Finance and accounting Books

Book SynopsisMargin Trading from A to Z offers a step-by-step explanation of the mechanics of the margin account. Filled with in-depth insights and expert advice, this book uses a hands-on approach to show how a Regulation T Margin Call is arrived at; how it may be answered; and how an account looks once a call is issued and after the call is met. Other items covered by this detailed guide include minimum maintenance requirements, short selling, memorandum accounts, options, hedge funds, and portfolio margining. The book includes quiz questions and a comprehensive exam.Table of ContentsPreface xi About the Author xv CHAPTER 1 Cash Accounts 1 Sale of Securities 3 Paying for Securities by the Sale of Other Securities 3 Delivery against Payment 4 Employee Stock Options 6 Chapter One Questions 7 CHAPTER 2 Initial Federal Margin Requirements 9 Purchases 9 Sales 16 Meeting a Margin Call 17 Chapter Two Questions 19 CHAPTER 3 Initial and Minimum Maintenance Requirements 21 Initial Requirements 21 House Requirements 23 NYSE Minimum Maintenance Requirements 23 Chapter Three Questions 29 CHAPTER 4 The Special Memorandum Account 31 Customer's Account 35 Chapter Four Questions 42 CHAPTER 5 Short Sales 45 Covering Short Sales 51 NYSE Minimum Maintenance Requirements 52 Sample Transactions 53 Short Sale versus the Box or Short against the Box 55 Prime Broker 59 Chapter Five Questions 62 CHAPTER 6 Bonds 65 U.S. Government Securities 67 Zero-Coupon Government Obligations 67 Municipals 69 Nonconvertible Corporate Bonds 72 Chapter Six Questions 74 CHAPTER 7 Miscellaneous Categories 77 When-Issued and When-Distributed Transactions 77 Customer’s Accounts 78 Marks to the Market 80 When-Distributed Securities 80 Segregation of Customers' Securities 80 Review of Customers' Accounts 81 Interest Charges 83 Margin on New Issues 85 Day Trades 85 Requirements for a Pattern Day Trader 86 Time and Tick 87 Chapter Seven Questions 89 CHAPTER 8 Options 91 Definitions 92 Additional Definitions Related to the Types of Options 93 Examples 95 Requirements for the Purchase and/or Sale of Options 100 Long-Term Equity Anticipation Securities 101 LEAPS 101 LEAPS Example 102 Bull Spread Call Debit 106 Bear Spread Call Credit 107 Bull Spread Put Credit 107 Bear Spread Put Debit 108 The American Style 108 The European Style 108 Other Types of Options 108 Index Options 108 Interest Rate Options 109 Additional Details Concerning Options 113 Chapter Eight Questions 114 CHAPTER 9 Portfolio Margining 121 Margin Deficiencies 125 Chapter 9 Questions 126 Eligible/Hedged/Unhedged Positions 126 Account Set-up 126 Unlisted Derivatives 126 Liquidations 127 APPENDIX A The Federal Reserve 129 APPENDIX B Customer Margin Account and SMA Sheets 137 APPENDIX C Answers to Chapter Questions 139 APPENDIX D Final Examination Questions 151 APPENDIX E Final Examination Answers 161 Glossary of Terms 169 Index 177

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Book SynopsisA guide for financial advisors who are ready to embrace new opportunities The Enduring Advisory Firm is a book for the forward-thinking financial advisor. Financial advisement is traditionally a hands-on field, so few in the industry feel threatened by the shifting social and technological landscape. In this book, Mark Tibergienroutinely named one of the most influential people in the financial services worldand Kim Dellarocca make a compelling case for taking a closer look at technology and other big-deal industry trends in order to move the business of financial advice into the next stage of its evolution. Combining a facts-based approach with case studies and examples from the field, The Enduring Advisory Firm will ignite your imagination by demonstrating practical strategies for attracting clients and streamlining operations. Today''s smart practice managers are focusing on emerging topics like the needs and expectations of the Millennial generation, Table of ContentsAcknowledgments ix Preface xi PART I: THE STATE OF THE ADVISORY BUSINESS CHAPTER 1 Key Business Trends 3 CHAPTER 2 What Business Are You In? 15 PART II: THE ROLE OF DEMOGRAPHICS AND THE ABILITY TO GROW CHAPTER 3 A New Paradigm for Relating and Growing Relationships 31 CHAPTER 4 The Mature Client 41 CHAPTER 5 The Baby Boomers 55 CHAPTER 6 The Generation X Client 69 CHAPTER 7 Millennials 83 CHAPTER 8 Generation Z and Beyond 93 CHAPTER 9 Investing Women 99 PART III: BRINGING CHANGE TO YOUR PRACTICE CHAPTER 10 Transforming from Practice to Business 119 CHAPTER 11 Culture Wars 135 CHAPTER 12 A Vision and Leader for the Future 153 Index 173

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Book SynopsisRetirement planning is difficult enough without having to contend with misinformation. Unfortunately, much of the advice that is dispensed is either unsubstantiated or betrays a strong vested interest. In The Essential Retirement Guide, Frederick Vettese analyses the most fundamental questions of retirement planning and offers some startling insights. The book finds, for example that: Saving 10 percent a year is not a bad rule of thumb if you could follow it, but there will be times when you cannot do so and it might not even be advisable to try. Most people never spend more than 50 percent of their gross income on themselves before retirement; hence their retirement income target is usually much less than 70 percent. Interest rates will almost certainly stay low for the next 20 years, which will affect how much you need to save. Even in this low-interest environment, you can withdraw 5 percent or more of your retirement savings each yeTable of ContentsPreface xiii Acknowledgments xvii PART I The Retirement Income Target Chapter 1 The Road to Retirement 3 Detours 6 Chapter 2 Doubts about the 70 Percent Retirement Income Target 9 Niggling Doubts 10 Saving for Retirement Is a Two-Dimensional Problem 14 The Macro Case Against 70 Percent 15 Low-Income Workers 16 Conclusions 16 Chapter 3 Homing in on the Real Target 19 Setting the Ground Rules 19 Howard and Barb 21 Steve and Ashley 1.0 23 Steve and Ashley 2.0 27 Expressing Consumption in Dollars 29 Conclusions 30 Chapter 4 A New Rule of Thumb 33 Guiding Principles 34 Retirement Income Targets under Different Scenarios 35 General Rule of Thumb 38 Conclusions 40 PART II The Wealth Target Chapter 5 Quantifying Your Wealth Target 43 A Rough-and-Ready Estimate 43 A More Actuarial Approach 46 Chapter 6 Why Interest Rates Will Stay Low (And Why You Should Care) 53 The Rise of the Savers 54 The Japan Experience 57 Applicability to the United States and Canada 58 Possible Remedies 59 Implications 61 Chapter 7 How Spending Decreases with Age 65 Doubts 66 Quantifying the Decline in Consumption 68 Why Does Consumption Decline? 72 Next Steps 73 Chapter 8 Death Takes a Holiday 75 Present-Day Life Expectancy 77 Dispersion of Deaths 78 Who Is Benefiting the Most? 79 Why Is Mortality Improving? 80 The Future 82 Conclusions 85 Chapter 9 Estimating Your Own Life Expectancy 87 Conclusions 93 Chapter 10 Is Long-Term Care in Your Future? 95 Long-Term Care (LTC) 95 What Does LTC Entail? 96 What Are the Chances You Will Need LTC? 99 How Long Is LTC Usually Required? 101 Conclusions 102 Chapter 11 Paying for Long-Term Care 103 Typical LTC Insurance Contract 103 Does the Math Work? 105 The Verdict 108 The Consequences of Not Insuring LTC 112 Chapter 12 Putting It All Together 115 New Wealth Targets 120 Buffers 122 Conclusion 123 PART III The Accumulation Phase Chapter 13 Picking a Savings Rate 127 Historical Performance 127 Lessons Learned 129 What the Future Holds 131 Generalizing the Results 133 Chapter 14 Optimizing Your Savings Strategy 137 The Goal 138 Strategy 1: Simple 138 Strategy 2: Simple Lifecycle Approach 139 Strategy 3: Modified Lifecycle 140 Strategy 4: Variable Contribution 141 Strategy 5: The SMART Approach 142 Conclusion 143 The Third Lever 144 Methodology 144 Chapter 15 A Gentler Approach to Saving 147 Path 1: Pain Now, Gain Later 148 Path 2: Smooth and Steady Improvement 150 A Comparison in Dollar Terms 153 Conclusions 154 PART IV The Decumulation Phase Chapter 16 Rational Roulette 159 Call to Action 161 Watch Out for Your Children 163 Chapter 17 Revisiting the 4 Percent Rule 167 The 4 Percent Rule 167 Problems with the 4 Percent Rule 169 A More Rational Spending Rule 173 A Monte Carlo Simulation 176 Conclusions 177 Chapter 18 Why People Hate Annuities (But Should Still Buy One) 179 Why Annuities Should Be Popular 180 The Psychology Behind the Unpopularity 183 Tontines 184 The Insured Annuity Strategy 185 Indexed Annuities? Forget It 188 Conclusions 189 PART V Random Reflections Chapter 19 How Workplace Pension Plans Fit In 195 Why Employers Offer Workplace Plans 196 Getting the Most out of Your Workplace Plan 198 How a Workplace Pension Plan Affects Your Dollar Target 202 Online Forecast Tools 203 Chapter 20 Bubble Trouble 205 Why Worry about Financial Bubbles? 206 Examples of Recent Financial Bubbles 207 Common Characteristics 211 The Everything Bubble 212 Chapter 21 Carpe Diem 215 The Numbers 217 Healthy Life Years 219 Trends 221 Personal Genome Testing 222 Chapter 22 A Life Well Lived 225 Retirement and Happiness 225 Final Thoughts 229 Appendix A Similarities between the United States and Canada 231 Social Security Programs 232 High-Level Comparison of Retirement Vehicles 235 A Tax Comparison 238 Appendix B Social Security in the United States and Canada 241 Name of Social Security Pension Plan 241 Purpose of Social Security 241 Earnings Base for Pension Calculation 242 How Pension Is Calculated 243 How the Plans Are Funded 243 Normal Retirement Age 244 Early Retirement Age 244 Delayed Retirement 245 Indexation 245 Other Government-Sponsored Pension Plans 245 Taxability 246 Appendix CRetirement Income Targets under Other Scenarios 249 Appendix D About the Assumptions Used in the Book 255 Thoughts on Conservatism 255 Assumptions Used to Estimate Personal Consumption 256 Assumptions Used to Calculate Future Retirement Savings 258 Assumptions Used to Estimate the Historical Accumulation of Savings 260 Couple Contemplating Long-Term Care Insurance 260 Assets Needed to Cover Long-Term Care (LTC) 262 About the Author 263 Index 265

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Book SynopsisLeverage algorithms to take your investment approach to the next level Digital Wealth: An Automatic Way to Invest Successfully reveals core investment strategies that you can leverage to build long-term wealth. More than a simple review of traditional investment strategies, this innovative text proffers digital investment techniques that are driven not by people but by algorithms. Supported by asset allocation research, the secrets shared in this forward-thinking book have underpinned cutting-edge investment firms as they integrate algorithm-based strategies. In addition to presenting key concepts, this groundbreaking resource explains how these concepts can give you an edge over the professionals on Wall Street through details regarding achieving financial security and meeting financial goals rooted in a firm foundation in behavioral finance, portfolio tilts, and modern portfolio theory. Investment strategies have evolved from one generation to the next, and thTable of ContentsPreface xiii Acknowledgments xvii Chapter 1 America’s Savings Challenge 1 We Don’t Save Enough 1 The Key Change in America’s Retirement Planning Process 3 How Financial Innovation Helps 4 The Magic of a 15 Percent Savings Rate 5 Notes 8 Chapter 2 The Risk of Not Investing in Stocks 9 The Short‐Term Risks 10 The Historical Perspective 10 The Logic 12 Chapter 3 The Enemies of a Stock Portfolio 15 Why Inflation Matters 16 Treasury Inflation‐Protected Securities (TIPS) 17 Asset Confiscation 18 Recession 19 Chapter 4 The Value of Time for Investors 21 Why Long‐Term Stock Investing Is Less Risky than It May Seem 21 The Long‐Term Picture 22 How Bonds Can Help 24 Note 27 Chapter 5 Core Assets of a Robust Portfolio 29 Asset Classes We Include 29 Individual Asset Classes We Exclude 34 Notes 39 Chapter 6 Dynamic Asset Selection Determining the Lowest‐Cost Option for Each Portfolio 41 Chapter 7 What Software Does Better than People 47 How Software Helps Investors 49 Example: All the Decisions an Algorithm Makes 50 Chapter 8 How International Investing Can Smooth Returns 53 Demographics Matter 54 Diversification Improves Your Industry Mix 56 Notes 58 Chapter 9 The Advantages of Exchange‐Traded Funds 59 The Benefits of ETFs 61 In‐Kind Transfers 62 The Risks of ETFs 63 Securities Lending Policies 65 Notes 67 Chapter 10 The Triumph of Low‐Cost Investing How Paying Less Gets You More 69 Fooled by Randomness 70 A Triumph of Marketing over Results 72 Notes 76 Chapter 11 Learning from Nobel Prize Winners 79 Milton Friedman, 1976 80 James Tobin, 1981 81 Harry Markowitz, 1990 81 William Sharpe, 1990 82 Daniel Kahnemann, 2002 83 Eugene Fama and Robert Shiller, 2013 83 Chapter 12 The Costs of Being Active 85 The Cost of Closet Indexing 87 The Other Costs of Active Management 88 Notes 90 Chapter 13 The Greatest Mistakes Made by Novice Investors 91 Starting Saving Too Late 92 Are You Using Tax Shelters Effectively? 93 Are You Taking Advantage of 401(k) Matching If Available? 93 Are You Diversified Internationally? 93 Are You Chasing Returns? 94 Are You Overpaying in Fees? 95 Are You Tracking the Right Index? 95 Do You Trade Too Much? 97 Chapter 14 Tilts and Other Ways to Help Long‐Term Performance 99 History of Market Thought 100 Data Mining 102 Debunking Strong‐Form Market Efficiency 103 Rationality 103 The January Effect 104 Sell in May and Go Away 104 Momentum 105 Value 105 Small Cap 106 Quality 106 Longer‐Term Mean Reversion 107 Assessing Tilts in a Portfolio Context 107 Notes 108 Chapter 15 Establishing a Tax‐Efficient Portfolio 109 Tax Shelters 111 Tax Efficiency for Retirement 111 Tax Efficiency for College 112 Tax Efficiency for Giving 113 Tax‐Efficient Asset Placement 114 Tax Loss Harvesting 115 Offsetting Gains with Losses 115 The Principal of Tax Deferral 116 How Tax Loss Harvesting Works 117 Challenges of Implementing Tax Loss Harvesting 117 Conclusion 119 Chapter 16 The Value of Rebalancing and Glidepaths 121 Rebalancing Keeps a Portfolio on Course 122 Tiered Rebalancing 125 Glidepaths 126 Notes 129 Chapter 17 How to Manage a Market Crash 131 Keep Stock Market Investing for Longer‐Term Money 133 Making Saving an Ongoing Activity 134 Pay Attention to Extremes of Long‐Term Valuation Signals 134 Don’t Consider Stocks in Isolation 135 Remember that You May Underestimate Your Risk Tolerance in Good Markets 136 Chapter 18 Your Own Worst Enemy Is in the Mirror 139 The Biggest Threat to Your Returns Is in the Mirror 140 Always a Reason to Avoid Staying Out 141 The Returns You See Aren’t the Ones You Get after Tax 141 The Media Isn’t Your Friend 142 Overtrading 142 Home Bias 143 Failing to Take a Long‐Term Perspective 143 Availability Bias 144 Chasing Performance 144 Ignoring Fees 144 Holding Too Much Cash 145 How Software Can Help 145 Note 146 Chapter 19 Saving for Goals beyond Retirement 147 Tax Efficiency 148 Portfolio Construction 149 Emergency Funds 150 Investment Flow Chart 150 Chapter 20 A History of Diversified Portfolio Performance 153 Stocks vs. Bonds 153 The Impact of Recessions 154 The Impact of Inflation 155 The Danger of Averages 155 The Benefits of Combination 155 An Emerging Market that Has Emerged 156 Chapter 21 The Future of Wealth Management 157 Lower Costs 158 Democratization of Services 159 Increasing Customer Intimacy 160 Improved Financial Awareness 160 Note 161 Chapter 22 Conclusion 163 Author’s Disclaimer 167 About the Author 169Index 171

