Finance and accounting Books

Book SynopsisHow to get past the crisis and make the market work for you again The last decade has left people terrified of even the safest investment opportunities. This fear is not helping would-be investors who could be making money if they had a solid plan.Table of ContentsIntroduction: A Wake-Up Call xiii Foreword xxiiiCole Wilcox Foreword xxxiiiCullen O. Roche Chapter One Stick to Your Knitting 1Gary Davis, Jack Forrest, and Rick Slaughter Chapter Two Someone’s Gotta Lose for You to Win 21David Druz Chapter Three No Guts, No Glory 37Paul Mulvaney Chapter Four In a Land Far, Far Away from Wall Street 53Kevin Bruce Chapter Five Think Like a Poker Player and Play the Odds 65Larry Hite Chapter Six Stand Up, Dust Yourself Off, and Keep Going 83David Harding Chapter Seven Throw Away the Fundamentals and Stick to Your Charts 103Bernard Drury Chapter Eight Study Hard and Get an A+ 117Justin Vandergrift Chapter Nine You Can’t Know Everything 131Eric Crittenden and Cole Wilcox Chapter Ten Make It Work Across All Markets 147Michael Clarke Chapter Eleven Stay in the Moment of Right Now 163Charles Faulkner Chapter Twelve Sing the Whipsaw Song 181Appendix A: Getting Technical: What is Capitalism Distribution? 187 Appendix B: Fund Performance Data 193 Glossary of Key Terms 201 Author Disclaimer 207 Acknowledgments 209

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Book SynopsisThe Universal Principles of Successful Trading clearly andunambiguously articulates trading principles that distinguish thewinners from the losers.Table of ContentsAcknowledgments. Preface. Foreword. Introduction. Chapter 1 A Reality Check. Why Do 90 Percent of Traders Lose? Common Mistakes—Year One. Common Mistakes—Year Two. Common Mistakes—Year Three. How to Join the 10 Percent Winners' Circle. In Summary. Chapter 2 The Process of Trading. The Process of Trading. Chapter 3 Principle One: Preparation. Maximum Adversity. Emotional Orientation. Losing Game. Random Markets. Best Loser Wins. Risk Management. Trading Partner. Financial Boundaries. In Summary. Chapter 4 Principle Two: Enlightenment. Avoiding Risk of Ruin. Embracing Trading's Holy Grail. Expectancy. Opportunities. Pursuing Simplicity. Treading Where Most Fear. Validation. In Summary. Chapter 5 Principle Three: Trading Style. Trading Mode. Time Frames. Choosing Your Trading Style. Long-term Trend Trading. Short-term Swing Trading. Long-term Trend Trading Versus Short-term Swing Trading. In Summary. Chapter 6 Principle Four: Markets. Good Operational Risk Management Attributes. Good Trading Attributes. In Summary. Chapter 7 Principle Five: The Three Pillars. Money Management. Methodology. Psychology. Chapter 8 Money Management. Martingale Money Management. Anti-Martingale Money Management. Key Concepts. History. Anti-Martingale Money Management Strategies. Trading Forex_Trader Using a Single Contract with No Money Management. Forex_Trader Using Fixed-Risk Money Management. Forex_Trader Using Fixed-Capital Money Management. Forex_Trader Using Fixed-Ratio Money Management. To Chase $18,000,000 in Profits or to Chase $1,500,000 in Profits, That is the Question. Forex_Trader Using Fixed-Units Money Management. Forex_Trader Using Williams Fixed-Risk Money Management. Forex_Trader Using Fixed-Percentage Money Management. Forex_Trader Using Fixed-Volatility Money Management. Which Money Management Strategy to Choose? Trading Equity Momentum. In Summary. Chapter 9 Methodology. Discretionary or Mechanical Trading. Creating a Methodology. Trend Trading. Not All Indicators are Bad. But Don't Markets Change? Multiple Methodologies. Basic Attributes of Winning Methodologies. Example of a Winning Methodology—The Turtle Trading Strategy. Example of an Objective Trend Tool. Fibonacci: Fact or Fiction. Placebo Traders. In Summary. Chapter 10 Psychology. The Consensus View. Managing Hope. Managing Greed. Managing Fear. Managing Pain. Maximum Adversity. In Summary. Chapter 11 Principle Six: Trading. Putting it All Together. Trading: Order Placement. In Summary. Chapter 12 Just One Piece of Advice. Balance. The Market Masters. Ramon Barros. Mark D. Cook. A Diverse Group of Traders. Michael Cook. Kevin Davey. Tom DeMark. Lee Gettess. Daryl Guppy. Richard Melki. Geoff Morgan. Gregory L. Morris. Nick Radge. Brian Schad. Andrea Unger. Larry Williams. Dar Wong. A Wealth of Advice. Chapter 13 A Final Word. Appendix A Risk-of-Ruin Simulator. Simulator Variables. Model Logic. Simulator. DIY Simulator. Appendix B Risk-of-Ruin Simulator. DIY VBA Risk-of-Ruin Simulator. VBA Code for Risk-of-Ruin Simulator. Appendix C Risk-of-Ruin Simulations. Index.

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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 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 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 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 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 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 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 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 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 SynopsisIntermarket Analysis is probably the most important subject in investing, one of the least understood, and most neglected. This specialist topic is the analysis of more than one asset class or financial market, which are considered to be related (currencies, commodities, stocks, bonds).Table of ContentsAcknowledgments ix Introduction xi PART I 1 1 Intermarket Analysis 3 2 Correlation 17 3 Regression 33 4 International Indices and Commodities 41 5 The S&P 500 69 6 European Indices 85 7 Gold 93 8 Intraday Correlations 111 9 Intermarket Indicators 121 PART II 145 10 Trading System Design 147 11 A Comparison of Fourteen Technical Systems for Trading Gold 175 12 Trading the S&P 500 ETF and the e-mini 189 13 Trading DAX Futures 201 14 A Comparison of a Neural Network and a Conventional System for Trading FTSE Futures 215 15 The Use of Intermarket Systems in Trading Stocks 235 16 A Relative Strength Asset Allocation Trading System 247 17 Forex Trading Using Intermarket Analysis 261 18 Conclusion 293 Appendix A MetaStock Code and Test Specifications 297 Appendix B Neural Network Systems 357 Appendix C Rectangles 367 Glossary 371 Bibliography 385 Index 391

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Book SynopsisColin Barrow is a Visiting Fellow at Cranfield University and the former Head of the Enterprise Group. Over the past 40 years, he has lectured and researched in business schools across the world. He is also the author of The Business Plan Workbook, The 30 Day MBA, The 30 Day MBA in Marketing and The 30 Day MBA in International Business and Supply Chain Management. He is based in Cornwall, UKTable of Contents Chapter - 00: Introduction; Section - ONE: The fundamentals of business finance; Chapter - 01: Financial business reports; Chapter - 02: The rules of the game; Chapter - 03: Analysing financial reports; Chapter - 04: Finance as a value creator; Section - TWO: Corporate capital structures; Chapter - 05: The role of business structures in financing business; Chapter - 06: Debt finance; Chapter - 07: Equity; Section - THREE: Financial strategies and special topics; Chapter - 08: Risk and management; Chapter - 09: Business tax and profit reporting procedures; Chapter - 10: Mergers and acquisitions; Chapter - 11: Business plans and budgets;

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Book SynopsisIn response to evolving economic and competitive landscapes, this book underscores the increasing importance of focusing on both profit and risk. It provides a distinctive analysis of the risks encountered by investors and savers engaging with financial institutions and markets while offering strategies for effective risk management. Notably, the book explores emerging areas in finance, including asset securitization, off-balance-sheet activities, and the globalization of financial services. Emphasizing a risk measurement and management framework, it addresses the integration of domestic and foreign financial markets and the shift of financial intermediaries towards a unified financial services industry. The content, accessible to students at all levels, combines mathematical rigor with practical tools. It equips students with essential skills for comprehending and navigating the dynamic financial market environment, covering topics such as issuing and trading financial se

