople 10 Value differs from price 10 Planning drives value 10 No two valuations are exactly alike 11 Valuation isn’t a one-time deal 12 The Basic Building Blocks for Calculating Value 12 Discount and capitalization rates: The numbers that really matter 13 Doing your homework: Due diligence 13 How rule of thumb enters into business valuation 14 Getting Expert Help 15 The Move toward Intangible Asset Valuation 16 Family Businesses: Important Valuation Targets 16 Chapter 2: What Triggers a Business Valuation? 19 Exploring Reasons for Wanting a Business 20 It’s time for a new career 20 You’re fulfilling a dream 21 You’re taking advantage of a strategic opportunity 22 You’re buying a business to pass on to your heirs 23 Shaking the Money Tree: How Lenders Make Thorough Valuation a Necessity 24 Borrowing to buy a business: What lenders want to see 25 Preparing for mergers and other big-money deals 26 Seeking new or continued funding for an existing business 27 Attracting public or private investors 27 What If You Want — or Need — to Sell a Business? 28 Doing some smart estate planning 28 Reaching retirement 29 Letting the kids take over 29 Facing threats from market forces 30 Separating from a co-founder or partner 30 Dealing with divorce 32 Exit Plans: Writing the Ending 32 Who benefits from an exit plan? 33 When should an exit valuation be done? 33 Chapter 3: Understanding the Tangibles and Intangibles of Business Valuation 35 Examining Your Reasons for Valuing This Business 36 Introducing Standards of Value 37 The mother of all standards: Fair market value 38 Perceptions of investment value 38 The fundamentals of intrinsic value 39 Going over going-concern value 39 Liquidation value 40 Adjusting or Normalizing a Financial Statement 41 Other Considerations: Science Meets Art 42 Adding business and economic news 42 Folding in tangible assets 43 Drawing valuation conclusions with intangible assets 43 Chapter 4: Approaches and Methods — Basic Theories of the Valuation Process 45 A Step-by-Step Overview of the Valuation Process 47 Risky Business: Gauging Circumstances for the Best Results 49 Understanding the different approaches 50 Calculating risk and its relationship to present value 55 Using discount and capitalization rates and income valuation methods 56 Chapter 5: The Challenge of Valuation in a Knowledge Economy 61 Moving from a Hard-Asset to an Intangible-Asset Economy 61 Reviewing types of assets 62 Recognizing the increasing value of intellectual property 63 Determining the Value of a Company Based on Ideas 64 The importance of real, documented income 64 What strategic buyers and lenders want to see 66 Reaching Intangible Value 67 Taking a stab at brand valuation 67 Recognizing customers as valuation drivers 69 Preserving Your Knowledge Business for the Future 70 Shaky times: When the founder’s brain leaves the building 70 What owners need to do: Planning ahead 71 Part II: Getting Familiar with Valuation Tools, Principles, and Resources 73 Chapter 6: Getting Familiar with a Typical Valuation Report 75 What a Valuation Report Is Supposed to Do 76 Outlining a Typical Valuation Report 76 Cover 77 Valuation summary 77 Valuation assignment 80 Economic outlook 81 Industry outlook 82 Business overview 83 Conclusion of value 85 Appendixes 86 Chapter 7: Meeting the Supporting Players in the Valuation Process 87 Getting Help in Valuing Your Business 87 Recognizing situations that call for valuation experts 89 Finding the experts you need 90 Seeking the qualities your experts should have 91 Appraising What Appraisers Do 92 How appraisers are trained and certified 93 What appraisers cost 95 How to examine a business appraiser’s work process 96 What to ask a prospective business appraiser 97 Taking Account of Accountants 98 How accountants are trained 99 How accountants are certified 100 What accountants cost 101 How to examine an accountant’s work process 102 What to ask a prospective accountant 102 Hiring Advocacy: Attorneys 103 How attorneys are trained and certified 104 What attorneys cost 105 How to examine an attorney’s work process 105 What to ask a prospective attorney 105 Brokers: One-Stop Valuation and Sale Services 106 How business brokers are trained and certified 107 What business brokers cost 108 How to examine a broker’s work process 108 What to ask a prospective business broker 108 Chapter 8: Understanding Financial Statements 111 Gathering the Financial Data You Need 112 Looking into Support Data 112 External data 112 Internal data 113 Taking a Look at Financial Statements 114 The balance sheet 114 The income statement 118 Statement of retained earnings 122 Cash-flow statement 123 Ratios and formulas for valuation 126 Chapter 9: Using Rule-of-Thumb Valuations for Mom-and-Pop Businesses 131 What Rules of Thumb Do in Business Valuation 132 2008 Rules of Thumb from the Business Reference Guide 133 Full-service restaurants 133 Bars 135 Gift shops 137 Medical practices 138 Auto repair shops 140 Day-care centers for children 142 Dry cleaning 144 Coin laundries 146 Bookstores 149 Bed-and-breakfasts 149 Part III: If You’re Selling a Business 153 Chapter 10: Making Sure You’re Ready to Sell 155 Understanding Why Timing Is Important 156 Examining the Motivations behind a Potential Business Sale 156 Anticipating the owner’s retirement 158 The kids are taking over! 158 Weighing the possibility of a merger or acquisition from a friendly suitor 159 Changing market conditions are threatening a company’s future 159 Bringing Valuation into the Picture before You Bring In the Buyers 159 Providing a reality check 160 Transparency: Preparing for a sale 161 Heading off problems to increase value 162 Determining the Kind of Transaction You Want 165 Outright sale 166 Employee stock ownership plan (ESOP) 166 Ownership transfer to key family members 166 Chapter 11: Deciding What to Do about the Family Company 167 Planning for the Worst Possible Scenario 168 Examining the State of the Family Business 169 Specific characteristics of family companies 169 How families hurt the value of their businesses 170 Why “equal” in a family business isn’t always fair 174 Getting Your Family Down to Business 175 Following a phased-in approach 176 Addressing the fairness question head-on 178 Setting up the best plan for the generations 178 Chapter 12: Due Diligence on the Sell Side 181 Looking at Why a Seller Has to Do Due Diligence 181 Understanding the Three Stages of Due Diligence 183 Tricks of the Trade: Collecting and Exchanging Information 184 Gathering your own company data 184 Protecting your company with a confidentiality agreement 187 Chapter 13: Case Study: Valuation on the Sell Side 189 Heading Off Common Valuation Disasters 190 Writing down your wishes 190 Making sure that your records are adequate 191 Taking time to plan 192 Considering confidentiality 192 Setting Up Your Prevaluation Plan 192 Finding the problems 193 Analyzing the prevaluation 195 Performing the Valuation 196 Taking valuation from fantasy to reality 196 Checking the structure of the deal 200 Looking at an example of a deal in progress 201 Part IV: If You’re Buying a Business 203 Chapter 14: How Do You Know Whether You’re Ready to Buy? 205 Knowing What Typically Drives a Business Purchase 205 Getting Ready to Buy 206 Tackling challenges unique to buyers 207 Looking at whether the business is right for you 208 Evaluating a failing business 209 Understanding how the mating process (typically) works 211 Restarting the Value Process 213 Chapter 15: Moving from Valuation to Negotiation 215 Knowing What Valuation Does for the Dealmaking Process 216 Identifying potential pitfalls and opportunities 216 Timing the purchase well 216 Minimizing emotional shocks 217 Getting Ready to Meet the Seller 217 Recognizing window dressing 218 Remembering motives 218 Knowing what sellers want 219 Let’s Make a Deal: Negotiating 219 Deciding whether to handle negotiations yourself 219 Getting ready to negotiate 220 Understanding what you should do in negotiation 222 Working with someone who’s negotiating for you 223 Chapter 16: Due Diligence on the Buy Side 225 Seeing What Due Diligence Means in Practice 225 Looking at the Unoffi cial First Stages of Due Diligence 226 Researching the company 227 Consulting your family and the pros 228 The Informational Game Plan: Cracking the Books (and the Internet) 229 Gathering the Company’s Data 231 Knowing which questions to ask about the target company 232 Checking with the company’s departments 233 Collecting Outside Data about Your Industry and the Economy 235 Chapter 17: Forensic Accounting and the Due Diligence Process 239 Understanding Forensic Accountants 239 Characterizing a qualifi ed forensic accountant 240 Recognizing situations that link forensic accounting and valuation 243 Comparing Basic and Forensic Accounting 246 Recognizing Business Situations That Trigger Forensic Accounting 247 Doing a Forensic Accounting Test 248 Looking at Forensic Accounting Case Studies 249 Chapter 18: Case Study: Valuation on the Buy Side 251 Being Frank: Selecting an Industry 251 Doing Research in Advance 252 Contacting the Target 253 Negotiating the quick-and-dirty valuation stage 253 Knowing when to talk and when to hang up 254 Moving on to Company Number Two 254 Seeing How Failing to Consult an Advisor Can Cost You 255 Knowing when to involve advisors 255 Encountering problems 256 Seeing what could’ve been done 258 Checking Benchmarking Data 258 Understanding Deal Structure 259 Part V: Don’t Try This at Home! Turning Things Over to the Valuation Experts 261 Chapter 19: Divorce 263 Doing Estate Planning Regardless of Marital Status 263 Planning Prenuptial and Postnuptial Agreements 264 Breaking down a prenuptial agreement 265 Creating a postnuptial agreement 267 Seeking the Correct Professionals 267 Looking at What Happens to a Family Business in Divorce 268 State laws on splitting property 270 The marital balance of power 271 Determining the Business Value in a Divorce 272 Keeping Valuation Dates in Mind 273 Chapter 20: Estate Planning and Gifting 275 Succession Planning: A Critical Part of Business Planning 276 Considering Family Matters 276 Anticipating problems 276 Considering blended and nontraditional families 277 Creating contingency plans for relatives who renege 278 Creating a Succession Plan 279 Creating an Estate Plan 280 Finding the Experts You Need for Estate Planning 281 Fitting Buy/Sell Agreements into Estate Planning and Valuation 282 Taking Gifting into Consideration 283 Gifting strategies 283 Gifting techniques 284 Chapter 21: Attracting Outside Investors to Your Startup 287 Exploring Your Startup Resources 288 Seeing How Valuation Professionals Work with Startups 290 Creating the Starting Point: The Business Plan 291 Working with Investors 292 Angel investors 293 Venture capitalists 294 IPO investors 295 Part VI: The Part of Tens 297 Chapter 22: Ten Reasons to Consider a Prenup 299 It Gets You to Talk Honestly about Money at the Start of a Marriage 300 Your Life’s Work Shouldn’t Go down the Drain 300 If Both Spouses Have Sacrificed to Build the Business, They Need to Share 301 The Working Spouse Shouldn’t Lose the Business Entirely 302 Kids from Earlier Marriages Need Protection 302 Kids from Your Next Marriage Need Protection, Too 304 Planning for Worst-Case Scenarios Is a Good Habit 304 Your Business and Personal Finances Really Are Connected 305 Family Legacies Need Protection 305 When a Marriage Ends, a Prenup (Or Postnup) Can Save You Both Money 306 Chapter 23: Ten Questions to Answer Before Considering a Partnership Agreement 307 Who Will Be in the Partnership? 308 How Much Capital Does Each Partner Have to Kick In at the Start? 308 How Will Decisions Be Made? 309 Do You Have a Plan for Resolving Disputes? 309 How Will the Firm Admit New Partners? 310 How and When Will Profits — or Losses — Be Shared? 310 What Happens If a Partner Leaves or Dies? 311 How Will the Partnership Be Sold or Dissolved? 311 How Will Legal Disputes inside and outside the Partnership Be Handled? 312 Will Noncompete Issues Be Covered? 312 Chapter 24: Ten Things to Consider Before Transforming Your Company Into an ESOP 313 Research How ESOPs Are Created 314 Understand Why ESOPs Are Attractive in Certain Situations 314 Know How the Tax Advantages Work 315 Examine How Valuation Comes In 316 Get a Handle on Your Launch Steps 316 Prepare for Preparation Costs 317 Get Ready to Train Next-Generation Leadership 317 Plan Ongoing Training for Employees 318 Estimate ESOP Costs after Launch 318 Realize That ESOPs Can Fail 318 Glossary 319 Index 327

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Book SynopsisIn The Secret Science of Price and Volume, leading market timer Tim Ord outlines a top-down approach to tradingidentifying the trend, picking the strongest sectors, and focusing on the best stocks within those sectorsthat will allow you to excel in a variety of markets. With this book as your guide, you'll quickly become familiar with Ord's proven method and discover how it can be used to make more profitable trading decisions.Table of ContentsPreface vii Dedication ix Acknowledgments x About the Author xi Chapter 1 My Path to Successful Trading 1 Becoming a Broker 2 First Foray into Technical Analysis 3 A “Student” of the Market 5 An Incomplete Picture 6 Understanding Market Time Frames 7 “Discovering” Wyckoff 8 Price and Volume Relationships 8 My Trading Methodology 9 Chapter 2 Overview of My Method 11 Time Frames and Trading 11 Taking a Top-Down Approach 12 Aligning with the Market 30 Chapter 3 Physics of Price and Volume Analysis 33 Determining Buy and Sell Signals Using Ord-Volume 39 The Bullish Setup 54 Conclusion 56 Chapter 4 Price and Volume Relationships 59 Volume Analysis at Swings 60 Trading Gaps with Volume Comparisons 79 Chapter 5 Combining Ord-Volume with Swing Price and Volume Relationships 87 Combining Ord-Volume and Volume Relationships 88 Understanding Volume Pushing Price and Time Frames 95 Using Longer and Shorter Chart Time Frames 103 Summing It Up: Swing Price, Volume and Ord-Volume 104 Chapter 6 The “Wind at Your Back” Method 107 Finding Market Direction 107 Breadth Analysis 109 Volume Analysis 120 Momentum Analysis 125 Chapter 7 Sector Analysis and Stock Analysis: The Importance of Sentiment 135 Sector and Stock Analysis 136 Investor Sentiment Helps Pick Market Turns 145 Summing It Up: The Consensus of Indicators 154 Chapter 8 Gold Stocks: The Big Picture 157 Reading the Price Relative to Gold Ratio (PRTG) 158 Elliott Wave Analysis in Gold 160 Using “Third Time Up” and Volume Analysis 162 Applying Breakout Analysis 163 What Lies Ahead for Gold 165 Concluding the Gold Discussion 165 Chapter 9 Putting it All Together 167 Step 1: Reading Market Sentiment 168 Step 2: Evaluating Breadth, Volume, and Momentum 172 Step 3: Picking the Strongest Sectors 183 Step 4: Selecting the Strongest Stocks 185 Putting It All Together 190 Index 193

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Book SynopsisA compelling autobiography of one of the most successful investors in the history of Wall Street No Bull offers an account of some of the investment strategies that drove Michael Steinhardt's historic success as a hedge fund manager, including a focus on his skills as an industry analyst and consummate stock picker.Table of Contents1. The Phone Call. 2. Bensonhurst. 3. The Wise Guy of Forty-Seventh Street. 4. The Ivy League, the Army, and the Street. 5. The Hottest Analysts on Wall Street. 6. Steinhardt, Fine, Berkowitz & Company. 7. Judy. 8. Variant Perception. 9. There and Back. 10. Menageries and Movies. 11. The Crash of 1987. 12. The Steinhardt Style. 13. Dabbing in Politics. 14. The Worst Year of My Life. 15. "Steinhardt Quits! 16. The Death of My Father. 17. Two Rivers. Index.