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Book SynopsisSecure your financial future before the next big bubble bursts Aftershock provides a definitive look at the economic climate still ahead in 2015and beyondand details the steps you can take now to secure your financial future. Written by the authors who accurately predicted the financial crisis of 2008 and 2009, this book serves as both a warning and a game plan for investors looking to avoid catastrophic loss. This updated fourth edition has been expanded with new actionable insights about protection and profits in an increasingly confusing investment environment, and includes the latest data, updated charts and tables, and brand new coverage of monetary stimulus. With a look back at the domino fall of the conjoined real estate, stock, and private debt bubbles that triggered the last major crisis, this book paints a vivid picture of what to expect the next time the world''s economy pops. You''ll learn how to protect your assets before and during the coming fall, and hoTable of ContentsExecutive Summary xiii Acknowledgments xv Preface xvii Introduction: Your Guide to the Fourth Edition of Aftershock xxi Part I: The Coming Aftershock 1 Chapter 1: This Recovery Is 100 Percent Fake Why the Aftershock Has Not Been Canceled 3 Isn’t a Fake Recovery Better than No Recovery at All? 5 If the Aftershock Has Not Been Canceled, Why Hasn’t It Happened Yet? 7 Still Not Convinced This Recovery Is 100 Percent Fake? 17 Don’t Believe the Stimulus Has to Eventually End? 25 Please Prepare Now 30 Chapter 2: America’s Bubble Economy Understanding How We Accurately Predicted the Financial Crisis of 2008 Is Key to Understanding Why Our Latest Predictions Are Also Correct 33 Because Our Earlier Books Were Right, Now You Can Be Right, Too 38 Didn’t Other Bearish Analysts Get It Right, Too? 41 How the “Experts” Got It So Wrong 43 Predictions from Ben Bernanke and Henry Paulson—We Trust These Officials with Our Economy 48 Where We Have Been Wrong 49 Chapter 3: Phase 1: The Bubbles Begin to Burst Pop Go the Housing, Stock, Private Debt, and Spending Bubbles 55 Bubbles “R” Us: A Quick Review of America’s Bubble Economy 56 From Boom to Bust: The Virtuous Upward Spiral Becomes a Vicious Downward Spiral 62 Pop Goes the Real Estate Bubble 64 Pop Goes the Stock Market Bubble 70 Pop Goes the Private Debt Bubble 74 Pop Goes the Discretionary Spending Bubble 77 The Biggest, Baddest, Bad Loan of Them All 80 Chapter 4: The Market Cliff Not Your Father’s Down Cycle 83 The Market Cliff Won’t Be Just a “Down Cycle” 84 Hitting the Market Cliff 89 The Last Resort: A Stock Market Holiday 93 When Is the Best Time to Get Out of the Stock Market? 95 Chapter 5: Massive Money Printing Will Eventually Cause Dangerous Inflation—So Why Hasn’t It Happened Yet? 97 What Is Inflation? 98 What Exactly Is Money Printing? 99 How Does Money Printing Cause Inflation? 101 Central Banks Gone Wild: The World Is Printing Money 103 Where Is Inflation Hiding? 107 The Arguments against Future Inflation Simply Don’t Hold Up 113 This Is Not a Plan—It’s a Panic! 120 The Real Problem with Rising Future Inflation: High Interest Rates 121 The Fed’s Big Blind Spot: They Don’t Understand Where Growth Comes From (Hint: It Doesn’t Come from Rising Bubbles or Massive Money Printing to Support the Bubbles) 125 When Will Inflation Begin? When Group Psychology Turns Negative after the Market Cliff 129 The Inflation Deniers Are Liars! 133 Chapter 6: Phase 2: The Aftershock Pop Go the Dollar and Government Debt Bubbles 137 The Dollar Bubble: Hard to See without Bubble‐Vision Glasses 138 The Government Debt Bubble Pops 158 The Aftershock 165 The Six Psychological Stages of Denial 166 Is There Any Scenario for a Soft Landing? 170 Chapter 7: Global Mega-Money Meltdown It’s Not Just America’s Bubble Economy—It’s the World’s Bubble Economy 173 The United States Will Suffer the Least 174 Think of the World’s Bubble Economy in Two Categories: Manufacturing and Resource Extraction 175 How the Bursting Bubbles Will Impact the World 179 If the World’s Bubble Economy Is Hit Harder than the U.S. Bubble Economy, Won’t That Be Good for the Dollar? 188 If the Rest of the World Is Collapsing, Won’t That Be Good for Gold? 188 International Investment Recommendations 190 Chapter 8: “You’re No Fun” What I Hear Traveling Across Our United States 193 By Aftershock Co-author Robert Wiedemer Florida:”You’re No Fun” 193 Philadelphia: Wharton Meets Wall Street 197 Green Bay, Wisconsin: I Can Be a Cheerleader, Too—in the Right Places 199 North Carolina: People Know in Their Gut that What I’m Saying May Be Correct 201 New York City: The Turkeys Were Living the Good Life Until … 202 New York City Again: When You Abolish Failure, You Institutionalize Stupidity 203 One Last New York Story: Is He Really Smart or Really Stupid? 204 A State of Extreme Denial Exists in Parts of the United States 205 What’s the Smart Money Doing Now? Just What They Did Before the 2008 Financial Crisis! Same Denial Now as Before 207 The Sun Will Shine after Every Storm (From My Hotel Room in North Carolina) 209 Part II: Aftershock Dangers and Profits 213 Chapter 9: Covering Your Assets How Not to Lose Money 215 The Three Rules for Not Losing Money 215 These Rules Are Simple but Not Easy! 216 Long Term versus Short Term 218 Rule 1: Exit Stocks Well Before the Market Cliff 221 Rule 2: Stay Away from Real Estate until after All the Bubbles Pop 228 Rule 3: Avoid Bonds and Most Fixed‐Rate Investments as Interest Rates Rise 241 Where’s the Best Place to Stash Cash? 243 How Long Must We Follow These Three Rules? 243 Letting Go Is Hard to Do 244 What Else Can I Do to Protect Myself? 247 Remember, Your Net Worth Is Not Your Self‐Worth 249 Chapter 10: Cashing In on Chaos Best Aftershock Investments 251 Plenty of Profit Opportunities, but They Will Feel Quite Uncomfortable, Even Scary at Times 251 This Economy Is Evolving; Your Investments Should Evolve, Too 252 Three Goals of an Evolving Aftershock Investment Portfolio 254 Reducing Risk with a New Kind of Diversification 256 Two Other Aftershock Investments after the Bubbles Pop: Foreign Currencies and Foreign Bonds 272 Timing Is Everything before the Bubbles Pop, but Your Timing Won’t Be Perfect 274 Putting It All Together 275 Chapter 11: Aftershock Jobs and Businesses 279 The Rising Bubble Economy Created Huge Job Growth; Now the Falling Bubble Economy Means Fewer Jobs 280 Conventional Wisdom about Future Job Growth Is Based on Faith that the Future Will Be Like the Past 281 Why Conventional Wisdom on Jobs Is Wrong 283 What’s a Savvy Aftershock Job Seeker to Do? 284 The Falling Bubbles Will Have Varying Impacts on Three Broad Economic Sectors 286 Should I Go to College? 296 Opportunities after the Bubbles Pop: Cashing In on Distressed Assets 297 Dig Your Well before You Are Thirsty 298 Chapter 12: Understanding Our Problems Is the First Step toward Solving Our Problems 299 If You Don’t Understand Why an Economy Grows, You Can’t Understand Why It Doesn’t Grow 300 You Need to See the Big Picture before You Start to Focus 301 Key Breakthroughs in the History of Economic Thought 302 Economics Needs a Breakthrough Big‐Picture Idea like Geology Needed Continental Drift 309 So Why Aren’t We Getting an Alfred Wegener wor a Breakthrough Idea like Continental Drift? 311 Economists Have Become Academia’s Version of Financial Cheerleaders 311 The Demands to Get Tenure and the Rewards of the Good Life after Tenure Have Delivered a One‐Two Punch to Creative Economic Thought 312 Where to Now? Answer: Economics Needs to Move from Being a Collection of Competing Philosophies to Being a Unified Science 315 Four Key Elements for Making Economics More of a Science 317 Where Do We Stand Today in Making This Transition? 321 The Economics Profession Does Not Want to Make This Transition 322 The Solution to the Lack of Interest in Making Important Changes in Economics: The Coming Aftershock 324 Chapter 13: Our Predictions Have Mostly Been Accurate, So Why Do Some People Still Dislike Them? 327 It’s Not a Cheerleading Book 329 It’s Not a Complex Book (Although It Is Based on Complex Analysis) 330 It’s Not a Crazy Book 333 It’s Not an Academic Book 333 It’s Not Suggesting Armageddon 334 It’s Not a Reality‐Denying Book 335 Us versus the Comforters: How Aftershock Stacks Up against Other Bearish Books 335 Appendix: Are the Bond, Stock, and Gold Markets Manipulated? 343 Bond Market Manipulation 343 Stock Market Manipulation 344 Gold Market Manipulation 351 Market Manipulation Summary 354 Investment Impact 355 Bibliography 357 Epilogue: Say Good-Bye to the Age of Excess 363 Index 367

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Book SynopsisIn his debut book on trading psychology, Inside the Investor's Brain, Richard Peterson demonstrated how managing emotions helps top investors outperform. Now, in Trading on Sentiment, he takes you inside the science of crowd psychology and demonstrates that not only do price patterns exist, but the most predictable ones are rooted in our shared human nature. Peterson's team developed text analysis engines to mine data - topics, beliefs, and emotions - from social media. Based on that data, they put together a market-neutral social media-based hedge fund that beat the S&P 500 by more than twenty-four percentthrough the 2008 financial crisis. In this groundbreaking guide, he shows you how they did it and why it worked. Applying algorithms to social media data opened up an unprecedented world of insight into the elusive patterns of investor sentiment driving repeating market moves. Inside, you gain a privileged look at the media content that moves investors, along Table of ContentsAbout the Author xi Preface xiii Acknowledgments xxiii PART ONE Foundations CHAPTER 1 Perception and the Brain 3 CHAPTER 2 Mind and Emotion 19 CHAPTER 3 Information Processing 30 CHAPTER 4 Sentimental Markets 47 CHAPTER 5 Finding Signal in the Noise 61 PART TWO Short-term Patterns CHAPTER 6 Information Impact 81 CHAPTER 7 Daily Reversals 99 CHAPTER 8 Weekly Deceptions 106 CHAPTER 9 The Only Thing to Fear 115 CHAPTER 10 Buy on the Rumor 127 PART THREE Long-term Patterns CHAPTER 11 Trends and Price Momentum 139 CHAPTER 12 Value Investing 151 CHAPTER 13 Anger and Mistrust 159 CHAPTER 14 The Psychology of Leadership 171 CHAPTER 15 Navigating Uncertainty 184 PART FOUR Complex Patterns and Unique Assets CHAPTER 16 Optionality 197 CHAPTER 17 Blowing Bubbles 205 CHAPTER 18 Timing Bubble Tops 218 CHAPTER 19 Commodity Sentiment Analysis 232 CHAPTER 20 Currency Characteristics 243 CHAPTER 21 Economic Indicators 254 CHAPTER 22 Sentiment Regimes 269 PART FIVE Managing the Mind CHAPTER 23 Mental Hygiene 283 Postscript 295 Appendix A Understanding the Thomson Reuters MarketPsych Indices 297 Appendix B Methods for Modeling Economic Activity 316 Glossary 323 Index 331

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Book SynopsisThe Methodical Compendium of Concentrated Portfolio Options Managing Concentrated Stock Wealth, Second Edition is the adviser''s guide to skillfully managing the risk and opportunity presented by concentrated stock holdings. Written by Tim Kochis, a recognized leader in financial planning, this book walks you through twenty strategies for managing concentrated stock wealth. Each strategy equips you with the tools and information you need to preserve and grow your clients'' wealth. Supported with examples from the author''s forty years of experience, this practical resource shows you the available options, the best order for clients to review those options, and the reasons why some options are better than others. Kochis addresses common obstaclessuch as securities law, taxes, and psychological resistanceand shows you the strategies and execution to prevail. This new second edition includes: Updated references, calculations, and illustrations regarding the la

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Book SynopsisEnhance your investment portfolio and take your investments to the next level! Do you have an investment portfolio set up, but want to take your knowledge of investing a step further? High-Level Investing For Dummies is the resource you need to achieve a more advanced understanding of investment strategiesand to maximize your portfolio's profits. Build upon your current knowledge of investment, particularly with regard to the stock market, in order to reach a higher level of understanding and ability when manipulating your assets on the market. This approachable resource pinpoints key pitfalls to avoid and explains how to time your investments in a way that maximizes your profits. Investing can be intimidatingbut it can also be fun! By building upon your basic understanding of investment strategies you can take your portfolio to the next level, both in terms of the diversity of your investments and the profits that they bring in. Who doesn't want that? Up your investment game with provTable of ContentsIntroduction 1 Part I: Getting Started with High‐Level Investing 5 Chapter 1: Taking Stock before You Invest at a Higher Level 7 Chapter 2: Assessing Risk and Volatility 15 Chapter 3: Surveying Diversification and Allocation Strategies 29 Chapter 4: Finding Value and Income 43 Chapter 5: Breaking Down Brokerage Tools and Tactics 61 Chapter 6: Intermarket Analysis 79 Part II: Choosing High‐Potential Stocks and Exchange‐Traded Funds 95 Chapter 7: Small‐Cap Stocks 97 Chapter 8: Shorting Stocks 111 Chapter 9: Exchange‐Traded Funds for Big Up Moves 125 Chapter 10: Exchange-Traded Funds for Big Down Moves 143 Part III: All about Options 153 Chapter 11: Introducing Options 155 Chapter 12: Call Options 175 Chapter 13: Put Options 183 Chapter 14: Bullish Combination Strategies 191 Chapter 15: Bearish Combination Strategies 201 Chapter 16: Neutral Combination Strategies 211 Part IV: Strategies from the Greats 223 Chapter 17: Legendary Investing Strategies 225 Chapter 18: High‐Octane Speculating 235 Chapter 19: Big Picture, Big Profits 245 Chapter 20: Corporate and Political Skullduggery 263 Chapter 21: Technical Analysis 273 Part V: The Part of Tens 295 Chapter 22: Ten Ways to Minimize Losses 297 Chapter 23: Ten Ways to Maximize Gains 305 Chapter 24: Ten Traits of Successful Investors 313 Part VI: Appendixes 321 Appendix A: Resources for Stock Investors 323 Appendix B: Financial Ratios 337 Index 351

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Book SynopsisThe long-awaited, comprehensive guide to practical credit risk modeling Credit Risk Analytics provides a targeted training guide for risk managers looking to efficiently build or validate in-house models for credit risk management. Combining theory with practice, this book walks you through the fundamentals of credit risk management and shows you how to implement these concepts using the SAS credit risk management program, with helpful code provided. Coverage includes data analysis and preprocessing, credit scoring; PD and LGD estimation and forecasting, low default portfolios, correlation modeling and estimation, validation, implementation of prudential regulation, stress testing of existing modeling concepts, and more, to provide a one-stop tutorial and reference for credit risk analytics. The companion website offers examples of both real and simulated credit portfolio data to help you more easily implement the concepts discussed, and the expert author team providesTable of ContentsAcknowledgments xi About the Authors xiii Chapter 1 Introduction to Credit Risk Analytics 1 Chapter 2 Introduction to SAS Software 17 Chapter 3 Exploratory Data Analysis 33 Chapter 4 Data Preprocessing for Credit Risk Modeling 57 Chapter 5 Credit Scoring 93 Chapter 6 Probabilities of Default (PD): Discrete-Time Hazard Models 137 Chapter 7 Probabilities of Default: Continuous-Time Hazard Models 179 Chapter 8 Low Default Portfolios 213 Chapter 9 Default Correlations and Credit Portfolio Risk 237 Chapter 10 Loss Given Default (LGD) and Recovery Rates 271 Chapter 11 Exposure at Default (EAD) and Adverse Selection 315 Chapter 12 Bayesian Methods for Credit Risk Modeling 351 Chapter 13 Model Validation 385 Chapter 14 Stress Testing 445 Chapter 15 Concluding Remarks 475 Index 481

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Book SynopsisPlan ahead: estate planning to secure your wishes Estate Planning is your overview of the estate planning concepts that are necessary to consider when advising your clients about the different facets of wealth transfer planning.Table of ContentsAbout the Author ix Introduction 1 Chapter 1 Estate Planning Objectives 3 Notes 5 Chapter 2 Inventory of the Client’s Assets and Objectives 9 A. Scope of Factual Analysis 9 B. Family 9 C. Assets and Liabilities 10 D. Cash Flow Analysis 11 E. Present Objectives for Estate Disposition 11 Notes 12 Chapter 3 Preliminary Estate Planning Considerations 15 A. Expanded Responsibilities of the Professional Tax Advisor 15 B. Facilitating Lifetime Capital Formation 16 C. Fundamental Federal Income Tax Planning 17 D. Managing and Structuring the Closely Held Business Ownership: Family Business Succession Planning 18 E. Additional Important Preliminary Planning Inquiries 19 F. Financial Adequacy of the Estate 22 G. Hypothetical Probate Administration 23 H. Lifetime Asset Management 23 Notes 24 Chapter 4 The Basic Federal Transfer Tax and Income Tax Structure 29 A. Estate, Gift, and Generation‐Skipping Transfer Taxes 29 B. Related Federal Income Tax Considerations 45 Notes 52 Chapter 5 Fundamental Testamentary Planning 81 A. Basic Mechanisms for Transferring Property 82 B. Trusts 94 C. Credit Shelter Trust 112 D. Estate Tax Marital Deduction Transfers 114 E. Powers of Appointment 158 Notes 167 Chapter 6 Lifetime Asset Transfers 223 A. Lifetime Gifts—Arguments for and Against 223 B. Basic Federal Tax Considerations 225 C. Methods of Completing Gifts 232 D. Specific Types of Gifts 234 Notes 255 Chapter 7 Intrafamily Transfer Alternatives to Gifts 285 A. Intrafamily Sale/Leaseback or Gift/Leaseback 286 B. Intrafamily Installment Sales 287 C. Interest-Free Loans of Money 293 D. Loans of Property or Credit 297 E. Tax-Free Property Exchanges with Family Members 298 F. Private Annuities 300 G. Joint or Split Purchases 310 H. Sale of Remainder Interest in Property 317 I. Grantor Retained Annuity Trust and Unitrust 321 J. Personal Residence Trusts 327 K. Transfers of Family Properties Summarized 337 Notes 337 Chapter 8 Generation-Skipping Transfers 361 A. Purpose of the Generation-Skipping Transfer Tax 361 B. Definitional Provisions 362 C. Tax Computation 365 D. Exemptions 369 E. GST Tax Planning Considerations 370 Notes 371 Chapter 9 Special Nonprobate Planning Situations 377 A. Joint Property 377 B. Community Property 383 C. Life Insurance 394 D. Commercial Annuities 408 E. Charitable Transfers 411 F. Foreign Trusts 426 Notes 431 Chapter 10 Special Business Planning Situations 475 A. Family Business Planning Options 475 B. Closely Held Family Corporations 476 C. Closely Held Partnerships and Limited Liability Companies 492 D. Special Valuation for Family Farms and Real Property 502 E. Qualified Family‐Owned Business Interests 511 Notes 514 Chapter 11 Special Executive Compensation/Deferred Benefits Estate Planning 543 A. Executive Compensation Planning 543 B. Qualified Pension and Profit‐Sharing Plans 552 C. Self‐Employed Individual 558 D. Individual Retirement Account 559 E. Business‐Originated Life Insurance 561 Notes 569 Chapter 12 Post‐Mortem Estate Planning 591 A. Planning Options 591 B. Income Tax Planning Opportunities 592 C. Renunciations and Disclaimers 597 D. Waiver of Fee by Fiduciary 600 E. Solving Estate Liquidity Problems 601 F. Alternate Valuation 609 Notes 610 Chapter 13 Estate Planner–Client Relationship 627 A. Professional’s Responsibility 627 B. Determining the Amount of the Estate Planner’s Fee 632 C. Income Tax Deduction of Estate Planning Fees 633 Notes 636 Appendix: Worksheets 647 Bibliography 721

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Book SynopsisConcepts, methods, and issues in calculating the fair value of intangibles Accounting for Goodwill and Other Intangible Assets is a guide to one of the most challenging aspects of business valuation.Table of ContentsIntroduction v CHAPTER 1 Recognizing Intangible Assets 1 CHAPTER 2 Initial Measurement of Acquired Intangible Assets 47 CHAPTER 3 Amortizing Intangible Assets 89 CHAPTER 4 Impairment Testing for Goodwill and Other Intangible Assets 111 CHAPTER 5 Financial Statement Presentation and Disclosures 191 CHAPTER 6 Deferred Tax Consequences of Goodwill and Intangible Assets 215 Working Papers 237 About the Authors 265 Index 267

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Book SynopsisIndustry experts share their insight and tell you why: Unified managed accounts represent the future of the managed money industry. No other platform offers so many options and can be customized to meet the needs of so many different types of investors, says one of the nation''s most prominent money managers. We are able to address a wide variety of investment needs with a single product. (Chapter 2) Mutual fund wrap accounts are enjoying a resurgence in popularity. With mutual fund advisory accounts, advisors can develop a consolidated strategy for their clients utilizing mutual funds, explains one top executive at a leading investment bank. Investors know that proper asset allocation produces better results. (Chapter 3) Exchange-traded funds have exploded in popularity with clients and advisors. ETFs have changed the landscape by offering financial advisors a new way to diversify their clients'' portfolios, says Trade Review"A financial advisor catering to high net-worth individuals is advised to have a copy of 'The New Managed Account Solutions Handbook', on his desk! Fund Structures, November 2016Table of ContentsForeword Christopher L. Davis vii Preface ix Acknowledgments xi Chapter 1 The Evolution of Managed Accounts 1The managed account industry, which began amid pension reform, has mushroomed in response to clients’ demands for a consistent process to manage their investments. Chapter 2 The Revolution of Unified Managed Accounts 15Unified managed accounts have evolved as investors sought greater coordination among their investments and more diversified portfolios. Chapter 3 Mutual Fund Advisory Accounts 36Financial advisors can leverage the potential of multiple mutual funds in a single client account by using a mutual fund advisory account. Chapter 4 Alternative Investments 42Alternative investments offer greater diversification and risk management than ever before, and many clients are asking that alternatives be included in their portfolios. Chapter 5 Key Benefits of Managed Accounts and Recurring Revenues 61Managed account solutions allow for a more efficient use of the advisor’s time, access to a more affluent clientele, a consistent revenue stream leveraged by the market’s growth, and a more valuable business entity; plus, clients prefer fees over commissions. Chapter 6 How to Tell If Managed Account Solutions Are Right for Your Practice 75Are managed account solutions right for you? Here’s how to evaluate your potential for success. Chapter 7 Transforming Your Practice into a Wealth Management Business 94Step-by-step instructions for explaining managed account solutions to clients and prospects, gathering information and developing an investment policy statement, and structuring an effective client meeting. Chapter 8 Developing Your Managed Account Solutions Business 120Referrals from current clients can bring prospects to your door, but you must know how to ask for them and have materials on hand to promote your practice. Chapter 9 Positioning Yourself as a Solutions Provider 135By cultivating mutually beneficial relationships with service providers, allied professionals, and the media, you can develop a steady stream of referrals to help grow your business. Chapter 10 Attracting and Retaining Clients 151Seminars remain an effective marketing tactic in the sale of managed accounts. Here are proven techniques for staging a successful meeting and building your reputation. Chapter 11 Building on Your Success 161Throughout the course of the client relationship, you will have multiple opportunities for capturing additional assets and building your managed account business. Chapter 12 The Future of Managed Account Solutions 175Industry leaders present their visions of what the future holds for managed account solutions and the advisors who provide them. Epilogue: This Isn’t Your Father’s Advisory Practice 187 Appendix A: Sample Business Plan 190 Appendix B: Manager Evaluation Formulas and Ratios 197 Appendix C: Sample Investment Policy Statement 200 Appendix D: Seminar Checklist and Sample Invitations 209 Advisor’s Resource Guide 217 Index 223