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Book SynopsisTable of ContentsAdditional Resources xv About the Authors xvii Foreword xxi Acknowledgments xxiii Disclaimer xxxi Introduction 1 Structure of the Book 3 Part One: Valuation (Chapters 1–3) 3 Part Two: Leveraged Buyouts (Chapters 4 & 5) 5 Part Three: Mergers & Acquisitions (Chapters 6 & 7) 6 Part Four: Initial Public Offerings (Chapters 8 & 9) 8 ValueCo Summary Financial Information 9 Part One Valuation 11 Chapter 1 Comparable Companies Analysis 13 Summary of Comparable Companies Analysis Steps 14 Step I. Select the Universe of Comparable Companies 17 Study the Target 17 Identify Key Characteristics of the Target for Comparison Purposes 18 Screen for Comparable Companies 22 Step II. Locate The Necessary Financial Information 23 SEC Filings: 10-K, 10-Q, 8-K, and Proxy Statement 24 Equity Research 25 Press Releases and News Runs 26 Financial Information Services 26 Summary of Financial Data Primary Sources 27 Step III. Spread Key Statistics, Ratios, and Trading Multiples 28 Calculation of Key Financial Statistics and Ratios 28 Supplemental Financial Concepts and Calculations 42 Calculation of Key Trading Multiples 47 Step IV. Benchmark the Comparable Companies 50 Benchmark the Financial Statistics and Ratios 50 Benchmark the Trading Multiples 50 Step V. Determine Valuation 51 Valuation Implied by EV/EBITDA 52 Valuation Implied by P/E 52 Key Pros and Cons 54 Illustrative Comparable Companies Analysis for ValueCo 55 Step I. Select the Universe of Comparable Companies 55 Step II. Locate the Necessary Financial Information 57 Step III. Spread Key Statistics, Ratios, and Trading Multiples 57 Step IV. Benchmark the Comparable Companies 69 Step V. Determine Valuation 74 Chapter 2 Precedent Transactions Analysis 75 Summary of Precedent Transactions Analysis Steps 76 Step I. Select the Universe of Comparable Acquisitions 79 Screen for Comparable Acquisitions 79 Examine Other Considerations 80 Step II. Locate the Necessary Deal-Related and Financial Information 82 Public Targets 82 Private Targets 85 Summary of Primary SEC Filings in M&A Transactions 86 Step III. Spread Key Statistics, Ratios, and Transaction Multiples 88 Calculation of Key Financial Statistics and Ratios 88 Calculation of Key Transaction Multiples 94 Step IV. Benchmark the Comparable Acquisitions 98 Step V. Determine Valuation 98 Key Pros and Cons 99 Illustrative Precedent Transaction Analysis for ValueCo 100 Step I. Select the Universe of Comparable Acquisitions 100 Step II. Locate the Necessary Deal-Related and Financial Information 101 Step III. Spread Key Statistics, Ratios, and Transaction Multiples 103 Step IV. Benchmark the Comparable Acquisitions 111 Step V. Determine Valuation 113 Chapter 3 Discounted Cash Flow Analysis 115 Summary of Discounted Cash Flow Analysis Steps 116 Step I. Study the Target and Determine Key Performance Drivers 120 Study the Target 120 Determine Key Performance Drivers 120 Step II. Project Free Cash Flow 121 Considerations for Projecting Free Cash Flow 121 Projection of Sales, EBITDA, and EBIT 123 Projection of Free Cash Flow 125 Step III. Calculate Weighted Average Cost of Capital 131 Step III(a): Determine Target Capital Structure 132 Step III(b): Estimate Cost of Debt (rd) 133 Step III(c): Estimate Cost of Equity (re) 134 Step III(d): Calculate WACC 138 Step IV. Determine Terminal Value 138 Exit Multiple Method 139 Perpetuity Growth Method 139 Step V. Calculate Present Value and Determine Valuation 141 Calculate Present Value 141 Determine Valuation 143 Perform Sensitivity Analysis 145 Key Pros and Cons 146 Illustrative Discounted Cash Flow Analysis for ValueCo 147 Step I. Study the Target and Determine Key Performance Drivers 147 Step II. Project Free Cash Flow 147 Projection of Sales, EBITDA, and EBIT 149 Step III. Calculate Weighted Average Cost of Capital 154 Step IV. Determine Terminal Value 159 Step V. Calculate Present Value and Determine Valuation 161 Part Two Leveraged Buyouts 167 Chapter 4 Leveraged Buyouts 169 Key Participants 171 Financial Sponsors 171 Investment Banks 172 Bank and Institutional Lenders 174 Bond Investors 175 Private Credit Funds 176 Target Management 176 Characteristics of a Strong LBO Candidate 177 Strong Cash Flow Generation 178 Leading and Defensible Market Positions 178 Growth Opportunities 178 Efficiency Enhancement Opportunities 179 Low Capex Requirements 179 Strong Asset Base 180 Proven Management Team 180 Economics of LBOs 181 Returns Analysis—Internal Rate of Return 181 Returns Analysis—Cash Return 182 How LBOs Generate Returns 182 How Leverage Is Used to Enhance Returns 184 Primary Exit/Monetization Strategies 187 Sale of Business 187 Initial Public Offering 188 Dividends / Dividend Recapitalization 188 Below Par Debt Repurchase 188 LBO Financing: Structure 189 LBO Financing: Primary Sources 192 Secured Debt 192 High Yield Bonds 196 Mezzanine Debt 198 Equity Contribution 199 LBO Financing: Selected Key Terms 202 Security 202 Seniority 202 Maturity 203 Coupon 204 Call Protection 205 Covenants 206 Term Sheets 209 LBO Financing: Determining Financing Structure 212 Chapter 5 LBO Analysis 217 Financing Structure 217 Valuation 218 Step I. Locate and Analyze the Necessary Information 220 Step II. Build the Pre-LBO Model 220 Step II(a): Build Historical and Projected Income Statement through EBIT 221 Step II(b): Input Opening Balance Sheet and Project Balance Sheet Items 224 Step II(c): Build Cash Flow Statement through Investing Activities 226 Operating Activities 226 Step III. Input Transaction Structure 229 Step III(a): Enter Purchase Price Assumptions 229 Step III(b): Enter Financing Structure into Sources and Uses 231 Step III(c): Link Sources and Uses to Balance Sheet Adjustments Columns 232 Uses of Funds Links 235 Step IV. Complete the Post-LBO Model 238 Step IV(a): Build Debt Schedule 238 Step IV(b): Complete Pro Forma Income Statement from EBIT to Net Income 247 Step IV(c): Complete Pro Forma Balance Sheet 250 Step IV(d): Complete Pro Forma Cash Flow Statement 252 Step V. Perform LBO Analysis 254 Step V(a): Analyze Financing Structure 254 Step V(b): Perform Returns Analysis 256 Step V(c): Determine Valuation 260 Step V(d): Create Transaction Summary Page 261 Illustrative LBO Analysis for ValueCo 262 Part Three Mergers & Acquisitions 273 Chapter 6 Sell-Side M&A 275 Auctions 276 Auction Structure 279 Organization and Preparation 279 Identify Seller Objectives and Determine Appropriate Sale Process 279 Perform Sell-Side Advisor Due Diligence and Preliminary Valuation Analysis 281 Select Buyer Universe 281 Prepare Marketing Materials 282 Prepare Confidentiality Agreement 285 First Round 286 Contact Prospective Buyers 286 Negotiate and Execute Confidentiality Agreement with Interested Parties 286 Distribute Confidential Information Memorandum and Initial Bid Procedures Letter 287 Prepare Management Presentation 288 Set Up Data Room 289 Prepare Stapled Financing Package (if applicable) 291 Receive Initial Bids and Select Buyers to Proceed to Second Round 291 Second Round 293 Conduct Management Presentations 293 Facilitate Site Visits 294 Provide Data Room Access and Respond to Diligence Requests 294 Distribute Final Bid Procedures Letter and Draft Definitive Agreement 295 Receive Final Bids 296 Negotiations 300 Evaluate Final Bids 300 Negotiate with Preferred Buyer(s) 300 Select Winning Bidder 300 Render Fairness Opinion (if required) 301 Receive Board/Owner Approval and Execute Definitive Agreement 301 Closing 302 Obtain Necessary Approvals 302 Shareholder Approval 303 Financing and Closing 305 Negotiated Sale 306 Chapter 7 Buy-Side M&A 309 Buyer Motivation 310 Synergies 311 Cost Synergies 312 Revenue Synergies 312 Acquisition Strategies 313 Horizontal Integration 313 Vertical Integration 313 Conglomeration 314 Form of Financing 315 Cash on Hand 316 Debt Financing 316 Equity Financing 317 Debt vs. Equity Financing Summary—Acquirer Perspective 318 Deal Structure 318 Stock Sale 318 Asset Sale 321 Stock Sales Treated as Asset Sales for Tax Purposes 324 Buy-Side Valuation 327 Football Field 327 Analysis at Various Prices 330 Contribution Analysis 331 Merger Consequences Analysis 333 Purchase Price Assumptions 333 Balance Sheet Effects 338 Accretion/(Dilution) Analysis 343 Acquisition Scenarios—I) 50% Stock/50% Cash; II) 100% Cash; and III) 100% Stock 346 Illustrative Merger Consequences Analysis for the BuyerCo/ValueCo Transaction 351 Part Four Initial Public Offerings 373 Chapter 8 Initial Public Offerings 375 Why Do Companies Go Public? 376 Characteristics of a Strong IPO Candidate 378 Attractive Industry 378 Strong Competitive Position 378 Growth Opportunities 379 Moat & Barriers to Entry 380 Healthy Financial Profile 380 Disruptive & Differentiated Solutions 381 Favorable Risk Profile 381 Proven Management Team 382 Key Participants 383 Investment Banks 383 Company Management 386 Current Owners/Investors 387 IPO Investors 387 Lawyers 388 Accountants 388 Exchange Partner 389 IPO Advisors 390 Vendors 390 Selected Key Terms 391 Offering Size 392 Primary/Secondary 393 Overallotment Option, a.k.a. “Greenshoe” 394 Syndicate Structure 395 Lock-up Provision 396 Listing Exchange 396 Gross Spread 397 Dual-Track Process 398 Special Purpose Acquisition Companies (SPACs) 401 Direct Listings 403 Post-IPO Equity Offerings 406 IPO Considerations 407 Nasdaq Appendix 409 Chapter 9 The IPO Process 413 Organization and Preparation 415 Select IPO Team, Exchange Partner and Assign Responsibilities 415 Manage Corporate Housekeeping 418 C Corp vs. Up-C Structure 423 Determine IPO Timing 425 Determine Offering Structure and Preliminary IPO Valuation 426 Host Organizational Meeting 429` Due Diligence, Drafting, and Filing 430 Perform Underwriter Due Diligence 430 Draft and File the Registration Statement 431 Prepare Other Key Transaction and Corporate Governance Documents 436 Coordinate with Equity Research 437 Respond to SEC Comments and File Amended Registration Statement 437 Marketing and Roadshow 438 Prepare Marketing Materials 438 Salesforce Teach-in 439 Conduct Roadshow 440 Build Order Book 443 Pricing and Allocation 445 Price the Offering 445 Allocate Shares to Investors 447 Closing 447 Afterword 449 Bibliography and Recommended Reading 451 Index 457

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Book SynopsisDevelop and manage a private equity compliance program Compliance has become one of the fastest-growing areas in the private equity (PE) space. Mirroring trends from the hedge fund industry, recent surveys indicate that PE managers rank compliance as the single most challenging aspect of their business. Reports also indicate that PE compliance spending has rapidly outpaced other PE operating costs with recent estimates indicating that individual PE funds on average spend at least 15 - 20% of their operating budgets on this area. General Partners (GPs) have also significantly ramped up the hiring of private equity compliance related roles. Private Equity Compliance provides current and practical guidance on key private equity (PE) compliance challenges and trends. Packed with detailed, practical guidance on developing and managing a private equity compliance program, it offers up-to-date case studies and an analysis of critical regulatory enforcement actioTable of ContentsPreface ix CHAPTER 1 Introduction to Private Equity Compliance 1 CHAPTER 2 Compliance Obligations of General Partners 15 CHAPTER 3 Limited Partner Advisory Committees and Other Boards 25 CHAPTER 4 Valuation Compliance 41 CHAPTER 5 Conflicts of Interest 53 CHAPTER 6 Fees and Expenses – Compliance Considerations 73 CHAPTER 7 Private Equity Compliance Technology, Business Continuity, and Cybersecurity 107 CHAPTER 8 Understanding Private Equity Compliance Documentation 121 CHAPTER 9 Compliance Training, Surveillance, and Testing for Private Equity Firms 137 CHAPTER 10 Limited Partner Analysis of Private Equity Compliance Functions 151 CHAPTER 11 Interviews with Private Equity Compliance Professionals 167 CHAPTER 12 Compliance Trends and Future Developments 193 About the Author 205 Index 207

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Book SynopsisPaul Milgrom describes how auctions can be used to discover prices and guide efficient resource allocations. Milgrom roots his new theories in real-world examples (including the ambitious U.S. incentive auction of radio frequencies, whose design he led) and provides economists with crucial new tools for solving complex resource allocation problems.Trade ReviewIn Discovering Prices, Paul Milgrom shows how innovative systems of price discovery can help solve vexing problems of reallocation, long thought to be intractable and made particularly challenging by the complexity and interconnectedness of new technologies. Milgrom's revolutionary advance in price theory is a most fitting tribute to Kenneth Arrow, who laid the foundation for understanding the traditional price system. A brilliant, fascinating book. -- Bengt Holmstrom, Massachusetts Institute of Technology, Nobel Laureate in EconomicsWith deep theoretical insights and broad practical experience, Milgrom presents a systematic analysis of the challenges of pricing in complex resource-allocation problems, and in doing so he helps us to better understand the foundations of price theory in economics. -- Roger Myerson, University of Chicago, Nobel Laureate in EconomicsThe elegant theory and mathematics in Milgrom’s Discovering Prices are at the foundation of the FCC’s Broadcast Incentive Auction. I can confirm the successful real-world application of the same, with Milgrom’s active participation during every step of the design and implementation of an auction that will repurpose 84 MHz worth of prime spectrum and generate almost $20 billion in proceeds. -- Gary M. Epstein, Chair of the FCC's Incentive Auction Task ForceThis groundbreaking book of practical economic theory by Milgrom, the world’s most accomplished designer of complex auctions, describes the design of the most complex auction yet: the FCC incentive auction for electromagnetic spectrum. The book also illuminates why the magic of the market doesn’t happen by magic, but sometimes needs to be designed. Every economist, and indeed anyone interested in how markets work, will find these wide-ranging reflections rewarding to read and ponder. -- Alvin E. Roth, Stanford University, Nobel Laureate in EconomicsNo one has greater knowledge or, perhaps more importantly, more reliable instincts when it comes to incentive auction design. Milgrom's excellent monograph should be made available to economists as soon as possible. -- Leslie Marx, Duke UniversityTable of ContentsPreface1. Introduction2. (Near-)Substitutes, Prices, and Stability3. Vickrey Auctions and Substitution4. Deferred-Acceptance Auctions and Near-Substitutes5. ConclusionNotesReferencesIndex

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Book SynopsisAn invaluable primer to the world of investing Money Lessons from a Money Manager speaks directly to the individual who wants to manage their own investment portfolio just like a professional portfolio manager would. Written by portfolio manager William Thomason, this comprehensive guide provides professional investment advice on how to identify, research and ultimately purchase profitable investments. The book covers such subjects as fundamental analysis, understanding financial statements and financial ratios, when to buy and sell, portfolio construction and various investment strategies that readers can use to manage their own money just like a professional portfolio manager. Easy to read and informative, this book is a valuable resource for readers looking to take their first steps in the world of professional portfolio management for themselves.Table of ContentsForeword ix Acknowledgments xi Introduction 1 Chapter 1 Getting Started: Setting Goals, Choosing Investments, Getting Information 5 Chapter 2 Understanding Financial Statements: Analyze Companies Like a Financial Analyst 39 Chapter 3 Calculate a Company’s Expenses, Earnings, Financial Ratios, and Profit Margins 63 Chapter 4 Fundamental Analysis: Assessing the Value of Potential Investments 95 Chapter 5 How the Pros Know When to Buy 123 Chapter 6 Investing Strategies You Can Use to Know When to Buy 143 Chapter 7 Know When to Sell 185 Chapter 8 Portfolio Management 101: Putting It All Together 213 More Than Just a Glossary 257 About the Author 275 Index 277

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Book Synopsis"What kinds of investors actually choose to make their living by seeking out troubled companies and becoming mired in the complexities and contentiousness of a bankruptcy or out-of-court workout?" - Hilary Rosenberg (from The Vulture Investors) Welcome to the big-time, big-stress-and big-profit-world of vulture investing.Table of ContentsLove among the Ruins. A Field Guide to Vultures. Power Play. The Committeeman's Coup. The Three-Headed Monster at Wheeling-Pittsburgh Steel. Fixing Revco. The Raid on Allegheny International. Closing In. Convenience in Bankruptcy Shopping. Surviving at the Bottom. The Grave Dancers. A Flash and a Star. Conclusion. Notes. Index.