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Book SynopsisThe trading bible for the new millennium In Come Into My Trading Room, noted trader and author Dr. Alexander Elder returns to expand far beyond the three M's (Mind, Method, and Money) of his bestselling Trading for a Living. Shifting focus from technical analysis to the overall management of a trader's money, time, and strategy, Dr.Table of ContentsDedication iv Introduction 1 How This Book Is Organized 2 Male Or Female? 4 Part One Financial Trading for Babes in the Woods 5 1 Invest? Trade? Gamble? 7 An Intelligent Investor 7 An Intelligent Trader 8 An Intelligent Gambler? 12 2 What Markets to Trade? 15 Stocks 16 Futures 18 Options 20 3 The First Steps 25 The External Barriers to Success 25 Getting Your Gear 32 Analysis and Trading 39 Part Two The Three M’S of Successful Trading 45 4 Mind—The Disciplined Trader 47 Sleepwalking Through the Market 49 A Remedy for Self-destructiveness 54 The Mature Trader 61 5 Method—Technical Analysis 67 Basic Charting 68 Indicators—Five Bullets to a Clip 84 6 Trading 123 System Testing 125 Triple Screen Update 128 Day-trading 138 The Impulse System 157 Market Thermometer 162 Exiting Trades 165 Choosing What to Trade 183 7 Money Management Formulas 215 No Math Illiterates 217 Businessman’s Risk vs. Loss. 218 The 2% Solution—Protection From Sharks 220 The 6% Rule—Protection From Piranhas 223 Position Sizing 227 Money Management Steps 230 Part Three Come Into My Trading Room 233 8 The Organized Trader 235 Trader’s Spreadsheet 236 The Equity Curve 238 Trading Diary 240 Action Plan 242 9 Trading for a Living 245 Discipline and Humility 247 Have You Got the Time? 251 The Decision-making Tree 257 Beginner, Semipro, Pro 264 Going Pro 267 10 Come Into My Trading Room 271 Excerpts From the Diary 273 Your Next Trade 298 Acknowledgments 301 Sources 303 Index 307 About the Author 313

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Book SynopsisA through guide covering Modern Portfolio Theory as well as the recent developments surrounding it Modern portfolio theory (MPT), which originated with Harry Markowitz''s seminal paper Portfolio Selection in 1952, has stood the test of time and continues to be the intellectual foundation for real-world portfolio management. This book presents a comprehensive picture of MPT in a manner that can be effectively used by financial practitioners and understood by students. Modern Portfolio Theory provides a summary of the important findings from all of the financial research done since MPT was created and presents all the MPT formulas and models using one consistent set of mathematical symbols. Opening with an informative introduction to the concepts of probability and utility theory, it quickly moves on to discuss Markowitz''s seminal work on the topic with a thorough explanation of the underlying mathematics. Analyzes portfolios of all sizes and types,Table of ContentsPreface xvii CHAPTER 1 Introduction 1 1.1 The Portfolio Management Process 1 1.2 The Security Analyst’s Job 1 1.3 Portfolio Analysis 2 1.3.1 Basic Assumptions 3 1.3.2 Reconsidering the Assumptions 3 1.4 Portfolio Selection 5 1.5 The Mathematics is Segregated 6 1.6 Topics to be Discussed 6 Appendix: Various Rates of Return 7 A1.1 Calculating the Holding Period Return 7 A1.2 After-Tax Returns 8 A1.3 Discrete and Continuously Compounded Returns 8 PART ONE Probability Foundations CHAPTER 2 Assessing Risk 13 2.1 Mathematical Expectation 13 2.2 What Is Risk? 15 2.3 Expected Return 16 2.4 Risk of a Security 17 2.5 Covariance of Returns 18 2.6 Correlation of Returns 19 2.7 Using Historical Returns 20 2.8 Data Input Requirements 22 2.9 Portfolio Weights 22 2.10 A Portfolio’s Expected Return 23 2.11 Portfolio Risk 23 2.12 Summary of Notations and Formulas 27 CHAPTER 3 Risk and Diversification 29 3.1 Reconsidering Risk 29 3.1.1 Symmetric Probability Distributions 31 3.1.2 Fundamental Security Analysis 32 3.2 Utility Theory 32 3.2.1 Numerical Example 33 3.2.2 Indifference Curves 35 3.3 Risk-Return Space 36 3.4 Diversification 38 3.4.1 Diversification Illustrated 38 3.4.2 Risky A + Risky B = Riskless Portfolio 39 3.4.3 Graphical Analysis 40 3.5 Conclusions 41 PART TWO Utility Foundations CHAPTER 4 Single-Period Utility Analysis 45 4.1 Basic Utility Axioms 46 4.2 The Utility of Wealth Function 47 4.3 Utility of Wealth and Returns 47 4.4 Expected Utility of Returns 48 4.5 Risk Attitudes 52 4.5.1 Risk Aversion 52 4.5.2 Risk-Loving Behavior 56 4.5.3 Risk-Neutral Behavior 57 4.6 Absolute Risk Aversion 59 4.7 Relative Risk Aversion 60 4.8 Measuring Risk Aversion 62 4.8.1 Assumptions 62 4.8.2 Power, Logarithmic, and Quadratic Utility 62 4.8.3 Isoelastic Utility Functions 64 4.8.4 Myopic, but Optimal 65 4.9 Portfolio Analysis 66 4.9.1 Quadratic Utility Functions 67 4.9.2 Using Quadratic Approximations to Delineate Max[E(Utility)] Portfolios 68 4.9.3 Normally Distributed Returns 69 4.10 Indifference Curves 69 4.10.1 Selecting Investments 71 4.10.2 Risk-Aversion Measures 73 4.11 Summary and Conclusions 74 Appendix: Risk Aversion and Indifference Curves 75 A4.1 Absolute Risk Aversion (ARA) 75 A4.2 Relative Risk Aversion (RRA) 76 A4.3 Expected Utility of Wealth 77 A4.4 Slopes of Indifference Curves 77 A4.5 Indifference Curves for Quadratic Utility 79 PART THREE Mean-Variance Portfolio Analysis CHAPTER 5 Graphical Portfolio Analysis 85 5.1 Delineating Efficient Portfolios 85 5.2 Portfolio Analysis Inputs 86 5.3 Two-Asset Isomean Lines 87 5.4 Two-Asset Isovariance Ellipses 90 5.5 Three-Asset Portfolio Analysis 92 5.5.1 Solving for One Variable Implicitly 93 5.5.2 Isomean Lines 96 5.5.3 Isovariance Ellipses 97 5.5.4 The Critical Line 99 5.5.5 Inefficient Portfolios 101 5.6 Legitimate Portfolios 102 5.7 ‘‘Unusual’’ Graphical Solutions Don’t Exist 103 5.8 Representing Constraints Graphically 103 5.9 The Interior Decorator Fallacy 103 5.10 Summary 104 Appendix: Quadratic Equations 105 A5.1 Quadratic Equations 105 A5.2 Analysis of Quadratics in Two Unknowns 106 A5.3 Analysis of Quadratics in One Unknown 107 A5.4 Solving an Ellipse 108 A5.5 Solving for Lines Tangent to a Set of Ellipses 110 CHAPTER 6 Efficient Portfolios 113 6.1 Risk and Return for Two-Asset Portfolios 113 6.2 The Opportunity Set 114 6.2.1 The Two-Security Case 114 6.2.2 Minimizing Risk in the Two-Security Case 116 6.2.3 The Three-Security Case 117 6.2.4 The n-Security Case 119 6.3 Markowitz Diversification 120 6.4 Efficient Frontier without the Risk-Free Asset 123 6.5 Introducing a Risk-Free Asset 126 6.6 Summary and Conclusions 131 Appendix: Equations for a Relationship between E(rp) and σp 131 CHAPTER 7 Advanced Mathematical Portfolio Analysis 135 7.1 Efficient Portfolios without a Risk-Free Asset 135 7.1.1 A General Formulation 135 7.1.2 Formulating with Concise Matrix Notation 140 7.1.3 The Two-Fund Separation Theorem 145 7.1.4 Caveat about Negative Weights 146 7.2 Efficient Portfolios with a Risk-Free Asset 146 7.3 Identifying the Tangency Portfolio 150 7.4 Summary and Conclusions 152 Appendix: Mathematical Derivation of the Efficient Frontier 152 A7.1 No Risk-Free Asset 152 A7.2 With a Risk-Free Asset 156 CHAPTER 8 Index Models and Return-Generating Process 165 8.1 Single-Index Models 165 8.1.1 Return-Generating Functions 165 8.1.2 Estimating the Parameters 168 8.1.3 The Single-Index Model Using Excess Returns 171 8.1.4 The Riskless Rate Can Fluctuate 173 8.1.5 Diversification 176 8.1.6 About the Single-Index Model 177 8.2 Efficient Frontier and the Single-Index Model 178 8.3 Two-Index Models 186 8.3.1 Generating Inputs 187 8.3.2 Diversification 188 8.4 Multi-Index Models 189 8.5 Conclusions 190 Appendix: Index Models 191 A8.1 Solving for Efficient Portfolios with the Single-Index Model 191 A8.2 Variance Decomposition 196 A8.3 Orthogonalizing Multiple Indexes 196 PART FOUR Non-Mean-Variance Portfolios CHAPTER 9 Non-Normal Distributions of Returns 201 9.1 Stable Paretian Distributions 201 9.2 The Student’s t-Distribution 204 9.3 Mixtures of Normal Distributions 204 9.3.1 Discrete Mixtures of Normal Distributions 204 9.3.2 Sequential Mixtures of Normal Distributions 205 9.4 Poisson Jump-Diffusion Process 206 9.5 Lognormal Distributions 206 9.5.1 Specifications of Lognormal Distributions 207 9.5.2 Portfolio Analysis under Lognormality 208 9.6 Conclusions 213 CHAPTER 10 Non-Mean-Variance Investment Decisions 215 10.1 Geometric Mean Return Criterion 215 10.1.1 Maximizing the Terminal Wealth 216 10.1.2 Log Utility and the GMR Criterion 216 10.1.3 Diversification and the GMR 217 10.2 The Safety-First Criterion 218 10.2.1 Roy’s Safety-First Criterion 218 10.2.2 Kataoka’s Safety-First Criterion 222 10.2.3 Telser’s Safety-First Criterion 225 10.3 Semivariance Analysis 228 10.3.1 Definition of Semivariance 228 10.3.2 Utility Theory 230 10.3.3 Portfolio Analysis with the Semivariance 231 10.3.4 Capital Market Theory with the Semivariance 234 10.3.5 Summary about Semivariance 236 10.4 Stochastic Dominance Criterion 236 10.4.1 First-Order Stochastic Dominance 236 10.4.2 Second-Order Stochastic Dominance 241 10.4.3 Third-Order Stochastic Dominance 244 10.4.4 Summary of Stochastic Dominance Criterion 245 10.5 Mean-Variance-Skewness Analysis 246 10.5.1 Only Two Moments Can Be Inadequate 246 10.5.2 Portfolio Analysis in Three Moments 247 10.5.3 Efficient Frontier in Three-Dimensional Space 249 10.5.4 Undiversifiable Risk and Undiversifiable Skewness 252 10.6 Summary and Conclusions 254 Appendix A: Stochastic Dominance 254 A10.1 Proof for First-Order Stochastic Dominance 254 A10.2 Proof That FA(r) ≤ FB(r) Is Equivalent to EA(r) ≥ EB(r) for Positive r 255 Appendix B: Expected Utility as a Function of Three Moments 257 CHAPTER 11 Risk Management: Value at Risk 261 11.1 VaR of a Single Asset 261 11.2 Portfolio VaR 263 11.3 Decomposition of a Portfolio’s VaR 265 11.3.1 Marginal VaR 265 11.3.2 Incremental VaR 266 11.3.3 Component VaR 267 11.4 Other VaRs 269 11.4.1 Modified VaR (MVaR) 269 11.4.2 Conditional VaR (CVaR) 270 11.5 Methods of Measuring VaR 270 11.5.1 Variance-Covariance (Delta-Normal) Method 270 11.5.2 Historical Simulation Method 274 11.5.3 Monte Carlo Simulation Method 276 11.6 Estimation of Volatilities 277 11.6.1 Unconditional Variance 277 11.6.2 Simple Moving Average 277 11.6.3 Exponentially Weighted Moving Average 278 11.6.4 GARCH-Based Volatility 278 11.6.5 Volatility Measures Using Price Range 279 11.6.6 Implied Volatility 281 11.7 The Accuracy of VaR Models 282 11.7.1 Back-Testing 283 11.7.2 Stress Testing 284 11.8 Summary and Conclusions 285 Appendix: The Delta-Gamma Method 285 PART FIVE Asset Pricing Models CHAPTER 12 The Capital Asset Pricing Model 291 12.1 Underlying Assumptions 291 12.2 The Capital Market Line 292 12.2.1 The Market Portfolio 292 12.2.2 The Separation Theorem 293 12.2.3 Efficient Frontier Equation 294 12.2.4 Portfolio Selection 294 12.3 The Capital Asset Pricing Model 295 12.3.1 Background 295 12.3.2 Derivation of the CAPM 296 12.4 Over- and Under-priced Securities 299 12.5 The Market Model and the CAPM 300 12.6 Summary and Conclusions 301 Appendix: Derivations of the CAPM 301 A12.1 Other Approaches 301 A12.2 Tangency Portfolio Research 305 CHAPTER 13 Extensions of the Standard CAPM 311 13.1 Risk-Free Borrowing or Lending 311 13.1.1 The Zero-Beta Portfolio 311 13.1.2 No Risk-Free Borrowing 314 13.1.3 Lending and Borrowing Rates Can Differ 314 13.2 Homogeneous Expectations 316 13.2.1 Investment Horizons 316 13.2.2 Multivariate Distribution of Returns 317 13.3 Perfect Markets 318 13.3.1 Taxes 318 13.3.2 Transaction Costs 320 13.3.3 Indivisibilities 321 13.3.4 Price Competition 321 13.4 Unmarketable Assets 322 13.5 Summary and Conclusions 323 Appendix: Derivations of a Non-Standard CAPM 324 A13.1 The Characteristics of the Zero-Beta Portfolio 324 A13.2 Derivation of Brennan’s After-Tax CAPM 325 A13.3 Derivation of Mayers’s CAPM for Nonmarketable Assets 328 CHAPTER 14 Empirical Tests of the CAPM 333 14.1 Time-Series Tests of the CAPM 333 14.2 Cross-Sectional Tests of the CAPM 335 14.2.1 Black, Jensen, and Scholes’s (1972) Tests 336 14.2.2 Fama and MacBeth’s (1973) Tests 340 14.2.3 Fama and French’s (1992) Tests 344 14.3 Empirical Misspecifications in Cross-Sectional Regression Tests 345 14.3.1 The Errors-in-Variables Problem 346 14.3.2 Sensitivity of Beta to the Return Measurement Intervals 351 14.4 Multivariate Tests 353 14.4.1 Gibbons’s (1982) Test 353 14.4.2 Stambaugh’s (1982) Test 355 14.4.3 Jobson and Korkie’s (1982) Test 355 14.4.4 Shanken’s (1985) Test 356 14.4.5 Generalized Method of Moment (GMM) Tests 356 14.5 Is the CAPM Testable? 356 14.6 Summary and Conclusions 357 CHAPTER 15 Continuous-Time Asset Pricing Models 361 15.1 Intertemporal CAPM (ICAPM) 361 15.2 The Consumption-Based CAPM (CCAPM) 363 15.2.1 Derivation 363 15.2.2 The Consumption-Based CAPM with a Power Utility Function 365 15.3 Conclusions 366 Appendix: Lognormality and the Consumption-Based CAPM 367 A15.1 Lognormality 367 A15.2 The Consumption-Based CAPM with Lognormality 367 CHAPTER 16 Arbitrage Pricing Theory 371 16.1 Arbitrage Concepts 371 16.2 Index Arbitrage 375 16.2.1 Basic Ideas of Index Arbitrage 376 16.2.2 Index Arbitrage and Program Trading 377 16.2.3 Use of ETFs for Index Arbitrage 377 16.3 The Asset Pricing Equation 378 16.3.1 One Single Factor with No Residual Risk 379 16.3.2 Two Factors with No Residual Risk 380 16.3.3 K Factors with No Residual Risk 381 16.3.4 K Factors with Residual Risk 382 16.4 Asset Pricing on a Security Market Plane 383 16.5 Contrasting APT with CAPM 385 16.6 Empirical Evidence 386 16.7 Comparing the APT and CAPM Empirically 388 16.8 Conclusions 389 PART SIX Implementing the Theory CHAPTER 17 Portfolio Construction and Selection 395 17.1 Efficient Markets 395 17.1.1 Fama’s Classifications 395 17.1.2 Formal Models 396 17.2 Using Portfolio Theories to Construct and Select Portfolios 398 17.3 Security Analysis 400 17.4 Market Timing 401 17.4.1 Forecasting Beta 401 17.4.2 Nonstationarity of Beta 404 17.4.3 Determinants of Beta 406 17.5 Diversification 407 17.5.1 Simple Diversification 408 17.5.2 Timing and Diversification 409 17.5.3 International Diversification 411 17.6 Constructing an Active Portfolio 415 17.7 Portfolio Revision 424 17.7.1 Portfolio Revision Costs 424 17.7.2 Controlled Transition 426 17.7.3 The Attainable Efficient Frontier 428 17.7.4 A Turnover-Constrained Approach 428 17.8 Summary and Conclusions 430 Appendix: Proofs for Some Ratios from Active Portfolios 431 A17.1 Proof for αA/σ2 εA= ∑Ki=1(αi/σ2 εi) 431 A17.2 Proof for (αAβA/ σ2 εA) = ∑Ki=1 (αiβi/σ2 εi) 431 A17.3 Proof for (α2A/ σ2 εA) = ∑Ki=1 (σ2 i/σ2 εi) 432 CHAPTER 18 Portfolio Performance Evaluation 435 18.1 Mutual Fund Returns 435 18.2 Portfolio Performance Analysis in the Good Old Days 436 18.3 Capital Market Theory Assumptions 438 18.4 Single-Parameter Portfolio Performance Measures 438 18.4.1 Sharpe’s Reward-to-Variability Ratio 439 18.4.2 Treynor’s Reward-to-Risk Ratio 441 18.4.3 Jensen’s Measure 444 18.4.4 Information Ratio (or Appraisal Ratio) 447 18.4.5 M2 Measure 448 18.5 Market Timing 449 18.5.1 Interpreting the Market Timing Coefficient 450 18.5.2 Henriksson and Merton’s Model 451 18.5.3 Descriptive Comments 452 18.6 Comparing Single-Parameter Portfolio Performance Measures 452 18.6.1 Ranking Undiversified Investments 452 18.6.2 Contrasting the Three Models 453 18.6.3 Survivorship Bias 454 18.7 The Index of Total Portfolio Risk (ITPR) and the Portfolio Beta 454 18.8 Measurement Problems 457 18.8.1 Measurement of the Market Portfolio’s Returns 458 18.8.2 Nonstationarity of Portfolio Return Distributions 460 18.9 Do Winners or Losers Repeat? 461 18.10 Summary about Investment Performance Evaluation 465 Appendix: Sharpe Ratio of an Active Portfolio 467 A18.1 Proof that S2q= S2m+ [αA/σ (εA)]2 467 CHAPTER 19 Performance Attribution 473 19.1 Factor Model Analysis 474 19.2 Return-Based Style Analysis 475 19.3 Return Decomposition-Based Analysis 479 19.4 Conclusions 485 19.4.1 Detrimental Uses of Portfolio Performance Attribution 486 19.4.2 Symbiotic Possibilities 486 Appendix: Regression Coefficients Estimation with Constraints 486 A19.1 With No Constraints 487 A19.2 With the Constraint of ∑Kk=1 βik 475 CHAPTER 20 Stock Market Developments 489 20.1 Recent NYSE Consolidations 489 20.1.1 Archipelago 490 20.1.2 Pacific Stock Exchange (PSE) 490 20.1.3 ArcaEx 490 20.1.4 New York Stock Exchange (NYSE) 490 20.1.5 NYSE Group 491 20.1.6 NYSE Diversifies Internationally 491 20.1.7 NYSE Alliances 491 20.2 International Securities Exchange (ISE) 492 20.3 Nasdaq 492 20.3.1 London Stock Exchange (LSE) 493 20.3.2 OMX Group 493 20.3.3 Bourse Dubai 493 20.3.4 Boston Stock Exchange (BSE) 494 20.3.5 Philadelphia Stock Exchange (PHLX) 494 20.4 Downward Pressures on Transactions Costs 494 20.4.1 A National Market System (NMS) 495 20.4.2 The SEC’s Reg ATS 496 20.4.3 Reg FD 496 20.4.4 Decimalization of Stock Prices 496 20.4.5 Technological Advances 496 20.5 The Venerable Limit Order 497 20.5.1 What Are Limit Orders? 497 20.5.2 Creating Market Liquidity 498 20.6 Market Microstructure 498 20.6.1 Inventory Management 498 20.6.2 Brokers 499 20.7 High-Frequency Trading 499 20.8 Alternative Trading Systems (ATSs) 500 20.8.1 Crossing Networks 500 20.8.2 Dark Pools 500 20.9 Algorithmic Trading 501 20.9.1 Some Algorithmic Trading Applications 501 20.9.2 Trading Curbs 503 20.9.3 Conclusions about Algorithmic Trading 504 20.10 Symbiotic Stock Market Developments 505 20.11 Detrimental Stock Market Developments 505 20.12 Summary and Conclusions 506 Mathematical Appendixes 509 Bibliography 519 About the Authors 539 Author Index 541 Subject Index 547