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Book SynopsisThe comprehensive bible for financial experts providing litigation support The Litigation Services Handbook is the definitive guide for financial experts engaged in litigation services. Attorneys require financial experts now more than ever, and this book provides the guidance you need to provide a high level of service as witness and consultant. Enhance your litigation skills as you delve into the fine points of trial preparation, deposition, and testimony; project authority under examination, and hold up to tough questions under cross-examination. Fraud investigations are a major component of litigation support services, and this book delves deep into Sarbanes-Oxley compliance and other relevant topics to give you a foundational understanding of how these cases are prosecuted, and your role as the financial services expert. This updated sixth edition includes new coverage of technology''s role in the financial expert''s practice, and the focus on investigations proviTable of ContentsPreface xi Part I: The Litigation Environment 1. A Dispute Resolution Primer 1.1Elizabeth A. Evans , Daniel G. Lentz, Roman L. Weil 2. Serving as a Financial Expert in Litigation 2.1Elizabeth A. Evans, Roman L. Weil 3. Testimony Considerations 3.1 Part A: Daubert CriteriaDouglas E. Branch, Saleema K. Damji Part B: The Art of TestimonyDaniel G. Lentz Part II: Developing A Damages Analysis 4. Damages Theories and Causation Issues 4.1Elizabeth A. Evans, Phil J. Innes, Daniel G. Lentz 5. Ex Ante versus Ex Post Damages Calculations 5.1Elizabeth A. Evans, Roman L. Weil 6. Use of Statistical Sampling in Litigation 6.1Mark A. Gustafson, Peter P. Simon 7. Survey Research in Litigation 7.1Paul J. Lavrakas, Jeffery A. Stec 8. Statistical Estimation of Incremental Cost from Accounting Data 8.1M. Laurentius Marais, William E. Wecker, Roman L. Weil 9. Econometric Analysis 9.1Anna C. King, Mohan P. Rao, Christian D. Tregillis 10. Estimating the Cost of Capital 10.1R. Jeffrey Malinak, Justin McLean 11. Business Valuation 11.1Joseph J. Galanti 12. Business Interruption Insurance Claims 12.1Daniel G. Lentz, Robert M. Reeves 13. Lost Earnings of Persons 13.1Daniel G. Lentz, Elizabeth B. Sandza 14. Expert Analysis of Class Certifi cation Issues 14.1Christopher Chorba, Mark A. Gustafson, D. Lee Heavner, Peter P. Simon Part III: Litigation Tools And Techniques 15. Data Management 15.1Karen M. Cheek, Erik W. Gibson, Cathy Hasenzahl, Matthew P. Jennings, Russell L. Miller, Vincent M. Walden Part IV: Ancillary Issues In Damages Matters 16. Prejudgment Interest 16.1Jeffrey M. Colón, Michael S. Knoll 17. Punitive Damages 17.1Peter A. Bicks, Rachel M. McKenzie, Shasha Y. Zou 18. Tax Treatment of Damages Awards 18.1Jill Kennedy, Tim Sherman Part V: Civil Litigation Intellectual Property 19. Economic Analysis of Nonpatent Intellectual Property Rights and Damages Measures 19.1Elizabeth A. Evans, Peter P. Simon 20. Patent Infringement Damages 20.1Landan J. Ansell, John W. Holzwarth, Vincent E. O’Brien, William B. Scally 21. Role of Financial Experts in ITC Section 337 Investigations 21.1Ryan N. Herrington, Brendan P. Rogers 22. Calculating Infringer’s Profi ts in Trademark, Copyright, and Design Patent Cases 22.1Christopher P. Gerardi, Dawn R. Hall, Juli Saitz 23. Royalty Audits and Contract Compliance Investigations 23.1Ben W. Sheppard Ownership and Business Failure 24. Merger and Acquisition Transaction Disputes 24.1Elizabeth K. Gulapalli, Christen L. Morand, Gregory E. Wolski 25. The Troubled Business and Bankruptcy 25.1Daniel G. Lentz, Grant W. Newton, Lynda H. Schwartz 26. Alter Ego 26.1Elizabeth A. Evans, Daniel G. Lentz, Regulatory Litigation 27. Federal Securities Acts and Areas of Expert Analysis 27.1Kevin L. Gold, Eric Korman, Ahmer Nabi 28. Economic Analysis in Securities Class Certification 28.1Michal A. Malkiewicz, Cathy M. Niden, Mohan Rao 29. Monitorships and Deferred Prosecution Agreements: History, Process, and Recent Trends 29.1Norman J. Harrison 30. Securities Finance Disputes 30.1Edmon W. Blount, Eric B. Poer, Tiko V. Shah 31. Antitrust 31.1Amy W. Ray, Christopher D. Wall 32. Federal Contract Disputes 32.1Andrew G. Artz, Sajeev D. Malaveetil Construction and Real Property Disputes 33. Construction Claims 33.1Bilge Astarlioglu, Stephen P. Lechner 34. Real Estate Litigation 34.1Mariano S. Borges, Steven A. Klett, Mark R. Molepske, Michael E. Straneva Other Civil Litigation 35. Accountant Liability 35.1Mark A. Carlson, Thomas H. L. Selby 36. Executive Compensation in the Litigation Setting 36.1Eli Bartov, Lynda H. Schwartz 37. Covenants Not to Compete (“Noncompete Agreements”or “NCAs”) 37.1Elizabeth A. Evans, Kevin F. Rasmussen, Roman L. Weil 38. Employment Litigation 38.1Christopher Haan, Elaine Reardon, Ali Saad 39. Fair Lending Litigation 39.1Joshua Garcia, Valerie L. Hletko, H Joshua Kotin, Benjamin P. Saul Part VI: Criminal Matters And Investigations 40. Tax Fraud: Criminal Cases 40.1Edward M. Robbins Jr. 41. Financial Statement Investigations 41.1Dean C. Bunch, Karen M. Cheek, Desi Ivanova 42. Health Care Fraud and False Claims Act Damages 42.1Frank E. Correll Jr. Thomas A. Gregory, Gregory M. Luce, Karen A. Makara 43. International Investigations: Successful Planning and Execution 43.1Sergio P. Negreira Part VII: Family Law 44. Family Law Services 44.1Donald A. Glenn, Charles A. Burak, About the Editors About the Contributors Index

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Book SynopsisLeverage Python for expert-level volatility and variance derivative trading Listed Volatility and Variance Derivatives is a comprehensive treatment of all aspects of these increasingly popular derivatives products, and has the distinction of being both the first to cover European volatility and variance products provided by Eurex and the first to offer Python code for implementing comprehensive quantitative analyses of these financial products. For those who want to get started right away, the book is accompanied by a dedicated Web page and a Github repository that includes all the code from the book for easy replication and use, as well as a hosted version of all the code for immediate execution. Python is fast making inroads into financial modelling and derivatives analytics, and recent developments allow Python to be as fast as pure C++ or C while consisting generally of only 10% of the code lines associated with the compiled languages. This complete gTable of ContentsPreface xi Part One Introduction to Volatility and Variance Chapter 1 Derivatives, Volatility and Variance 3 1.1 Option Pricing and Hedging 3 1.2 Notions of Volatility and Variance 6 1.3 Listed Volatility and Variance Derivatives 7 1.3.1 The US History 7 1.3.2 The European History 8 1.3.3 Volatility of Volatility Indexes 9 1.3.4 Products Covered in this Book 10 1.4 Volatility and Variance Trading 11 1.4.1 Volatility Trading 11 1.4.2 Variance Trading 13 1.5 Python as Our Tool of Choice 14 1.6 Quick Guide Through the Rest of the Book 14 Chapter 2 Introduction to Python 17 2.1 Python Basics 17 2.1.1 Data Types 17 2.1.2 Data Structures 20 2.1.3 Control Structures 22 2.1.4 Special Python Idioms 23 2.2 NumPy 28 2.3 matplotlib 34 2.4 pandas 38 2.4.1 pandas DataFrame class 39 2.4.2 Input-Output Operations 45 2.4.3 Financial Analytics Examples 47 2.5 Conclusions 53 Chapter 3 Model-Free Replication of Variance 55 3.1 Introduction 55 3.2 Spanning with Options 56 3.3 Log Contracts 57 3.4 Static Replication of Realized Variance and Variance Swaps 57 3.5 Constant Dollar Gamma Derivatives and Portfolios 58 3.6 Practical Replication of Realized Variance 59 3.7 VSTOXX as Volatility Index 65 3.8 Conclusions 67 Part Two Listed Volatility Derivatives Chapter 4 Data Analysis and Strategies 71 4.1 Introduction 71 4.2 Retrieving Base Data 71 4.2.1 EURO STOXX 50 Data 71 4.2.2 VSTOXX Data 74 4.2.3 Combining the Data Sets 76 4.2.4 Saving the Data 78 4.3 Basic Data Analysis 78 4.4 Correlation Analysis 83 4.5 Constant Proportion Investment Strategies 87 4.6 Conclusions 93 Chapter 5 VSTOXX Index 95 5.1 Introduction 95 5.2 Collecting Option Data 95 5.3 Calculating the Sub-Indexes 105 5.3.1 The Algorithm 106 5.4 Calculating the VSTOXX Index 114 5.5 Conclusions 118 5.6 Python Scripts 118 5.6.1 index collect option_data.py 118 5.6.2 index_subindex_calculation.py 123 5.6.3 index_vstoxx_calculation.py 127 Chapter 6 Valuing Volatility Derivatives 129 6.1 Introduction 129 6.2 The Valuation Framework 129 6.3 The Futures Pricing Formula 130 6.4 The Option Pricing Formula 132 6.5 Monte Carlo Simulation 135 6.6 Automated Monte Carlo Tests 141 6.6.1 The Automated Testing 141 6.6.2 The Storage Functions 145 6.6.3 The Results 146 6.7 Model Calibration 153 6.7.1 The Option Quotes 154 6.7.2 The Calibration Procedure 155 6.7.3 The Calibration Results 160 6.8 Conclusions 163 6.9 Python Scripts 163 6.9.1 srd_functions.py 163 6.9.2 srd simulation analysis.py 167 6.9.3 srd simulation results.py 171 6.9.4 srd model calibration.py 174 Chapter 7 Advanced Modeling of the VSTOXX Index 179 7.1 Introduction 179 7.2 Market Quotes for Call Options 179 7.3 The SRJD Model 182 7.4 Term Structure Calibration 183 7.4.1 Futures Term Structure 184 7.4.2 Shifted Volatility Process 190 7.5 Option Valuation by Monte Carlo Simulation 191 7.5.1 Monte Carlo Valuation 191 7.5.2 Technical Implementation 192 7.6 Model Calibration 195 7.6.1 The Python Code 196 7.6.2 Short Maturity 199 7.6.3 Two Maturities 201 7.6.4 Four Maturities 203 7.6.5 All Maturities 205 7.7 Conclusions 209 7.8 Python Scripts 210 7.8.1 srjd fwd calibration.py 210 7.8.2 srjd_simulation.py 212 7.8.3 srjd_model_calibration.py 215 Chapter 8 Terms of the VSTOXX and its Derivatives 221 8.1 The EURO STOXX 50 Index 221 8.2 The VSTOXX Index 221 8.3 VSTOXX Futures Contracts 223 8.4 VSTOXX Options Contracts 224 8.5 Conclusions 225 Part Three Listed Variance Derivatives Chapter 9 Realized Variance and Variance Swaps 229 9.1 Introduction 229 9.2 Realized Variance 229 9.3 Variance Swaps 235 9.3.1 Definition of a Variance Swap 235 9.3.2 Numerical Example 235 9.3.3 Mark-to-Market 239 9.3.4 Vega Sensitivity 241 9.3.5 Variance Swap on the EURO STOXX 50 242 9.4 Variance vs. Volatility 247 9.4.1 Squared Variations 247 9.4.2 Additivity in Time 247 9.4.3 Static Hedges 250 9.4.4 Broad Measure of Risk 250 9.5 Conclusions 250 Chapter 10 Variance Futures at Eurex 251 10.1 Introduction 251 10.2 Variance Futures Concepts 252 10.2.1 Realized Variance 252 10.2.2 Net Present Value Concepts 252 10.2.3 Traded Variance Strike 257 10.2.4 Traded Futures Price 257 10.2.5 Number of Futures 258 10.2.6 Par Variance Strike 258 10.2.7 Futures Settlement Price 258 10.3 Example Calculation for a Variance Future 258 10.4 Comparison of Variance Swap and Future 265 10.5 Conclusions 268 Chapter 11 Trading and Settlement 269 11.1 Introduction 269 11.2 Overview of Variance Futures Terms 269 11.3 Intraday Trading 270 11.4 Trade Matching 274 11.5 Different Traded Volatilities 275 11.6 After the Trade Matching 277 11.7 Further Details 279 11.7.1 Interest Rate Calculation 279 11.7.2 Market Disruption Events 280 11.8 Conclusions 280 Part Four DX Analytics Chapter 12 DX Analytics – An Overview 283 12.1 Introduction 283 12.2 Modeling Risk Factors 284 12.3 Modeling Derivatives 287 12.4 Derivatives Portfolios 290 12.4.1 Modeling Portfolios 292 12.4.2 Simulation and Valuation 293 12.4.3 Risk Reports 294 12.5 Conclusions 296 Chapter 13 DX Analytics – Square-Root Diffusion 297 13.1 Introduction 297 13.2 Data Import and Selection 297 13.3 Modeling the VSTOXX Options 301 13.4 Calibration of the VSTOXX Model 303 13.5 Conclusions 308 13.6 Python Scripts 308 13.6.1 dx srd calibration.py 308 Chapter 14 DX Analytics – Square-Root Jump Diffusion 315 14.1 Introduction 315 14.2 Modeling the VSTOXX Options 315 14.3 Calibration of the VSTOXX Model 320 14.4 Calibration Results 325 14.4.1 Calibration to One Maturity 325 14.4.2 Calibration to Two Maturities 325 14.4.3 Calibration to Five Maturities 325 14.4.4 Calibration without Penalties 331 14.5 Conclusions 332 14.6 Python Scripts 334 14.6.1 dx srjd calibration.py 334 Bibliography 345 Index 347

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Book SynopsisSmall companies come with big risk, but potentially life-changing reward Small Stocks, Big Moneyprovides first-hand perspective and insider information on the fast world of microcap investing. In a series of interviews with the superstars of small stocks, you''ll learn how to discover the right companies and develop a solid investment strategy with a potentially big payoff. Each chapter includes a short bio of the investor in question, and provides key insight into the lessons learned from the investments that made them millionsor in some cases, hundreds of millions. You''ll learn each investor''s top stock picks, and how they originally chose the investments that became their gold mines. Whether you''re a professional investor or a novice, this book is a unique and valuable source of information for anyone interested in the volatile world of small stocks and big money. The smaller the company, the bigger the riskand the bigger the potential payoff. These intervTable of ContentsPreface xxi Acknowledgments xxv Part I: Big Companies Start Small 1 Chapter 1: Microcap Stocks, the Neglected Asset Class 3 Part II: The Superstars 11 Chapter 2: Michael Corbett 13 Perritt’s Investment Paradigm 14 Perritt Capital Management Top Stock Positions 20 Chapter 3: Bill Hench 25 Royce Opportunity Funds Top 10 Positions 32 Chapter 4: Dr. Phil Frost 33 Phillip Frost Top Stock Positions 40 Chapter 5: Dave Maley 43 Maley’s Favorite Stock: RealNetworks, Inc. (RNWK) 51 Ariel Top Stock Positions 53 Chapter 6: John Pappajohn 57 Horatio Alger Award 65 John Pappajohn Top Stock Positions 66 Chapter 7: Byron Roth 67 Chapter 8: Charles Diker 75 Charles Diker Top Stock Positions 79 Chapter 9: Phil Sassower 83 Phil Sassower Top Stock Positions 89 Chapter 10: Barry Honig 91 The Interclick Story 93 The Story of MusclePharm 95 The Story of Pershing Gold 97 RantMedia 100 VBI Vaccines (NASDAQ: VBIV) 100 Drone Aviation (OTCQB: DRNE) 101 Barry Honig Top Stock Positions 102 Chapter 11: Manny Villafana 103 There is Something of the Horatio Alger Story in Villafana’s Life 104 Manny Villafana Top Stock Positions 111 Chapter 12: Buzz Heidkte 113 Chapter 13: Greg Sichenzia 119 Appendix A: Stock List 123 Appendix B: RedChip’s Top Microcap Stock Picks 127 Appendix C: Lessons from RedChip Nation: Weekly Newsletter 149 Appendix D: Microcap Indexes 165 Appendix E: Glossary of Wall Street Terms 169 Appendix F: Twenty-Five Financial and Business Books Worth Reading 173 About the Author 175 Index 177

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Book SynopsisDelve into gender lens investing and the reality of the female economy Women today are an unparalleled force in the global economyas successful entrepreneurs, corporate executives and family breadwinners. Yet gender-based violence, the absence of women''s legal rights and the persistent wage gap stubbornly remain. This paradox creates an unprecedented and underexplored opportunity for investors. Gender Lens Investing, co-authored by Jackie VanderBrug, Managing Director and Joseph Quinlan, Managing Director and Chief Market Strategist, of U.S. Trust, Bank of America Private Wealth Management, is the first book of its kind to examine, in-depth the advantages of integrating gender into investment analysis. While other books speak to growing numbers and influence of women, Gender Lens Investing moves from economic trends to financial strategy. Learn why gender is material to economic prosperity and investment performance Explore ways to Table of ContentsPrologue xi Acknowledgments xxi About the Authors xxv Chapter 1 Womenomics and the Measures That Matter 1 Chapter 2 It’s the Women, Stupid 13 Chapter 3 Womenomics Goes Global 37 Chapter 4 From Womenomics to Gender Lens Investing 57 Chapter 5 New Paths to Capital 77 Chapter 6 Inside and Outside the Workplace 105 Chapter 7 Getting Beyond Pink 133 Chapter 8 A New Field in Motion 159 Chapter 9 A Start That’s Here to Stay 187 Index 203