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Book SynopsisJohn Bogle puts our obsession with financial success in perspective Throughout his legendary career, John C. Bogle-founder of the Vanguard Mutual Fund Group and creator of the first index mutual fund-has helped investors build wealth the right way and led a tireless campaign to restore common sense to the investment world.Trade Review"Enough" takes only a few hours to read, but the lessons will stick with you. It is chock-full of no-nonsense business nuggets, many of which I have passed on to my business students. I highly recommend this book. If you are an entrepreneur running your own small business or if you work in a large corporation, this book should be on your reading list." (The Asheville Citizen-Times) “I highly recommend the book "Enough" by Vanguard's founder, Jack Bogle, who eloquently outlines many of the frustrations investors have.” (USA Today) “This small book is another home run. In it, Bogle ruminates on greed, excess and other moral failings that led to the current economic crisis. He calls for a return to "18th-century values" that somehow seem cutting edge. Among them: stewardship, integrity, leadership and character.”(Liz Pulliam Weston, MSN Money) “While Enough turns one man’s amazing story of financial and personal success into a guidebook to a more satisfying life, it offers more than a memoir about a life well lived. “Enough” also presents a clear understanding of the fields of finance, money management and leadership that is tempered by wit and wisdom from across the ages that puts it all into perspective while leading the way forward for anyone willing to take Bogle’s enlightened idealism to heart. “ (SmartBusiness) Vanguard Group founder Bogle expounds on the hidden costs of our current financial system (primarily driven by speculation and complexity) and suggests that a deeper understanding of what is truly “enough” will help foster more sustainable investing and better living. (Library Journal Best of 2008 Selection) “Why don’t people publish pamphlets any more. I’m not talking about the slim-jims handed out at trade shows, but rabble-rousing, world-changing works like Common Sense and The Communist Manifesto. John Bogle, the founder of Vanguard, follows in the footsteps of the great pamphleteers…‘Central to the effective functioning of capitalism,’ he writes, ‘was the fundamental principle of trusting and being trusted’—and that is disappearing. The problem now: No one is satisfied with having ‘enough’ money or enough success. … If pamphlets were still the rage, 48 pages distilled from the contents of this book could be something as powerful to our age as anything written by Thomas Paine or Marx and Engels. In our more bookish time, though, Bogle has fleshed his ideas out to an interesting, 266-page overview of his life and his views.” (Barron’s) “’What have I created?’ [Bogle] asks in mock horror in his new book…his cry reflects a deeper personal dilemma, one that jags like a scar through this thoughtful meditation on the excess and greed that created the worst financial crisis since the Great Depression. … I applaud his enthusiasm and don’t doubt his wisdom and sincerity. ‘Enough’ – with the period – is a worthy addition to the canon, a variation of his familiar sermon on thrift, simplicity, and the superiority of low-cost index funds.” (James Pressley, Bloomberg News) “Jack Bogle’s passionate cry of Enough. contains a thought-provoking litany of life lessons regarding our individual roles in commerce and society. Employing a seamless mix of personal anecdotes, hard evidence, and all-too-often-underrated subjective admonitions, Bogle challenges each of us to aspire to become better members of our families, our professions, and our communities. Rarely do so few pages provoke so much thought. Read this book.” (David F. Swensen, Chief Investment Officer, Yale University) "We live in a time that values achievement over character. When the two collide, character often takes a back seat and relationships of all kinds are shattered. Bogle observes that while the financial represents the worst of it, what we see today is not just a financial sector problem, but a societal problem. There is really just too much greed everywhere. … Enough is really about discovering what is really important in our lives. " (Michael McKinney, LeadingBlog) "Bogle is a rarity - a true captain of industry who speaks about complex economic issues in a language comprehensible to the layperson." (Michael Smerconish, The Philadelphia Enquirer) "Enough shines a light on Bogle's sense of despair over the state of the financial industry, and perhaps industry in general. … From CEOs who implode their companies and float away on golden parachutes, to financial companies who create instruments so complex they themselves have trouble understanding them, to mutual fund companies that market rosy returns while sugarcoating their fees, Bogle sees a lack of integrity and a willingness to play fast and loose with ethical rules in order to make a buck. (Or, maybe more accurate, 150 billion bucks.)" (Justin McHenry, BlogCritics Magazine) "It's hard to imagine a better time to publish a book that advocates moderation, balance and integrity in the business world. In this wise meditation, Bogle, the folk-hero creator of the first index mutual fund and founder of the Vanguard Mutual Fund Group, deplores ‘our worship of wealth and the growing corruption of our professional ethics but ultimately the subversion of our character and values.’ Directly in his sights: CEOs and hedge-fund managers who draw ‘obscene’ compensation. At this time of plunging portfolios, it is a relief to be told that ‘enough’ is within reach." (TIME Magazine) "I will simply say that it is one of the best business books ('life' books?) I have ever read, an easy All-time Top 10. And its timing is, well, read it yourself ..." (Tom Peters) “This is an impressive message from a distinguished businessman. It will challenge all decision makers to consider the sufficiency and direction of their lives and work. What do we mean by Enough? Enough of what? Enough for what purpose? Feast here and reflect.” ( Robert F. Bruner, Dean and Charles C. Abbott Professor of Business Administration, Darden Graduate School of Business) “From one ‘battler’ to another: Thank you for putting in one little book the premise for an active, long life. A primer for those who will abjure complacency and just wanting more, who’d rather focus on the joy of trying to move some ball downfield.” (Ira Millstein, Senior Partner, Weil Gotshal & Manges LLP) “The balances one must create in investing, in running a business, and in life more generally are simply and clearly stated in Jack’s most recent book, Enough. Unfortunately there are not enough Jack Bogles around in today’s world of instant gratification. Enough. should be must reading for business students and corporate board members.” (David L. Sokol, Chairman, MidAmerican Energy Holdings Company) "Although Enough. is presented in a small volume, John Bogle's wisdom is writ large and profound. The messages are particularly meaningful as we all reel from the moral, economic and financial meltdown that confronts us today. (William H. Donaldson, Former Chairman, U.S. Securities and Exchange Commission) “[an] engaging, highly readable new book on what went wrong in financial markets in recent years. In the growing canon of "what went wrong" books, Bogle's offering holds a unique place. . . readers will value the common sense packed in these pages.” (Jared Bernstein, Philadelphia Inquirer) "Bogle. . . shows prescience in describing the housing bubble and other problems that sank the economy, in a book written mostly before Lehman Brothers failed in 2008, igniting a financial rout." (News & World Report) "’A Manifesto on success and excess. . . ‘Enough’ is just enough mixture of analysis of our financial system and common sense to help you become a better person and a better investor." (Washington Post) "The book is extremely well thought out and is organized into three sections: "Money", "Business" and "Life". With endorsements from a "who's who" of the financial industry, this book is something we could all learn from. In the first section, Money, Bogle shares his concerns about "Too Much Speculation, Not Enough Investment". In the following section, Business, he tell us that business today has "Too Much Salesmanship, Not Enough Stewardship", Finally, in Life, he suggests there is "Too Much Focus on Things, Not Enough Focus on Commitment". Bogle's long career in investment management and his natural intellectual curiosity have instilled in him a highly valuable perspective. His main theme in this new book is that several decades of strong economic performance and substantial growth of the financial sector have resulted in new values and processes, which have undermined traditional values such as character and trust. He suggests that today many of the problems we face are the result of the recent shift in values, and he outlines his "dreams" for how to put things right." (Brian Johnson. "On Investing: Kaizen, or constantly improve." The Valley News Today Online. 10 Oct. 2009) "John Bogle starts his latest book, Enough , with a great story. Kurt Vonnegut and Joseph Heller were at a party hosted by a hedge fund manager. Mr. Vonnegut muses that their host makes more money in a day than Mr. Heller earned from his wildly successful novel Catch 22 . As the story goes, Mr. Heller responded, "Yes, but I have something he will never have … enough." Mr. Bogle, who is the conscience of the wealth management industry, covers a broad range of topics in the book. Early on he exposes the excesses and wrong-thinking of the investment industry – high fees, too much turnover and complicated products. His antidote to these ills is low-cost indexing, which is to be expected from the founding father of indexing and the trillion-dollar mutual fund company, Vanguard, that made it mainstream." — Tom Bradley, President and Founder, Steadyhand Investments "I may have found the book thought provoking because I read it just after my other half was downsized out of a job, wrenching our family's finances. Or maybe I connected with the book because I read it while my mother was recovering from major heart surgery. It was a time when "what is enough?" was an immediate and profound question for me, a question crossing the minds of countless people during a recession that continues to sap the U.S. economy (particularly in the Midwest). And maybe Bogle's advice about wealth and the pursuit of it reminded me of what my late father often told me: "Remember son, it's only money."" — Mark Wert, Cincinnati.ComTable of ContentsIntroduction. MONEY. Chapter 1: Too Much Cost, Not Enough Value. Chapter 2: Too Much Speculation, Not Enough Investment. Chapter 3: Too Much Complexity, Not Enough Simplicity. BUSINESS. Chapter 4: Too Much Counting, Not Enough Trust. Chapter 5: Too Much Business Conduct, Not Enough Professional Conduct. Chapter 6: Too Much Salesmanship, Not Enough Stewardship. Chapter 7: Too Much Management, Not Enough Leadership. LIFE. Chapter 8: Too Much Focus on Things, Not Enough Focus on Commitment. Chapter 9: Too Many Twenty-First-Century Values, Not Enough Eighteenth-Century Values. Chapter 10: Too Much “Success,” Not Enough Character. WRAPPING UP: WHAT'S ENOUGH? What's Enough for Me? For You? For America? Afterword: A Personal Note About My Career. Acknowledgments. Notes. Index.

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Book SynopsisRegardless of your trading methods, and no matter what markets you're involved in, there is a Commitments of Traders (COT) report that you should be reviewing every week. Nobody understands this better than Stephen Briese, an industry-leading expert on COT data. And now, with The Commitments of Traders Bible, Briese reveals how to use the predictive power of COT dataand accurately interpret itin order to analyze market movements and achieve investment success.Trade Review"…best book I have read on the COT reports...will give you a better understanding of how the commodity markets work..." (About.com: Commodities)Table of ContentsList of Illustrations xiii List of Tables xix Preface xxi Acknowledgments xxv Part I COT Theory Chapter 1 The COT—Assorted History 3 The Grain Futures Administration 3 The Commodity Exchange Authority 4 The Commodity Futures Trading Commission 5 The Modern COT Data 6 COT Options and Futures Combined Report 8 COT-Supplemental Commodity Index Trader Report 9 A Fable 11 Chapter 2 COT Reports—Counting 1, 2, 3 . . . 15 The Long Form 17 The Short Form 23 COT-Supplemental Commodity Index Report 24 Chapter 3 Player Introductions 27 Sizing Them Up 27 The Reporting System 31 Commercial Hedgers 31 Large Speculators 33 Commodity Index Traders 34 Small Traders 36 Chapter 4 Fading Small Speculators and Other Half-Baked Schemes 39 TIP: Always Follow Commercials 39 TIP: Net Long Is Bullish; Net Short Bearish 40 TIP: Always Fade the Small Speculator 43 TIP: It Is Only Logical to Compare Hedging to the Seasonal Average 43 TIP: The COT Is Old News by the Time It Is Released 45 Chapter 5 Net Positions 47 Open Interest 47 Constructing Net Positions Charts 47 Large Speculator Patterns 51 Commercial Patterns 56 Small Trader Patterns 59 Commodity Index Traders 60 Chapter 6 The COT Index 63 COT Index Calculation (Commercials) 63 Alternative Look-Back Periods 66 The COT Index as the Great Normalizer 67 Interpreting the COT Index 69 Heal Thyself 72 Chapter 7 COT Movement Index 75 Commercial Movement Index 75 40 Point COT Surge Rules (Commercials) 76 Combining the Indexes 77 Fund Movement Index 79 Chapter 8 View from the Gallery 83 Keynes’s Theory of Normal Backwardation 84 Can Speculators Forecast Prices? 85 Returns to Speculators and the Theory of Normal Backwardation 86 Returns to Individual Traders of Futures: Aggregate Results 87 Luck Versus Forecast Ability: Determinants of Trader Performance in Futures Markets 87 The Returns and Forecasting Ability of Large Traders in the Frozen Pork Bellies Futures Market 88 Hedging Pressure Effects in Futures Markets 88 Hedging Demand and Foreign Exchange Risk Premia 89 Investor Sentiment and Return Predictability in Agricultural Futures Markets 89 The Behavior and Performance of Major Types of Futures Traders 90 Exchange Rate Changes and Net Positions of Speculators in the Futures Market 93 The Profitability of Speculators in Currency Futures Markets 94 Summary 95 Chapter 9 View from the Pits 97 The Study Data 98 The Trading Rules 98 Trading Rules Test Results 100 Trading System Considerations 100 Chapter 10 Chart Pattern Validation 105 A Brief Charting Primer 105 Bottom Formations 106 Top Formations 108 Continuation Patterns 111 Chapter 11 Getting Technical 115 COT-Stochastics 115 COT MACD-Histogram 117 COT-RSI 120 Standard Deviation (Bollinger) Bands 121 Conclusions 122 Part II COT in Practice Chapter 12 Crossing Currencies 127 Commercials 129 U.S. Dollar Index 129 Currency Correlation Tables 132 Currency Futures Historical COT Charts 133 Chapter 13 Taking Stock 145 The COT Beats the Averages 146 Stock Index Correlation Tables 148 Stock Index Futures Historical COT Charts 148 Chapter 14 Test of Metal 155 Marking Time in Gold 155 The Gold/Silver Ratio 157 The Copper Caper 157 Commercials 158 Metal Correlation Tables 161 Metal Futures Historical COT Charts 161 Chapter 15 Oil’s Slick 165 To an Uninterrupted Gasoline Supply 165 Commercial Hedgers 168 Petroleum Correlation Tables 168 Petroleum Futures Historical COT Charts 169 Chapter 16 Interest in Rates 175 What Drives Rates? 175 Commercial Hedgers 176 Treasury Futures Correlation Tables 176 Treasury Futures Historical COT Charts 176 Chapter 17 Bean Counting 183 The One That Got Away 183 Commercial Hedgers 185 Soy and Grain Correlation Tables 189 Soy and Grain Historical COT Charts 189 Chapter 18 Moonlighting 195 It Might Be Corny, But. . . 195 Small Can Be Beautiful 196 Commercial Hedgers 196 Livestock Correlation Tables 197 Livestock Historical COT Charts 201 Chapter 19 Cedeless Oranges 205 Continuous Commodity Index 206 Food and Fiber Correlation Tables 208 Food and Fiber Historical COT Charts 208 Chapter 20 Now You CIT, Now You Don’t 217 The COT-Supplemental Report 217 Historical COT-Supplemental Charts 218 Epilogue 233 Appendix A: Alternative Net Position Formulas 237 Appendix B: Dodging the Pitfalls in COT Data 243 References 251 Glossary 257 About the Author 269 Index 271