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Book SynopsisA front-line industry insider's look at the financial technology explosion The FINTECH Book is your primary guide to the financial technology revolution, and the disruption, innovation and opportunity therein.Trade ReviewFantastic project worth reading and sharing the crowdsourced format makes it a strong instrument and resource for professionals and organisations worldwide (Open Business Council, March 2016) " For the layman and the investor there is plenty to learn from and dip in and out of (Economia, May 2016) in summary, we have a handbook with an amazingly wide number of contributors, covering an extensive range of financial technology subjects, in the most absorbing and thought provoking way. It is amazing that this book has come to market at all, and our understanding of the future of our world is well served for the fact that it has done so. (BCS, July 2016)Table of ContentsPreface viii About the Editors x Acknowledgements xii 1. Introduction Banking and the E-Book Moment 6 Why We’re so Excited About FinTech 10 Current Trends in Financial Technology 13 2. FinTech Themes Banks Need to Think Collaboration Rather Than Competition 20 Global Compliance is Key 22 Lending (Capital) in the 21st Century 25 The Next Big Innovation in FinTech – Identity 28 Tech Giants Becoming Non-Bank Banks 31 Design is No Longer an Option – User Experience (UX) in FinTech 34 3. FinTech Hubs Nurturing New FinTech Communities 42 La (French) FinTech Connection 45 The Journey Towards an Integrated FinTech Ecosystem – The Netherlands 48 Luxembourg, a Future FinTech Hub? 51 Vienna as the No. 1 FinTech Hub in Mobile Payments? 53 India’s FinTech Ecosystem 56 Singapore, the FinTech Hub for Southeast Asia 58 4. Emerging Markets and Social Impact FinTech – The Not So Little Engine That Can 66 Why Am I Not Gonna Be Able to Enter a Bank? 69 The Rise of the Rest in FinTech 72 Smartphones, FinTech, and Education – Helping the Unbanked Reach Financial Inclusion 75 The Social Impact of FinTech in Nigeria 78 India and the Pyramid of Opportunity 81 5. FinTech Solutions Rewiring the Deal – The Path Forward for B2B Supply Chains 88 Payments and Point of Sales (POS) Innovation 92 Predictive Algorithms – Building Innovative Online Banking Solutions 95 Big Data is the Cornerstone of Regulatory Compliance Systems 100 FinTech Solutions in Complex Contracts Optimization 106 Behavioural Biometrics – A New Era of Security 109 Ultra-Fast Text Analytics in Trading Strategies 112 Regulated Crowdfunding Ecosystems 117 Remittances – International FX Payments at Low Cost 120 FinTech Solutions for Small Businesses 123 Payment Solutions Including Apple Pay 125 FinTech Solutions Benefiting other Sectors 128 FinTech Innovation for Wearables 131 6. Capital and Investment Investment and Capital – Back to Basics 138 Angel Investing – Access to “Smart Money” to Fund the Best FinTech Companies 141 Crowdfunding and Marketplace (P2P) Lending – Online Capital Marketplaces as New Asset Classes to Access Funding 144 The Digital Investment Space – Spanning from Social Trading to Digital Private Banking – A FinTech Sector Made for Disruption? 147 Leading the Way with an Investor-led Approach to Crowdfunding 149 My Robo Advisor was an iPod – Applying the Lessons from Other Sectors to FinTech Disruption 152 Crowdsourced Alpha 155 To Crowdsource a Hedge Fund 160 Providing Capital and Beyond 162 7. Enterprise Innovation Can Banks Innovate? 170 So, You Think the Innovation Lab is the Answer? 173 FinTechs and Banks – Collaboration is Key 179 Partnerships Are the Key to Addressing Financial and Digital Exclusion 183 Corporate Venture Capital – The New Power Broker in the FinTech Innovation Ecosystem 186 The Insurance Opportunity 190 8. More Success Stories eToro – Building the World’s Largest Social Investment Network 196 Avoka – An Overnight Success, 13 Years in the Making 198 Bankable – Banking as a Service 201 The Next Chapter in Citi’s Story of Innovation 203 FinTech Trends from the Frontline – Building Collaborative Opportunities for Start-ups, Market Infrastructures, and Wholesale Banks 206 9. Crypto-currencies and Blockchains FinTech + Digital Currency – Convergence or Collision? 212 Blockchain and Crypto-currencies 217 10. The Future of FinTech How Emerging Technologies Will Change Financial Services 226 The Future of Financial Services 229 Banking on Innovation Through Data 232 Why FinTech Banks Will Rule the World 235 The FinTech Supermarket – The Bank is Dead, Long Live the Bank! 238 Banks Partnering with FinTech Start-ups to Create an Integrated Customer Experience 241 The Rise of BankTech – The Beauty of a Hybrid Model for Banks 245 FinTech Impact on Retail Banking – From a Universal Banking Model to Banking Verticalization 248 Embracing the Connected API Economy 253 Banking Like Water 258 Eliminating Friction in Customers’ Financial Lives 261 FinTech is the Future Itself 264 A Future Without Money 267 Ethics in FinTech? 270 List of Contributors 273 Index 291