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Book SynopsisAn updated examination of what''s weakening the U.S. economy, and how to fix itThe Committee to Destroy the World: Inside the Plot to Unleash a Super Crash on the Global Economy is a passionate and informed analysis of the struggling global economy. In this masterfully conceived and executed work, Michael Lewitt, one of Wall Street''s most respected market strategists and money managers, updates his groundbreaking examination of the causes of the 2008 crisis and argues that economic and geopolitical conditions are even more unstable today. His analysis arrives in time for the impending economic and geopolitical debates of the 2016 election season. Lewitt explains in detail how debt has now overrun the world''s capacity, how federal policies of the past few decades have created a downward vortex sapping growth and vitality from the American economy, and how greed and corruption are preventing reform. The financial crisis created tens of trillions of debt, leTable of ContentsAcknowledgments xi Introduction The Committee to Destroy the World 1 Chapter 1 The 2008 Crisis—Tragedy or Farce? 57 Chapter 2 The Death of Capital 93 Chapter 3 Capital Ideas 109 Chapter 4 Empty Promises 145 Chapter 5 Financialization 163 Chapter 6 From Innovators to Undertakers 181 Chapter 7 Welcome to Jurassic Park 225 Chapter 8 The Road to Hell 259 Chapter 9 Finance after Armageddon 277 Chapter 10 Unfi nished Business 317 Chapter 11 How to Save Yourself 339 Conclusion “This Is Later” 359 Notes 367 Bibliography and Other Sources 397 About the Author 405 Index 407

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Book SynopsisUncover hidden fraud and red flags using efficient data analytics Fraud Data Analytics Methodology addresses the need for clear, reliable fraud detection with a solid framework for a robust data analytic plan. By combining fraud risk assessment and fraud data analytics, you''ll be able to better identify and respond to the risk of fraud in your audits. Proven techniques help you identify signs of fraud hidden deep within company databases, and strategic guidance demonstrates how to build data interrogation search routines into your fraud risk assessment to locate red flags and fraudulent transactions. These methodologies require no advanced software skills, and are easily implemented and integrated into any existing audit program. Professional standards now require all audits to include data analytics, and this informative guide shows you how to leverage this critical tool for recognizing fraud in today''s core business systems. Fraud cannot be detected through audiTable of ContentsPreface ix Acknowledgments xi Chapter 1: Introduction to Fraud Data Analytics 1 Chapter 2: Fraud Scenario Identification 17 Chapter 3: Data Analytics Strategies for Fraud Detection 41 Chapter 4: How to Build a Fraud Data Analytics Plan 81 Chapter 5: Data Analytics in the Fraud Audit 109 Chapter 6: Fraud Data Analytics for Shell Companies 127 Chapter 7: Fraud Data Analytics for Fraudulent Disbursements 149 Chapter 8: Fraud Data Analytics for Payroll Fraud 183 Chapter 9: Fraud Data Analytics for Company Credit Cards 205 Chapter 10: Fraud Data Analytics for Theft of Revenue and Cash Receipts 227 Chapter 11: Fraud Data Analytics for Corruption Occurring in the Procurement Process 247 Chapter 12: Corruption Committed by the Company 269 Chapter 13: Fraud Data Analytics for Financial Statements 285 Chapter 14: Fraud Data Analytics for Revenue and Accounts Receivable Misstatement 311 Chapter 15: Fraud Data Analytics for Journal Entries 333 Appendix A: Data Mining Audit Program for Shell Companies 349 About the Author 363 Index 365

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Book SynopsisA real-world look at the pension revolution underway The Future of Pension Management offers a progress report from the field, using actual case studies from around the world. In the mid-70s, Peter Drucker predicted that demographic dynamics would eventually turn pensions into a major societal issue; in 2007, author Keith Ambachsheer''s book Pension Revolution laid out the ways in which Drucker''s predictions had come to pass. This book provides a fresh look at the situation on the ground, and details the encouraging changes that have taken place in pension management concepts and practices. The challenges identified in 2007 are being addressed, and this report shows how design, management, and investment innovation have led to measurably better pension outcomes. Pensions have become an everyday news item, and people are rightly concerned about the security of their retirement in light of recent pension scandals and the global financial crisis. This book Table of ContentsPreface xi Part One Touchstones Chapter 1 Improved Pension Designs and Organizations: Gateways to a More Functional Capitalism 3 Chapter 2 Pension Plans for the Masses: Good Idea or Pipe Dream? 11 Chapter 3 Does Institutional Investing Have a Future? 17 Chapter 4 Thomas Piketty’s Capital in the 21st Century: Its Relevance to Pension Fund Management 25 Part Two Pension Design Chapter 5 Why We Need to Change the Conversation about Pension Reform 33 Chapter 6 On the Costing and Funding of Defined-Benefit Pensions: Separating Fact and Fiction 41 Chapter 7 Defining Defined-Ambition Pension Plans: Conclusions from an International Conversation 49 Chapter 8 What Are Target-Benefit Plans and Why Should You Care? 55 Chapter 9 Designing 21st-Century Pension Plans: We’re Making Progress! 61 Part Three Pension Governance Chapter 10 How Effective Is Pension Fund Governance Today?: Findings from a New Survey 69 Chapter 11 The Evolving Meaning of Fiduciary Duty: Is Your Board of Trustees Keeping Up? 81 Chapter 12 Pension Organizations and Integrated Reporting: Improving Stakeholder Communications 87 Chapter 13 Measuring Value-for-Money in Pension Organizations: A New Look 93 Chapter 14 Measuring Value for Money in Private Markets Investing: Why Investors Need a Standard Protocol 101 Chapter 15 How Pension Funds Pay Their Own Investment People 107 Chapter 16 Investment Beliefs and Organization Design: Are They Aligned in Your Organization? 127 Chapter 17 Norway versus Yale—or versus Canada?: A Comparison of Investment Models 133 Chapter 18 Does Culture Matter in Pension Organizations? 141 Part Four Pension Investing Chapter 19 Are Investment Returns Predictable? 151 Chapter 20 Investment Returns in the 21st Century 157 Chapter 21 Long-Termism as the Dominant Investment Paradigm 163 Chapter 22 Investing for the Long Term I: From Saying to Doing 169 Chapter 23 Investing for the Long Term II: How Should We Measure Performance? 177 Chapter 24 Investing for the Long Term III: Does It Produce Better Outcomes? 183 Chapter 25 Are Alphas and Betas Bunk? 189 Chapter 26 Risk Management Revisited 195 Chapter 27 From an Unknown to a Known: Managing Climate Change Risk 201 Conclusion 207 Notes 209 About the Author 219 Index 221

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Book SynopsisGet up to date on the latest FASB, SEC, and AICPA guidelines and best practices Fair Value Measurement provides hands-on guidance and the latest best practices for measuring fair value in financial reporting. The Financial Accounting Standards Board (FASB), the U.S. Securities and Exchange Commission (SEC), and the American Institute of CPAs (AICPA) have all updated their guidelines for practitioners, and this book details the changes from a practical perspective. This new third edition includes a discussion on Private Company Council accounting alternatives for business combinations and impairment testing, with a detailed example of the Market Participant Acquisition Premium (MPAP), including European and Asian examples and expanded discussion of IFRS. Fair value measurement guidelines continue to evolve, and this comprehensive reference provides a valuable, up-to-date resource for preparers, auditors, and valuation specialists. Adopt the beTable of ContentsPreface xiii Acknowledgments xix Chapter 1: The History and Evolution of Fair Value Accounting 1 Why the Trend Toward Fair Value Accounting? 2 History and Evolution of Fair Value 5 Fair Value Accounting and the Economic Crisis 12 The FASB and IASB Convergence Project 17 The Future of Fair Value Measurement 23 Fair Value Quality Initiative for Valuation Specialists 24 Conclusion 26 Notes 26 Appendix 1A: The Mandatory Performance Framework 31 Performance Requirements 31 Conclusion 33 Notes 46 Chapter 2: Fair Value Measurement Standards and Concepts 47 FASB ASC 820, Fair Value Measurement 48 Disclosures 67 Fair Value Option 70 Standards in the Valuation Profession and Fair Value Measurements 77 Conclusion 79 Notes 80 Appendix 2A: Taxes and Fair Value Measurements 81 Summary of Changes under 2017 TCJA 81 Chapter 3: Business Combinations 85 Mergers and Acquisitions 86 Accounting Standards for Business Combinations—A Brief History 88 ASC 805, Business Combinations 90 Other Business Combination Highlights 95 Subsequent Accounting for Goodwill and Other Intangible Assets 99 Conclusion 100 Notes 101 Chapter 4: The Nature of Goodwill and Intangible Assets 103 History of Intangible Assets 104 Intellectual Property 105 Economic Basis of Intangible Assets 106 Identification of Intangible Assets 106 Useful Life of an Intangible Asset 111 Intangible Assets and Economic Risk 112 Goodwill 112 Economic Balance Sheet 114 Conclusion 116 Notes 117 Chapter 5: Impairment 119 Evolution of Impairment Testing 120 Applicable FASB Guidance for Impairment Testing 122 Accounting for the Impairment of Long-Lived Assets 123 Goodwill Impairment Testing—Public Companies 125 Goodwill Impairment—One-Step Impairment Loss 138 Testing Other Indefinite-Lived Intangible Assets for Impairment 139 Amortization of Goodwill 139 Conclusion 140 Notes 140 Appendix 5A: Example of a Qualitative Impairment Analysis—PlanTrust, Inc. 143 Financial Accounting Standards Board ASC 350, Intangibles—Goodwill and Other 143 PlanTrust, Inc. 144 Notes 159 Chapter 6: The Cost Approach 161 The Cost Approach under FASB ASC 820, Fair Value Measurement 162 Economic Foundation for the Cost Approach 164 Cost versus Price versus Fair Value 164 The Role of Expected Economic Benefits in the Cost Approach 166 Reproduction Cost versus Replacement Cost 167 Components of Cost 168 Obsolescence 169 The Relationships Among Cost, Obsolescence, and Value 170 Physical Deterioration 171 Functional (Technological) Obsolescence 172 Economic (External) Obsolescence 173 Applying the Cost Approach 174 Taxes Under the Cost Approach 178 Limitations of the Cost Approach 179 Conclusion 179 Notes 180 Chapter 7: The Market Approach 183 Applying the Market Approach When Measuring the Fair Value of an Entity or a Reporting Unit of an Entity 184 Conclusion 213 Notes 213 Chapter 8: The Income Approach 215 Introduction 215 Discounted Cash Flow Method 216 Multiperiod Excess Earnings Method 223 FASB Concepts Statement 7 239 Rates of Return Under the Income Approach 244 The Income Increment/Cost Decrement Method 245 Profit Split Method 246 Build-Out, or Greenfield, Method 251 Weighted Average Cost of Capital Calculation 251 Conclusion 258 Notes 259 Chapter 9: Advanced Valuation Methods for Measuring the Fair Value of Intangible Assets 261 Introduction 261 Limitations of Traditional Valuation Methods 261 Real Options 263 Using Option Pricing Methodologies to Value Intangible Assets 266 Black-Scholes Option Pricing Model 269 Binomial or Lattice Models 272 Monte Carlo Simulation 277 Decision Tree Analysis 280 Conclusion 281 Notes 281 Chapter 10: Measuring the Remaining Useful Life of Intangible Assets in Financial Reporting 283 FASB Guidance on Determining the Remaining Useful Life 283 Considerations in Measuring Useful Lives of Intangible Assets 285 Practical Guidance for Estimating and Modeling the Useful Life 289 Conclusion 295 Notes 295 Chapter 11: Fair Value Measurement for Alternative Investments 297 Introduction 297 Investments in Certain Entities That Calculated Net Asset Value per Share 299 AICPA Technical Practice Aid 300 AICPA Guidance for Determining the Fair Value of Investment 301 AICPA Accounting and Valuation Guide, Valuation of Portfolio Company Investments of Venture Capital and Private Equity Funds and Other Investment Companies 305 International Private Equity and Venture Capital Valuation Guidelines 306 Common Valuation Methodologies of Measuring the Fair Value of the Fund’s Investment Portfolio 307 Conclusion 308 Notes 308 Chapter 12: Contingent Consideration 311 Contingent Consideration: Earn-outs in Business Combinations 311 Accounting for Contingent Consideration 312 Conclusion 324 Notes 324 Appendix 12A: Measuring the Fair Value of a Nonfinancial Contingent Liability—Example of a Loan Guarantee 327 The Jordan Lee Fund Guarantee of Townsend Farm Development, LLC 328 Notes 334 Chapter 13: Auditing Fair Value Measurement 335 Auditing Standards 336 The Audit Process 338 Evolution of Audit Standards for Fair Value Measurements and Disclosures 342 Auditing Standard 2501, Auditing Accounting Estimates, Including Fair Value Measurements 344 Auditing Standards for Auditor’s Use of the Work of Specialists 349 Proposed International Standard on Quality Management 1 354 Practical Guidance for Auditors 354 PCAOB Staff Audit Practice Alert No. 9, Assessing and Responding to Risk in the Current Economic Environment 356 AICPA Nonauthoritative Guidance 358 The Appraisal Foundation 359 Conclusion 359 Notes 360 Appendix 13A: Auditing Fair Value Measurement in a Business Combination 363 Auditor Questions 363 General 363 Income Approach 364 Cost Approach 366 Market Approach—General 367 Appendix 13B: Auditing Fair Value Measurement in a Goodwill Impairment Test 369 General 369 Income Approach 370 WACC 371 The Market Approach 372 Chapter 14: Fair Value Measurement Case Study 373 Learning Objectives 373 Business Background and Facts—Dynamic Analytic Systems, Inc. 374 Notes 406 Appendix 14A: Suggested Case Study Solutions 407 Note 437 Appendix 14B: Model Fair Value Measurements Curriculum 439 Acknowledgments 439 AICPA Staff 440 About Us 440 Preface 440 Model Fair Value Measurement Curriculum 440 Appendices and Examples 448 Note 451 Glossary of International Business Valuation Terms 453 Bibliography 463 About the Author 475 Index 477

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Book SynopsisThe Authoritative M&A Guide for Financial Advisors Buying, Selling, & Valuing Financial Practices shows you how to complete a sale or acquisition of a financial advisory practice and have both the buyer and seller walk away with the best possible terms. From the first pages of this unique book, buyers and sellers and merger partners will find detailed information that separately addresses each of their needs, issues and concerns. From bestselling author and industry influencer David Grau Sr. JD, this masterful guide takes you from the important basics of valuation to the finer points of deal structuring, due diligence, and legal matters, with a depth of coverage and strategic guidance that puts you in another league when you enter the M&A space. Complete with valuable tools, worksheets, and checklists on a companion website, no other resource enables you to: Master the concepts of value and valuation and take this issue off the table early inTable of ContentsForeword xi Preface xv For Sellers xv For Buyers xvi Acknowledgments xix Chapter 1 The Basics You Need to Know 1 Avoiding the Critical Mistakes 1 Valuation: The Great Debate 4 Assessing What You Have Built (or Are Acquiring) 6 Who is Selling? Transition Strategies by Ownership Level 11 Overcoming Attrition: Public Enemy No. 1 14 What is Being Sold? 17 Organizing the Marketplace 20 Exit Plans versus Succession Plans versus Continuity Plans 23 The Planning Continuum 28 Chapter 2 Value and Valuation Fundamentals 31 An Overview 31 What Creates Value? 33 Standards of Value 35 Valuation Approaches and Methods 38 The Rule of Thumb Method of Valuation 46 Application of Standards and Approaches 48 Making Sense of It All 51 Who is Qualified? (to Offer an Opinion of Value) 53 Valuations for Bank Financing 54 Chapter 3 Solving Valuation 57 The Blue Book Standard 57 Lessons Learned 58 A Value Calculation 60 How It Works 61 Recurring versus Nonrecurring Revenue 65 Assessing Transition Risk 66 Measuring Cash Flow Quality 68 Fixing the Fracture Lines 69 The Profitability Issue 71 Chapter 4 Building and Preserving Value toward the End of Your Career 75 1. Get a Position Fix 77 2. Focus on the “M” in M&A 78 3. Obtain a Formal, Third-Party Valuation 79 4. Understand the Impact of Terms and Taxes on Value 80 5. Consider Alternative Strategies: Sell and Stay Opportunities 81 6. Study Reliable Benchmarking Data 84 7. Create a Plan and a Definitive Timeline 85 8. Have a Backup Plan 86 9. Sell on the Way Up! 87 10. Focus on You 88 Chapter 5 Preparing to Sell 91 What’s Your Plan? 92 Finding the Very Best Match 95 When to Sell: Timing That Final Step 98 In a Nutshell: How to Sell Your Book, Practice, or Business 101 The Listing Process 107 Making a Quick Decision to Sell 112 When Selling Isn’t Selling 113 Ten Things Buyers Will Want to Know 115 Handling Key Employees during the Selling/Listing Process 116 Letting Go 118 Chapter 6 The Buyer’s Perspective 119 A New Direction 119 If at First You Don’t Succeed . . . 121 Build a Base for Acquisition 122 What Sellers Will Want to Know 124 Understanding the Audition Process 126 Are You a Buyer or a Prospect? 133 Nontraditional Acquisition Strategies 134 Chapter 7 Deal Structuring: Payment Terms, Taxes, and Financing 143 Seller Financing 144 The Shared-Risk/Shared-Reward Concept 145 Performance-Based Promissory Notes 147 Earn-Out Arrangements 148 Revenue Sharing or Fee Splitting Arrangements 151 Earnest-Money Deposits 152 Down Payments 153 Basic Tax Strategies 154 Installment Sales 156 Asset-Based Sales/Acquisitions 157 Stock-Based Sales/Acquisitions 161 Bank Financing 164 The Mechanics of the Process 166 Blending Seller and Bank Financing Together 169 Acceleration Options 170 Working Capital Loans 171 Chapter 8 Due Diligence and Documentation 175 Conducting Due Diligence 176 Assembling and Managing Your Team 181 Advocacy versus Nonadvocacy Approach 183 Documenting the Transaction 184 Chapter 9 Key Legal Issues in the M&A Process 197 What Exactly is “Boilerplate”? 198 Reps and Warranties 199 Covenants and Conditions 202 Indemnification and Hold Harmless Clauses 207 Protections against Death or Disability 209 Default Provisions 210 Resolution of Conflicts 213 Basic (but Not Trivial) Legal Issues 215 Chapter 10 The Transition Plan 223 Regulatory Issues 224 Transferring Fee-Based Accounts 232 Setting Up for the Post-Closing Transition 233 E&O Insurance (Tail Coverage) 235 Sample Client Letters 236 Conclusion 247 Appendix: Sample Documents 249 About the Author 279 About the Website 281 Index 283