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Book SynopsisMarket uncertainty cannot be eliminated. So rather than attempt to eliminate it, why not embrace it? That is what this book has been designed to do. Inside the Investment Bunker takes readers through Harry Browne's Permanent Portfolio approach, and reveals how it can help investors thrive in today's turbulent markets.Table of ContentsForeword xi Preface: Life is Uncertain xv Acknowledgments xix Chapter 1 What is the Permanent Portfolio? 1 A Simple Idea 1 A Simple Allocation 3 Simply Great Results 3 Chapter 2 The 16 Golden Rules of Financial Safety 5 Rule #1: Your Career Provides Your Wealth 6 Rule #2: Don’t Assume You Can Replace Your Wealth 6 Rule #3: Recognize the Difference between Investing and Speculating 6 Rule #4: No One Can Predict the Future 7 Rule #5: No One Can Time the Market 7 Rule #6: No Trading System Will Work as Well in the Future as It Did in the Past 8 Rule #7: Don’t Use Leverage 8 Rule #8: Don’t Let Anyone Make Your Decisions 9 Rule #9: Don’t Ever Do Anything You Don’t Understand 9 Rule #10: Don’t Depend on Any One Investment, Institution, or Person for Your Safety 10 Rule #11: Create a Bulletproof Portfolio for Protection 11 Rule #12: Speculate Only with Money You Can Afford to Lose 11 Rule #13: Keep Some Assets Outside the Country in which You Live 11 Rule #14: Beware of Tax-Avoidance Schemes 11 Rule #15: Enjoy Yourself with a Budget for Pleasure 12 Rule #16: Whenever You’re in Doubt about a Course of Action, It’s Always Better to Err on the Side of Safety 12 Investing and the Rules of Life 12 Recap 13 Chapter 3 Permanent Portfolio Performance 15 Growth, No Large Losses, and Real Returns: The Holy Trinity 16 Only Real Returns Matter 24 Looking at Total Performance Over Time 26 Recap 30 Chapter 4 Simple, Safe, and Stable 33 Simplicity 33 Safety 34 Stability 35 Making the Most of Your Investments 36 Expect the Unexpected 44 Recap 46 Chapter 5 Investing Based on Economic Conditions 47 When Diversification Fails 48 A Different Way to Diversify 55 Four Economic Conditions 57 Four Economic Conditions þ Four Assets ¼ Strong Diversification 60 How the Portfolio Works with Economic Conditions 62 Recap 64 Chapter 6 Stocks 65 Benefits of Stocks 65 Risks of Stocks 66 Volatility 67 Owning Stocks 68 Recommended Stock Index Funds 69 Which Type of Index Fund to Use? 70 Why Use an Index Fund? 70 Avoid Actively Managed Stock Funds 74 Indexing is a Marathon 78 Beware of Trading Costs 79 Large-Cap and Small-Cap Stocks 80 International Stock Funds 81 A Warning About Company Stock 84 No Index Funds—What to Do? 85 Recap 85 Chapter 7 Bonds 87 Benefits of Bonds 87 Risks of Bonds 89 Volatility 90 Bonds and Deflation 92 Owning Bonds 93 Bonds to Buy 94 Buying Bonds 94 Other Bond Risks—The Case for Treasury Bonds 98 Bonds to Avoid 103 Flight to Safety 108 Earning Money Multiple Ways 111 Bond Risk Matrix 112 Bond Funds and Retirement Plans 114 Recap 114 Chapter 8 Cash 117 Benefits of Cash 117 Risks of Cash 120 Volatility 121 Owning Cash 123 Cash Risks—The Case for Treasury Bills 128 Cash to Avoid 132 Cash Risk Matrix 140 Cash and Retirement Plans 140 Recap 141 Chapter 9 Gold 143 Benefits of Gold 144 Risks of Gold 145 Volatility 147 Causes of Inflation 148 Gold Protects During Extreme Events 149 No Interest, No Dividends, No Problem 152 Why Do Central Banks Hold So Much Gold? 153 Owning Gold 153 Buying Gold 154 Buying and Storing Gold at a Bank 157 Gold Funds 158 Assets to Avoid 163 Limit Gold Bullion Sales Taxes 171 Other Considerations 171 Recap 173 Chapter 10 Implementing the Permanent Portfolio 175 Key Concepts 175 Four Levels of Protection 177 Level 1—Basic—All Funds 179 Level 2—Good—Funds, Bonds, and Gold 182 Level 3—Better—Funds, Bonds, and Gold 185 Level 4—Best—Funds, Bonds, Gold, and Geographic Diversification 187 All In, or Wait? 190 Other Portfolio Ideas 192 Final Considerations 193 Recap 194 Chapter 11 Portfolio Rebalancing and Maintenance 195 Two Primary Purposes of Rebalancing 197 Rebalancing Maintains Firewalls 199 How to Rebalance: Rebalancing Bands 201 Withdrawals and Rebalancing 203 Timing Can Influence Rebalancing 203 Adding New Money to the Portfolio 204 Allocating Dividends 204 Different Approaches to Rebalancing 205 Emotional Aspects of Rebalancing 206 Rebalancing and Taxable Accounts 207 Recap 208 Chapter 12 Implementing the Permanent Portfolio Internationally 209 The World is Not Flat 209 Applying the Same Principles Across Countries 212 Various Country Options 214 Canada 215 Europe 218 United Kingdom 222 Australia 223 Asia, Middle East, and the Rest of the World 225 Developing Country Investing 226 Recap 228 Chapter 13 Taxes and Investing 229 Simplicity is Often the Best Tax Strategy 229 Tax-Free Savings Vehicles 231 Types of Taxable Events 231 Ordering of Assets and Tax Planning 233 Retirement Accounts and the Permanent Portfolio 238 Individual Retirement Accounts 241 Pensions, Social Security, and Other Plans 243 Tax-Loss Harvesting 243 Final Thoughts on Taxes 245 Recap 246 Chapter 14 Institutional Diversification 247 What is Institutional Diversification? 247 Why Institutional Diversification? 248 Identity Theft 251 Natural Disasters 252 Terrorism 252 Cyber Attack 252 How to Divide Your Money 253 Recap 254 Chapter 15 Geographic Diversification 257 Then and Now 257 What is Geographic Diversification? 257 What Assets Should Be Kept in a Foreign Account? 258 Why Geographic Diversification? 258 Geographic Diversification and a Warning for U.S. Citizens 262 Even Politicians Do It 264 The Reality Risk Spectrum 265 Types of Geographic Diversification 267 Overseas Gold Storage Options 270 New Zealand 270 Australia 273 United States 276 Switzerland 278 Intermediaries for U.S. Citizens 283 Swiss Gold Storage Services for U.S. and Non-U.S. Citizens 285 Safe Deposit Boxes 287 Geographic Diversification Matrix 289 Disclosing Accounts—U.S. Citizens 290 Emergency Options 292 Other Options 293 Recap 293 Chapter 16 The Variable Portfolio 295 Why a Variable Portfolio? 296 Three Rules for the Variable Portfolio 296 Modifying the Permanent Portfolio 299 Can You Really Ever Beat the Market? 299 Recap 300 Chapter 17 Permanent Portfolio Funds 303 The Permanent Portfolio Fund 303 Global X Permanent ETF 307 Recap 309 Chapter 18 Conclusion 311 Recommended Resources 313 About the Authors 317 Index 319

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Book SynopsisAchieve your dream of retiring abroad while on a budget The International Living Guide to Retiring Overseas on a Budget provides a detailed guide to one of the least-known but most effective retirement strategies in today''s chaotic economic environment: retiring abroad. The premise is simple: Enjoy a happier, healthier, more fulfilling retirement than you could possibly afford in the U.S. or Canada by finding the right overseas retirement haven. The book reveals those affordable havens and the strategies for successfully making the move that could save your retirement. Aimed at retirees and near-retirees in the U.S. and Canada, this book''s strategies apply just as well to younger people and people with families who are looking for ways to improve their quality of life while at the same time lowering their cost of living. It includes solutions for the challenges of continuing to work and earn money abroad, too. As long-time contributors to the acknowledged leaTable of Contentsforeword ix Bill Bonner Introduction xi What if you could retire better, more affordably,and even earlier than you expected? Part one Contemplating an Exciting Move1 Chapter 1 Can You Afford to Retire Where You Live? 3 Chapter 2 Can You Really Live (Well) Overseason $25,000 a Year?15 Chapter 3 What’s Your Deal Breaker?23 Chapter 4 The Most Common (and Avoidable) Mistakes Expats Make 33 Chapter 5 Health Care: Myth versus Reality 39 Chapter 6 The Challenges of Language and Culture 53 Part Two Making the Move: It’s a Big World Where Should YOU Go? 61 Chapter 7 Belize: No Shirt, No Shoes, No Problem(and It’s All in English!) 63 Chapter 8 Costa Rica:Your Easiest Choice 73 Chapter 9 Ecuador: Something for Everyone 87 Chapter 10 Mexico: The Top Foreign Destination for U.S. and Canadian Retirees103 Chapter 11 Nicaragua: Ready for Prime Time117 Chapter 12 Panama: The World’s Best Retirement Program(and Much More)131 Chapter 13 Uruguay: More First World Than the United States? 145 Chapter 14 Europe: All the Ingredients for the Good Life157 Chapter 15 Southeast Asia: Exotic and Affordable175 Chapter 16 Boots on the Ground: Zeroing In on the Community That’s Right for You 189 Chapter 17 You Found Your Paradise. Now What?: Should You Rent or Buy? And How to Know When Halfway Isn’t the Wrong Way 199 Chapter 18 Once You Know Where You’re Going: Put Your Plan in Action 207 Part Three Once You Get There: Adjusting to Your New Life 217 Chapter 19 Changes in Latitudes, Changes in Attitude: Maintaining the Bridge between Your Past and Present Lives 219 Chapter 20 When the Hammock Gets Boring: What to Do after You Retire and Move Overseas 227 Chapter 21 Moving On: This Is Not a One-Way Highway 239 Epilogue If We Knew Then What We Know Now 245 Index 251

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Book SynopsisThe evidence-based approach to a more worthwhile portfolio The Index Revolution argues that active investing is a loser''s game, and that a passive approach is more profitable in today''s market. By adjusting your portfolio asset weights to match a performance index, you consistently earn higher rates of returns and come out on top in the long run. This book explains why, and describes how individual investors can take advantage of indexing to make their portfolio stronger and more profitable. By indexing investment operations at a very low cost, and trusting that active professionals have set securities prices as correctly as possible, you will achieve better long-term results than those who look down on passive approaches while following outdated advice that no longer works. Beating the market is much harder than it used to be, and investors who continue to approach the market with that mindset populate the rolls of market losers time and time again. This book expTrade Review"...one of the best investment books I have ever read and is likely to be influential." (All About DC, March 2017)Table of ContentsForeword vii Introduction xvii Acknowledgments xxxvii Part One Over 50 Years of Learning to Index 1 1 My Half-Century Odyssey 3 Part Two The 10 Good Reasons to Index 73 2 The Stock Markets of the World Have Changed Extraordinarily 75 3 Indexing Outperforms Active Investing 83 4 Low Fees Are an Important Reason to Index 97 5 Indexing Makes It Much Easier to Focus on Your Most Important Investment Decisions 125 6 Your Taxes Are Lower When You Index 147 7 Indexing Saves Operational Costs 151 8 Indexing Makes Most Investment Risks Easier to Live With 153 9 Indexing Avoids “Manager Risk” 157 10 Indexing Helps You Avoid Costly Troubles with Mr. Market 161 11 You Have Much Better Things to Do with Your Time 169 12 Experts Agree Most Investors Should Index 171 Appendix A: How About “Smart Beta”? 177 Appendix B: How to Get Started with Indexing 185 Appendix C: How Index Funds Are Managed 193 About the Author 197 Index 199