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Book SynopsisAdopt the investment strategy that turned a school teacher into a millionaire Millionaire Teacher shows you how to achieve financial independence through smart investing without being a financial wizard. Author Andrew Hallam was a high school English teacher.Table of ContentsAcknowledgments xiii Introduction 1 Rule 1 Spend Like You Want to Grow Rich 5 The Hippocratic Rule of Wealth 6 Can You See the Road When You’re Driving? 10 One of the Savviest Guys I Ever Met—And His View on Buying Cars 13 Careful Home Purchases 19 Millionaire Handouts 20 How Did I Become a Millionaire? 21 Looking to the Future 24 Rule 2 Use the Greatest Investment Ally You Have 27 Compound Interest—The World’s Most Powerful Financial Concept 29 The Bohemian Millionaire—The Best of Historical-Based Fiction 31 Gifting Money to Yourself 34 When You Definitely Shouldn’t Invest 36 How and Why Stocks Rise in Value 36 Rule 3 Small Fees Pack Big Punches 43 With Training, the Average Fifth Grader Can Take on Wall Street 44 Financial Experts Backing the Irrefutable 45 What Causes Experts to Shake Their Heads 49 When the Best Funds Turn Malignant 51 Reality Check 58 When Best Mutual Fund Lists Can Strip You Naked 61 What’s Under the Hood of an Index Fund? 69 Captain America Calls for Government Action 70 Who’s Arguing against Indexes? 72 Rule 4 Conquer the Enemy in the Mirror 81 When a 10 Percent Gain Isn’t a 10 Percent Gain 81 Are Index Fund Investors Smarter? 86 It’s Not Timing the Market That Matters; It’s Time in the Market 88 On Stocks . . . What You Really Should Have Learned in School 90 Internet Madness and the Damage It Caused 96 Taking Advantage of Fear and Greed 99 Young People Should Salivate When Stocks Sputter 101 Opportunities after Chaos 103 Rule 5 Build Mountains of Money with a Responsible Portfolio 111 What Are Bonds? 112 Profiting from Panic—Stock Market Crash, 2008–2009 116 Having a Foreign Affair 118 Introducing the Couch Potato Portfolio 120 Combinations of Stocks and Bonds Can Have Powerful Returns 123 Rule 6 Sample a “Round-the-World” Ticket to Indexing 129 What’s the Difference between an Index Fund and an ETF? 129 Indexing in the United States—An American Father of Triplets 135 Indexing in Canada 142 A Canadian Couch Potato Strips Down Costs 145 Indexing in Great Britain 148 Indexing in Australia—Winning with an American Weapon 151 Indexing in Singapore 153 The Next Step 157 Rule 7 No, You Don’t Have to Invest on Your Own 161 Are You Wired Like a Buddha? 162 How Does the Average Index Investor Underperform the Index? 163 Intelligent Investing for Americans 165 Intelligent Investing Firms for Canadians 172 Intelligent Investing Firms for British Investors 179 Intelligent Investing Firms for Australians 183 Intelligent Investment Firms in Singapore 185 Don’t Ask about Another Lover 186 Rule 8 Peek inside a Pilferer’s Playbook 189 How Will Most Financial Advisers Fight You? 189 The Totem Pole View 197 Is Government Action Required? 200 Rule 9 Avoid Seduction 205 Confession Time 205 Investment Newsletters and Their Track Records 210 High-Yielding Bonds Called “Junk” 213 Fast-Growing Markets Can Make Bad Investments 214 Gold Isn’t an Investment 216 What You Need to Know about Investment Magazines 216 Hedge Funds—The Rich Stealing from the Rich 219 Don’t Buy a Currency-Hedged Stock Market ETF 223 Beware of the Smart Beta Promise 225 Don’t Jump Heavily into Small-Cap Stocks 226 Conclusion 231 About the Author 233 Index 235

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Book SynopsisTwo Bogle Investment Classics in One Elegant Boxed Set John C. Bogle founded Vanguard in 1974, then in the space of a few years, introduced the index mutual fund, pioneered the no-load mutual fund, and redefined bond fund management. This boxed set includes John Bogle on Investing and Bogle on Mutual Funds, now regarded as timeless investment classics, like Bogle himself. Warren Buffett has called him an American hero for his contributions to the investment success of ordinary investors. John Bogle on Investing wraps up the essence of his half-century of knowledge to deepen your understanding and enhance your investment success. Bogle's investing philosophy has remained more or less constant throughout his illustrious career, and this book lays it out so you can learn from the very best. You''ll learn what makes a successful investment strategy, consider the productive economics of long-term investing, and how emotional investment in financial markets is Table of ContentsBogle On Mutual Funds Caveat Emptor Index xxxvii Part I BUILDING BLOCKS 1 Chapter One THE REWARDS OF INVESTING 3 Chapter Two THE RISKS OF INVESTING 24 Chapter Three MUTUAL FUNDS: PRINCIPLES, PRACTICALITIES, PERFORMANCE 48 Part II MUTUAL FUND SELECTION 65 Chapter Four HOW TO SELECT A COMMON STOCK MUTUAL FUND 67 Chapter Five HOW TO SELECT A BOND MUTUAL FUND 97 Chapter Six HOW TO SELECT A MONEY MARKET FUND 120 Chapter Seven HOW TO SELECT A BALANCED MUTUAL FUND 135 Chapter Eight WHERE TO GET MUTUAL FUND INFORMATION 147 Part III NEW PERSPECTIVES ON THREE KEY ISSUES 167 Chapter Nine INDEX FUNDS 169 Chapter Ten MUTUAL FUND COSTS 190 Chapter Eleven TAXES AND MUTUAL FUNDS 209 Part IV PRACTICAL APPLICATION OF INVESTMENT PRINCIPLES 233 Chapter Twelve THE ALLOCATION OF INVESTMENT ASSETS 235 Chapter Thirteen MUTUAL FUND MODEL PORTFOLIOS 259 Chapter Fourteen A MANDATE FOR FUND SHAREHOLDERS 280 Epilogue TWELVE PILLARS OF WISDOM 303 Notes 308 Index 311 Bogle On Mutual Funds: New Perspectives For The Intelligent Investor Caveat Emptor Index xxxvii Part I BUILDING BLOCKS 1 Chapter One THE REWARDS OF INVESTING 3 Chapter Two THE RISKS OF INVESTING 24 Chapter Three MUTUAL FUNDS: PRINCIPLES, PRACTICALITIES, PERFORMANCE 48 Part II MUTUAL FUND SELECTION 65 Chapter Four HOW TO SELECT A COMMON STOCK MUTUAL FUND 67 Chapter Five HOW TO SELECT A BOND MUTUAL FUND 97 Chapter Six HOW TO SELECT A MONEY MARKET FUND 120 Chapter Seven HOW TO SELECT A BALANCED MUTUAL FUND 135 Chapter Eight WHERE TO GET MUTUAL FUND INFORMATION 147 Part III NEW PERSPECTIVES ON THREE KEY ISSUES 167 Chapter Nine INDEX FUNDS 169 Chapter Ten MUTUAL FUND COSTS 190 Chapter Eleven TAXES AND MUTUAL FUNDS 209 Part IV PRACTICAL APPLICATION OF INVESTMENT PRINCIPLES 233 Chapter Twelve THE ALLOCATION OF INVESTMENT ASSETS 235 Chapter Thirteen MUTUAL FUND MODEL PORTFOLIOS 259 Chapter Fourteen A MANDATE FOR FUND SHAREHOLDERS 280 Epilogue TWELVE PILLARS OF WISDOM 303 Notes 308 Index 311 John Bogle on Investing: The First 50 Years 2015 INTRODUCTION TO THE CLASSIC EDITION OF JOHN BOGLE ON INVESTING: THE FIRST 50 YEARS IX FOREWORD: PAUL A. VOLCKER XXIX INTRODUCTION: WILLIAM T. ALLEN XXXI PREFACE XXXV SOME WORDS OF APPRECIATION XLIII Part I Investment Strategies For The Intelligent Investor 1 Investing in the New Millennium: The Bagel and the Doughnut 5 2 The Clash of the Cultures in Investing: Complexity vs. Simplicity 17 3 Equity Fund Selection: The Needle or the Haystack? 33 4 Risk and Risk Control in an Era of Confidence (or Is It Greed?) 47 5 Buy Stocks? No Way! 66 6 The Death Rattle of Indexing 82 7 25 Years of Indexing: When Active Managers Win, Who Loses? 98 8 Selecting Equity Mutual Funds 108 9 The Third Mutual Fund Industry 122 Part II Taking On The Mutual Fund Industry 10 Mutual Funds: The Paradox of Light and Darkness 141 11 Economics 101: For Mutual Fund Investors . . . For Mutual Fund Managers 153 12 Honing the Competitive Edge in Mutual Funds 168 13 Creating Shareholder Value: BY Mutual Funds . . . or FOR Mutual Fund Shareholders? 180 14 The Silence of the Funds: Mutual Fund Investment Policies and Corporate Governance 196 15 Losing Our Way: Where Are the Independent Directors? 208 Part III Economics And Idealism: The Vanguard Experiment 16 Vanguard—Child of Fortune 221 17 The Winds of Change: The Vanguard Experiment in Internalized Management 231 18 Deliverance 246 19 The Lengthened Shadow, Economics, and Idealism 260 20 On the Right Side of History 270 Part IV Personal Perspectives 21 Changing the Mutual Fund Industry: The Hedgehog and the Fox 291 22 The Majesty of Simplicity 307 23 The Things by Which One Measures One’s Life 312 24 Telltale Hearts 316 25 Press On Regardless 327 Part V The Princeton Thesis The Economic Role of the Investment Company 341 INDEX 451

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Book SynopsisUsing the groundbreaking formula they introduced in their book Financial Intelligence: A Manager''s Guide to Knowing What the Numbers Really Mean, Karen Berman and Joe Knight present the essentials of finance specifically for entrepreneurial managers.Drawing on their work training tens of thousands of people at leading organizations worldwide, the authors provide a deep understanding of the basics of financial management and measurement, along with hands-on activities to practice what you are reading. You''ll discover:Why the assumptions behind financial data matter- What income statements, balance sheets, and cash flow statements really reveal- How to use ratios to assess your venture''s financial health- How to calculate return on your investments in your enterprise- Ways to use financial information to do your own job better- How to instill financial intelligence throughout your teamAuthoritative and accessible, Financial IntelligenceTrade Review"the best, clearest guides to the numbers that I know of." -- Inc. Magazine

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Book SynopsisA journey through the personal money stories of the US presidents and how they built wealth—or didn’t.Was Harry Truman really our poorest president or simply a man up at 2 a.m. struggling with financial anxiety? Did Calvin Coolidge get bad advice from his stockbroker to buy stocks in 1930 as the market continued to crash? Is it true George Washington enhanced his net worth by marrying up? We often think of the US presidents as being above the fray. But the truth is, the presidents are just like us—worried about money, trying to keep a budget, and chasing the American financial dream. While some presidents like Herbert Hoover and Gerald Ford became wildly successful with money, others like Thomas Jefferson and Joe Biden struggled to sustain their lifestyle. The ability to win the presidency is no guarantee of financial security, although today it’s a much easier path to monetize. In All the Presidents’ Money, tax attorn

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Book SynopsisThe lifelong guide to effective family wealth management strategy Family Capitalprovides a unique and practical lesson on wealth management. Instead of lectures and dry discussion, this engaging book follows an archetypal wealthy family through several generations and collateral family units to show you what effective family capital management looks like long-term. You will actually listen in on meetings between the family and its wealth advisor as they grapple with the many challenges family investors face. Expert wealth advisor Gregory Curtis provides advice and insight along the way, explaining why each strategy is effective, and how you can put it to work for you. You''ll learn how to find an advisor you can trust, how to evaluate their performance, and how you can take the lead role in managing your wealth with the right advisor by your side. Estate planning and portfolio design are explored thoroughly to help you understand what makes sense for your family, and tTable of ContentsPreface ix The Titan Family x Organization of the Book xi A Note to Middle-Income Investors xiii Acknowledgments xv Prologue: The Titan Family in America xvii Preparation and Use xvii The Extended Titan Family xxii The Titan Family Tree xxvi Summary xxvi Note xxvi Chapter 1 George Titan III and His Catastrophic Mistake 1 Preparation and Use 1 How Not to Manage Your Family’s Money 1 The Mistakes George Made 9 What a Good Advisor Could Have Done for the Titans 12 Summary 17 Notes 17 Chapter 2 Ned and Rose Succeed Jake as Co-Heads of the Family 19 Preparation and Use 19 Ned and Rose React to George III’s Decision to Sell Equities 19 Jake Picks Ned and Rose as Co-Heads of His Branch of the Titan Family 21 What the Regional Brokerage Firm Could Have Done Better 35 Summary 38 Chapter 3 The Titans Search for and Engage a New Financial Advisor 39 Preparation and Use 39 How the Titans Conducted Their Search 39 Concluding the Search 46 Summary 50 Notes 51 Chapter 4 First Meeting: Governance, Investment Strategy, and Other Introductory Matters 53 Preparation and Use 53 First Meeting with the Titans’ New Advisor 53 Summary 62 Note 62 Chapter 5 The Titans Create an Investment Policy Statement 63 Preparation and Use 63 The Titan Family Meeting 65 Summary 91 Notes 95 Chapter 6 Establishing the Titan Family’s Investment Objectives 97 Preparation and Use 97 The Titan Family’s Version of Their Investment Objectives 97 Summary 121 Notes 122 Chapter 7 The Titans Grapple with Asset Allocation 125 Preparation and Use 125 The Asset Allocation Meeting 126 Summary 164 Notes 165 Chapter 8 The Manager Search Meeting 167 Preparation and Use 167 The Manager Selection Meeting 168 Summary 206 Notes 207 Chapter 9 Reviewing the Performance of the Investment Accounts 209 Preparation and Use 209 The Performance Reporting Meeting 210 Summary 244 Notes 245 Chapter 10 Miscellaneous Investment-Related Discussions 247 Preparation and Use 247 Family Investment Education 247 Adding Value to the Titan Family Portfolio 256 Investment Committees 263 Socially Responsible Investing 266 Summary 270 Notes 272 Chapter 11 Miscellaneous Non-Investment Discussions 275 Preparation and Use 275 Hiring a Custodian 275 Family Limited Partnerships 280 Family Philanthropy 281 The Family Office 290 How Much to Leave the Kids 292 Inequality and Wealth 295 Summary 307 Notes 308 About the Website 311 About the Author 313 Index 315

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Book Synopsis"Although Reminiscences. was first published some seventy years ago, its take on crowd psychology and market timing is a s timely as last summer's frenzy on the foreign exchange markets.Trade Review"...certainly one of the most entertaining books ever written about stock trading..." (Money magazine, November 2007) "...is a classic that gives readers a sense of a trader's mind..." (Wall Street Journal, August 7, 2006) "... an engaging read, chock-full of pearls of wisdom and amusing anecdotes...candid and analytical style evoking sympathy for the narrator." (Money Week, October 2006) "... contains timeless advice on the markets." (The Independent, Extra, Thu 13th March)Table of ContentsChapter I - 3 Chapter II – 14 Chapter III – 27 Chapter IV – 35 Chapter V – 49 Chapter VI – 60 Chapter VII – 71 Chapter VIII – 77 Chapter IX – 89 Chapter X – 104 Chapter XI – 116 Chapter XII – 127 Chapter XIII – 141 Chapter XIV – 153 Chapter XV – 168 Chapter XVI – 176 Chapter XVII – 190 Chapter XVIII – 203 Chapter XIX – 210 Chapter XX – 216 Chapter XXI – 227 Chapter XXII – 241 Chapter XXIII – 259 Chapter XXIV – 269