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Book SynopsisPlan For Your Organization''s Success Linkage''s Best Practices for Succession Planning provides the ultimate guide for planning, developing, implementing, and sustaining succession planning in any organization. This must-have book provides step-by-step instructions, practical advice, templates, and tools from some of the world''s best companies and Linkage, a global organization development company that specializes in leadership development. Linkage Inc.''s Best Practices for Succession Planning is the comprehensive resource that includes information needed to Ensure that succession management is owned by business leaders rather than just HR Assess potential for future roles, not just track record of performance Manage succession data on individuals and talent pools Balance talent development and acquisition in achieving future objectives Develop the processes, tools, and organizational capabilities necessaryTable of ContentsPreface xiii Acknowledgments xix Introduction 1 Section I The World of the Day Trader 5 Chapter 1. Exploiting the Excesses of Capitalism 7 The House Edge 9 The Bid-Ask Spread 11 Section II Introduction to Day Trading 17 Chapter 2. Trading 101: Buying on Bad News and Selling on Good News 19 The Mind-set of an Online Day Trader 19 A Buyer When the Market Needs Buyers 20 Hit Singles, Not Home Runs 20 Brokerage Commissions Can Destroy Profits 21 Buy in on Fear, Sell in on Greed 22 The Slow Execution 23 Is the NYSE an Easier Market to Trade? 24 Section III How to Beat Wall Street at Its Own Game 25 Chapter 3. Exploiting Wall Street’s Conflict of Interest: Market Orders versus Limit Orders 27 Understanding Wall Street’s Conflict of Interest 27 Price Makers versus Price Takers 29 The Bargaining Process 30 Price Negotiation—Market versus Limit Orders 32 Wall Street’s Prey 34 Prelude to the Bid-Ask Spread 35 Chapter 4. The Day Trader’s Crystal Ball: Understanding the Bid-Ask Spread 37 A Snapshot of a Moving Picture 37 The Mechanics of Price Movement—Understanding What Makes a Stock Move Higher 39 Example 1: The Quote—Snapshot of a Moving Picture 41 Example 2: The Market Order to Sell—Hitting the Bid 46 Example 3: The Market Order to Buy—Lifting the Offer 48 Example 4: The Limit Order to Buy—Bidding for Stock 50 Day Orders versus Good-until-Canceled (GTC) Orders 52 Example 5: The Limit Order to Sell—Offering Stock 54 Haggling Over Nickels and Dimes 56 Example 6: Moving the Stock Higher 57 Chapter 5. The Role of the Specialist on the New York Stock Exchange 61 Using the Specialist System to Your Advantage 64 What If There Were No NYSE Specialist? 66 Buyer of Last Resort 67 Is the Profit the Specialist Makes Justified? 68 A License to Steal? 68 The Specialist’s Limit Order Book 69 Being on Both Sides of the Market 71 Narrowing the Bid-Ask Spread 72 Wide Spreads Protect the Specialist from Volatility 73 Handling a Large Sell Order 74 The Real Intentions of the Specialists 77 Beware When the Specialist Takes the Other Side of Your Trade 77 The Day Trader as a Shadow Specialist 78 The NYSE’s Fair Order Handling Rules 80 Never Reveal Your Hand 85 How Can You Determine Where the Specialist Lurks in the Stock? 85 Jockeying for Position 87 How Do You Know Where You Stand in Line? 89 When in Doubt, Ask the NYSE Floor 89 Tipping the Odds in Your Favor 92 Beware of the Specialist 93 Section IV Introduction to Scalping The NYSE: Taking Food Out of the Specialist’s Mouth 95 Chapter 6. The Day Trader’s Secret Weapon: Exploiting the Bid-Ask Spread 97 How Can You Make Money Trading Stocks that Don’t Move? 98 The Role of the Scalper 99 Hit Singles, Not Home Runs 100 Operating under the Radar 100 Avoiding the Glamour Stocks 102 Exploiting the Bid-Ask Spread 103 Finding the Trade’s Sweet Spot 103 Simplifying a Complex Process 104 Other Moving Parts to This Trade 105 A Bet with the House? 109 Too Much Work for Only $100 in Gross Profits? 110 A Few Words on Risk 110 Section V Trading The Market’s Momentum: How to Profit from Volatility 113 Chapter 7. Exploiting Market Volatility and Momentum: Strategies for Trading Volatile Stocks 115 The Specialist and the Upper Hand 116 Playing the Gap Open—A Strategy for Betting with the House 117 Buying on Bad News 118 Betting on the Specialist 119 Parameters of the Gap-Opening Trade 122 How to Tell If the Opening Trade Will “Clear” the Specialist’s Limit Order Book 124 Selling before the Second Wave 125 Trading Tick for Tick with the Market Indexes 127 Why Limit Orders Don’t Work in a Rally 127 Using the S&P Futures to Gauge the Sustainability of a Rally 129 Lightning-Fast Market Upsurge: How Offers Vanish in the Vapor Trail 129 Stock for Sale Becoming Scarce 130 Nasdaq and the Role of the Market Makers 131 A Few Words on Short Selling 135 Two Methods for Day Trading Nasdaq Stocks 136 The Apple Computer Trade 139 Buying Strong Stocks on Pullbacks 140 Opening the Stock Abnormally High 141 The Dangers of Buying a Strong Stock on the Opening Trade 141 Inflicting Heavy Damage on the Market Makers by Attacking Their Vulnerability 142 Chapter 8. The Day Trader’s Ticket to the Poorhouse: How I Managed to Lose $12,000 in Less than 24 Hours 145 The Pain of Missing a Trade 147 How Could the Stock Go Any Lower? 147 The Terrifying Feeling of Getting Caught in a Downdraft 148 A Feeling of Irresistible Greed 148 The Need to Break Even 150 Buying the Stock for the Third Time 151 Feeling of Devastation Leads to Useful Insights 152 Learning from the Mistake and Moving On 156 Can the Quoted Market Always Be Trusted? 156 A Fool and His Money Are Soon Parted 159 Appendix A. The Day Trader’s Arsenal: Online Brokers, Trade Commissions, Real-Time Quote Systems, and the Home Office 161 Choosing an Online Broker 161 Negotiate the Best Possible Commission Rate 163 Make Sure that the Broker Can Route Directly to the NYSE 163 Per-Share versus Per-Trade Commission Rates 164 Setting up at Least Two Accounts 164 System Crashes and the Late Fill 165 Customer Service, Back-Office Problems, and Trade Discrepancies 167 The Remedy—Keep Good Trading Records 167 The Home Office and the Virtual Trading Floor 169 Appendix B. Considerations for Trading for a Living: The Allocation of Trading Capital, the Pattern Day Trader Rule, Using Margin and Trading Part-Time vs. Full-Time 173 Allocation of Trading Capital 174 The Pattern Day Trader Rule 177 Trading on Margin 177 Margin Calls 178 Part-Time versus Full-Time Trading 179 Index 183

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Book SynopsisCapture the fortune you're losing with every trade by learning to exploit options The Options Edge + Free Trial shows you how to capture the fortune you lose out on every day. Buying and selling traditional investments often entails instruments with optionality.Table of ContentsIntroduction 1 Chapter 1 What Is an Option, and How Do Options Work? 11 Chapter 2 Valuing Options with the Black–Scholes– Merton Option-Pricing Model 29 Chapter 3 Trading Volatility 65 Chapter 4 Are Options Fairly Priced? 97 Chapter 5 Fundamental Option Strategies 125 Chapter 6 Portfolio Hedging Producing Enhanced Returns 155 Chapter 7 Option Strategies for Special Situations 193 Chapter 8 Extracting Information from Options Prices 213 Chapter 9 Synthetics 235 Chapter 10 Home Runs 253 Chapter 11 Strike-Outs 277 Notes 305 Glossary 311 References 319 About Online Education and Option Trading Tools 323 About the Free Trial 329 Index 331

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Book SynopsisCritical analysis of RMB internationalization and the coming global currency shift Renminbi Rising charts the emergence of China''s internationalizing currency and provides an in-depth analysis of the global repercussions. Written by a team of renown economics researchers, this book describes the pressures that enabled the emergence of a new global monetary system and why China''s Renminbi (RMB) became the default ''second in line'' as the U.S. receded from leadership. Policy makers and regulators will appreciate the examination of the motivations behind those driving the shift, and financial professionals will find valuable guidance in the discussion surrounding business opportunities that the RMB brings to the table. Coverage includes the emergence of new Chinese-sponsored financial institutions, the scale of various RMB businesses and the coming transformation of the global financial system. Effective management of international monetary affairs has never been moTable of ContentsList of Figures xi List of Tables xiii Foreword xv Acknowledgments xvii About the Author xix CHAPTER 1 Internationalizing the RMB 1 The Conditions for Becoming a Global Currency 2 Business and RMB 10 RMB-Product Markets 11 Reserve Currency 14 The Emerging Monetary Order 16 CHAPTER 2 The Rise and Fall of Currencies – Historical Lessons for the RMB 21 Risks in International Monetary System Transitions 23 The Role of Eurodollars in the 2008 Global Financial Crisis 26 2008: Year Zero for a New International Monetary System? 27 Conditions for Currency Internationalization: Market Demand and Institutional Supply 30 Institutional Inertia and Disruptive Events 35 Offshore Currencies and International Liquidity 36 Current International Reactions to the RMB’s Rise 41 RMB Internationalization 44 Conclusion 46 References 47 CHAPTER 3 Economic and Institutional Foundations for the Rise of the RMB 49 Economic Foundation 49 Surprises 58 New Growth Engines 60 Capital-Account Liberalization 62 Institutional Quality 68 Conclusion 80 References 81 CHAPTER 4 Can the Chinese Bond Market Support a Potential Global Renminbi? 83 Overview of the Chinese Bond Market 84 Chinese Treasury Market in International Perspective 91 A Dilemma and a Bold Public-Debt Consolidation Scheme 98 Government-Backed Debt Securities 103 Conclusion 107 References 107 CHAPTER 5 Waxing and Waning of the Chinese Stock and Banking Markets 109 Chinese Stock Market: Growing Despite Immaturity Flaws 109 A Massive Chinese Banking Market Opening 125 Conclusion 133 References 133 CHAPTER 6 Rising FX Turnover of the RMB 135 Could the Market Accommodate More Global Currencies? 135 What Determines the FX Liquidity of the RMB? 138 Potential for Rising RMB Turnover by Market Segment 143 Conclusion 149 References 150 CHAPTER 7 A Spreading Global Network for RMB Trade 151 The RMB’s International Position 152 Hong Kong Still the Dominant Offshore RMB Center 155 More Offshore Centers Catch Up to Spread a Global Network 158 Prospects for Offshore RMB Centers 164 Conclusion 169 References 169 CHAPTER 8 Brief Examples of Business Use of the Internationalizing RMB 171 Samsung’s Use of RMB to Reduce Foreign Exchange Conversion Costs 171 Alstom’s Use of RMB as Corporate Treasury Currency 173 Chinese Importers’ Profit Incentives from Use of RMB Trade Settlement: Changhong 175 Conclusion 178 Reference 178 CHAPTER 9 The RMB as a Reserve Currency 179 Global Perspectives 179 Scale of RMB Holdings 181 Drivers of Change 182 Exchanging RMB in a Crisis 190 Onshore and Offshore Access 190 Offshore Alternatives 191 Conservatives Change Course 192 Roadblocks Ahead? 193 RMB Inclusion in SDR 195 Capital-Account Reform 197 Conclusion 198 References 199 CHAPTER 10 Concluding Reflections 201 Appendix A: China RMB Financial Statistics and Forecasts by Other Institutions 207 Glossary 213 Index 215

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Book SynopsisDeep coverage and rigorous examination of international corporate finance Multinational Finance offers an advanced exploration of international corporate finance concepts and operations. Despite its status as one of the most rigorous texts on the topic, this book remains accessible and readable without sacrificing depth of coverage. Sidebars, key terms, essays, conceptual questions, and problems with solutions help aid in the learning process, while suggested readings and PowerPoint handouts reinforce the material and offer avenues for further exploration. This new sixth edition includes Excel templates that allow students to use real-world tools in a learning environment, and the modular structure facilitates course customization to individual objectives, interests, and preparatory level. The emphasis is on the basics of financial management, but coverage includes unique chapters on treasury management, asset pricing, hedging, options, and portfolio management in addiTable of ContentsPreface xi Acknowledgments xv About the Author xvii Part One The International Financial Environment 1 Chapter 1 An Introduction to Multinational Finance 3 1.1 The Goals of the Multinational Corporation 3 1.2 The Challenges of Multinational Operations 5 1.3 The Opportunities of Multinational Operations 6 1.4 Financial Management of the Multinational Corporation 11 1.5 Summary 12 Chapter 2 World Trade and the International Monetary System 15 2.1 Integration of the World’s Markets 15 2.2 Balance-of-Payments Statistics 16 2.3 Exchange Rate Systems 18 2.4 A Brief History of the International Monetary System 22 2.5 Summary 31 Chapter 3 Foreign Exchange and Eurocurrency Markets 35 3.1 Characteristics of Financial Markets 35 3.2 The Eurocurrency Market 36 3.3 The Foreign Exchange Market 41 3.4 Foreign Exchange Rates and Quotations 44 3.5 Hedging with Currency Forwards 51 3.6 The Empirical Behavior of Exchange Rates 54 3.7 Summary 56 Chapter 4 The International Parity Conditions and Their Consequences 61 4.1 The Law of One Price 61 4.2 Exchange Rate Equilibrium 63 4.3 Covered Interest Arbitrage and Interest Rate Parity 66 4.4 Less Reliable International Parity Conditions 69 4.5 The Real Exchange Rate 74 4.6 Exchange Rate Forecasting 78 4.7 Summary 81 Appendix 4A: Continuous Compounding 88 Part Two Derivative Securities for Financial Risk Management 93 Chapter 5 Currency Futures and Futures Markets 95 5.1 The Evolution of Futures Markets 95 5.2 Futures Contracts 97 5.3 Forward versus Futures Market Hedges 100 5.4 Hedging with Currency Futures 104 5.5 Summary 113 Chapter 6 Currency Options and Options Markets 117 6.1 What Is an Option? 117 6.2 Option Payoff Profiles 119 6.3 Currency Option Values Prior to Expiration 126 6.4 Hedging with Currency Options 129 6.5 Exchange Rate Volatility Revisited 134 6.6 Summary 139 Appendix 6A: Currency Option Valuation 143 Chapter 7 Currency Swaps and Swaps Markets 149 7.1 The Growth of the Swaps Market 149 7.2 Swaps as Portfolios of Forward Contracts 151 7.3 Currency Swaps 153 7.4 Interest Rate Swaps 161 7.5 Other Types of Swaps 163 7.6 Hedging the Swap Bank’s Exposure to Financial Price Risk 165 7.7 Summary 166 Part Three Managing the Risks of Multinational Operations 171 Chapter 8 Multinational Treasury Management 173 8.1 Determining Financial Goals and Strategies 173 8.2 Managing International Trade 174 8.4 Managing Cash Flows 181 8.5 Managing Exposures to Currency Risk 183 8.6 Summary 190 Appendix 8A: The Rationale for Hedging Currency Risk 194 Chapter 9 Managing Transaction Exposure to Currency Risk 207 9.1 Transaction Exposure to Currency Risk 207 9.2 Managing Transaction Exposures Internally 208 9.3 Managing Transaction Exposures in the Financial Markets 214 9.4 Treasury Management in Practice 221 9.5 Summary 227 Chapter 10 Managing Operating Exposure to Currency Risk 231 10.1 Operating Exposures to Currency Risk 231 10.2 The Exposure of Shareholders’ Equity 234 10.3 Managing Operating Exposures in the Financial Markets 239 10.4 Managing Operating Exposures Through Operations 243 10.5 Pricing Strategy and the Competitive Environment 245 10.6 Summary 247 Chapter 11 Managing Translation Exposure and Accounting for Financial Transactions 253 11.1 Financial Accounting and Reporting Standards 253 11.2 The Current Rate Method of IAS 21 and ASC 830–30 255 11.3 Corporate Hedging of Translation Exposure 257 11.4 Accounting for Financial Market Instruments 260 11.5 Accounting, Disclosure, and Corporate Hedging Activities 265 11.6 Summary 266 Part Four Valuation and the Structure of Multinational Operations 273 Chapter 12 Foreign Market Entry and Country Risk Management 275 12.1 Strategic Entry into International Markets 276 12.2 Country Risk Assessment 281 12.3 Strategies for Managing Country Risk 287 12.4 Protecting the Multinational’s Competitive Advantages 293 12.5 Summary 296 Chapter 13 Multinational Capital Budgeting 299 13.1 The Algebra of Multinational Capital Budgeting 300 13.2 An Example: Wendy’s Restaurant in Neverland 303 13.3 International Parity Disequilibria 307 13.4 Special Circumstances in Cross-Border Investments 313 13.5 Summary 320 Chapter 14 Multinational Capital Structure and Cost of Capital 327 14.1 Capital Structure and the Cost of Capital 328 14.2 Valuation of a Foreign Project with the WACC 332 14.3 The Cost of Capital on Multinational Operations 337 14.4 Sources of Funds for Multinational Operations 341 14.5 The International Evidence of Capital Structure 346 14.6 Summary 348 Chapter 15 Taxes and Multinational Corporate Strategy 355 15.1 The Objectives of National Tax Policy 355 15.2 Types of Taxation 357 15.3 Taxes and Organization Form 360 15.4 U.S. Taxation of Foreign-Source Income 362 15.5 Transfer Pricing and Tax Planning 367 15.6 Taxes and the Location of Foreign Assets and Liabilities 370 15.7 Summary 374 Chapter 16 Real Options and Cross-Border Investment Strategy 379 16.1 Real Options and the Theory and Practice of Investment 379 16.2 Market Entry as a Simple Real Option 381 16.3 Uncertainty and the Value of the Option to Invest 389 16.4 Market Entry as a Compound Real Option 392 16.5 The Real Option Approach as Complement to NPV 395 16.6 Summary 398 Chapter 17 Corporate Governance and the International Market for Corporate Control 405 17.1 Corporate Governance 406 17.2 The International Market for Corporate Control 418 17.3 The International Evidence on Mergers and Acquisitions 424 17.4 Summary 428 Part Five International Portfolio Investment and Asset Pricing 433 Chapter 18 International Capital Markets 435 18.1 Domestic and International Capital Markets 435 18.2 International Investment Vehicles 444 18.3 Cross-Border Financial Statement Analysis 449 18.4 Summary 452 Chapter 19 International Portfolio Diversification 457 19.1 The Algebra of Portfolio Diversification 457 19.2 Returns on Foreign Investments 466 19.3 The Benefits of International Portfolio Diversification 473 19.4 Home Bias 475 19.5 Summary 480 Chapter 20 International Asset Pricing 485 20.1 The International Capital Asset Pricing Model (IAPM) 485 20.2 Factor Models of Expected and Required Return 490 20.3 Contemporary Asset Pricing Models 499 20.4 Summary 501 Appendix: Useful Rules and Formulas 509 Glossary 515 Index 533