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Book Synopsis

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Book SynopsisEquity strategies are closely guarded secrets and as such, there is very little written about how investors and corporate can utilise equity vehicles as part of their growth strategies.Table of ContentsPreface xvii About the Author xix 1 Main Strategic Equity Derivative Instruments 1 1.1 Equity Forwards 1 1.1.1 Equity Forwards 1 1.1.2 Example of a Cash-settled Equity Forward on a Stock 2 1.1.3 Example of a Physically Settled Equity Forward on a Stock 3 1.1.4 Calculating the Forward Price of a Stock 4 1.2 Equity Swaps 6 1.2.1 Total Return Equity Swaps 6 1.2.2 Price Return Equity Swaps 7 1.2.3 Case Study: Physically Settled Total Return Equity Swap on Deutsche Telekom 7 1.2.4 Case Study: Cash-settled Total Return Equity Swap on Deutsche Telekom 12 1.2.5 Determination of the Initial Price 15 1.2.6 Determination of the Settlement Price 16 1.2.7 Equity Notional Resets 17 1.2.8 Case Study: Total Return Equity Swap on EuroStoxx 50 17 1.2.9 Compo Equity Swaps 21 1.2.10 Quanto Equity Swaps 23 1.2.11 Uses of Equity Swaps 25 1.3 Stock Lending and Borrowing 26 1.3.1 Stock Lending and Borrowing 26 1.3.2 Stock Lending/Borrowing Transaction Flows 27 1.3.3 Counterparty Credit Risk 28 1.3.4 Advantages of Stock Lending and Borrowing 29 1.3.5 Drawbacks of Stock Lending and Borrowing 29 1.4 Call and Put Options 30 1.4.1 Call Options 30 1.4.2 Put Options 33 1.4.3 European vs. American Style 36 1.4.4 Time Value vs. Intrinsic Value 36 1.4.5 In, At or Out-of-the-money 37 1.4.6 Variables that Influence an Option Price 38 1.4.7 Historical Volatility vs. Implied Volatility 40 1.4.8 Put–Call Parity 41 1.4.9 Options’ Sensitivities, the “Greeks” 42 1.4.10 Delta Hedging 44 1.4.11 Offsetting Dividend Risk 45 1.4.12 Adjustments to Option Terms Due to Other Corporate Actions 46 1.4.13 Volatility Smile 47 1.4.14 Implied Volatility Term Structure 48 1.4.15 Composite and Quanto Options 49 1.5 Dividend Swaps 50 1.5.1 Dividend Swaps 50 1.5.2 Applications of Dividend Swaps 50 1.5.3 Risks 52 1.5.4 Main Dates in a Dividend Distribution 52 1.5.5 Case Study: Single-stock Dividend Swap 52 1.5.6 Case Study: Index Dividend Swap 56 1.5.7 Pricing Implied Dividends 58 1.6 Variance Swaps and Volatility Swaps 58 1.6.1 Variance Swaps Product Description 59 1.6.2 Calculation of the Realized Volatility and the Realized Variance 61 1.6.3 Volatility Swaps Product Description 62 1.6.4 Volatility Swaps vs. Variance Swaps 63 1.6.5 Applications of Variance and Volatility Swaps 63 2 Equity Capital Markets Products 65 2.1 Main Equity Capital Markets Products 65 2.1.1 Capital Increase Products 65 2.1.2 Secondary Placement Products 66 2.1.3 Equity-linked Products 66 2.2 Initial Public Offerings 66 2.2.1 Product Description 66 2.2.2 Benefits of Going Public 67 2.2.3 Drawbacks of Going Public 67 2.2.4 The IPO Process 68 2.2.5 Phase 1: Preparation of the Company 68 2.2.6 Phase 2: Preparation of the Offering 69 2.2.7 Phase 3: Marketing of the Offering 75 2.2.8 Phase 4: Placement of the Offering 77 2.2.9 Key Success Factors Affecting an IPO 80 2.2.10 Key Risk Factors Affecting an IPO 81 2.2.11 Case Study: Visa’s IPO 82 2.3 Case Study: Google’s Dutch Auction IPO 85 2.4 Rights Issues (or Rights Offerings) 87 2.4.1 Product Description 87 2.4.2 Main Definitions of a Rights Issue 88 2.4.3 Advantages and Weaknesses of a Rights Issue 89 2.4.4 Rights Offerings Success Factors 90 2.4.5 Calculation of the TERP 90 2.4.6 Case Study: ING’s EUR 7.5 billion Rights Issue 91 2.5 Rights Issues of Convertible Bonds 95 2.5.1 Case Study: Banco Popolare Rights Issue of a Convertible Bond 95 2.6 Accelerated Book-Buildings 98 2.6.1 Product Description 98 2.6.2 Advantages and Weaknesses of an ABB 99 2.6.3 Estimating the Discount 99 2.6.4 Case Study: IPIC’s Disposal of 11.8% of Barclays 100 2.7 At the Market Offerings 100 2.7.1 Product Description 100 2.7.2 Case Study: US Treasury Placement of Citigroup Shares 101 3 Convertible Bonds and Mandatory Convertible Bonds 103 3.1 Introduction to Convertible Bonds 103 3.1.1 What are Convertible Bonds? 103 3.1.2 Convertible vs. Exchangeable Bonds – Exchange Property 104 3.2 Who Buys Convertible Bonds? 105 3.3 Convertible Bonds: The Issuer Perspective 106 3.4 Case Study: Infineon’s Convertible Bond 107 3.4.1 Main Terms of Infineon’s Convertible Bond 107 3.4.2 Conversion Price, Ratio, Premium and Lockout Period 108 3.4.3 Hard No Call Period, Hard Call and Soft Call Options 109 3.4.4 Put Rights 110 3.4.5 Additional Clauses: Cash Option, Cash Top-up, Lock-up Period, Tax Call 111 3.4.6 Value of a Convertible Bond at Maturity 112 3.4.7 Value of a Convertible Bond during its Life 112 3.5 Delta Share Repurchase Strategy 114 3.6 Mandatory Convertible Bonds 115 3.7 Rationale for Issuing Mandatory Convertibles 115 3.8 Rationale for Investing in Mandatory Convertibles 116 3.9 Fixed Parity Mandatory Convertibles 116 3.9.1 Case Study: Banco Santander’s Fixed Parity Mandatory Convertible 116 3.10 Variable Parity Mandatory Convertibles 118 3.11 Dividend Enhanced Convertible Securities 118 3.11.1 Conversion Mechanics of a DECS 118 3.11.2 Anatomy of a DECS 120 3.11.3 Embedded Derivatives in a DECS 121 3.11.4 Pricing a DECS 122 3.12 Case Study: UBS’s DECS 122 3.13 Special Clauses in Convertibles 124 3.13.1 Dividend Protection Clauses 124 3.13.2 Coupon Deferral Clauses 125 3.13.3 Call Option Make-whole Clauses 126 3.13.4 Change-of-control Make-whole Clauses 126 3.13.5 Clean-up Call Clauses 127 3.13.6 Net Share Settlement Clauses 127 3.14 Contingent Convertibles: FRESHES, CASHES and ECNS 127 3.14.1 Case Study: Fortis’s FRESH Instrument 128 3.14.2 Case Study: Unicredit’s CASHES Instrument 131 3.14.3 Case Study: Lloyds ECN 136 3.14.4 Case Study: Rabobank’s SCN 139 4 Strategic Equity Transactions around Convertible/Exchangeable Bonds 141 4.1 Issuing an Exchangeable with a Third-party Guarantee 141 4.1.1 Case Study: Controlinveste’s Exchangeable Bonds on Portugal Telecom 141 4.1.2 Transaction Overview 142 4.1.3 Dividend Swap and Transaction Flows during the First Four Years 143 4.1.4 Transaction Flows in Case of Exchanges or at Maturity 145 4.1.5 Exchange Property Pledge and other Security Mechanisms 146 4.1.6 Attractiveness of the Transaction to the Issuer and to BCP 147 4.2 Issuing a Convertible Through a Third Party 147 4.2.1 Case Study: Novartis LEPOs and Put Options with Deutsche Bank 147 4.2.2 Transaction Overview 147 4.2.3 Deutsche Bank’s Exposure to Novartis’s Stock Price 149 4.2.4 Effect of Deutsche Bank’s Zero-coupon Convertibles on the Exchange Price 151 4.2.5 Attractiveness of Deutsche Bank’s Zero-coupon Exchangeables to Investors 152 4.2.6 Advantages to Novartis and Relevance of a Call Right 152 4.3 Crystallizing a Gain in a Convertible Investment Through Warrants 153 4.3.1 Case Study: Richemont Warrants Issue on Back of Convertible Preference Shares 153 4.3.2 Warrants’ Terms 154 4.3.3 Analysis of R&R’s Position 154 4.3.4 Main Benefits to Richemont of the Warrants Issue 155 4.3.5 Effect on BAT’s Stock Price of the Warrants Issue 156 4.4 Monetizing a Stake with an Exchangeable Plus a Put 156 4.4.1 Case Study: Deutsche Bank’s Exchangeable into Brisa 156 4.4.2 Transaction Overview 157 4.4.3 Analysis of Deutsche Bank’s Overall Position 158 4.5 Increasing Likelihood of Conversion with a Call Spread 161 4.5.1 Case Study: Chartered Semiconductor’s Call Spread with Goldman Sachs 161 4.5.2 Goldman Sachs’s Overall Position 162 4.5.3 CSM’s Overall Position 163 4.5.4 Attractiveness of the Transaction to CSM 166 4.5.5 Additional Remarks 167 4.6 Decreasing Likelihood of Conversion with a Call Spread 169 4.6.1 Case Study: Microsoft’s Convertible Plus Call Spread 169 4.7 Double Issuance of Exchangeable Bonds 169 4.7.1 Case Study: ABC’s Double Exchangeable 169 4.8 Buying Back Conversion Rights 172 4.8.1 Case Study: Cap Gemini’s Repurchase of Conversion Right from Société Générale 172 4.9 Buying Back Convertible/Exchangeable Bonds 175 4.9.1 Case Study: TUI’s Convertible Bond 175 4.10 Pre-IPO Convertible Bonds 178 5 Hedging and Yield Enhancing Strategic Stakes 181 5.1 Hedging a Strategic Stake 181 5.1.1 Hedging with a Put Option 181 5.1.2 Hedging with a Put Spread 184 5.1.3 Hedging with a Collar 186 5.1.4 Hedging with a Put Spread Collar 188 5.1.5 Hedging with a Fly Put Spread 189 5.1.6 Hedging with a Knock-out Put 191 5.1.7 Summary of Main Hedging Strategies 193 5.1.8 Hedging with Ladder Puts 193 5.1.9 Hedging with Variable Premium and Variable Expiry Timer Puts 195 5.1.10 Hedging with Pay-later Puts 197 5.2 Yield Enhancement of a Strategic Stake 199 5.2.1 Lending the Stock 199 5.2.2 Selling Part of the Upside with a Call 200 5.2.3 Monetization of Dividend Optionality 202 5.2.4 Reduction of Dividend Withholding Taxes with a Stock Lending Strategy 204 5.2.5 Reduction of Dividend Withholding Taxes with a Converse Strategy 205 6 Disposal of Strategic Stakes 207 6.1 Most Common Disposal Strategies 207 6.1.1 Case Study Assumptions 207 6.1.2 Market Dribbling Out or Gradual Sale 208 6.2 Deterministic Disposal Strategies 209 6.2.1 ABB – Block Trade 209 6.2.2 Mandatory Exchangeable Bond 211 6.2.3 Indirect Issue of an Exchangeable Bond 211 6.3 Enhanced Disposal Strategies 212 6.3.1 Direct Issue of an Exchangeable Bond 213 6.3.2 Sale of a Call Option 214 6.3.3 One-speed Range Accrual 216 6.3.4 Double-speed Range Accrual 220 6.3.5 Double-speed Range Accrual with Final Call 221 6.3.6 Double-speed Range Accrual with Deduction 222 6.3.7 Double-speed Range Accrual with Knock-out 222 6.4 Derecognition Strategies 224 6.4.1 Sale + Cash-settled Equity Swap 224 6.4.2 Physically Settled Equity Swap + Call Option 227 6.5 Combination of ABB and a Call Option/Exchangeable 229 6.5.1 Case Study: Germany’s Disposal of Fraport with JP Morgan’s Collaboration 229 7 Strategic Equity Derivatives in Mergers and Acquisitions 235 7.1 Keeping Voting Rights in Proxy Contests 237 7.1.1 Case Study: Montalban Partners’ Disposal of Gold International 237 7.2 Submitting Resolutions to an AGM 239 7.2.1 Case Study: Laxey’s Stock Lending Transaction 240 7.3 Increasing Likelihood of Success of a Merger Arbitrage Position 242 7.3.1 Case Study: Perry’s Equity Swaps with Bear Stearns and Goldman Sachs 242 7.4 Avoiding Mandatory Offer Rules 247 7.4.1 Case Study: Agnelli Family Equity Swap with Merrill Lynch 247 7.5 Increasing Likelihood of Success of a Takeover 251 7.5.1 Case Study: Unipol’s Takeover of BNL and Call/Put Combination with Deutsche Bank 251 8 Stock Options Plans Hedging 257 8.1 Main Equity-based Compensation Plans 257 8.1.1 Main Equity-based Compensation Plans 257 8.1.2 Terminology of Stock Option Plans and SARs 258 8.2 IFRS Accounting for Equity-based Compensation Plans 259 8.2.1 Accounting for Stock Options Plans 261 8.2.2 Accounting for Stock Appreciation Rights 263 8.3 Case Study: ABC’s ESOP and SAR 265 8.3.1 Main Terms of ABC’s ESOP and SAR 265 8.3.2 Accounting for ABC’s ESOP 266 8.3.3 Accounting for ABC’s SAR 270 8.4 Main ESOP/SAR Hedging Strategies 273 8.4.1 Underlying Risks in ESOPs and SARs 273 8.4.2 Hedging with Treasury Shares 274 8.4.3 Hedging with Equity Swaps 275 8.4.4 Hedging a SAR with an Enhanced Equity Swap 279 8.4.5 Hedging with Standard Call Options 280 8.4.6 Hedging with Auto Call Options 282 8.4.7 Hedging with Timer Call Options 282 8.5 HSBC’s Performance Share Plan 283 8.5.1 Terms of HSBC’s Performance Share Plan 283 8.5.2 Accounting for the Plan 284 8.5.3 Hedging the Plan 285 9 Equity Financings 287 9.1 Case Study: Equity Collateralized Bond 287 9.1.1 Bond Terms 287 9.1.2 Main Documents of the Financing 288 9.1.3 Parties to an Equity Financing 289 9.1.4 Accounts in an Equity Financing 290 9.1.5 Credit Enhancement Tools 291 9.1.6 Early Termination Events 292 9.1.7 Events of Default 295 9.1.8 Syndicating the Equity Financing with a Credit Default Swap 297 9.1.9 Recourse vs. Non-recourse Equity Financings 299 9.2 Sale + Equity Swap 300 9.2.1 Transaction Description 300 9.2.2 Equity Swap Terms 300 9.2.3 Equity Swap Flows 305 9.2.4 Advantages and Weaknesses 307 9.3 Prepaid Forward + Equity Swap + Pledge 308 9.3.1 Product Description 308 9.3.2 Equity Derivatives Terms 308 9.3.3 Transaction Flows 314 9.3.4 Advantages and Weaknesses 316 9.4 Repo Financing 316 9.4.1 Product Description 316 9.5 Stock Loan Financing 317 9.5.1 Product Description 317 9.6 Put Financing 318 9.6.1 Product Description 318 9.6.2 Advantages and Weaknesses 319 9.7 Collared Financing 320 9.7.1 Product Description 320 9.7.2 Advantages and Weaknesses 321 9.8 Revolving Margin Loan Facilities 322 9.8.1 Case Study: Oil SPE’s Revolving Margin Loan Facility 322 10 Share Buybacks and Other Transactions on Treasury Shares 327 10.1 Open Market Repurchase Programs 327 10.2 Accelerated Repurchase Programs 329 10.2.1 Case Study: Hewlett Packard’s ASR with Merrill Lynch 329 10.3 VWAP-Linked Repurchase Programs 332 10.3.1 Execution on a Best Effort Basis 332 10.3.2 Execution on a Guaranteed Basis 333 10.3.3 Advantages and Weaknesses of a VWAP-linked Strategy 333 10.3.4 Execution at a Discounted VWAP 334 10.3.5 Execution at a Capped VWAP 337 10.4 Prepaid Collared Repurchase Programs 338 10.4.1 Case Study: Hewlett Packard’s PCRP with BNP Paribas 339 10.5 Deep-in-the-money Call Purchase 340 10.5.1 Case Study: ABC’s Acquisition of a Deep-in-the-money Call Option 341 10.6 Asian Call Purchase 343 10.7 Publicly Offered Repurchase Programs 345 10.7.1 Case Study: Corporacion Dermoestetica’s Public Offer to Acquire Own Shares 345 10.8 Public Offer of Put Options 346 10.8.1 Case Study: Swisscom’s Public Offer of Put Options 346 10.9 Private Sale of a Put Option 347 10.10 Acquisition of Shares with a Range Accrual 348 10.10.1 One-speed Range Accrual 348 10.10.2 Double-speed Range Accrual 352 10.10.3 Double-speed Range Accrual with Final Put 354 10.11 Other Transactions on Treasury Shares 355 10.11.1 Case Study: ABC’s Restructuring of Call on Own Shares 355 10.11.2 Case Study: Gilead’s Share Repurchase Program Financed with Convertible Bonds 361 11 Bank Regulatory Capital 365 11.1 An Overview of Basel III 365 11.1.1 Precedent Bank Regulatory Capital Accords 365 11.1.2 The Capital Ratio 366 11.1.3 Bank Regulatory Capital 367 11.1.4 Risk-weighted Assets 367 11.2 Tier 1 Capital 369 11.2.1 Common Equity Tier 1 Capital 369 11.2.2 Additional Tier 1 Capital 373 11.3 Tier 2 Capital 376 11.3.1 Criteria for Inclusion in Tier 2 Capital 376 11.3.2 Trigger Conditions for Hybrid Instruments 379 11.4 Deductions from Common Equity Tier 1 Capital 380 11.4.1 Goodwill and Other Intangible Assets (Except Mortgage Servicing Rights) 380 11.4.2 Deferred Tax Assets 380 11.4.3 Cash Flow Hedge Reserve 382 11.4.4 Shortfall of the Stock of Provisions to Expected Losses 383 11.4.5 Gain-on-sale Related to Securitization Transactions 383 11.4.6 Gains and Losses on Fair Valued Own Liabilities due to Changes in Own Credit Risk 383 11.4.7 Defined Benefit Pension Fund Assets and Liabilities 383 11.4.8 Treasury Stock 385 11.4.9 Reciprocal Stakes in Unconsolidated Financial Companies 385 11.4.10 Less than 10% Stakes in Unconsolidated Financial Companies 385 11.4.11 Significant Stakes in Unconsolidated Financial Companies 387 11.4.12 Combined Deduction of Significant Investments in Unconsolidated Financial Entities, MSRs and DTAs 388 11.4.13 Basel II 50/50 Deductions 389 11.5 Other Capital Buffers 389 11.5.1 Capital Conservation Buffer 389 11.5.2 Countercyclical Buffer 391 11.6 Transitional Arrangements 392 11.6.1 Transitional Period 392 11.6.2 Capital Instruments Failing Criteria for Eligibility in Capital 393 11.7 Leverage Ratio 393 11.8 Liquidity Coverage Ratio 394 11.9 Net Stable Funding Ratio 396 11.10 Case Study: Calculation of Minority Interests 397 11.11 Case Study: Creating Minority Interests 399 11.12 Case Study: Reducing Risk Weighting 401 11.13 Case Study: Releasing Common Equity 401 11.14 Case Study: Reducing an Unconsolidated Financial Stake 403 11.15 Case Study: Commerzbank’s Capital Structure Enhancement with Credit Suisse 404 Bibliography 407 Index 409