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Book SynopsisPlay the forex markets to win with this invaluable guide to strategy and analysis Day Trading and Swing Trading the Currency Market gives forex traders the strategies and skills they need to approach this highly competitive arena on an equal footing with major institutions. Now in it''s third edition, this invaluable guide provides the latest statistics, data, and analysis of recent events, giving you the most up-to-date picture of the state of the fast-moving foreign exchange markets. You''ll learn how the interbank currency markets work, and how to borrow strategy from the biggest players to profit from trends. Clear and comprehensive, this book describes the technical and fundamental strategies that allow individual traders to compete with bank traders, and gives you comprehensive explanations of strategies involving intermarket relationships, interest rate differentials, option volatilities, news events, and more. The companion website gives you access to video semTable of ContentsPreface ix About the Author xi Chapter 1 Foreign Exchange—The Fastest Growing Market of Our Time 1 Chapter 2 Historical Events in the FX Markets 17 Chapter 3 What Moves the Currency Market? 31 Chapter 4 A Deeper Look at the FX Market 53 Chapter 5 What Are the Most Market Moving Economic Data? 61 Chapter 6 What Are Currency Correlations, and How Can We Use Them? 67 Chapter 7 Trade Parameters for Various Market Conditions 73 Chapter 8 Technical Trading Strategy: Multiple Time Frame Analysis 91 Chapter 9 Technical Strategy: Trading with Double Bollinger Bands 101 Chapter 10 Technical Trading Strategy: Fading the Double Zeros 111 Chapter 11 Technical Trading Strategy: Waiting for the Deal 117 Chapter 12 Technical Trading Strategy: Inside Days Breakout Play 123 Chapter 13 Technical Trading Strategy: Fader 129 Chapter 14 Technical Trading Strategy: 20-Day Breakout Trade 135 Chapter 15 Technical Trading Strategy: Channels 139 Chapter 16 Technical Trading Strategy: Perfect Order 143 Chapter 17 Fundamental Trading Strategy: Pairing Strong with Weak 149 Chapter 18 Fundamental Trading Strategy: The Leveraged Carry Trade 153 Chapter 19 Fundamental Trading Strategy: Macro Event Driven Trade 161 Chapter 20 Quantitative Easing and Its Impact on Forex 169 Chapter 21 Fundamental Trading Strategy: Commodity Prices as a Leading Indicator 177 Chapter 22 Fundamental Strategy: Using Bond Spreads as a Leading Indicator for FX 181 Chapter 23 Fundamental Trading Strategy: Risk Reversals 187 Chapter 24 Fundamental Trading Strategy: Using Option Volatilities to Time Market Movements 191 Chapter 25 Fundamental Trading Strategy: Intervention 195 Chapter 26 Currency Profiles and Outlook 203 Chapter 27 Currency Profile: Euro (EUR) 213 Chapter 28 Currency Profile: British Pound (GBP) 223 Chapter 29 Currency Profile: Swiss Franc (CHF) 231 Chapter 30 Currency Profile: Japanese Yen (JPY) 239 Chapter 31 Currency Profile: Australian Dollar (AUD) 247 Chapter 32 Currency Profile: New Zealand Dollar (NZD) 255 Chapter 33 Currency Profile: Canadian Dollar (CAD) 263 Index 269

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Book SynopsisThe Visual Investor, Second Edition breaks down technical analysis into terms that are accessible to even individual investors. Shows investors how to follow the ups and downs of stock prices by visually comparing the charts, without using formulas or having a necessarily advanced understanding of technical analysis math and jargon.Table of ContentsPreface xv Acknowledgments xix Section One Introduction 1 What Has Changed? 1 Fund Categories 2 Global Funds 2 Investors Need to Be Better Informed 3 Benefits of Visual Investing 3 Structure of the Book 3 Chapter 1 What Is Visual Investing? 5 Why Market Analysis? 5 The Trend Is to Blend 6 What’s in a Name? 6 Why Study the Market? 7 Chartists Are Cheaters 7 It’s Always Just Supply and Demand 7 Charts Are Just Faster 8 Charts Do Look Ahead 8 Pictures Don’t Lie 9 Picture Anything You Want 9 The Market’s Always Right 9 It’s All About Trend 10 Isn’t the Past Always Prologue? 10 Timing Is Everything 13 Summary 13 Chapter 2 The Trend Is Your Friend 15 What Is a Trend? 15 Support and Resistance Levels 18 Role Reversal 18 Short Versus Long Term 25 Daily, Weekly, and Monthly Charts 28 Recent versus Distant Past 28 Trendlines 31 Channel Lines 34 Retracing Our Steps by One-Third, One-Half, and Two-Thirds 34 Weekly Reversals 38 Summary 38 Chapter 3 Pictures That Tell a Story 41 Chart Types 41 Time Choices 46 Scaling 46 Volume Analysis 50 Chart Patterns 52 Measuring Techniques 61 Even the Fed Is Charting 65 The Triangle 65 Point-and-Figure Charts 66 Chart Pattern Recognition Software 70 Section Two Indicators 73 Chapter 4 Your Best Friend in a Trend 75 Two Classes of Indicators 75 The Moving Average 76 The Simple Average 76 Weighting the Average or Smoothing It? 77 Moving Average Lengths 77 Moving Average Combinations 78 Summary 95 Chapter 5 Is It Overbought or Oversold? 97 Measuring Overbought and Oversold Conditions 97 Divergences 97 Momentum 99 Welles Wilder’s Relative Strength Index 100 The Stochastics Oscillator 110 Combine RSI and Stochastics 113 Summary 119 Chapter 6 How to Have the Best of Both Worlds 121 MACD Construction 121 MACD as Trend-Following Indicator 123 MACD as an Oscillator 123 MACD Divergences 125 How to Blend Daily and Weekly Signals 125 How to Make MACD Even Better—The Histogram 128 Be Sure to Watch Monthly Signals 130 How to Know Which Indicators to Use 130 The Average Directional Movement (ADX) Line 133 Summary 135 Section Three Linkage 137 Chapter 7 Market Linkage 139 The Asset Allocation Process 140 The Relative Strength Ratio 142 2002 Shift from Paper to Hard Assets 142 Commodity/Bond Ratio also Turned up 144 Turns in the Bond/Stock Ratio 144 2007 Ratio Shifts Back to Bonds 147 Bonds Rise as Stocks Fall 147 Falling U.S. Rates Hurt the Dollar 147 Falling Dollar Pushes Gold to Record High 150 Commodity-Related Stocks 153 Foreign Stocks Are Linked to the Dollar 153 Commodity Exporters Get Bigger Boost 156 Global Decoupling Is a Myth 156 Rising Yen Threatens Global Stocks 158 Review of 2004 Intermarket Book 159 Summary 161 Chapter 8 Market Breadth 163 Measuring Market Breadth with NYSE AD Line 163 NYSE AD Line Violates Moving Average Lines 164 Advance-Decline Shows Negative Divergence 164 Where the Negative Divergences Were Located 166 Retail Stocks Start to Underperform During 2007 169 Retailers and Homebuilders Were Linked 171 Consumers are also Squeezed by Rising Oil 173 Dow Theory 173 Transports Don’t Confirm Industrial High 175 Percent of NYSE Stocks above 200-Day Average 175 NYSE Bullish Percent Index 179 Point-and-Figure Version of BPI 181 Summary 182 Chapter 9 Relative Strength and Rotation 183 Uses of Relative Strength 183 Top-Down Analysis 186 Relative Strength versus Absolute Performance 187 Using Relative Strength between Stocks 190 Comparing Gold Stocks to Gold 190 How to Spot New Market Leaders 193 Where the Money Came from 193 Spotting Rotation Back into Large Caps 196 Trend Changes Are Easy to Spot 198 Rotation within Market Sectors 198 Chinese Stocks Lose Leadership Role 200 Summary 202 Section Four Mutual Funds and Exchange Traded Funds 205 Chapter 10 Sectors and Industry Groups 207 Difference between Sectors and Industry Groups 208 Performance Charts 209 Sector Carpets 211 Using Market Carpet to Find Stock Leaders 212 Industry Group Leader 213 Sector Trends Need to Be Monitored 214 Information on Sectors and Industry Groups 214 Spotting Natural Gas Leadership 215 Natural Gas Components 215 CBOE Volatility (VIX) Index 217 Summary 221 Chapter 11 Mutual Funds 227 What Works on Mutual Funds 227 Open- versus Closed-End Funds 228 Charting Adjustments on Open-End Funds 228 Blending Fundamental and Technical Data 229 Relative Strength Analysis 229 Traditional and Nontraditional Mutual Funds 229 Keep It Simple 230 200-Day Moving Average and Housing 230 Natural Gas Breakout 232 Consumer Discretionary Breakdown 232 Bear Crossing Sinks Chips 235 Negative ROC Hurts Technology 235 Consumer Staples Hold Up Okay 235 Retail Ratio Plunges 235 Energizing a Portfolio 240 Latin America Leads 240 Real Estate Is Global 240 Profunds Rising Rates Fund 244 Profunds Falling U.S. Dollar Fund 244 Commodity Mutual Funds 247 Inverse Stock Funds 247 Summary 250 Chapter 12 Exchange-Traded Funds 251 ETFs versus Mutual Funds 252 Using ETFs to Hedge 253 Using a Bear ETF 253 Trading the Nasdaq 100 255 Using Sector ETFs 258 Inverse Sector ETFs 260 Using Technology as a Market Indicator 260 Commodity ETFs 263 Foreign Currency ETFs 263 Bond ETFs 267 International ETFs 269 Summary 275 Conclusion 279 Why It’s Called Visual Investing 279 The Media Will Always Tell You Why Later 279 Media Views Keep Shifting 280 Visual Analysis Is More User Friendly 280 Keep It Simple 280 Visual Tools Are Universal 281 The Stock Market Leads the Economy 281 Prices Lead the Fundamentals 282 Sector Investing 282 Exchange-Traded Funds 283 A Year After the 2007 Top 283 Warning Signs were Clearly Visible 284 Appendix A Getting Started 285 Find a Good Web Site 285 Use the Readers Choice Awards 285 StockCharts.com 286 Chart School 286 Online Bookstore 287 Investor’s Business Daily 288 Stock Scans 288 Bullish Percent Indexes 289 DecisionPoint.com 294 McClellan Breadth Indicators 294 Appendix B Japanese Candlesticks 295 Candlestick Patterns 297 Bullish Engulfing Pattern 298 Stock Scan Candlestick Patterns 300 Recommended Reading 300 Appendix C Point-and-Figure Charting 301 Triple and Quadruple Signals 302 How to Vary P&F Charts for Sensitivity 304 There’s No Doubt about P&F Signals 305 Recommended Reading 306 Index 307

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Book SynopsisUnique insights into how the mind of an investor operates and how developing emotional awareness leads to long-term success Inside the Investor''s Brain provides readers with specific techniques for understanding their financial psychology, so that they can improve their own performance and learn how to outsmart other investors. Chapter by chapter, author Richard Peterson addresses various mental traps and how they play a role in investing. Through examples, such as a gambling experiment with playing cards, the author shows readers how being aware of the subconscious can separate the smart investors from the average ones. This book also contains descriptions of the work of neuroscientists, financial practitioners, and psychologists, offering an expert''s view into the mind of the market. Innovative and accessible, Inside the Investor''s Brain gives investors the tools they need to better understand how emotions and mental biases affect the way they manage money and react to Trade Review"Exceptionally well-written, it will likely prove to be a seminal text on the influence of the human brain on investment behavior. And neurofinance, as that field is known, may provide the next great edge for savvy investors. ... Inside the Investor's Brain , written by an experienced but surprisingly young author (he's 35), is outstanding. Peterson and his first book have much to offer investors and the institutions in which they work." -- Dr. David L. Nathan, (Barron's, September 2007) "Clear and Accessible." -- Bob Frick (Kiplinger's Personal Finance, December 2007) "Highly recommended." -- (Kiplinger's Best Investing Reads of 2007) "For those who want to take behaviouralism a step further, and to study the science of the brain - a subject that tells us a lot about ourselves, as well as about how we might just make some more money ... " --(Financial Times, December 2007)Table of ContentsPreface. Acknowledgments. About the Author. Introduction. Part I: Foundations. Chapter 1: Markets on the Mind. Analysts and Dart Boards. Developing Better Expectations. “The Wisdom of the Collective” Meteorological Anomalies and Other Animal Spirits. Sentiment. Chapter 2: Brain Basics. Damasio and the Iowa Gambling Task. The Brain: Structure and Function. The Brain-Damaged Investor. Research Methods. Neuroscience Preview. Chapter 3: Origins of Mind. Emotions and Perceptions. Expectations and the Comparator. Counterfactual Comparisons. Beliefs and Expectations: The Placebo Effect. Making Sense of the News. Self-Deception. Emotional Defense Mechanisms and Motivated Reasoning. Chapter 4: Neurochemistry. Introducing the Neurotransmitters. Serotonin. Dopamine. Norepinephrine. Opiates. Stress Hormones. Caffeine. GABA, Acetylcholine, and Omega-3 Fatty Acids. The Chemistry of (Financial) Mental Disorders. The Neurochemistry of Financial Performance. Serotonin and Market Bubbles. Recreational Drugs and Alcohol. Alcohol. Cocaine. Part II: Feelings and Finances. Chapter 5: Intuition. Analysis and Intuition. Investment Practice. What Does Your "Gut" Tell You? Listening Without Thinking. Intuition and Emotion in Investing. Emotional Intelligence. Subliminal Emotion. Stirring the Unconscious. Chapter 6: Money Emotions. Emotional Biases. The Difference between Positive and Negative Feelings. Regret as a Self-Fulfilling Prophecy. An Amicable Divorce. Sadness and Disgust. Fear and Anger. Projection Bias. Managing Feelings. Summary. Chapter 7: Excitement and Greed. Brokers Kindle Irrational Exuberance. The Anatomy of Stock Hype. Greed: The Basics. The BIAS Task. The Nucleus Accumbens. Excited About a Good Deal. Improving Biased Decision Making. Greed in the Markets. Chapter 8: Overconfidence and Hubris. The Psychology of Hubris. Overconfidence. Illusion of Control. Winning Changes the Brain. The Neurochemistry of Exploration. One Who Knows: Christian Siva-Jothy. Confidence—the "Good" Kind. Solutions. Chapter 9: Anxiety, Fear, and Nervousness. Climbing a Wall of Worry. Dread in the MRI. Nature versus Nurture. It’s All in Your Head. Empathy Gaps. Pain Relief. Investment Lessons. Of Hurricanes, Risk Perceptions, and Opportunity. Summary. Chapter 10: Stress and Burnout. Stress. Cramer on Stress. Choking for Rupees. Which Goes Wrong—the Brains or the Brawn? Stress and Trend Perception. Neurochemistry of Stress. Biological Effects of Stress. Adrenaline Junkies. Managing Investment Stress. Summary. Chapter 11: Love of Risk. Knowing When to Fold ‘Em. Pathological Gambling. The Gambler’s Brain. Ought to Know Better. Reducing Gambling. Summary. Chapter 12: Personality Factors. The "Big Five." Extraversion versus Introversion. Neuroticism versus Emotional Stability. Conscientiousness versus Impulsiveness. Openness to New Experiences versus Traditionalism. Agreeableness versus Self-interest. The Genetics of Personality. Investing Personality. Neurotic Investors. Extraverted, Open, and Conscientious Investors. Other Personality Research. Trading Psychology. Part III: Thinking about Money. Chapter 13: Making Decisions. Expected Value and Expected Utility. The Jackpot Trap. Probability Misjudgments. Vividness, Imagination, and Desire. Ambiguity and Uncertainty. Ambiguity in the Markets. Neuroscience of Ambiguity, Risk, and Reward. The Possibility that You are Overweight. The Trusting Brain. Neuroscience of the Ultimatum Game. The Trust Hormone. Implications. Chapter 14: Framing Your Options. The Disposition Effect. A Father-Son Stock Sale. Teasing out the Problem. Framing Risk. A Frame in the Membrane. Holding Losers: "Double-or-Nothing!" Differences in Aversion. Letting Winners Ride. Summary. Chapter 15: Loss Aversion. Neuroscience of Loss Aversion. The Equity Premium Puzzle. The Implied Put Option. Overcoming Loss Aversion. The House Money Effect. Lessons from the Pope. Comments from Soros, Tudor, and Cramer: "Booyah!" Chapter 16: Time Discounting. Get Your Hand out of the Cookie Jar. Brain Basis of Delayed Gratification. Chemical Impulses. Monkey Business. Making a Killing in the Options Pit. Improving Self-Control. In Practice. Chapter 17: Herding. Herding. Social Proof. Social Comparison. Asch and Conformity. Information Cascades. Stanley Milgram and the Shocking Truth. Nice Clothes, Fast Cars, and Fancy Titles. The Neuroscience of Cooperation. Analysts' Abuse of Authority. The Herding Habit. Living the Contrarian Lifestyle. Advice for Herd Animals and Trend Followers. Advice for Investment Committees. Chapter 18: Charting and Data Mining. Artificial Neural Networks. Data Mining and Self-deception. Finding Patterns in the Noise. The Trend and Mean-reversion Biases in Chart Reading. Overreliance on Charts. The Gambler's Fallacy. Irrational Exuberance . . . Called Too Early. The Soochow Gambling Task. The Learned Caudate. Patterns in Earnings Reports. Fooled by Randomness. Chapter 19: Attention and Memory. Terminal Illness. Representative Returns. Fond Memories. Beating the Hindsight Bias. Attention Deficit. Keep Your Eye on the Pills. What's in a Name? China Prosperity Internet Holdings. "All that Glitters." Chapter 20: Age, Sex, and Culture. Emotional Memories. The Female Brain: Estrogen, Emotion, and Cooperation. Financial Planning for Divorcees. Male Overconfidence. Age. The Seattle Longitudinal Study of Adult Development. Culture (East and West). Chinese Risk Takers. Biases Among Chinese Stock Traders. Part IV: In Practice. Chapter 21: Emotion Management. Do it for Love, Not Money. Money Changes You. Emotional Defenses. The Pursuit of Happiness. Neuroplasticity. Chemical Stabilizers. Self-discipline. Creating a Decision Journal. Chapter 22: Change Techniques. Dealing with Fearful and Overconfident Clients. Cognitive-behavioral Therapy and Stress Management. Yoga, Meditation, and Lifestyle. Simple Stress Reduction. Getting Out of a Slump. Trading Coaches. Flavia Cymbalista. Denise Shull. Modeling Others. Growing Happier. Neurofeedback. Maintain "Learning Goals." Chapter 23: Behavioral Finance Investing. Harvesting Risk Premia. Risk Premia and Expectations. Value versus Glamour. Momentum, Size, and the Optimal Portfolio. "Buy on the Rumor and Sell on the News." Limits to Arbitrage. Behavioral Finance Fund Performance. Behavioral Investment Products. Final Notes. Notes. Glossary. Index.