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Book SynopsisThe Capital Markets: evolution of the financial ecosystem is the new standard providing practical text book style coverage of this dynamic market and its products. Written by the former President of BNY Mellon Capital Markets, LLC for both financial professionals and novices, The Capital Markets provides a comprehensive macro view of the marketplace and how its products operate. The subject matter offers an authoritative discussion of the fundamentals of both, the fixed income and equity markets, underwriting, securitizations, derivatives, currency among other products through the lens of leading industry practitioners. Key Learning Concepts Understand the impact of both global and domestic regulatory changes Learn about the products that holistically make up the capital markets Explore the components of the infrastructure that underpins these markets Examine the tools used for trading and managing risk RevTable of ContentsPreface xi Acknowledgments xiii About the Author & Executive Editor xv About the Contributors xvii Part One Introduction and Tools Chapter 1 The Early 21st-Century Evolution of Global Capital Markets 3 Jack Malvey Chapter 2 The Role of Global Capital Markets 20 Christian A. Edelmann and Shasheen Jayaweera Chapter 3 How the Global Financial Crisis Transformed the Industry 52 Christian A. Edelmann and Pete Clarke Chapter 4 Cash Bonds and Futures 64 Amir Sadr Chapter 5 Risk in Capital Markets 89 Peter Reynolds and Mike Hepinstall Chapter 6 Enablers for Robust Risk Management in Capital Markets 110 Swati Sawjiany Chapter 7 Making Markets Work 120 Eric Czervionke Part Two Capital Markets Products Chapter 8 Money Markets 157 Randy Harrison and Paul Mandel Chapter 9 Repurchase Agreements 184 Karl Schultz and Jeffrey Bockian Chapter 10 U.S. Treasury and Government Agency Securities 205 Lee Griffin and David Isaac Chapter 11 Government-Sponsored Enterprises and Federal Agencies 210 David Isaac and Francis C. Reed, Jr. Chapter 12 Inflation-Linked Bonds 232 Henry Willmore Chapter 13 Mortgage-Backed Securities 239 Patrick Byrne Chapter 14 Corporate Bonds 254 Marvin Loh Chapter 15 Preferred Stock 286 Sarah Swammy Chapter 16 Distressed Debt Securities 296 Michael McMaster Chapter 17 Securitization 304 Daniel I. Castro, Jr. Chapter 18 Asset-Backed Securities 312 Daniel I. Castro, Jr. Chapter 19 Non-Agency Residential Mortgage-Backed Securities (RMBSs) 329 Daniel I. Castro, Jr. Chapter 20 Commercial Mortgage-Backed Securities (CMBSs) 348 Daniel I. Castro, Jr. Chapter 21 Collateralized Debt Obligations (CDOs) 361 Daniel I. Castro, Jr. Chapter 22 Structured Investment Vehicles (SIVs) 381 Daniel I. Castro, Jr. Chapter 23 Collateralized Loan Obligations (CLOs) 389 Mendel Starkman Chapter 24 Municipal Bonds 419 Fred Yosca Chapter 25 Equities 435 David Weisberger Chapter 26 Cash Equities in the Secondary Market 458 Eric Blackman and Robert Grohskopf Chapter 27 Exchange-Traded Funds (ETFs) 469 Reginald M. Browne Chapter 28 Equity Capital Markets 481 Daniel C. de Menocal, Jr. Chapter 29 Interest Rate Swaps 503 Amir Sadr Chapter 30 Interest Rate Options 523 Amir Sadr Chapter 31 Commodities 548 Bob Swarup Chapter 32 Currency 571 Simon Derrick Chapter 33 Conclusion 578 Gary Strumeyer and Christian Edelmann Index 591

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Book SynopsisA detailed 10-stage roadmap for investors to achieve stock market mastery with their own consistently profitable, high-probability investment system Tensile Trading provides a complete, step-by-step roadmap for investors of all levels, and coaches them on how best to organize the routines and strategies necessary to identify the market''s strongest trading opportunities. History is proof that true mastery of the market begins with basic money management protocols, asset protection policies, and organized analysis techniques. With these crucial foundations in place, you can embrace a proven investment methodology, execute an effective trading plan, and develop a reliable system for profitable investing. Consistent, long-run investing success is a result of well-defined goals, carefully-constructed routines and an accurate understanding of the psychological challenges that all investors face. Set yourself up for success by implementing prudent money managemeTrade ReviewNo base is left uncovered by the 10-stage Tensile Trading approach. It effectively lays out a comprehensive, easy-to-follow methodology that promotes stable, balanced, high-probability investing. A refreshingly-honest and engaging book brimming with practical investing wisdom that will leave you inspired to take action and confident in your ability to succeed in the stock market. John Murphy, author of Technical Analysis of the Financial Markets and Trading with Intermarket Analysis; Chief Technical Analyst, StockCharts.com; former technical analyst, CNBC It is rare to find a book that presents such a thorough and authentic look into the strategies, routines and processes of a successful individual investor. It is clear that the Tensile Trading methodology has been shaped by many years of real-world investing experience, the lessons of which shine brightly through the pages of this powerful book. Dr. Henry Pruden, Professor of Business Administration and Executive Director, Institute of Technical Market Analysis, Golden Gate University; former editor, Market Technicians Association Journal Gatis and Grayson have penned a very thoughtful and personal approach to investing in the stock market. As you read this, you will hear a voice of experience. The book is broken into stages for you to go through to accelerate your own development of investing skills and to avoid learning things the hard way . A nice touch is a bullet point style summary of the important points of each chapter called Key Takeaways . This is the kind of book you will read more than once. Thom Hartle, Director of Product Trading, CQG, Inc.; former editor, Stocks & Commodities Magazine I have been investing for many years, but it was not until I studied under Gatis Roze and learned the Tensile Trading concepts that I became truly knowledgeable about how to succeed as an individual investor. Tensile Trading has helped me to gain clarity of thought, become well organized and better understand my Investor Self . This is an insightful book that investors should read closely and then review on a regular basis. It is an invaluable resource. Roger Shantz, individual investor; former mechanical engineer and naval aviatorTable of ContentsPreface xi Acknowledgments xvii About the Authors xxi Stage 1 Money Management 1 Crafting Your Money Management Plan 5 Becoming a Successful Investor 9 The Importance of Asset Allocation 11 Constructing Your Personal Asset Allocation Profile 15 X-Ray Magic 24 Allocation Maintenance 24 Stage 2 The Business of Investing 29 Ten Invaluable Investing Lessons 29 Staying Committed on the Road 36 The Investor’s Quad 36 Stage 3 The Investor Self 39 The Five Levels of Investor Growth 40 Investor Weaknesses 42 Learn from the Professionals 46 Your Daily Journal 47 Stage 4 Market Analysis 53 Permission to Buy 54 Telescope-to-Microscope Approach 55 Charting Indicators 56 Organizing Your Analysis 60 Common Misunderstandings 62 The Market Stages and Technical Analysis 64 Fundamentals Checklist for Stocks 67 Fifty versus Fifty 68 Stage 5 Routines 71 Choosing Your Time Frame 72 From Salesmen to Stock Traders 74 Personal Peak Performance 75 Daily, Weekly, Monthly, Annually 76 A Day in the Life 79 Stage 6 Stalking Your Trade 87 Where to Look 88 What to Look For 88 How to Look 89 When to Look 89 Filters 91 Human Nature and Overhead Supply 96 Second-Opinion Resources 98 The Sisters Strategy Revisited 98 Mimic Wall Street’s Masters 99 The Base-Hit Investor 101 Stage 7 Buying 103 BATTLE V Methodology 106 Pyramid Trading 106 The Language of the Market 108 Buy Routines 109 Considering Alternatives 111 Perfection Paralysis 111 Commission-Free Mind-Set 112 Invest Like You Drive 113 It’s All about Stress Control 114 Stage 8 Monitoring 117 You Bought It—Now What? 118 Revisiting the Investor Self 119 Market Monitoring 120 Adjusting Stops 121 Tools, Routines, and Charts 123 Fundamentals 126 Allocation Updates 127 What is your Motivation? 129 Stage 9 Selling 131 Sell on Technicals, Not Fundamentals 133 The Art of Selling 135 Developing Your Selling System 138 Mutual Fund Sell Signals 146 Selling with the Sisters 148 Sell-Side Pyramid Trading 149 The Endowment Effect 149 The Investor’s Trail 150 Stage 10 Revisit, Retune, Refine 153 Cleanse and Move Forward 154 Personal Data Mining 164 The Investor’s Big Three 165 Thoughts on Transformation 167 About the Website 171 Index 173

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Book SynopsisDespite the accepted fact that a substantial part of the risk and return of any portfolio comes from asset allocation, we find today that the majority of investment professionals worldwide are focused on security selection. Multi-Asset Investing: A Practitioner's Framework questions this basic structure of the investment process and investment industry. Who says we have to separate alpha and beta? Are the traditional definitions for risk and risk premium relevant in a multi-asset class world? Do portfolios cater for the real risks' in their investment processes? Does the whole Emerging Markets demarcation make sense for investing? Why do active Asian managers perform much poorer compared to developed market managers? Can you distinguish how much of a strategy's performance comes from skill rather than luck? Does having a performance fee for your manager create alignment or misalignment? Why is the assTable of ContentsPreface xiii About the Authors xv 1. An Introduction to the Multi-Asset Investment Problem 1 1.1 What is Multi-Asset Investing? 2 1.2 The Conventional Structure 4 1.3 Transitioning from Active Management to Exposure Allocation 4 1.4 Creating an Improved Allocation Structure 5 1.5 Constructing a Multi-Asset Portfolio to Manage Tail Risks 6 1.6 Multi-Asset Investing in Emerging Markets 6 1.7 From Multi-Asset Strategies to Multi-Asset Solutions 7 1.8 Structuring a Multi-Asset Business 7 2. The Traditional Allocation Structure 9 2.1 The Traditional Investment Process 10 2.2 The Asset Allocation Process 12 2.3 The Belief in Diversification 13 2.4 Harnessing Equity Risk Premium and the Investment Horizon 19 2.5 Asset Classes as Mutually Exclusive Silos 20 2.6 Organization Structure and Resource Allocation 20 2.7 Implications for Skill Required in Asset Allocation 21 2.8 Requirements for a Revised Allocation Solution 22 2.9 Parallel Debates Created in the Search for a Revised Allocation Solution 23 3. Transitioning from Active Management to Exposure Allocation 25 3.1 A Historic Rationalization of Alpha and Beta 26 3.2 Progression of Active Management 27 3.3 Generalizing the Beta Concept 27 3.4 The Demise of Asset Class Demarcated Allocation 28 3.5 Implications for the Active Investment Process 29 3.6 Investment Strategy Categorization 30 3.6.1 Fundamental, Quantitative and Technical 30 3.6.2 Top-down, Bottom-up and Relative Value 31 3.7 Positioning of Alternative Investments 31 3.8 Obsolescence of Portable Alpha 32 3.9 Positioning of Fundamental Indexation and Smart Beta 32 3.10 Risk in an Exposure-Based Framework 33 3.11 Horizon-Based Organizational Demarcation 34 3.12 Transition from an Asset-Based to an Exposure-Based Organization 34 3.13 Conclusion 37 4. Redefining Risk Premium for Multi-Asset Allocation Decisions 39 4.1 Incumbent Risk and Risk Premium Frameworks 40 4.2 Framework for the Concurrent Presence of All Asset Classes 41 4.3 Incorporating Intra-Horizon Risk 42 4.4 Risk and Return Premium for Allocation Silos 43 4.5 Asset Class Premiums – Comparison of Traditional and Proposed Methods 45 4.6 Asset Class Premiums – Impact of Different Investment Horizons 46 4.7 Asset Class Risk – Comparison of Traditional and Proposed Methods 47 4.8 Asset Class Risk – Impact of Different Investment Horizons 48 4.9 Sovereign Risk and Risk Premium 49 4.10 Application to Various Multi]Asset Investment Problem Scenarios 51 4.11 Conclusion 52 5. A Multi-Strategy Allocation Structure 53 5.1 Categories of Allocation Approaches 54 5.2 A Multi-Strategy Framework for the Allocation Problem 58 5.3 The Benefits of Strategy Diversification 59 5.4 Individual Allocation Methodology Requirements 61 5.5 Example of a Multi-Strategy Allocation Approach 63 5.6 Conclusion 66 6. A Fundamental Exposure Allocation Approach—Business Cycles 67 6.1 The Passive Economic Model 67 6.2 An Active Economic Approach 68 6.3 A Five Cycle Asset Allocation Approach 69 6.3.1 Cycle I – The Global Business Cycle 69 6.3.2 Cycle II – The Local Business Cycle 70 6.3.3 Cycle III – The Monetary Cycle 71 6.3.4 Cycle IV – The Credit and Capex Cycles 73 6.3.5 Cycle V – Market Cycle 73 6.4 Cycle Limiting Risk Parameters 73 6.5 Segregating the Core and Cyclical Components 74 6.6 The Composite Five Cycle Framework 75 7. A Systematic Exposure Allocation Process — Active Risk Budgeting 77 7.1 Modeling the Business Cycle 78 7.2 Modeling the Monetary Cycle 80 7.3 Risk Adjustment for Equity Valuation 81 7.4 Creating an Adjusted Risk Budgeting Allocation Methodology 82 7.5 Simulated Performance Results 85 7.6 Confirming Robustness of ARB Allocation Methodology 90 7.6.1 Performance in Different Time Periods 90 7.6.2 Performance in Different Market Conditions 90 7.7 Implementation of a Drawdown Management Process 94 8. Estimation of Asset Allocation 97 8.1 The Consensus Asset Allocation Dataset 97 8.2 Using Consensus Data for Allocation Decisions 98 8.2.1 Basic Allocation Decisions 98 8.2.2 Creating Tactical Allocation Changes 99 8.2.3 Conviction Level in Allocation Stances 102 8.2.4 Currency Hedge Ratio Decisions 103 8.2.5 Separating the Poor Forecasters from the Accurate Ones 105 8.2.6 Contrasting the Variety of Allocation Methodologies 105 9. Optimization for Multi-Asset Portfolios 107 9.1 Evolution of the Mean Variance Framework 107 9.2 Portfolio Allocation and Measures of Performance 109 9.3 A Utility-Based Approach 110 9.4 The Fund Manager’s Objectives 110 9.5 The Efficient Frontier 112 9.6 Optimal Portfolio Choice 113 9.7 Incorporating the Constraints 114 9.8 Tail Risk Constraint 115 9.9 Event Risk 115 9.10 Macro Risk 116 9.11 Regime Risk 116 9.12 Correlation Risk 117 9.13 Formulation of the Optimization Problem 118 9.14 The Unconstrained Allocation 119 9.15 Applying the Constraints 121 9.16 The Preferred Portfolio 127 9.17 Conclusions 130 10. Managing Tail Risk in Multi-Asset Portfolios 133 10.1 Portfolio Management – The Practical Setting 134 10.2 Asset Allocation – The Practical Setting 134 10.3 Creating a Real Risk Measure: End-of-Horizon vs. Intra-Horizon Risk 135 10.4 Model Uncertainty 139 10.5 Stop-Losses 143 10.6 Implementing Tail Risk Management 150 10.7 Notation and Variables 153 11. Multi-Asset Investing in Emerging Markets 155 11.1 Observation 1: Sub-Optimal Geographic Categorization of Emerging Markets 155 11.2 Observation 2: Inappropriate Sector Classification for Emerging Markets 156 11.3 Observation 3: Stock Concentration in Equity Indices 158 11.4 Observation 4: The Potential for Active Management 159 11.5 Observation 5: Performance of Active Managers 159 11.6 Observation 6: Over-Dependence on a Single Investment Decision 162 11.7 Summary of Observations 162 11.8 Pitfalls in Emerging Market Investment Frameworks 163 11.9 An Improved Framework for Emerging Market Investments 164 12. The Importance of Asset Allocation in Asian Equities 169 12.1 Impact of Breadth on Portfolio Excess Return 169 12.2 Impact of Varying Cross-Sectional Dispersion on Portfolio Excess Return 170 12.3 The Relative Importance of Asset Allocation and Stock Selection 172 12.4 Comparing the US and Asian Equity Investment Universe 173 12.5 Conclusions 176 13. Implementing a Multi-Asset Strategy – Active or Passive 179 13.1 Investment Determinants for the Active-Passive Decision 179 13.2 Asset Owner Constraints Impacting the Active–Passive Decision 184 14. An Exposure-Based Risk Diagnostics Framework 185 14.1 Shortcomings of a Traditional Risk Analysis Approach 185 14.2 Evaluating Intended and Unintended Risk 186 14.3 A Multi-Dimensional Risk Architecture 187 14.3.1 Skill Analysis 188 14.3.2 Investment Process Component Analysis 189 14.3.3 Regime Risk Analysis 189 14.3.4 Style and Factor Risk Analysis 190 14.3.5 Macro Risk Analysis 190 14.3.6 Stress Event Risk Analysis 191 14.3.7 Peer Group Comparison Analysis 192 15. Impact of Manager Compensation on Allocation Decisions 195 15.1 Compensation Structure 196 15.2 Managerial Constraints 197 15.2.1 Managerial Skill 198 15.2.2 Managerial Risk Preferences 198 15.3 Optimal Activeness 199 15.4 The Distribution of Performance 202 15.5 The Importance of Skill 203 15.6 Activeness and Age 205 15.7 Implications for a Multi-Period Setting 206 15.7.1 Compensation Structure 206 15.7.2 The Distribution of Performance 206 15.8 Examples of Managerial Contracts 208 15.9 Conclusions 209 16. From Multi-Asset Strategies to Multi-Asset Solutions 211 16.1 Current Phase of Industry Transition 213 16.2 Multi-Asset Solutions as an Industry Function 214 16.3 Characteristics of a Multi-Asset Solution Provider 215 16.4 Customization Parameters for an Investment Solution 215 16.5 Requirements for a Standardized Implementation 219 16.6 The Importance of Attributing Performance 219 16.7 Conclusions 220 17. Multi-Asset Investing for Private Wealth Assets 221 17.1 The Private Wealth Multi-Asset Investment Problem 221 17.2 Business Model and Organizational Issues 224 17.3 Incumbent Investment Frameworks 226 17.4 A Multi-Asset Private Wealth Investment Platform 227 17.5 Goals-Based Allocation 228 17.6 Implication for the Long-Only Active Manager 230 17.7 Conclusions 230 18. Structuring a Multi-Asset Investing Business 233 18.1 Product Structure and Positioning 233 18.2 Product Advantages and Disadvantages 235 18.3 Product Investment Skills 236 18.4 Target Client Segmentation 237 18.5 Where Did Existing Products Fall Short? 238 18.6 Client Segment – Expectations and Evaluation 242 19. Competing for Better Institutional Investment Outcomes 245 19.1 Mission and Beliefs – The First and Most Critical Step 246 19.2 Frameworks: Traditional Asset Class Versus Risk Premium 248 19.3 Linking Beliefs With Return Drivers and Portfolio Construction Decisions 250 19.3.1 A New Perspective 252 19.3.2 A Wider Opportunity Set for Exploiting Alpha 253 19.3.3 Ensuring That Everything Is Consistent with Beliefs 255 19.4 Governance Consideration 256 19.4.1 Closing the Governance Gap: Build or Buy 256 19.4.2 The Separation of Governing and Executive Functions 257 19.5 Choosing an Implementation Route for Delegation 259 19.5.1 Bundling Multiple Investment Strategies into Pooled Funds 259 19.5.2 Fully Bespoke Implementation 260 19.6 Monitoring 262 19.7 Conclusions 263 Bibliography and References 265 Index 269

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Book SynopsisThe Wiley CIAexcel Exam Review Test Bank provides multiple choice questions for Part 1 of the e Certified Internal Auditor (CIA) exam sponsored by the Institute of Internal Auditors (IIA). By using this product students prepare themselves for their forthcoming exam. Each question comes with an explanation of why an answer is correct as well as explanations why an answer is incorrect. This is aset, Parts 1-3 complete exam.

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Book SynopsisPreparing for the CIA Exam, Part 2 with the right toolsThe Wiley CIAexcel Exam Review 2018 Test Bank: Part 2, Internal Audit Practice supports your preparations for the Certified Internal Auditor exam (CIA) Part 2. The materials provide the knowledge, lessons and practice you need to pass this part of the exam. With the proper resources, you can view concepts in various formats and assess your skills with online practice. The exam review fully explains Part 2 concepts. The comprehensive online test bank provides a full scope of practice questions with explanations.

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Book SynopsisPreparing for the CIA Exam, Part 3, with the right study guideThe Wiley CIAexcel Exam Review 2018 Test Bank: Part 3, Internal Audit Knowledge Elements supports your preparations for the Certified Internal Auditor exam (CIA) Part 3. The materials provide the knowledge, lessons and practice you need to pass this part of the exam. With this study guide, you can view concepts in various formats and assess your skills with online practice. The exam review fully explains Part 3 domains and concepts. The comprehensive online test bank provides a full scope of practice questions with explanations.