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Book SynopsisTake chart patterns beyond buy triggers to increase profits and make better trades Chart Patterns: After the Buy goes beyond simple chart pattern identification to show what comes next. Author and stock trader Thomas Bulkowski is one of the industry''s most respected authorities in technical analysis; for this book, he examined over 43,000 chart patterns to discover what happens after you buy the stock. His findings are detailed here, to help you select better buy signals, avoid disaster, and make more money. Bulkowski analyzed thousands of trades to identify common paths a stock takes after the breakout from a chart pattern. By combining those paths, he discovered the typical routes a stock takes, which he calls configurations. Match your chart to one of those configurations and you will know, before you buy, how your trade will likely perform. Now you can avoid potentially disastrous trades to focus on the big winners. Each chapter illustrates theTable of ContentsPreface ix Acknowledgments xi About the Author xiii Chapter 1 Big m 1 Chapter 2 Big W 27 Chapter 3 Broadening Bottoms 53 Chapter 4 Broadening Tops 85 Chapter 5 Double Bottoms 119 Chapter 6 Double Tops 147 Chapter 7 Earnings Miss 169 Chapter 8 Flags and Pennants 185 Chapter 9 Head-and-Shoulders Bottoms 205 Chapter 10 Head-and-Shoulders Tops 231 Chapter 11 Measured Move Down 255 Chapter 12 Measured Move Up 267 Chapter 13 Price Mirrors 277 Chapter 14 Price Mountains 283 Chapter 15 Rectangles 291 Chapter 16 Reversals and Continuations 325 Chapter 17 Straight-Line Run Down 333 Chapter 18 Straight-Line Run Up 347 Chapter 19 Tops and Bottoms 361 Chapter 20 Trends and Countertrends 371 Chapter 21 Triangle Apex and Turning Points 383 Chapter 22 Triangles, Ascending 391 Chapter 23 Triangles, Descending 427 Chapter 24 Triangles, Symmetrical 465 Chapter 25 Vertical Run Down 495 Chapter 26 Vertical Run Up 509 Glossary 523 Index 531

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Book SynopsisTechnical analysis expert L.A. Little shows how to identify and trade big market moves Significant money can be made in the stock market by following big trends. In Trend Qualification and Trading, market technician L.A. Little explains how to identify and qualify these trends to determine the likelihood that they will continue and produce better trading results. By combining price, volume, different timeframes, and the relationship between the general market, sectors, and individual stocks, Little shows how to measure the strength of stock trends. Most importantly, he demonstrates how to determine if a trend has what it takes to develop into a major move with greater profit potential or if it is basically a false signal. Takes a proven technical approach to identifying and profiting from financial market trends Shows how to best time entries, when to take profits, and when to exit trades Introduces Little''s proprietary concept, TTable of ContentsForeword xi Acknowledgments xiii Introduction 1 Part I Trend Theory 5 Chapter 1 Redefining Trend 7 Chapter 2 Classical Trend Model 13 Objective of the Model 13 Inputs 14 Model Definition 14 Rules for the Model 15 Applying the Model 18 Summary 22 Chapter 3 Neoclassical Trend Model 25 Objective of the Model 26 Inputs 29 Model Definition 30 Rules for the Model 37 Summary 46 Chapter 4 Determining Trends 49 Fundamentals for the Long Term 49 Swing Point Logic 50 Identifying and Labeling Trends 65 Summary 70 Chapter 5 Qualifying Trends 73 Using Swing Point Tests 73 Trend Continuation and Transitions 75 Retest and Regenerate 97 Summary 106 Part II Application of Trend Theory 109 Chapter 6 Preparing to Trade 111 Overview of Trading Strategies 112 Risk versus Reward 115 Time Frames 116 Summary 125 Chapter 7 Entering and Exiting Trades 127 Support and Resistance 128 Price Zones, Not Lines 131 Defining Entry and Exit Points 136 A Trading Example: Combining Technical Events 161 Summary 166 Chapter 8 Reversals and Price Projections 167 Price Reversals 168 Price Projections 176 Summary 187 Chapter 9 Time Frames 191 Time Frame Analysis 192 Time Frame Integration 197 Establishing a Trading Bias 206 Trade Trend Matrix 212 Summary 214 Chapter 10 Markets, Sectors, and the Trading Cube 215 General Market 216 Market Sectors 217 The Trading Cube 219 Summary 240 Chapter 11 Trading Qualified Trends 243 Example of a Qualified Trend 244 Entering a Trade 249 Exploiting the Trend 258 Exiting the Trade 263 Flipping Trading Positions 268 Concluding Thoughts 272 Notes 275 Glossary of Key Terms 281 About the Author 287 Index 289