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Book SynopsisProven currency--specific trading strategies from one of todaya s top currency analysts "If you trade currency, then you need to have this book on your desk. Ita s the only book you need for technical analysis of the fastest--moving market on the planet. " --Rob Booker, Currency Trader, W.R.Table of ContentsChapter 1: FX 101. Chapter 2: Is It All Just Random? Chapter 3: The Secret to Trading. Chapter 4: Show Me the Data! Chapter 5: Trend Is Your Friend? Chapter 6: Gauging Range. Chapter 7: Fibs Don’t Fib. Chapter 8: Patterns and Antipatterns: Know Your Mark. Chapter 9: Know Yourself, Know Your Setup. Chapter 10: Setups! Setups! Setups! Glossary. Index.

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Book SynopsisDividends are payments made by a corporation to its shareholders. They can either be re-invested in the business, or it can be paid to the shareholders of the corporation as dividends. Dividend Stocks For Dummies gives expert advice on how to make the most out of dividend stock investing no matter the type of market.Trade Review‘…explains in easy to understand detail how dividend stocks work, how to analyze the stocks… and managing your portfolio.' (Stockerblog.com, August 2010).Table of ContentsIntroduction 1 Part I: Introducing Dividend Investing Basics 7 Chapter 1: Wrapping Your Brain Around Dividend Investing 9 Chapter 2: Brushing Up on Dividend Details 27 Chapter 3: Grasping the Dividend Advantage 41 Part II: Selecting an Investment Approach and Picking Stocks 57 Chapter 4: Risky Business: Assessing Risk and Your Risk Tolerance 59 Chapter 5: Setting Goals and Making Plans 75 Chapter 6: Choosing the Right Approach for You 87 Chapter 7: Searching for Promising Candidates 101 Chapter 8: Sizing Up Potential Picks 113 Part III: Exploring Income-Generating Industries 141 Chapter 9: Lighting Up Your Portfolio with Utilities 143 Chapter 10: Pumping Up Your Portfolio with Energy Partnerships 153 Chapter 11: Getting Connected with Telecommunications Stocks 163 Chapter 12: Investing in the Necessities of Life: Consumer Goods 173 Chapter 13: Exploring REITs and Financials 183 Part IV: Checking Out Dividend Investment Vehicles 203 Chapter 14: Compounding Your Returns with Dividend Reinvestment Plans 205 Chapter 15: Diversifying Your Dividends through Mutual Funds 217 Chapter 16: Tapping the Best of Both Worlds with Exchange-Traded Funds 235 Chapter 17: Going Global with Foreign Dividends 251 Part V: Managing Your Portfolio 261 Chapter 18: Choosing an Effective Stock-Picking Strategy 263 Chapter 19: Buying and Selling Dividend Stocks: Where and How 273 Chapter 20: Tuning In to Changes in Tax Laws 287 Part VI: The Part of Tens 305 Chapter 21: Setting the Record Straight: Ten Common Misconceptions about Dividends 307 Chapter 22: Ten Dividend Investing Mistakes and How to Avoid Them 313 Appendix: The Dividend Aristocrats 319 Index 323

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Book SynopsisTen Leading private investors share theirsecrets to maximum profitabilityIn The Masters of Private Equity and Venture Capital, thepioneers of the industry share the investing and managementwisdom they have gained by investing in andtransforming their portfolio companies.Based on original interviews conducted by the authors,this book is filled with colorful stories on the subjectsthat most matter to the high-level investor, such asselecting and working with management, pioneeringnew markets, adding value through operationalimprovements, applying private equity principles tonon-profits, and much more.Table of Contents1. Introduction by Josh Lerner Part One: The Private Equity Masters 2. John Canning 3. Tom Lee 4. Joseph Rice 5. Jeff Walker 6. Carl Thoma Part Two: The Venture Capital Masters7. Bill Draper 8. Pat Cloherty 9. Tim Collins 10. John Doerr 11. Edward Glassmeyer 12. Edward Gramlich 13. Afterward by Steve Kaplan

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Book SynopsisNew commentary and updates to enlightening interviews with today's top global macro hedge fund managers This updated paperback edition of Inside the House of Money lifts the veil on the typically opaque world of hedge funds offering a rare glimpse at how today's highest paid money managers approach their craft.Table of ContentsForeword by Niall Ferguson ix Preface xi Preface to the 2009 Edition xv Preface to the 2006 Edition xvii 1. Introduction to Global Macro Hedge Funds:Joseph G. Nicholas (HFR Group) 1 2. The History of Global Macro Hedge Funds 5 3. The Future of Global Macro Hedge Funds 31 4. The Family Offi ce Manager: Jim Leitner (Falcon Management) 35 5. The Prop Trader: Christian Siva-Jothy (SemperMacro) 85 6. The Treasurer: Dr. John Porter (Barclays Capital) 117 7. The Central Banker: Dr. Sushil Wadhwani (Wadhwani Asset Management) 145 8. The Dot-Commer: Peter Thiel (Clarium Capital) 165 9. The Floor Trader: Yra Harris (Praxis Trading) 183 10. The Pioneer: Jim Rogers 201 11. The Commodity Specialist: Dwight Anderson (Ospraie Management) 225 12. The Stock Operator: Scott Bessent (Bessent Capital) 253 13. The Emerging Market Specialist: Marko Dimitrijevic´ (Everest Capital) 273 14. The Fixed Income Specialists: David Gorton and Rob Standing (London Diversifi ed Fund Management) 293 15. The Currency Specialist: Anonymous 309 Conclusion 325 Appendix: A Note to Investors about Global Macro 327 Acknowledgments 329 Bibliography 331 Index 335

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Book SynopsisThe book of financial wisdom that your future self will thank you for reading For many adults under 40, ''debt'' is a four-letter wordsomething that should be avoided but is all too often unavoidable. In The Value of Debt in Building Wealth, bestselling author Thomas J. Anderson encourages you to rethink that. You''ll walk away from this book with an understanding of how you can use debt wisely to secure the financial future you envision for yourself and your family. Student loans, mortgages, lines of credit, and other forms of debt are all discussed in detail, with a focus on smart planning for those who are accumulating assetsand debtnow. Should you rent or buy? How important is liquidity? What is good versus bad debt? How much debt should you have? What debt-to-income and debt-to-asset ratios should you aim for? Fixed debt or floating debt? What''s the best way of saving for college and retirement? These are big questions that deserve thorough answers because theTable of ContentsForeword xi Acknowledgments xv About the Author xix Introduction xxiii Chapter 1: The Traditional Glide Path 1 In a Perfect World, No Debt! But Our World Isn’t Perfect 2 You Owe a Debt to Your Future Self 3 Break the Paycheck-to-Paycheck Cycle 4 Companies Embrace Balance 5 The Power of Savings 6 A New Glide Path: Debt Adds Value 8 Finding Your Glide Path 11 The Need for Specific, Actionable Advice 12 Endnotes 14 Chapter 2: Foundational Facts 17 All Debt Is Not Equal: Oppressive, Working, and Enriching Debt 18 Paying Down Debt Gives You a Return Equal to Your After-Tax Cost of That Debt 20 Sh∗t Happens—Value Liquidity 20 Yes, You Can—Save 24 Compounding Matters—For the Upside and the Downside 26 The Past Is the Past; Focus on the Future 29 Behavioral Economics Matters 30 Endnotes 31 Chapter 3: A Balanced Path to L.I.F.E. 33 Phase 1: Launch! 37 Phase 2: Independence 51 Endnotes 62 Chapter 4: Freedom and Equilibrium 65 Phase 3: Freedom 66 Phase 4: Equilibrium 76 Bonus Phase: No Debt! 80 Endnotes 82 Chapter 5: The Other Side of the Balance Sheet 85 The Probability of an 8 Percent Rate of Return Is Zero 86 Risk, Return, and Diversification 87 What about Interest Rates and Cost of Debt? 95 What about One of Your Biggest Assets? Your House 97 Three Buckets of Money 99 Risk Matters—The Risk of Time 105 Factoring Leverage into Returns 107 Debt as an Integrated Part of Your Investment Philosophy 109 Endnotes 110 Chapter 6: Proof of the Value of Debt 113 The Big Picture—Debt Can Be Valuable 115 Children and College Savings 127 Interest Rates and Debt Service Coverage Ratios 128 Endnotes 128 Chapter 7: Conclusion 131 Taking a Stand Against Conventional Wisdom 132 Endnotes 137 Appendix A: Phi Phound Me 139 Inspiration Arrived 140 Not Perfect Makes Perfect 142 Applying the Fibonacci Sequence 142 From 13 to 8 148 From 8 to 5 150 Super Cool Math 151 Endnotes 154 Appendix B: Understanding the Power of Securities-Based Lending 155 Case Study 156 The Power of Securities-Based Lending 159 First Bank of Mom and Dad 162 Endnotes 163 Appendix C: Home Purchase and Financing Considerations 165 Don’t Rush to Buy a House 166 When Home Ownership Can Go Wrong 168 Save Yourself the Anguish 169 Be Careful! 170 All Mortgages Are Not Created Equal 171 Owning Can Be Great 175 Endnotes 176 Appendix D: The Millennial’s Guide to Debt and Getting Started 179 Saddled by Student Loans 180 The Best Budget: Spend Less Than You Make 182 Debt-to-Income Ratios 185 Pulling These Concepts Together 188 Endnotes 188 Appendix E: The Math Behind the Examples 191 Chapter 1: The Nadas, Steadys, and Radicals 193 Chapters 3 and 4: Brandon and Teresa 199 Higher Income 210 Endnotes 216 Glossary 219 Resource Guide 225 Bibliography 231 Suggested Reading 233 Index 235

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Book SynopsisUse the power of behavioral finance to make smarter, better-informed decisions through every step of the investing processIn an economy where markets are more unpredictable than ever, emotions can derail the efforts of even the most experienced investors and wreak havoc on portfolio returns.Applying powerful behavioral finance concepts, Stop. Think. Invest. provides a framework for identifying personal biases and avoiding mistakes that can cost big profits. Based on the authorâs extensive research and 100 key behavioral finance concepts, this guide provides a winning 12-step process you can use to successfully manage your trading and investing for long-term success, including: Begin the initial research into a new stock Create an investment thesisâwhy are you buying the stock? Trade timing and sizeâwhen are you buying and how much? Make the initial purchase Review the tradeâround up or round down Test you