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Book SynopsisPraise for LOADED LOADED is that rare resource which somehow captures both theoretical and practical wisdom about money, personality, and life. Your views and actions with money will be much improved after reading the wonderful advice in LOADED.James Grubman, PhD, author of Strangers in Paradise: How Families Adapt to Wealth Across Generations and co-author of Cross Cultures: How Global Families Negotiate Change Across Generations YOUR MOST VALUABLE ASSET...IS YOU. LOADED WILL TEACH YOU HOW TO MAKE THE MOST OF IT. Based on decades of research and years of hands-on experience with people from all walks of life, LOADED is a must-read for anyone who finds themselves caught between the desire to thrive financially and the complex emotions and conflicting priorities that money so often brings to our lives. Inside, you will learn to: Check your stories. Pinpoint and changTrade ReviewWhat Others Are Saying: "LOADED: Money, Psychology, and How to Get Ahead without Leaving Your Values Behind is that rare resource which somehow captures both theoretical and practical wisdom about money, personality, and life. Sarah Newcomb has done a phenomenal job of distilling the latest concepts from behavioral finance and psychology for the benefit of the everyday reader who simply wants to know how to handle money better. She opens with a big-picture perspective on how we form our money personalities and behaviors, using relevant personal anecdotes and case examples. By book’s end, she leads us to taking charge of our money decisions to create budgets that really work. Writing in a highly readable style, her tone is upbeat and empowering. Your views – and actions – with money will be much improved after reading the wonderful advice in LOADED."- James Grubman, PhD. Author of Strangers in Paradise: How Families Adapt to Wealth Across Generations and co-author of Cross Cultures: How Global Families Negotiate Change Across Generations Table of ContentsAcknowledgments xi Introduction 1 Chapter 1: When It Comes to Money, We’ve All Got Issues 7 Note 9 Chapter 2: Money Messages 11 We Don’t Talk about Money 11 We Talk about Money Constantly 13 From Freud to Frodo: The Stories We Tell Each Other 15 The Stories We Tell Ourselves 19 Stories Can Help or Hurt 24 Heuristics and Biases Shape Our Stories 26 Identifying Core Beliefs 27 Challenging Core Beliefs 28 Using Science to Our Advantage 32 Notes 32 Chapter 3: Poverty, Privilege, and Prejudice: A Crash Course in the Science of Money Psychology 33 Money and Social Psychology: How Poverty, Privilege, and Comparisons Affect Our Minds and Behavior 35 Poverty: Why Not Having Enough Is a Major Drag 35 Privilege: Why Having an Advantage Is Great . . . and Not So Great 46 Prejudice—We’ve All Got It 54 Movin’ on Up 59 Money and Cognitive Psychology: How Specific Thinking Patterns Affect Financial Decisions 63 Why Retail Therapy Feels Good: Identity and Ego Depletion 64 Time and Money: Why We Always Want It NOW 70 Thinking in Circles 81 Finances and Emotions 83 Financial Knowledge 87 Making Change 90 Notes 94 Chapter 4: The LOADED Budget: Creating a Human-Centered Money Management Plan 99 What’s Wrong with Your Budget? 100 Where Does Your Money Come from? 102 Assets and Resources 108 Where Does Your Money Go? 114 Rules of Thumb for Creative Resource Management 140 The Asset Test 141 Putting It in All Together: Your Personal Economy 149 Enjoying a Loaded Life: Living in Harmony with Your Money and Your Values 161 Notes 164 Appendix A: Self-assessments 167 Write Your Personal Financial Narrative 168 Define Your Core Beliefs 169 Financial Management Behavior Scale 170 Emotions and Money (from HelloWallet’s 2014 Pilot Study) 171 Mental Imagery 172 Behavior Identification Form 173 How Impulsive Are You? 174 Big Five Financial Literacy Questions 175 Appendix B: Interventions and Exercises 177 Change the Narrative 178 Challenging Core Beliefs: Find a Counterexample 179 Age Progression 180 Future Visualization Exercises 181 Exercises to Combat MoneyThink 182 Affirm Core Values 183 Cash Flow Worksheet 184 Resources Worksheet 185 Expenses and Needs Worksheet 186 Your Personal Economy 187 Just-In-Time Financial Education Resources 188 About the Author 189 Index 191

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Book SynopsisLeverage the financial services evolution to maximize your firm''s value The Essential Advisor presents an insightful handbook for advisors looking to navigate the changing face of financial services. The industry is evolving, consumers are evolving, and many advisors are being left behind as old methods become less and less relevant. This book shows you how to turn this shift into a positive, by positioning your firm to maximize these new opportunities, and deliver the results and experience increasingly expected of financial advisors. You''ll learn how to provide the transparency, hands-on interaction, and around-the-clock access today''s clients demand, and how to consistently deliver service that robo-advisors cannot duplicate. Emerging technologies do not have to be a threat to your practicethey are tools that represent opportunities to provide greater service to your clients, and smart technology integration will be a hallmark of firms that survive the shift. ThiTable of ContentsForeword by Jean Chatzky ix Preface xiii Acknowledgments xv Chapter 1 The Evolution of Financial Advice 1 Chapter 2 The Evolution of Complexity 19 Chapter 3 The Digital Divide: Napster or Amazon? 43 Chapter 4 The Pillars of Value 57 Chapter 5 Communicating the Essential 75 Chapter 6 Building the Essential Relationship: Who Are You Going to Call? 109 Chapter 7 Success in the Digital Revolution 127 Chapter 8 Maximizing Value 145 Chapter 9 Finding the Essential Advisor 167 The Last Word by Jud Bergman 179 About the Interviewees 185 About the Authors 193 About the Contributors 195 Index 197

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Book SynopsisLearn the ins-and-outs of options trading with clear, practical guidance Essential Option Strategies is an introductory guide to options trading, designed to help new options traders better understand the market and the potential opportunities that exist. This book is designed to bring you up to speed with current practices and help you implement your own option trading strategies. You''ll create a plan, track indicators, and understand underlying instruments, then apply that central investing knowledge directly to the options market. The discussion on pricing determinants and probabilities uses an intuitive approach to complex calculations, providing clear examples with no advanced math required, and extensive explanation of spreads, butterflies, and condors brings advanced strategies down to earth. Easy-reference appendices clarify the Greek terms and technical analysis charts, while focused discussion and expert insight throughout provide a highly informative crash Table of ContentsForeword xiii Preface xv Acknowledgments xix About the Author xxi Part I Getting Started in Investing 1 Chapter 1 The Opening Bell 3 Probabilities 4 Getting Started 5 Research 6 Data 9 Charts 11 Commissions and Fees 13 Virtual Trading Platforms 14 Summary 15 References 15 Chapter 2 First Days of Trading 17 Brief History of Stock Market Averages 17 Key Market Indexes Today 19 The Volatility Index 21 Futures 22 The Bond Market 25 Fed Watch 26 Economic Indicators 27 Earnings 28 Find Your Niche 29 Summary 29 References 30 Chapter 3 Know the Underlying 31 Where Do Options Trade? 32 Stock Talk 34 Exchange-Traded Funds 38 Short Selling 40 On the Margin 41 Summary 41 References 42 Chapter 4 Avoiding Mistakes 43 Position Size 44 Volume and Liquidity 44 Order Entry Techniques 46 Understand Risk 48 Summary 51 References 51 Part II The Options Market 53 Chapter 5 Options Basics 55 Stock Options 57 Option Value 61 Exercise and Assignment 62 Volume and Open Interest 64 Index Options 65 Summary 66 References 67 Chapter 6 Introduction to Call Options 68 Call Options versus Stock 69 Risk and Reward of Long Call 70 Real-World Example 72 Short Calls 75 Index Call Options 78 Summary 82 Reference 82 Chapter 7 Introduction to Put Options 83 Long Puts versus Short Selling 84 Risk and Reward 84 Real-World Example 86 Protective Puts 89 Index Put Options 92 Summary 94 References 95 Chapter 8 Components of Options Prices 96 Delta and Other Greeks 97 Strike Price 98 Theta and Time Decay 100 Vega and Implied Volatility 100 Dividends 103 Rho and Interest Rates 104 Put-Call Parity 105 Summary 108 References 109 Chapter 9 Probabilities 110 Probabilities 101 111 Probability of Profit 112 Probability of Touching 113 Example 114 Delta to Measure Probabilities 119 Summary 121 References 121 Part III Strategies and Positions 123 Chapter 10 Covered Calls 125 The Covered Call 125 Example 130 Summary 133 References 134 Chapter 11 Cash-Secured Puts 135 Short Puts 136 Example 138 Summary 142 Chapter 12 Long Vertical Spreads 143 Bull Call Spread 144 Example 147 Bear Put Spread 152 Example 153 Summary 157 Chapter 13 Short Vertical Spreads 158 Short (Bull) Put Spread 159 Example 162 Short (Bear) Call Spread 167 Example 168 Summary 171 Chapter 14 Calendar Spreads 173 Call Calendar Spread 174 Example 177 Put Calendar Spread 181 Example 183 Summary 187 Chapter 15 Butterfly Spreads 188 Butterfly Spread 189 Example 191 Iron Butterfly Spread 196 Example 198 Summary 201 Chapter 16 Condor Spreads 203 Condor Spread 204 Example 205 Iron Condor Spread 209 Example 210 Summary 214 Chapter 17 The Close 216 Risk Management 216 Options Orders 218 Using Options to Reduce Capital Commitment 220 Rolling with Spread Trades 222 Investing and Social Media 223 Final Thoughts 224 Appendix A The Greeks 227 Delta Defined 228 Delta Neutral 229 Gamma 230 Theta 231 Vega 231 Rho 234 Reference 234 Appendix B Strategy Recap 235 Long Call 235 Short Call 237 Long Put 238 Protective Put 239 Covered Call 241 Collar 242 Cash-Secured Put 243 Long Call Spread 245 Long Put Spread 246 Short Call Spread 247 Short Put Spread 248 Call Calendar Spread 250 Put Calendar Spread 251 Call Butterfly Spread (Long) 252 Put Butterfly Spread (Long) 253 Iron Butterfly 255 Call Condor Spread (Long) 256 Put Condor Spread (Long) 257 Iron Condor 259 Quick Strategy Guide 260 Appendix C Charts and Volatility Studies 265 Stock Charts 101 265 Time Frames 267 Volume and Volatility 269 Glossary 277 Index 295

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Book SynopsisTransform from leader to steward to drive growth and make an impact Inspiring Stewardship helps leaders drive sustainable development and growth by balancing short- and long-term objectives amidst competing interests.Table of ContentsAcknowledgments vii About the Authors ix Introduction 1 Part I Why Stewardship? Chapter 1 Stewardship at Work 11 Chapter 2 Stewardship Principles 31 Chapter 3 Steward Leaders Inspire 55 Part II What Drives Stewardship? Chapter 4 Stewardship Values and Beliefs 71 Chapter 5 Personality Traits and Attitudes of Steward Leaders 87 Part III Stewardship in Action Chapter 6 Stewardship Actions 103 Chapter 7 Becoming a Steward Leader – What It Takes 115 Chapter 8 Pitfalls of Stewardship 139 Part IV Looking Forward Chapter 9 Fostering Stewardship 159 Appendix A: The Research 165 References 181 Index 197

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Book SynopsisRisk management strategy for the pioneering technological sector Enterprise Risk and Opportunity Management provides much-needed guidance tailored specifically to the technological sector. While most enterprise risk management guides are written for traditional businesses and finance firms, this book translates effective enterprise risk and opportunity management (EROM) principles into strategies and practices that work for government, nonprofit, and for-profit organizations in the technological space. Originally designed for noncommercial pioneering enterprises like NASA, an entire chapter is now devoted toward applying the methods to profit-making technological enterprises. A 40-year veteran of the tech sector, Dr. Allan Benjamin outlines risk management strategies for organizations in which the advancement and integration of science and technology within complex systems is necessary for accomplishment of the mission. Commercial EROM strategies do not translate diTable of ContentsPreface xxiii Introduction xxv CHAPTER 1 An EROM Primer for Organizations Concerned with Technical Research, Integration, and Operations (TRIO Enterprises) 1 1.1 EROM Scope and Objectives for TRIO Enterprises 1 1.1.1 What Is EROM? 1 1.1.2 Why Is EROM Important to TRIO Enterprises? 2 1.1.3 What Kinds of Risk and Opportunity Are Considered within EROM for TRIO Enterprises? 3 1.1.4 How Does EROM for Nonprofit and Government TRIO Enterprises Differ from EROM for Typical Commercial Enterprises? 4 1.1.5 To What Extent Does EROM Work within the Existing Management Structure of a TRIO Enterprise? 5 1.1.6 How Does EROM Facilitate Negotiations between a TRIO Enterprise and the Entities That Provide Funding and Governance? 6 1.1.7 Can Various Management Units within the Organization Separately Apply EROM as Though Each Were an Enterprise? 7 1.1.8 In What Areas Does EROM Facilitate Strategic Planning, Implementation, and Evaluation of Performance for TRIO Enterprises? 8 1.2 EROM Definitions and Technical Attributes for TRIO Enterprises 9 1.2.1 What Is Meant by Risk and Opportunity within the Context of EROM? 9 1.2.2 How Do We Differentiate between Risks and Opportunities during Strategic Planning versus during Plan Implementation and Performance Evaluation? 11 1.2.3 How Does EROM Help Achieve an Optimal Balance between Risk and Opportunity? 11 1.2.4 What Is Meant by the Terms Risk Scenario, Opportunity Scenario, Cumulative Risk, and Cumulative Opportunity? 13 1.2.5 How Does EROM Incorporate Risk-Informed Decision Making and Continuous Risk Management within the rganization as a Whole and within Different Management Units? 14 1.2.6 Is the Analysis in EROM Principally Qualitative or Quantitative? 16 1.2.7 Can EROM Account for Unknown and Underappreciated (UU) Risks? 17 Notes 18 References 19 CHAPTER 2 Coordination of EROM with Organizational Management Activities 21 2.1 The Executive, Programmatic, and Institutional/Technical Management Functions and Their Interfaces 21 2.2 EROM-Relevant Management Activities 23 2.2.1 Activities within Each Management Level 23 2.2.2 Roles and Responsibilities within and between Each Management Level 26 2.3 Coordination of EROM with Management Activities 31 2.3.1 Organizational Planning and Plan Implementation 31 2.3.2 Evaluation of Organizational Performance and Replanning 31 2.3.3 Alignment with Management-Level Roles and Responsibilities 35 2.4 Communication across Extended Partnerships 35 2.4.1 Nature of the Strategic Objectives That Require Extended Partnerships 35 2.4.2 The Challenges of Conducting EROM across Extended Partnerships 42 2.5 Contribution of EROM to Compliance with Federal Regulations and Directives 43 2.5.1 OMB Circular A-11 and GPRAMA (Government Performance, Results, and Budgeting) 43 2.5.2 EROM and Internal Controls from the Viewpoint of Federal Regulations and Guidance 45 2.5.3 OMB Circular A-123 (Management’s Responsibility for ERM and Internal Control) and the Required Statement of Assurance 47 2.5.4 Example Risk Profile from OMB Circular A-123 49 Notes 52 References 52 CHAPTER 3 Overview of EROM Process and Analysis Approach 55 3.1 Organizational Objectives Hierarchies 55 3.1.1 Objectives Hierarchies for Each Management Unit 55 3.1.2 Objectives Hierarchy for the Enterprise as a Whole 57 3.2 Populating the Organizational Objectives Hierarchies with Risk and Opportunity Information 61 3.3 Establishing Risk Tolerances and Opportunity Appetites 63 3.3.1 Risk and Opportunity Parity Statements 63 3.3.2 Response Boundaries and Watch Boundaries 65 3.4 Identifying Risk and Opportunity Scenarios and Leading Indicators 66 3.4.1 Risk and Opportunity Taxonomies 67 3.4.2 Risk and Opportunity Scenario Statements 68 3.4.3 Risk and Opportunity Scenario Narratives 72 3.4.4 Risk and Opportunity Leading Indicators 73 3.4.5 Leading Indicators of Unknown and Underappreciated (UU) Risks 74 3.5 Specifying Leading Indicator Trigger Values and Evaluating Cumulative Risks and Opportunities 78 3.5.1 Leading Indicator Trigger Values 80 3.5.2 Cumulative Risks and Opportunities 80 3.6 Identifying and Evaluating Risk Mitigation, Opportunity Exploitation, and Internal Control Options 82 3.6.1 Deducing Risk and Opportunity Drivers 82 3.6.2 Deducing Risk and Opportunity Scenario Drivers 83 3.6.3 Evaluating Risk and Opportunity Scenario Likelihoods and Impacts 85 3.6.4 Identifying Options for Risk Response, Opportunity Action, and Internal Control 87 3.6.5 Evaluating Options for Risk Response, Opportunity Action, and Internal Control 89 3.6.6 Brief Comparison of this Approach with the COSO Internal Control Framework and the GAO Green Book 91 Notes 94 References 94 CHAPTER 4 The Development and Utilization of EROM Templates for Performance Evaluation and Strategic Planning 97 4.1 Overview 97 4.2 Demonstration Example: The NASA Next-Generation Space Telescope as of 2014 99 4.3 Example Objectives Hierarchies 101 4.3.1 Objectives Hierarchies for Different Management Levels 101 4.3.2 Integrated Objectives Hierarchies for the Enterprise as a Whole 103 4.4 Risks, Opportunities, and Leading Indicators 103 4.4.1 Known Risk and Opportunity Scenarios 105 4.4.2 Cross-Cutting Risks and Opportunities 105 4.4.3 Unknown and Underappreciated Risks 112 4.5 Example Templates for Risk and Opportunity Identification and Evaluation 113 4.5.1 Risk and Opportunity Identification Template 113 4.5.2 Leading Indicator Evaluation Template 113 4.6 Example Templates for Risk and Opportunity Roll-Up 126 4.6.1 Objectives Interface and Influence Template 126 4.6.2 Known Risk Roll-Up Template 126 4.6.3 Opportunity Roll-Up Template 144 4.6.4 Composite Indicator Identification and Evaluation Template 147 4.6.5 UU Risk Roll-Up Template 151 4.7 Example Templates for the Identification of Risk and Opportunity Drivers, Responses, and Internal Controls 159 4.7.1 Risk and Opportunity Driver Identification Template 159 4.7.2 Risk and Opportunity Scenario Likelihood and Impact Evaluation Template 161 4.7.3 Risk Mitigation, Opportunity Action, and Internal Control Identification Templates 161 4.7.4 High-Level Display Template 165 4.8 Upward Propagation of Templates for Full-Scope EROM Applications 165 4.8.1 Scope of the Problem 165 4.8.2 Propagation of Templates 173 4.8.3 Development of an Integrated EROM Database 175 4.9 Application of the Templates to Organizational Planning and the Selection from among Alternative Candidate Portfolios 175 Notes 181 References 181 CHAPTER 5 Management and Implementation of EROM at the Institutional/Technical Level (Technical Centers or Directorates) 183 5.1 EROM from a Technical Center’s Perspective 183 5.2 Extended Enterprises and the Technical Center’s Extended Organization 184 5.2.1 Overview 184 5.2.2 Relationship of Each Technical Center to the Other Entities in the Center’s Extended Organization 187 5.2.3 EROM Organizational Structure for a Technical Center’s Extended Enterprises 189 5.2.4 Challenges of Creating and Managing an Integrated Database 191 5.3 EROM-Informed Budgeting of Resources across a Technical Center’s Extended Organization 192 5.3.1 Objectives-Based Distribution of Human, Physical, and Instructional Assets 192 5.3.2 Representative Templates for Distributions of Allocated Assets 192 5.3.3 Asset Risks, Opportunities, and Risk/Opportunity Scenario Statements 198 5.3.4 Leading Indicators of a Technical Center’s Health 200 5.3.5 Correlations between Internal Leading Indicators and Gaps in the Distributions of Human, Physical, and Instructional Assets 201 5.3.6 Optimization of the Acquisition, Allocation, and Retirement of Human, Physical, and Instructional Assets 203 5.3.7 Relevance to Provider Acquisition Decisions Made by Technical Centers 206 References 206 CHAPTER 6 Special Considerations for EROM Practice and Analysis at Commercial TRIO Enterprises 207 6.1 Overview 207 6.2 Risk and Opportunity Scenarios and Leading Indicators 210 6.2.1 Risk and Opportunity Taxonomies 210 6.2.2 Risk and Opportunity Branching Events and Scenario Event Diagrams 210 6.2.3 Risk and Opportunity Templates 215 6.2.4 Risk and Opportunity Matrices 221 6.3 Controllable Drivers, Mitigations, Actions, and Internal Controls 229 CHAPTER 7 Examples of the Use of EROM Results for Informing Risk Acceptance Decisions 237 7.1 Overview 237 7.2 Example 1: DoD Ground-Based Midcourse Missile Defense in the 2002 Time Frame 238 7.2.1 Background 238 7.2.2 Top-Level Objectives, Risk Tolerances, and Risk Parity 239 7.2.3 Risks and Leading Indicators 242 7.2.4 Leading Indicator Trigger Values 244 7.2.5 Example Template Entries and Results 247 7.2.6 Implications for Risk Acceptance Decision Making 247 7.3 Example 2: NASA Commercial Crew Transportation System as of 2015 249 7.3.1 Background 249 7.3.2 Top-Level Objectives, Risk Tolerances, and Risk Parity 251 7.3.3 Remainder of Example 2 253 7.4 Implication for TRIO Enterprises and Government Authorities 254 References 254 CHAPTER 8 Independent Appraisal of EROM Processes and Results to Assure the Adequacy of Internal Controls and Inform Risk Acceptance Decisions 255 8.1 Background 255 8.1.1 OMB Motivation 255 8.1.2 Department of Energy Guidance 256 8.1.3 Institute of Internal Auditors Guidance 257 8.2 Queries for an Independent Appraisal of EROM in the Contexts of Internal Control and Risk Acceptance 258 8.2.1 Overview 258 8.2.2 Template for Evaluating EROM Process and Results 259 References 265 CHAPTER 9 Brief Overview of the Potential Integration of EROM with Other Strategic Assessment Activities 267 9.1 Technical Capability Assessment (TCA) 267 9.2 Strategic Annual Review (SAR) 270 9.3 Portfolio Performance Review (PPR) 271 References 274 CHAPTER 10 An Integrated Framework for Hierarchical Internal Controls 275 10.1 Internal Control Principles and the Integration of Internal Control, Risk Management, and Governance 275 10.2 Methodological Basis 280 10.2.1 Hierarchical Control Loops 280 10.2.2 RACI Matrices 282 10.3 Examples 285 10.3.1 Example 1: Institutional Responsibility for Risk Management and System Safety 285 10.3.2 Example 2: NASA Commercial Crew Program Risk-Based Assurance Process and Shared Assurance Model 287 10.4 Incorporation of Internal Control Principles into the Control Loop Approach 297 10.5 Summary of Observations 302 References 306 APPENDIX A Acronyms 309 APPENDIX B Definitions 311 About the Companion Website 314 About the Author 315 Index 317