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Book SynopsisA detailed and compelling look at distressed securities investing in today's market In the corporate world, vulture investors in distressed securities serve the same cleanup function as vultures do in the natural world: they deal with failing companies, digest bad debt, and mop up after bankruptcies. Since this market's structural and legal complexities create greater inefficiencies than in other investment fields, it's a style of investing that can make money during both booms and busts. While recent economic carnage has made opportunities for vulture investors, more convoluted bankruptcies, conflicts of interest, and even government intervention have made this arena harder to negotiate. Nobody understands this better than author George Schultze, founder of Schultze Asset Management. During his successful career as a vulture investor, he's learned a number of lessons and developed an investment philosophy that has served him well. Now, in The Art of Vulture InvTable of ContentsForeword ix Acknowledgments xi Preface xiii CHAPTER 1 Emerging from the Egg 1 CHAPTER 2 Learning to Scavenge 17 CHAPTER 3 Looking for Prey 39 CHAPTER 4 Waiting On a Limb 63 CHAPTER 5 Swooping In: Tropicana 73 CHAPTER 6 Fighting Over the Carcass: Chrysler 95 CHAPTER 7 Digesting the Remains 115 CHAPTER 8 A Vulture’s Philosophy 131 APPENDIX 1 Net Operating Loss Carry Forwards 139 APPENDIX 2 Copy of Continued Objection by Ad Hoc Committee of Washington Group Class 7 Claim Holders 141 APPENDIX 3 Letter to Washington Group’s Board of Directors 153 APPENDIX 4 Shareholder Complaint against Winn-Dixie Board et al. 157 APPENDIX 5 Objection by Schultze Asset Management to Owens Corning Disclosure Statement About the Authors 185 Index 189

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Book SynopsisFully revised, the proven primer on forensic accounting with all-new cases A must-have reference for every business professional, Forensic Accounting and Fraud Investigation for Non-Experts, Third Edition is a necessary tool for those interested in understanding how financial fraud occurs and what to do when you find or suspect it within your organization. With comprehensive coverage, it provides insightful advice on where an organization is most susceptible to fraud. Updated with new cases and new material on technology tools in forensic accounting Covers the core accounting, investigative, and legal aspects of forensic accounting for professionals new to the field Covers investigative and legal issues along with accounting schemes Written by a team of recognized experts in the field of forensic accounting, Forensic Accounting and Fraud Investigation for Non-Experts, Third Edition is essential reading for accountantTable of ContentsPreface xiii Acknowledgments xv Part I Forensic Accounting and Fraud Overview 1 Chapter 1 Forensic Accounting 3 What Is Forensic Accounting? 3 Why Has Forensic Accounting Become the Buzz? 4 Introduction to a Profession 5 Applications for Forensic Accounting 6 A Third Dimension: Contexts within Each Area of Specialization 11 Conclusion 14 Suggested Readings 15 Notes 15 Chapter 2 Fraud in Society 17 What Is Fraud? 17 Types of Fraud 21 Other Types of Financial Fraud 25 Sarbanes–Oxley 27 What the Numbers Tell Us about Fraud 28 Categories of Occupational Fraud 29 Drawing Conclusions 31 Society’s Perception of Fraud 32 Who Commits Fraud?—Profile of the Typical Fraudster 33 The Social Consequences of Economic Crime 39 Conclusion 39 Suggested Readings 40 Notes 40 Chapter 3 Understanding the Basics of Financial Accounting 43 Where It All Begins 43 The Five Accounting Cycles 46 Journals: Subsidiary and General 54 Conclusion 56 Suggested Readings 56 Note 57 Chapter 4 Forms of Entities 59 Basics of Business Structures 59 Sole Proprietorships 60 Partnerships 60 Corporations 63 Business Enterprises in the Global Environment 66 Conclusion 70 Suggested Readings 70 Notes 72 Chapter 5 Fundamental Principles of Financial Analysis 73 Good Analysis = Due Diligence? 73 Why Perform Financial Analysis? 76 What and Whom Can You Trust? 76 Other Factors to Consider 77 Financial Analysis for the Non-Expert 78 To the Future 85 Conclusion 86 Suggested Readings 87 Notes 87 Chapter 6 The Role of the Accounting Professional 89 The Importance of Accounting Professionals in the Investigation 89 The Audit Process 93 Internal Controls 98 Conclusion 101 Notes 101 Part II Financial Crime Investigation 103 Chapter 7 Business as a Victim 105 Introduction 105 Employee Thefts 106 Fraudulent Billing Schemes 112 Fraud Committed by Outsiders 113 Management Thefts 114 Corporate Thefts 117 Identity Theft 118 Conclusion 120 Suggested Readings 120 Notes 120 CHAPTER 8 Business Villains 123 Introduction 123 Organized Crime and Business 123 Money Laundering 130 Conclusion 137 Suggested Readings 138 Notes 139 Chapter 9 The Investigative Process 143 Introduction 143 Case Initiation 144 Case Evaluation 145 Solvability Factors 147 Goal Setting and Planning 148 Investigation 156 Background 158 Conclusion 166 Suggested Readings 167 Notes 167 Chapter 10 Interviewing Financially Sophisticated Witnesses 169 Introduction 169 The Interview 170 Interviewing Financially Sophisticated Witnesses 185 Conclusion 188 Suggested Readings 189 Notes 190 Chapter 11 Proving Cases through Documentary Evidence 193 Introduction 193 Document Collection 194 Document Organization 207 The Process of Proof 211 The Logic of Argument 213 Proof through Inference 217 Conclusion 221 Suggested Readings 222 Notes 224 Chapter 12 Analysis Tools for Investigators 227 Introduction 227 Why Use Analysis Tools at All? 227 Associational Analysis 229 Temporal Analysis 246 Conclusion 252 Suggested Readings 252 Notes 253 Chapter 13 Inferential Analysis 255 Introduction 255 How Inferential Analysis Helps 255 What Is an Inference Network? 256 Investigative Inference Analysis 259 The Key List 263 Constructing an Investigative Inference Chart 264 Plotting the Chart 268 Some Tips for Charting Success 272 Applying the Chart to the Investigative Process 273 Conclusion 275 Suggested Readings 275 Notes 277 Chapter 14 Documenting and Presenting the Case 279 Introduction 279 Creating a System 279 The Casebook System 280 Report Writing 287 Testifying as a Financial Expert 290 Conclusion 305 Suggested Readings 305 Notes 306 About the Authors 309 Index 311

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Book SynopsisIntroducing the new Fisher Investment Series, comprised of engaging and informative titles written by renowned money manager and bestselling author Ken Fisher. This series offers essential insights into the worlds of investing and finance.Trade Review“…trawl through the biographies of those who have made the markets move for some of the right – and wrong – reasons.” (FT's Investment Adviser, Monday 18th February 2008)Table of ContentsPreface xvii Acknowlegments xxi Foreword xxiii Introduction 1 CHAPTER ONE The Dinosaurs 7 MAYER AMSCHEL ROTHSCHILD Out of the Ghetto and into the Limelight 10 NATHAN ROTHSCHILD When Cash Became King—and Credit Became Prime Minister 13 STEPHEN GIRARD The First Richest Man in America Financed Privateers 17 JOHN JACOB ASTOR A One-Man Conglomeration 20 CORNELIUS VANDERBILT A Man Above The Law 23 GEORGE PEABODY A Finder of Financing and Financiers 26 JUNIUS SPENCER MORGAN The Last of the Modern Manipulators 29 DANIEL DREW Much “To Drew” About Nothing 32 JAY COOKE Stick To Your Knitting 36 CHAPTER TWO Journalists and Authors 39 CHARLES DOW His Last Name Says It All 41 EDWARD JONES You Can’t Separate Rodgers and Hammerstein 44 THOMAS W. LAWSON “Stock Exchange Gambling is the Hell of it All . . . ” 47 B.C. FORBES He Made Financial Reporting Human 51 EDWIN LEFEVRE You Couldn’t Separate His Facts from His Fiction 53 CLARENCE W. BARRON A Heavyweight Journalist 56 BENJAMIN GRAHAM The Father of Security Analysis 59 ARNOLD BERNHARD The Elegance of Overview on a Single Page 63 LOUIS ENGEL One Mind that Helped Make Millions More 67 CHAPTER THREE Investment Bankers and Brokers 71 AUGUST BELMONT He Represented Europe’s Financial Stake in America 74 EMANUEL LEHMAN AND HIS SON PHILIP Role Models For So ManyWall Street Firms 77 JOHN PIERPONT MORGAN History’s Most Powerful Financier 80 JACOB H. SCHIFF The Other Side of the Street 84 GEORGE W. PERKINS He Left the Comfy House of Morgan to Ride a Bull Moose 87 JOHN PIERPONT “JACK” MORGAN, JR. No One Ever Had Bigger Shoes to Fill 90 THOMAS LAMONT The Beacon for a Whole Generation 94 CLARENCE D. DILLON He Challenged Tradition and Symbolized the ChangingWorld 98 CHARLES E. MERRILL The Thundering Herd Runs Amok in the Aisles of the Stock Market’s Supermarket 101 GERALD M. LOEB The Father of Froth—He Knew the Lingo, Not the Logic 104 SIDNEY WEINBERG The Role Model for Modern Investment Bankers 108 CHAPTER FOUR The Innovators 113 ELIAS JACKSON “LUCKY” BALDWIN When You’re Lucky, You Can Go Your OwnWay 116 CHARLES T. YERKES He Turned Politics into Monopolistic Power 120 THOMAS FORTUNE RYAN America’s First Holding Company 123 RUSSELL SAGE A Sage for all Seasons 126 ROGER W. BABSON Innovative Statistician and NewsletterWriter 129 T. ROWE PRICE Widely Known as the Father of Growth Stocks 133 FLOYD B. ODLUM The Original Modern Corporate Raider 137 PAUL CABOT The Father of Modern Investment Management 141 GEORGES DORIOT The Father of Venture Capital 145 ROYAL LITTLE The Father of Conglomerates 149 CHAPTER FIVE Bankers and Central Bankers 153 JOHN LAW The Father of Central BankingWasn’t Very Fatherly 157 ALEXANDER HAMILTON The Godfather of American Finance 161 NICHOLAS BIDDLE A Civilized Man Could Not Beat a Buccaneer 164 JAMES STILLMAN Psychic Heads America’s Largest Bank 167 FRANK A. VANDERLIP A Role Model for AnyWall StreetWanna-Be 171 GEORGE F. BAKER Looking Before Leaping Pays off 174 AMADEO P. GIANNINI Taking the Pulse ofWall Street Out of New York 177 PAUL M. WARBURG Founder and Critic of Modern American Central Banking 180 BENJAMIN STRONG Had Strong Been Strong the Economy Might Have Been, Too 183 GEORGE L. HARRISON No, This Isn’t the Guy From the Beatles 187 NATALIE SCHENK LAIMBEER Wall Street’s First Notable Female Professional 190 CHARLES E. MITCHELL The Piston of the Engine that Drove the Roaring 20s 192 ELISHA WALKER America’s Greatest Bank Heist—Almost 195 ALBERT H. WIGGIN Into the Cookie Jar 198 CHAPTER SIX New Deal Reformers 203 E.H.H. SIMMONS One of the Seeds of Too Much Government 206 WINTHROP W. ALDRICH A Blue Blood Who Saw Red 209 JOSEPH P. KENNEDY Founding Chairman of the SEC 212 JAMES M. LANDIS The Cop Who Ended Up in Jail 216 WILLIAM O. DOUGLAS The Supreme Court Judge onWall Street? 220 CHAPTER SEVEN Crooks, Scandals, and Scalawags 225 CHARLES PONZI The Ponzi Scheme 228 SAMUEL INSULL He “Insullted”Wall Street and Paid the Price 231 IVAR KREUGER He PlayedWith Matches and Got Burned 235 RICHARD WHITNEY Wall Street’s Juiciest Scandal 239 MICHAEL J. MEEHAN The First Guy Nailed by the SEC 243 LOWELL M. BIRRELL The Last of the Great Modern Manipulators 246 WALTER F. TELLIER The King of the Penny Stock Swindles 250 JERRY AND GERALD RE A Few Bad Apples Can Ruin the Whole Barrel 254 CHAPTER EIGHT Technicians, Economists, and Other Costly Experts 257 WILLIAM P. HAMILTON The First Practitioner of Technical Analysis 260 EVANGELINE ADAMS By Watching the Heavens She Became a Star 263 ROBERT RHEA He Transformed Theory into Practice 266 IRVING FISHER TheWorld’s Greatest Economist of the 1920s, or Why You Shouldn’t Listen to Economists—Particularly Great Ones 270 WILLIAM D. GANN Starry-Eyed Traders “Gann” an Angle Via Offbeat Guru 274 WESLEY CLAIR MITCHELL Wall Street’s Father of Meaningful Data 278 JOHN MAYNARD KEYNES The Exception Proves the Rule I 281 R.N. ELLIOTT Holy Grail or Quack? 285 EDSON GOULD The Exception Proves the Rule II 289 JOHN MAGEE Off the Top of the Charts 292 CHAPTER NINE Successful Speculators, Wheeler-Dealers, and Operators 295 JAY GOULD Blood Drawn and Blood Spit—Gould or Ghoul-ed? 298 “DIAMOND” JIM BRADY Lady LuckWas on His Side—Sometimes 302 WILLIAM H. VANDERBILT He Proved His FatherWrong 305 JOHN W. GATES What Can You Say About a Man Nicknamed “Bet-a-Million”? 308 EDWARD HARRIMAN Walk Softly and Carry a Big Stick 311 JAMES J. HILL When Opportunity Knocks 314 JAMES R. KEENE Not Good Enough for Gould, But Too Keen for Anyone Else 317 HENRY H. ROGERS Wall Street’s Bluebeard: “Hoist the Jolly Roger!” 320 FISHER BROTHERS Motortown Moguls 323 JOHN J. RASKOB Pioneer of Consumer Finance 327 ARTHUR W. CUTTEN Bully the Price, Then Cut’n Run 330 BERNARD E. “SELL ’EM BEN” SMITH The Rich Chameleon 333 BERNARD BARUCH HeWon and Lost, But Knew When to Quit 337 CHAPTER TEN Unsuccessful Speculators, Wheeler-Dealers, and Operators 341 JACOB LITTLE The First to Do so Much 343 JAMES FISK If You Knew Josie Like He Knew Josie, You’d Be Dead Too! 346 WILLIAM CRAPO DURANT Half Visionary Builder, HalfWild Gambler 349 F. AUGUSTUS HEINZE Burned by Burning the Candle at Both Ends 353 CHARLES W. MORSE Slick and Cold as Ice, Everything He Touched . . . Melted 357 ORIS P. AND MANTIS J. VAN SWEARINGEN He Who Lives by Leverage, Dies by Leverage 360 JESSE L. LIVERMORE The Boy Plunger and Failed Man 364 CHAPTER ELEVEN Miscellaneous, But Not Extraneous 369 HETTY GREEN The Witch’s Brew, or . . . It’s Not Easy Being Green 371 PATRICK BOLOGNA The Easy Money—Isn’t 375 ROBERT R. YOUNG And It’s Never Been the Same Since 378 CYRUS S. EATON Quiet, Flexible, and Rich 381 Conclusion 385 Appendix 387 Index 419