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Book SynopsisBuild an agile, responsive portfolio with a new approach to global asset allocation Adaptive Asset Allocation is a no-nonsense how-to guide for dynamic portfolio management. Written by the team behind Gestaltu.com, this book walks you through a uniquely objective and unbiased investment philosophy and provides clear guidelines for execution. From foundational concepts and timing to forecasting and portfolio optimization, this book shares insightful perspective on portfolio adaptation that can improve any investment strategy. Accessible explanations of both classical and contemporary research support the methodologies presented, bolstered by the authors'' own capstone case study showing the direct impact of this approach on the individual investor. Financial advisors are competing in an increasingly commoditized environment, with the added burden of two substantial bear markets in the last 15 years. This book presents a framework that addresses the major challenges bTable of ContentsAcknowledgments xi PART I THE PHILOSOPHY OF SUCCESSFUL INVESTING 1 CHAPTER 1 The Most Important Concepts in Wealth Management 5 CHAPTER 2 The Narrative Is Reality 11 CHAPTER 3 Tightly Grouped Arrows Nowhere Near the Bull’s-eye 15 CHAPTER 4 What Is Gestalt? 19 CHAPTER 5 Measuring the Relative Value of Portfolios 23 CHAPTER 6 The Whole Is Greater than the Sum of Its Parts 27 CHAPTER 7 Our Process Is a Financial Gestalt 29 PART II SAVING AND WITHDRAWING FROM PORTFOLIOS 31 CHAPTER 8 Beware of Those Pesky “Volatility Gremlins” 33 CHAPTER 9 It’s Not Just the Destination, It’s Also the Journey 37 CHAPTER 10 In a Perfect World 39 CHAPTER 11 Home on the Range 41 CHAPTER 12 Timing Is Everything 43 CHAPTER 13 Longevity Risk 47 CHAPTER 14 Plan for the Worst, Hope for the Best 49 CHAPTER 15 Sequence of Returns for Savers 53 CHAPTER 16 Individual Rate of Return for Savers 57 CHAPTER 17 Sequence of Returns for Retirees 59 CHAPTER 18 Do You Feel Lucky? 63 PART III CURRENT HIGH VALUATIONS MEAN LOWER FUTURE RETURNS 65 CHAPTER 19 A Simple Model to Forecast Equity Market Returns 67 CHAPTER 20 Implied Future Returns over the Next 20 Years 73 CHAPTER 21 How Do We Do It? 75 CHAPTER 22 Forecasts 80 Percent More Accurate than Always Assuming Long-Term Averages 81 CHAPTER 23 Roller Coasters Are for Amusement Parks 83 CHAPTER 24 The Last Five Years Have Been a Triumph for the Ostriches 87 PART IV AN INVESTMENT FRAMEWORK FOR STABILITY, GROWTH, AND MAXIMUM INCOME 89 CHAPTER 25 A Word about Asset Allocation 91 CHAPTER 26 The Optimization Machine 93 CHAPTER 27 Garbage In, Garbage Out 95 CHAPTER 28 All We Know Is That We Know Nothing 103 CHAPTER 29 If We Know How Assets Should Behave 107 CHAPTER 30 A Structurally Diverse Investment Universe 119 CHAPTER 31 If We Can Estimate Volatility 121 CHAPTER 32 If We Can Estimate Volatility and Correlation 125 CHAPTER 33 If We Can Estimate Volatility, Correlations, and Returns 129 CHAPTER 34 Summary of the Optimization Machine 133 CHAPTER 35 Building to Adaptive Asset Allocation 135 CHAPTER 36 Integration of Adaptive Asset Allocation 141 PART V WHY YOU SHOULD TRUST THE RESEARCH 145 CHAPTER 37 The Usefulness and Uselessness of Backtests 147 CHAPTER 38 Tactical Alpha and the Quantitative Case for Active Asset Allocation 155 CHAPTER 39 Sensitivity of Safe Withdrawal Rates to Longevity, Market, and Failure Risk Preferences with Implications for Asset Allocation 181 CHAPTER 40 Winning by Not Losing. Or, Bootstrapping to Estimate Risk 203 Final Thoughts 207 Bibliography 209 Index 213

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Book SynopsisThe seminal work on mutual funds investing is now a Wiley Investment Classic Certain books have redefined the way we view the world of finance and investing books that should be on every investor s shelf.Trade Review“No investor can be called “intelligent” who doesn’t understand the principles Bogle articulates in this book. The investor may still decide to try his hand at outperforming the market, but he should know what he’s up against.” – Investing.comTable of ContentsCaveat Emptor Index xxxvii Part I Building Blocks 1 Chapter One The Rewards of Investing 3 Chapter Two The Risks of Investing 24 Chapter Three Mutual Funds: Principles, Practicalities, Performance 48 Part II Mutual Fund Selection 65 Chapter Four How To Select A Common Stock Mutual Fund 67 Chapter Five How To Select A Bond Mutual Fund 97 Chapter Six How To Select A Money Market Fund 120 Chapter Seven How To Select A Balanced Mutual Fund 135 Chapter Eight Where To Get Mutual Fund Information 147 Part III New Perspectives On Three Key Issues 167 Chapter Nine Index Funds 169 Chapter Ten Mutual Fund Costs 190 Chapter Eleven Taxes and Mutual Funds 209 Part IV Practical Application of Investment Principles 233 Chapter Twelve The Allocation of Investment Assets 235 Chapter Thirteen Mutual Fund Model Portfolios 259 Chapter Fourteen A Mandate For Fund Shareholders 280 Epilogue Twelve Pillars of Wisdom 303 Notes 308 Index 311

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Book SynopsisWhether the markets are moving up or down, options remain one of the most attractive instruments for investors. This beginner's guide to trading options starts with a basic explanation of terminology, and then explains trading methodologies with chapters on direct and contrary indicators, protecting a stock portfolio, and trading volatility.Table of ContentsIntroduction. Options as Direct Indicators. Options as Contrary Indicators. System Trading. Protecting a Stock Portfolio. Trading Volatility. Buy Low and Sell High--Volatility, That Is. Answers to Review Questions. Glossary. Index.

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Book SynopsisCrossing Frontiers is a story about the settlements industry in Europe, with an emphasis on cross border, influenced by the developments and business in the US and bound up with the Americanization of securities markets, all the while relating the impact on Europe.Trade Review"...will interest specialists, general readers and fans of detective fiction... grippingly relevant to current economic circumstances" (Financial Times, Monday 7th January 2008) "virtually the only book to cover this arcane subject comprehensively, it is an essential complement for any financial market’s library." (Financial World, February 2008) "...a comprehensive and exhaustively researched study.." (Speed, Vol. 2) “Norman has produced a history of EU clearing and settlement systems” (European Voice, Thursday 14th February 2008) “...deserves to become compulsory reading for regulators and policy makers everywhere." (Global Custodian, Spring 2008)Table of ContentsList of Tables and Figures ix Preface xi Part I New problems. New solutions 1 1 Settling Securities Across Borders 3 1.1 Turnover in the trillions 3 1.2 Process and players 9 2 The Eurobond Market and the New York Settlement Crisis 17 2.1 Autostrade shows the way 17 2.2 Foreign dollar bonds and their settlement 19 2.3 From Autostrade to the New York settlement crisis 20 2.4 The AIBD 23 2.5 Settlement services in Luxembourg 25 3 The ICSDs – Euroclear and Cedel 29 3.1 Closings in Brussels 29 3.2 The creation of Euroclear 31 3.3 Establishing Cedel in Luxembourg 35 3.4 Cedel’s success 37 3.5 The wider settlement picture 39 4 Euroclear Fights Back 43 4.1 The sale of Euroclear to its users 43 4.2 Difficult days 45 4.3 Commitment to investment 48 4.4 Euclid 51 4.5 Securities lending and borrowing 52 4.6 The Bridge 54 4.7 Prospering in difficult times 55 Part II Winds of Change 61 5 New Markets, New Tensions 63 5.1 Caviar and champagne 63 5.2 The 1980s – Deregulation and securitisation 66 5.3 Diversification at Euroclear 72 5.4 The Belgian cooperative 76 6 After the Crash 79 6.1 Strengthening cooperation and national systems 79 6.2 European considerations 82 6.3 American influences 84 6.4 Central bankers push for DvP 87 7 The Coming of the Euro 91 7.1 A world transformed 91 7.2 Beyond G30 92 7.3 The EMI and Lamfalussy 94 7.4 The growth of repo activity 97 7.5 The ECB and securities settlement 100 Part III An Industry in Ferment 105 8 The Rivals 107 8.1 Euroclear and the boom in domestic markets 107 8.2 Lussi and the revival of Cedel 116 9 Change at the Exchanges and CSDs 123 9.1 Investment and consolidation 123 9.2 Seifert in Frankfurt – a story of vertical integration 125 9.3 Th´eodore in Paris – innovation through IT 129 9.4 Taurus and CREST – a horizontal system by accident 133 9.5 The Swiss Value Chain 135 9.6 Different blueprints 136 10 Corporate Manoeuvrings 141 10.1 Pressure for change 141 10.2 A European clearing house? 143 10.3 A meeting of minds in Marrakech 144 10.4 Dark days for Euroclear 146 10.5 The fight back begins 147 10.6 The French defect 149 11 Euroclear Transformed 151 11.1 Euroclear separates from Morgan 151 11.2 The creation of Euronext 156 11.3 Euroclear acquires Sicovam 158 12 Seifert’s Silo 163 12.1 A flurry of initiatives 163 12.2 Lussi’s fortunes ebb 165 12.3 Lussi’s downfall 167 12.4 The banks change tack 170 12.5 Seifert secures Clearstream 171 13 Europe with Two Settlement Models 175 13.1 Euroclear acquires CREST 175 13.2 A sub-optimal outcome 179 13.3 Embedding the vertical and horizontal models 182 13.4 LCH and Clearnet merge 184 13.5 Fair & Clear 186 13.6 Changes in structures and governance 187 Part IV An Issue for Europe 191 14 The EU Reacts 193 14.1 The Lisbon Agenda 193 14.2 The Lamfalussy Committee of Wise Men 194 14.3 The Giovannini Reports 196 14.4 The cost of fragmentation 200 14.5 The Commission responds 201 14.6 The Andria Report 203 14.7 The ESCB/CESR standards 203 14.8 The G30 and EFR Reports 205 14.9 MiFID 206 14.10 The Commission’s second communication 207 14.11 The arrival of McCreevy 208 15 Setting Parameters 213 15.1 Algorithms and exchanges 213 15.2 Seifert and the law of unintended consequences 215 15.3 Exchange consolidation: an unpredictable catalyst 217 15.4 Competition authorities turn against silos 218 15.5 Competition and interoperability 220 15.6 For and against a single CCP 222 15.7 User discontent 224 15.8 Change at Euroclear 227 16 Work in Progress 233 16.1 Euroclear’s domestic market for Europe 233 16.2 Cesame and dismantling the Giovannini barriers 238 17 Frameworks for the Future 243 17.1 Two solutions at once 243 17.2 The code of conduct 244 17.3 Target2-Securities 250 17.4 T2S – the follow-up 254 17.5 Questions and more questions 259 18 Conclusions and Reflections 265 Appendices 271 A References and bibliography 271 B Key dates for the securities settlement industry in Europe 279 C Who’s who in the history of European securities settlement 291 D Glossary of technical terms 311 E Postscript 329 Index 333

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Book SynopsisTable of ContentsPreface 1 Introduction 3 1 Market Data 9 1.1 Tick and bar data 9 1.2 Corporate actions and adjustment factor 10 1.3 Linear vs log returns 11 2 Forecasting 13 2.1 Data for forecasts 14 2.1.1 Point-in-time and lookahead 15 2.1.2 Security master and survival bias 16 2.1.3 Fundamental and accounting data 16 2.1.4 Analyst estimates 17 2.1.5 Supply chain and competition 18 2.1.6 M&A and risk arbitrage 18 2.1.7 Event-based predictors 18 2.1.8 Holdings and flows 19 2.1.9 News and social media 20 2.1.10 Macroeconomic data 21 2.1.11 Alternative data 21 2.1.12 Alpha capture 21 2.2 Technical forecasts 22 2.2.1 Mean reversion 22 2.2.2 Momentum 24 2.2.3 Trading volume 24 2.2.4 Statistical predictors 25 2.2.5 Data from other asset classes 25 2.3 Basic concepts of statistical learning 27 2.3.1 Mutual information and Shannon entropy 28 2.3.2 Likelihood and Bayesian inference 32 2.3.3 Mean square error and correlation 33 2.3.4 Bias-variance tradeoff 35 2.3.5 PAC learnability, VC dimension, and generalization error bounds 36 2.4 Machine learning 40 2.4.1 Types of machine learning 41 2.4.2 Overfitting 43 2.4.3 Ordinary and generalized least squares 44 2.4.4 Deep learning 46 2.4.5 Types of neural networks 48 2.4.6 Nonparametric methods 51 2.4.7 Cross-validation 54 2.4.8 Curse of dimensionality, eigenvalue cleaning, and shrinkage 56 2.4.9 Smoothing and regularization 61 2.4.9.1 Smoothing spline 62 2.4.9.2 Total variation denoising 62 2.4.9.3 Nadaraya-Watson kernel smoother 63 2.4.9.4 Local linear regression 64 2.4.9.5 Gaussian process 64 2.4.9.6 Ridge and kernel ridge regression 67 2.4.9.7 Bandwidth and hypertuning of kernel smoothers 68 2.4.9.8 Lasso regression 69 2.4.10 Generalization puzzle of deep and overparameterized learning 69 2.4.11 Online machine learning 74 2.4.12 Boosting 75 2.4.13 Randomized learning 79 2.4.14 Latent structure 80 2.4.15 No free lunch and AutoML 81 2.4.16 Computer power and machine learning 83 2.5 Dynamical modeling 87 2.6 Alternative reality 89 2.7 Timeliness-significance tradeoff 90 2.8 Grouping 91 2.9 Conditioning 92 2.10 Pairwise predictors 92 2.11 Forecast for securities from their linear combinations 93 2.12 Forecast research vs simulation 95 3 Forecast Combining 97 3.1 Correlation and diversification 98 3.2 Portfolio combining 99 3.3 Mean-variance combination of forecasts 102 3.4 Combining features vs combining forecasts 103 3.5 Dimensionality reduction 104 3.5.1 PCA, PCR, CCA, ICA, LCA, and PLS 105 3.5.2 Clustering 107 3.5.3 Hierarchical combining 108 3.6 Synthetic security view 108 3.7 Collaborative filtering 109 3.8 Alpha pool management 110 3.8.1 Forecast development guidelines 111 3.8.1.1 Point-in-time data 111 3.8.1.2 Horizon and scaling 111 3.8.1.3 Type of target return 112 3.8.1.4 Performance metrics 112 3.8.1.5 Measure of forecast uncertainty 112 3.8.1.6 Correlation with existing forecasts 112 3.8.1.7 Raw feature library 113 3.8.1.8 Overfit handling 113 3.8.2 Pnl attribution 114 3.8.2.1 Marginal attribution 114 3.8.2.2 Regression-based attribution 114 4 Risk 117 4.1 Value at risk and expected shortfall 117 4.2 Factor models 119 4.3 Types of risk factors 120 4.4 Return and risk decomposition 121 4.5 Weighted PCA 122 4.6 PCA transformation 123 4.7 Crowding and liquidation 124 4.8 Liquidity risk and short squeeze 126 4.9 Forecast uncertainty and alpha risk 127 5 Trading Costs 129 5.1 Slippage 130 5.2 Impact 130 5.2.1 Empirical observations 132 5.2.2 Linear impact model 133 5.2.3 Impact arbitrage 135 5.3 Cost of carry 135 6 Portfolio Construction 137 6.1 Hedged allocation 137 6.2 Single-period vs multi-period mean-variance utility 139 6.3 Single-name multi-period optimization 140 6.3.1 Optimization with fast impact decay 141 6.3.2 Optimization with exponentially decaying impact 142 6.3.3 Optimization conditional on a future position 143 6.3.4 Position value and utility leak 145 6.3.5 Optimization with slippage 146 6.4 Multi-period portfolio optimization 148 6.4.1 Unconstrained portfolio optimization with linear impact costs 149 6.4.2 Iterative handling of factor risk 150 6.4.3 Optimizing future EMA positions 151 6.4.4 Portfolio optimization using utility leak rate 151 6.4.5 Notes on portfolio optimization with slippage 152 6.5 Portfolio capacity 152 6.6 Portfolio optimization with forecast revision 153 6.7 Portfolio optimization with forecast uncertainty 156 6.8 Kelly criterion and optimal leverage 157 6.9 Intraday optimization and execution 160 6.9.1 Trade curve 160 6.9.2 Forecast-timed execution 161 6.9.3 Algorithmic trading and HFT 162 6.9.4 HFT controversy 166 7 Simulation 169 7.1 Simulation vs production 170 7.2 Simulation and overfitting 171 7.3 Research and simulation efficiency 172 7.4 Paper trading 173 7.5 Bugs 173 Afterword: Economic and Social Aspects of Quant Trading 179 Appendix 183 A1 Secmaster mappings 183 A2 Woodbury matrix identities 184 A3 Toeplitz matrix 185 Index 187 Questions index 195 Quotes index 197 Stories index 199