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Book SynopsisToday''s investor is faced with a myriad of investment options and strategies. Whether you are seeking someone to manage your money or are a self-directed investor deciding to tackle the market on your own, the options can be overwhelming. In an easy-to-read and simple format, this book will dissect the strategies of some of Wall Street''s most successful investment gurus and teach readers how to weed through the all of the choices to find a strategy that works for them. The model portfolio system that author John Reese developed turns each strategy into an actionable system, addressing many of the common mistakes that doom individual investors to market underperformance. This book will focus on the principles behind the author''s multi-guru approach, showing how investors can combine the proven strategies of these legendary gurus into a disciplined investing system that has significantly outperformed the market. Gurus covered in the book are: Benjamin Graham;Table of ContentsAcknowledgements ix Introduction xi Part One Why You Need this Book 1 Chapter 1 Learn from the Worst 3 Chapter 2 The Cavalry Arrives 19 Part Two The Value Legends 31 Chapter 3 Benjamin Graham: The Granddaddy of the Gurus 33 Chapter 4 John Neff: The Investor’s Investor 55 Chapter 5 David Dreman: The Great Contrarian 73 Chapter 6 Warren Buffett: The Greatest Guru 95 Part Three The Growth Legends (With a Value Twist) 127 Chapter 7 Peter Lynch: The Star “GARP” Manager 129 Chapter 8 Kenneth L. Fisher: The Price-Sales Pioneer 155 Chapter 9 Martin Zweig: The Conservative Growth Investor 175 Part Four The Pure Quants 197 Chapter 10 James O’Shaughnessy: The Quintessential Quant 199 Chapter 11 Joel Greenblatt: The Man with the Magic Formula 219 Chapter 12 Joseph Piotroski: The Undiscovered Academic 233 Part Five From Theory to Practice 247 Chapter 13 Putting It Together: The Principles of Guru Investing 249 Chapter 14 The Missing Piece: Determining When to Sell 269 Conclusion Time To Take The Wheel 279 Appendix A Performance of Guru-Based 10- and 20-Stock Model Portfolios 283 Appendix B Guru Yearly Track Record Comparison (Actual or Back-Tested Returns) 287 References 295 About the Authors 303 Index 305

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Book SynopsisInside markets, innovation, and risk Why do markets keep crashing and why are financial crises greater than ever before? As the risk manager to some of the leading firms on Wall Streetfrom Morgan Stanley to Salomon and Citigroupand a member of some of the world's largest hedge funds, from Moore Capital to Ziff Brothers and FrontPoint Partners, Rick Bookstaber has seen the ghost inside the machine and vividly shows us a world that is even riskier than we think. The very things done to make markets safer, have, in fact, created a world that is far more dangerous. From the 1987 crash to Citigroup closing the Salomon Arb unit, from staggering losses at UBS to the demise of Long-Term Capital Management, Bookstaber gives readers a front row seat to the management decisions made by some of the most powerful financial figures in the world that led to catastrophe, and describes the impact of his own activities on markets and market crashes. Much of the innovation of the last 30 yearsTrade Review“Mr. Bookstaber wrote one of the best books about the causes of the financial crisis, A Demon of Our Own Design, and did so before the crisis erupted.”-- Floyd Norris, New York Times (June 25, 2009) "A risk-management maven who's been on Wall Street for decades…Bookstaber's book shows us some complex strategies that very smart people followed to seemingly reduce risk—but that led to huge losses." (Newsweek) "Mr. Bookstaber is one of Wall Street's 'rocket scientists'--mathematicians lured from academia to help create both complex financial instruments and new computer models for making investing decisions. In the book, he makes a simple point: The turmoil in the financial markets today comes less from changes in the economy--economic growth, for example, is half as volatile as it was 50 years ago--and more from some of the financial instruments (derivatives) that were designed to control risk." (The New York Times) "Bright sparks like Mr Bookstaber ushered in a revolution that fuelled the boom in financial derivatives and Byzantine 'structured products.' The problem, he argues, is that this wizardry has made markets more crisis-prone, not less so. It has done this in two ways: by increasing complexity, and by forging tighter links between various markets and securities, making them dangerously interdependent." (The Economist) "He understands the inner workings of financial markets...A liberal sparkling of juicy stories from the trading floor..." (The Economist) "…smart book…Part memoir, part market forensics, the book gives an insider's view…" (Bloomberg News) "Like many pessimistic observers, Richard Bookstaber thinks financial derivatives, Wall Street innovation and hedge funds will lead to a financial meltdown. What sets Mr. Bookstaber apart is that he has spent his career designing derivatives, working on Wall Street and running a hedge fund." (The Wall Street Journal) "Every so often [a book] pops out of the pile with something original to say, or an original way of saying it. Richard Bookstaber, in A Demon of Our Own Design: Markets, Hedge Funds, and the Perils of Financial Innovation, accomplishes both of these rare feats." (Fortune) "a must-read amidst the current market chaos" (BusinessWeek.com) "Bookstaber is a former academic who went on to head risk management for Morgan Stanley and now runs a large hedge fund. He knows the subject and has written a lucid and readable book. To his aid he calls mathematics (from Bertrand Russell to Godel's theorem); physics (particularly Heisenberg's uncertainty principle); and even -- meteorology." (Financial Times) "The book covers a lot about risk management that is relevant to capital markets conditions today and the liquidity crisis." (Financial Times, Saturday 25th August) "...an insider's guide to markets, hedge funds and the perils of financial innovation. We saw plenty of those in 2007." (The Sunday Telegraph, Sunday 25th November 2007) "I cannot recommend this book too highly. It is a clear exposition of what the combination of derivatives, leverage and hedge funds can do to the markets. In short, A Demon of our Own Design is a guide to the dangerous financial markets we have created for ourselves by the clever innovations of structured finance, derivatives, credit default swaps and other newfangled products that are a mystery to the ordinary investor and even plenty of the sophisticates in the investment business. To understand the demonic risks we're taking, read this book."--Forbes.comTable of ContentsPreface ix Acknowledgments xvii About the Author xix Chapter 1 Introduction: The Paradox of Market Risk 1 Chapter 2 The Demons of ’87 7 Chapter 3 A New Sheriff in Town 33 Chapter 4 How Salomon Rolled the Dice and Lost 51 Chapter 5 They Bought Salomon, Then They Killed It 77 Chapter 6 Long-Term Capital Management Rides the Leverage Cycle to Hell 97 Chapter 7 Colossus 125 Chapter 8 Complexity, Tight Coupling, and Normal Accidents 143 Chapter 9 The Brave New World of Hedge Funds 165 Chapter 10 Cockroaches and Hedge Funds 207 Chapter 11 Hedge Fund Existential 243 Conclusion: Built to Crash? 255 Notes 261 Index 273

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Book SynopsisSuccessful trader Mark Whistler draws from the fields of psychology, spirituality, and philosophy to emphasize how self-honesty, self-esteem, emotional balance, and confidence form the foundation of successful trading. He demonstrates how adherence to a small number of core principles vastly improves chances of success, and shares interviews from top traders to exemplify his point that even the most successful traders have had to overcome setbacks.Table of ContentsAcknowledgments. Introduction. Believing in Ourselves. PART I All of the Answers Are Already Within. CHAPTER 1 Finding Your Purpose-Center. The Groundwork. Clarifying Your Purpose-Center through the Mission Statement. Morita Therapy and Dogma. Purpose-Center as Self-Awareness in Style. The Dogma of Style. Summary. CHAPTER 2 The Time Is Now. In the Moment. Through Ryan Dempster’s Eyes. Summary. CHAPTER 3 Self-Honesty and Self-Esteem. The Foundation of Self. Honesty. Ego Versus Esteem. Esteem. Pride. Summary. CHAPTER 4 The Balance of Humbleness. The Importance of Humbleness. Mike Palumbo—Words of Wisdom from a Supertrader. Balance of Self: An Interview with Kevin Cuddie. Summary. CHAPTER 5 Be Courageous, Be Forgiving. The Vacuum Law of Prosperity. Interview with Dr. Michael A. L. Eckelkamp. The Need for Courage: Vic Frierson. Summary. Addendum. CHAPTER 6 An Investigation of Fear. Fear Defined. Acknowledging the Predator. Good Cop. Bad Cop. Deciphering the Difference between Good and Bad Fear. Event Timing and the Conditioned Reflex. Overcoming Good Fear. Defeating Bad Fear. Fear and Morita Therapy. Fear Is the Only Paradigm of the Market. Personal Unconsciousness. Summary. CHAPTER 7 Overcoming Adversity and Anxiety. Turning the Tide on Death—Bob Williams. The Basics of Anxiety. The Bulkhead of Anxiety. Summary. CHAPTER 8 Cause and Effect. The Foundation of Cause and Effect. Cause and Effect in Trading Decisions. Altering the Cause Variables. Interview with Joe Ritchie. Adding on to Joe’s Words. Experience as the Most Important Cause Variable. Summary. CHAPTER 9 Emotional Intelligence: The Intuition Wild Card. The Roots. Emotional Intelligence with Emotional Identification and Acceptance. Application to Trading. Emotion Versus Intuition. Summary. CHAPTER 10 Developing Intuition. Levels of Intuition. Planning for Intuition. Developing Intuition. Incredible Intuition through the Eyes of a Publisher. Top-Down Processing. Intuition in Trading. Summary. CHAPTER 11 Expressing Gratitude. Gratitude as a Psychological Study. Gratitude and Trading. Summary. PART II Beyond Emotions. CHAPTER 12 Confronting and Defeating Stress. A Little Stress Is Good. Recognizing Stress. Matt McCall on Stress and Investing. Summary. CHAPTER 13 A Medical Evaluation of Stress. The Facts behind Stress, from Dr. Royce Peterman, MD. Summary. CHAPTER 14 The Necessity of Relaxation. Sivananda Principles. Breathing to Deal with Three Stressful Moments. Summary. CHAPTER 15 Affirmation and Visualization. Affirming Ourselves. Visualizing Success. Summary. CHAPTER 16 Avoiding Self-Destructive Behavior. Understanding Why We Blow Up Leads to Recognition. Thwarting Self-Destruction and Cleaning Up the Mess. Summary. PART III Developing Your Game Plan. CHAPTER 17 Creating a Trading Plan. The Plan. Trading Plan Integrity through Philosphy. Summary. CHAPTER 18 Understanding Risk. Managing the Big Picture. In Closing. Summary. CHAPTER 19 Change Is Constant. Change Is the Only Constant We Can Count On. When Life Blows Up, Make a Change. The Law of Flotation Wasn’t Based on the Contemplation of Sinking Things Summary. Last Words. About the Interviewees. Notes. Bibliography. About the Author. Index.

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