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Book SynopsisEine Bilanz muss kein Buch mit sieben Siegeln sein, im Gegenteil: Wer versteht, was sie aussagt, kann viel aus ihr ablesen. Dieses Buch erläutert, wie eine Bilanz, eine Gewinn- und Verlustrechnung oder die wichtigsten Berichte für den Anhang und Lagebericht erstellt werden und wie man Bilanzpolitik betreibt. Es zeigt leicht verständlich, wie diese gelesen und interpretiert werden können, um so versteckte Risiken entdecken zu können. Die Bestseller-Autoren Michael Griga und Raymund Krauleidis legen in ihrem Buch den Schwerpunkt auf die Analyse von Bilanzen. Die Leser erfahren unter anderem, was sich hinter Begriffen wie Finanzierungs- und Investitionsanalyse, Liquiditätsanalyse oder Erfolgsanalyse verbirgt und was der Unterschied zwischen qualitativer und strategischer Bilanzanalyse ist. Die gewohnte Prise Humor fehlt natürlich ebenso wenig wie anschauliche Beispiele aus dem prallen Leben, Übungen, um das Erlernte gleich anzuwenden und Erläuterungen der unterschiedlichen gesetzlichen Grundlagen in Deutschland, Österreich und der Schweiz.

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Book SynopsisProvides a revolutionary conceptual framework and practical tools to quantify uncertainty and recognize the value of flexibility in real estate developmentThis book takes a practical engineering approach to the valuation of options and flexibility in real estate. It presents simple simulation models built in universal spreadsheet software such as Microsoft Excel. These realistically reflect the varying and erratic sources of uncertainty and price dynamics that uniquely characterize real estate. The text covers new analytic procedures that are valuable for existing properties and enable a new, more profitable perspective on the planning, design, operation, and evaluation of large-scale, multi-phase development projects. The book thereby aims to significantly improve valuation and investment decision making.Flexibility and Real Estate Valuation under Uncertainty: A Practical Guide for Developers is presented at 3 levels. First, it introduces and explains thTable of ContentsForeword xiii Author’s Preface xvii Acknowledgement xxi About the Companion Website xxiii 1 Discounted Cash Flow Valuation: The Basic Procedures and Concepts Underlying Spreadsheet Valuation Constitute the Springboard to our Approach of Analyzing Flexibility Under Uncertainty 1 1.1 Why the Focus on the Discounted Cash Flow Model? 2 1.2 Structure of a Discounted Cash Flow Spreadsheet 3 1.3 The Cash Flow Projection 5 1.4 Discount Rate 7 1.5 Market Value and Forward‐Looking (Ex‐Ante) Analysis 7 1.6 Backward‐Looking (Ex‐Post) Analysis 9 1.7 Conclusion 9 2 Economics of the Discounted Cash Flow Valuation Model: Understanding the Discount Rate is Critical 11 2.1 Choice of Discount Rate 11 2.2 Differences between Discount Rate, Opportunity Cost of Capital, and Internal Rate of Return 13 2.3 Net Present Value 14 2.4 Relationship between Discount Rate, Growth Rate, and Income Yield 15 2.5 Relationship between Discount Rate and Risk 18 2.6 Conclusion 19 3 Future Scenarios Matter: We Need to Recognize that Future Projections are Uncertain 21 3.1 The Standard Discounted Cash Flow Model Appears to be Deterministic 21 3.2 We Live in a World of Uncertainty 23 3.3 Discounted Cash Flow Pro Forma Cash Flows are Expectations 24 3.4 Flexibility and Options 26 3.5 Conclusion 26 4 Scenario Analysis: Future Scenarios can Significantly and Surprisingly Affect the Present Value 27 4.1 Discounted Cash Flow Scenario Analysis 27 4.2 Scenarios Affect Value 29 4.3 Flexibility Has Value 30 4.4 Conclusion 32 5 Future Outcomes Cover a Range of Possibilities: We Can Describe Uncertainties in Real Estate Using Probability Distributions of Possible Future Outcomes 33 5.1 Distribution of Future Outcomes 34 5.2 Quantifying Input Distributions 34 5.3 Distributions of Outcomes Differ from Distributions of Inputs 38 5.4 Flaw of Averages 39 5.5 Conclusion 40 6 Simulation of Outcomes: Simulation is a Practical, Efficient Way to Explore Uncertainty and to choose between Alternative Strategies for Managing it 41 6.1 Generating Scenarios 41 6.2 Real Estate Simulation in a Nutshell 42 6.3 Simulation is an Efficient Process 43 6.4 Number of Trials 44 6.5 Conclusion 45 7 Modeling Price Dynamics: Using Pricing Factors to Model the Dynamics of Real Estate Markets 47 7.1 Pricing Factors 47 7.2 Random Walks 49 7.3 Real Estate Pricing Factor Dynamics 51 7.4 Conclusion 52 8 Interpreting Simulation Results: Target Curves and Scatterplots can be used to Graph the Distribution of the Sample Output 53 8.1 Target Curves 53 8.2 Comparing Target Curves 57 8.3 Value at Risk 57 8.4 Scatterplots 57 8.5 Conclusion 59 9 Resale Timing Decision: Analysis: Let’s See what happens when we apply the Tools of Flexibility Analysis to a Classical Investment Decision: when to sell the Property 61 9.1 The Resale Timing Problem 62 9.2 Extending the Time Horizon of the Discounted Cash Flow Model 62 9.3 IF Statements 63 9.4 Trigger Value for Stop‐Gain Rule 64 9.5 Value of Example Stop‐Gain Rule 64 9.6 Conclusion 68 10 Resale Timing Decision: Discussion: Let’s think about Additional Insights we can get from Simulation 69 10.1 Sensitivity Analysis 69 10.2 When to Use the Stop‐Gain Rule 70 10.3 Implications of Flexibility for Property Valuation 71 10.4 Conclusion 72 11 Development Project Valuation: This Chapter Looks at Valuation of Development Projects From an Investment Perspective, Considering Uncertainty, Flexibility, and Time‐to‐Build 73 11.1 Time‐to‐Build Difference between Development Projects and Existing Assets 74 11.2 Lower Opportunity Cost of Capital for Construction Costs 75 11.3 Illustrative Example 77 11.4 Residual Value of Development Land 78 11.5 Investment Risk in Development Project 79 11.6 Conclusion 80 12 Basic Flexibility in Development Projects: The Most Basic Flexibility in Real Estate Development is the Option to Choose whether and when to Build 83 12.1 Review of Call (and Put) Options 84 12.2 Land as a Call Option on Development 85 12.3 Drivers of Option Value 85 12.4 A Practical Example of a Call (and Put) Option 86 12.5 Flexibility and Scenario Analysis for Development Projects 88 12.6 Conclusion 90 13 Option Dichotomies: We Introduce a Typology of Flexibility in Development Projects 91 13.1 Three Dichotomies for Thinking Generally about Development Options 91 13.2 Defensive versus Offensive Options 92 13.3 Options “On” and “In” Projects 93 13.4 Timing Options versus Product Options 94 13.5 Conclusion 94 14 Product Options in Development: We Discuss Three types of Product Options 95 14.1 Concept of Base Plan 95 14.2 Product Expansion Flexibility 96 14.3 Product Mix Flexibility 98 14.4 Conclusion 98 15 Timing Options in Development: Now we Turn to the Types of Timing Options 99 15.1 Project Start‐Timing Flexibility (The Delay Option) 99 15.2 Project Production Timing Flexibility 100 15.3 Modular Production Timing Flexibility 102 15.4 Phasing Timing Flexibility 103 15.5 Types of Phasing 103 15.6 Recognizing Defensive and Offensive Options in Simulation Results 104 15.7 Conclusion 107 16 Garden City: An Example Multi‐Asset Development Project: We Present the Traditional DCF Valuation Spreadsheet Model for the Example Development Project We use in the Rest of Book 109 16.1 Overview of Multi‐Asset Development Project 110 16.2 Structure of a Realistic Multi‐Asset Spreadsheet Pro Forma 111 16.3 Cash Flows for the Example Pro Forma 113 16.4 Temporal Profile for Base Case 115 16.5 Expected Economics of the Garden City Project 116 16.6 Conclusion 118 17 Effect of Uncertainty without Flexibility in Development Project Evaluation: We Re‐analyze the Garden City Project by Reflecting Uncertainty Without Flexibility 119 17.1 Modeling Uncertainty for the Multi‐Asset Development Project 120 17.2 Generating Random Future Scenarios 122 17.3 Outcomes Reflecting Uncertainty for the Multi‐Asset Development 123 17.4 Effect of Different Probability Inputs Assumptions 127 17.5 Conclusion 129 18 Project Start‐Delay Flexibility: We Model the Value of the Most Basic and Widely Available Development Project Option 131 18.1 Project Start‐Delay Option 132 18.2 Option Exercise Decision Rule 132 18.3 Defining “Profit” in the Decision Model 134 18.4 Value of Start‐Delay Flexibility in the Garden City Project 134 18.5 Conclusion 138 19 Decision Rules and Value Implications: We Further Explore the Option to Delay the Project Start 139 19.1 Simple Myopic Delay Rule 140 19.2 Trigger Values 140 19.3 Value Implications of the Decision Rules 141 19.4 Effect of Trigger Values (Start or Delay Bias) 143 19.5 Review the Meaning of Flexibility Value 145 19.6 Conclusion 146 20 Modular Production Timing Flexibility: We Explore the Timing Option to Pause and Restart the Project Any Time After its Commencement 147 20.1 Modular Production Timing Flexibility 148 20.2 Modeling the Modular Production Option 148 20.3 Value of Modular Production Timing Flexibility 150 20.4 Effect of Trigger Values (Bias toward Pause or Continue) 152 20.5 Effect of Combining Start‐Delay and Modular Production Delay Flexibility 154 20.6 Conclusion 157 21 Product Mix Flexibility: This Chapter Presents the Option to Change Product Mix, and Examines the Effect of Volatility on Option Value 159 21.1 Product Mix Flexibility 160 21.2 Modeling the Product Mix Option 160 21.3 Value of Product Mix Flexibility 161 21.4 Effect of Combining Product Mix Flexibility and Timing Options 165 21.5 Effect of Correlation in the Product Markets on the Value of Product Mix Flexibility 167 21.6 Effect of Volatility on the Value of Flexibility 169 21.7 Conclusion 172 22 Project Phasing Flexibility: We Show How to Model and Evaluate the Delay Flexibility Inherent in Project Phasing 173 22.1 Modeling the Sequential Phase Delay Option 173 22.2 Modifying the Garden City Project Plan 174 22.3 Project Economics 177 22.4 The Delay Decision Model 178 22.5 Exploring the Value of Project Phasing Flexibility 179 22.6 Conclusion 182 23 Optimal Phasing: We Now look at Adding Phases, Delineating Phases, and Distinguishing them from Expansion Options 183 23.1 Effect of Increasing the Number of Phases 184 23.2 Principles for Optimal Phasing 186 23.3 What is the Difference between a Phase and an Expansion Option? 190 23.4 Conclusion 191 24 Overall Summary: We summarize the Main Takeaway Points from this Book 193 Appendix 197 Glossary 213 Acronyms and Symbols 219 Index 221

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Book SynopsisThe new Middle East Edition of Fundamental Accounting Principles draws on six decades of the history and experience of this well-established US text and continues with its proven CAP(conceptual, analytical, practice) model along with the entrepreneurial and decision-making approach. This is reflected in the textâs extensive use of small business examples, the integration of computerised learning tools,superior end-of-chapter material using real companiesâs financial information,and highly engaging pedagogical designKey features of the new edition: New opening vignettes featuring start-ups from Egypt, Lebanon, UAE, Oman, and other Middle East countries. Updated End-of-Chapter problems and exercises. Updated assignments in Beyond the Numbers section with real financial statements data from companies like Telecom Egypt and Etisalat. NEW regional examples of payroll accounting introduced in Chapter 11. Updated coverage of investments in

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Book Synopsis

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Book Synopsis

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