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Book SynopsisStart-to-finish guidance toward building and implementing a robust DC plan Successful Defined Contribution Investment Design offers a comprehensive guidebook for fiduciaries tasked with structuring and implementing a 401(k) or other defined contribution (DC) pension plan. More than a collection of the usual piecemeal information, this book seeks to offer a complete, contemporary framework for plan design, together with tested methodologies and analytic techniques to help streamline plan monitoring, management and improve participant outcomes. Examples from plan sponsors provide on-the-ground insight while suggestions from DC consultants add expert perspective. Views from ERISA expert counsel provide additional understandingalong with input from academic thought leaders. Finally, investment evaluation and analysis is joined with participant savings and asset allocation data to look prospectively at potential outcomes, and case studies illustrate real-world implementatioTable of ContentsAcknowledgments xv Introduction 1 How This Book Is Organized—and How to Use It 3 A Continuing Commitment to Meet the Need for Information 6 Why Should You Read This Book? 7 PART ONE DC Plans: A Cornerstone of Retirement 9 CHAPTER 1 DC Plans Today 11 Preface: A Career and a New Form of Pension Plan Are Born 11 DC Plans: Becoming the New Reality . . . No Turning Back 13 Setting Goals for Success: Income Replacement Targets 14 Reducing DC Litigation Risk: Process and Oversight 16 Who’s a Fiduciary? 17 How to Approach Outsourcing DC Plan Resources 19 Hiring an Investment Consultant 20 Getting Started: Setting an Investment Philosophy and Governance Structure 20 PIMCO Principles for DC Plan Success: Building and Preserving Purchasing Power 25 Maximizing DC Savings: Just Do It! 27 In Closing 32 Questions for Plan Fiduciaries 33 CHAPTER 2 Aligning DC Investment Design to Meet the PRICE of Retirement 35 Begin with the End in Mind 37 What Is a Reasonable Pay Replacement Target? 39 Calculating the Income Replacement Rates 42 Historic Cost of Retirement: PRICE Is a Moving Target 44 A Focus on Income, Not Cost 47 PRICE-Aware: Applying PRICE to Consider DC Assets and Target-Date Strategies 48 Evaluating Glide Paths 50 Tracking DC Account Balance Growth Relative to PRICE 54 Summary: The Importance of Knowing Your PRICE 55 In Closing 55 Questions for Plan Fiduciaries 56 Note 56 CHAPTER 3 Plan Investment Structure 57 Tiers and Blends: Investment Choices for DC Participants 60 Tier I: “Do-It-for-Me” Asset Allocation Investment Strategies 61 Tier II: “Help-Me-Do-It” Stand-Alone or “Core” Investment Options 67 Tier III: “Do-It-Myself” Mutual-Fund-Only or Full Brokerage Window 90 Considering an Outsourced Chief Investment Offi cer 91 In Closing 93 Questions for Plan Fiduciaries 94 Notes 94 CHAPTER 4 Target Date Design and Approaches 95 Target-Date Structures Vary by Plan Size 100 Custom Target-Date Strategies 101 Semicustom Target-Date 102 Packaged Target-Date 103 Target-Date Selection and Evaluation Criteria 104 No Such Thing as Passive 105 Low Cost and Low Tracking Error Does Not Equal Low Risk 106 Framework for Selecting and Evaluating Target-Date Strategies: Three Active Decisions Plan Sponsors Must Make 107 Active Decision #1: How Much Risk Can Plan Participants Take? 108 Active Decision #2: How Is the Risk Best Allocated across Investment Choices? 114 Active Decision #3: Should Risk Be Actively Hedged? 119 Tail-Risk Hedging Strategies 119 Insurance 120 Target-Date Analytics: Glide Path Analyzer (GPA) and Other Tools 120 Global DC Plans: Similar Destinations, Distinctly Different Paths 121 In Closing 123 Questions for Plan Fiduciaries 124 Notes 125 PART TWO Building Robust Plans: Core Investment Offerings 127 CHAPTER 5 Capital Preservation Strategies 129 Capital Preservation: Importance 130 Capital Preservation: What Is Prevalent and What Is Preferred? 131 The $1 NAV: Shared by Stable Value and MMFs 132 Stable Value Offers More Opportunity in a Low-Interest-Rate Environment 135 Looking Forward: The Changing Role of Stable Value 138 Making Low-Risk Decisions: Views from the Field 140 White Labeling: A Capital Preservation Solution 143 An Analytic Evaluation of Capital Preservation Solutions 144 Short-Term, Low-Duration, and Low-Risk Bond Strategies 146 Inclusion of Stable Value in Custom Target-Date or Other Blended Strategies 149 In Closing 152 Questions for Plan Fiduciaries 152 Note 153 CHAPTER 6 Fixed-Income Strategies 155 What Are Bonds, and Why Are They Important for Retirement Investors? 157 What Are the Different Types of Bonds in the Market? 158 What Types of Bonds Should Be Offered to DC Participants? 161 Investment-Grade and High-Yield Credit 165 Bond Investment Strategies: Passive versus Active Approaches 166 Analytic Evaluation: Comparing Bond Strategies 176 Fixed Income within Target-Date Glide Paths 178 Observations for Fixed Income Allocation within Target-Date Strategies 179 In Closing 181 Questions for Plan Fiduciaries 181 CHAPTER 7 Designing Balanced DC Menus: Considering Equity Options 183 What Are Equities and How Are They Presented in DC Investment Menus? 184 Getting the Most out of Equities 190 Consider Dividend-Paying Stocks 194 Evaluating Equity Strategies 194 Less Is More: Streamlining Equity Choices 197 Shift to Asset-Class Menu May Improve Retirement Outcomes 197 Active versus Passive—The Ongoing Debate 197 Strategic Beta: Consider Adding Fundamentally Weighted Equity Exposure 204 Currency Hedging: An Active Decision 205 Observations for Equity Allocations within Target-Date Strategies 210 In Closing 212 Questions for Fiduciaries 212 Note 213 CHAPTER 8 Inflation Protection 215 What Is Inflation and How Is It Measured? 216 Why Inflation Protection in DC? 217 History of Inflation: Inflation Spikes Underscore Need for Inflation-Hedging Assets 218 Inflation Protection When Accumulating and Decumulating, and in Different Economic Environments 219 Economic Environments Change Unexpectedly—and Reward or Punish Various Asset Classes 221 Consultants Favor TIPS, Multi-Real-Asset Strategies, REITs, and Commodities 223 How Should Plan Sponsors Address Inflation Risk in DC Portfolios? 226 Implementation Challenges 228 Evaluating Real Asset Strategies 229 Summary Comparison of Individual and Multi-Real-Asset Blends 232 Inflation-Hedging Assets in Target-Date Glide Paths 235 Observations for Inflation-Hedging Assets in Target-Date Glide Paths 236 In Closing 238 Questions for Fiduciaries 238 CHAPTER 9 Additional Strategies and Alternatives: Seeking Diversification and Return 239 What Are Alternative Assets? 240 A Wider Lens on Alternatives 242 Consultant Support for Additional Strategies and Alternatives 244 Back to Basics: Why Consider Alternatives? 247 Liquid Alternatives: Types and Selection Considerations 252 Important Characteristics in Selecting Alternatives: Consultant Views 256 Illiquid Alternatives: Types and Considerations 259 Contrasting Liquid Alternative Strategies with Hedge Fund and Private Equity Investments 261 In Closing 263 Questions for Plan Fiduciaries 264 PART THREE Bringing It All Together: Creating Retirement Income 265 CHAPTER 10 Retirement Income: Considering Options for Plan Sponsors and Retirees 267 Advisor and Consultant Retirement Income Suggestions 268 Why Don’t Retirees Leave Their Assets in DC Plans at Retirement? 272 Retaining a Relationship with Your Employer in Retirement: An Innovative and Caring Plan Sponsor 277 Mutual Benefits: Retaining Retiree Assets May Help Both Retirees and Plan Sponsors 279 Turning DC Assets into a Lifetime Paycheck: Evaluating the DC Investment Lineup for Retiree Readiness 280 Evaluating Portfolio Longevity 285 Turning Defined Contribution Assets into a Lifetime Income Stream: How to Evaluate Investment Choices for Retirees 286 Guarding Retiree Assets against a Sudden Market Downturn: Sequencing Risk 288 Ways to Manage Market and Longevity Risk . . . without Adding In-Plan Insurance Products 289 Living beyond 100: Planning for Longevity 290 Managing Longevity Risk: Considerations for Buying an Annuity 292 Immediate and Deferred Annuities: Why Out-of-Plan Makes Sense 292 In Closing 298 Questions for Plan Fiduciaries 298 Notes 299 CHAPTER 11 A Global View 301 DC Plans: Becoming the Dominant Global Model 302 Retirement Plan Coverage and Participation 305 Investment Default and Growth of Target-Date Strategies 315 Retirement Income: The Global Search for Solutions 319 Defined Ambition in the Netherlands 321 New Solutions in Australia and Beyond: Tontines and Group Self-Annuitization 323 “Getting DC Right”: Lessons Learned in Chapters 1 through 10 326 Analytic Factors to Consider: Summary by Asset Pillar 333 In Closing 333 Note 335 Closing Comments 337 Priority 1: Increasing Plan Coverage and Individual Savings Rates 338 Priority 2: Moving to Objective-Aligned Investment Approaches 338 Priority 3: Broadening Options for Retirement Income 341 Nudging One Another along a Path to Success 341 Index 343

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Book SynopsisDelve into ETFs for smarter investing and a weatherproof portfolio Beyond Smart Beta is the investor''s complete guide to index investing, with deep analysis, expert clarification and smart strategies for active portfolio management. From the general to the obscure, this book digs into every aspect of Exchange Traded Funds (ETFs) including ETCs and ETNs to break down the jargon and provide accessible guidance on utilising the indices as part of a more productive investment strategy. Succinct explanations of terms and concepts help you better grasp ETP anatomy, mechanics and practices, while examples, charts and graphs provide quick visual reference for total understanding. The expert author team examines the risks and benefits associated with various indexing approaches, sharing critical review of next-generation methods to help you make well-informed investment decisions. ETFs provide a solid foundation within mature and well-researched markets, allowing investors Table of ContentsPreface vii Acknowledgments ix About the Authors xi Chapter 1 The Beauty of Simplicity – The Rise of Passive Investments 1 Outperformance – A Tough Challenge 1 Institutional Investors: A Small Change in Allocations, A Big Step for Passive Investments 2 Not All “Big Guys” Love ETFs 3 Chapter 2 The History of Indexing and Exchange-Traded Products 6 Frequent Pricing Thanks to Copper and Feather 6 Journalist Trio Pictures the Market 7 Indexation Across the Globe 7 Customized Indexing aka Smart Beta 8 Exchange-Traded Funds – A Unique All-rounder 15 Exchange-Traded Commodities – Heavy Metal Even for Lightweight Investors 46 Exchange-Traded Notes – The Underdog 53 Chapter 3 Index Evolution 57 Benchmark Indices 58 Smart Beta Indices (Second Generation of Indexing) 85 Next Generation Indices (Third Generation of Indexing) 104 Chapter 4 The Good, Bad and Ugly – A Critical Review of Today’s Indexing Approaches 127 Synthetic vs. Physical Replication 128 Second Generation Indexing Critique – The Bad Ones 129 Commodity/Energy/Oil ETP Products 133 Volatility ETPs 135 Chapter 5 Advantages Unlimited – Portfolio Application Strategies for Superior Index Investing 139 Never Underestimate the Importance of Investment Costs 139 Smart Beta Deconstruction 144 Conclusion 152 Mind the Behavioral Gap – Earning More by Avoiding Investing Errors 152 The Next Generation of Asset Allocation – Risk Factor Allocation Approach in Portfolio Construction 155 The Ultimate Question: Passive or Active? 163 Chapter 6 Unchaining Innovation – The Future of Active Investing in Passive Products 166 Alternative Investing 166 Environmental, Social and Governance (ESG)-Based Investments 180 Conclusion 190 Customized Indexing 192 Glossary 200 References 210 Index 215

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Book SynopsisRisk management solutions for today''s high-speed investing environment Real-Time Risk is the first book to show regular, institutional, and quantitative investors how to navigate intraday threats and stay on-course. The FinTech revolution has brought massive changes to the way investing is done. Trading happens in microsecond time frames, and while risks are emerging faster and in greater volume than ever before, traditional risk management approaches are too slow to be relevant. This book describes market microstructure and modern risks, and presents a new way of thinking about risk management in today''s high-speed world. Accessible, straightforward explanations shed light on little-understood topics, and expert guidance helps investors protect themselves from new threats. The discussion dissects FinTech innovation to highlight the ongoing disruption, and to establish a toolkit of approaches for analyzing flash crashes, aggressive high frequency trading, and other sTable of ContentsAcknowledgments xi Chapter 1 Silicon Valley is Coming! 1 Everyone is into Fintech 3 The Millennials are Coming 7 Social Media 9 Mobile 10 Cheaper and Faster Technology 13 Cloud Computing 14 Blockchain 15 Fast Analytics 15 In the End, It’s All About Real-Time Data Analytics 18 End of Chapter Questions 19 Chapter 2 This Ain’t Your Grandma’s Data 21 Data 21 The Risk of Data 23 Technology 27 Blockchain 30 What Elements are Common to All Blockchains? 31 Conclusions 39 End of Chapter Questions 39 Chapter 3 Dark Pools, Exchanges, and Market Structure 41 The New Market Hours 51 Where Do My Orders Go? 52 Executing Large Orders 54 Transaction Costs and Transparency 56 Conclusions 57 End of Chapter Questions 57 Chapter 4 Who is Front-Running You? 59 Spoofing, Flaky Liquidity, and HFT 64 Order-Based Negotiations 78 Conclusions 80 End of Chapter Questions 81 Chapter 5 High-Frequency Trading in Your Backyard 83 Implications of Aggressive HFT 89 Aggressive High-Frequency Trading in Equities 96 Aggressive HFT in US Treasuries 98 Aggressive HFT in Commodities 99 Aggressive HFT in Foreign Exchange 101 Conclusions 102 End of Chapter Questions 102 Chapter 6 Flash Crashes 103 What Happens During Flash Crashes? 104 Detecting Flash-Crash Prone Market Conditions 116 Are HFTs Responsible for Flash Crashes? 124 Conclusions 126 End of Chapter Questions 127 Chapter 7 The Analysis of News 129 The Delivery of News 130 Preannouncement Risk 139 Data, Methodology, and Hypotheses 143 Conclusions 154 End of Chapter Questions 154 Chapter 8 Social Media and the Internet of Things 155 Social Media and News 160 The Internet of Things 165 Conclusions 169 End of Chapter Questions 170 Chapter 9 Market Volatility in the Age of Fintech 171 Too Much Data, Too Little Time—Welcome, Predictive Analytics 174 Want to Lessen Volatility of Financial Markets? Express Your Thoughts Online! 175 Market Microstructure is the New Factor in Portfolio Optimization 176 Yes, You Can Predict T + 1 Volatility 178 Market Microstructure as a Factor? You Bet. 179 Case Study: Improving Execution in Currencies 183 For Longer-Term Investors, Incorporate Microstructure into the Rebalancing Decision 184 Conclusions 185 End of Chapter Questions 185 Chapter 10 Why Venture Capitalists are Betting on Fintech to Manage Risks 187 Opportunities for Disruption are Present, and They May Not Be What They Seem 189 Data and Analytics in Fintech 191 Fintech as an Asset Class 192 Where Do You Find Fintech? 194 Fintech Success Factors 194 The Investment Case for Fintech 196 How Do Fintech Firms Make Money? 198 Fintech and Regulation 198 Conclusions 200 End of Chapter Questions 200 Authors’ Biographies 201 Index 203

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Book SynopsisA comprehensive, authoritative examination of Chinese auditing practices Study on the Auditing System of Socialism with Chinese Characteristics provides unprecedented insight into China's current audit process, with expert contributions and predictions of future trends.Table of ContentsPreface xv Introduction 1 1. About the Systems 1 2. About the Auditing System 3 3. About the Auditing System of Socialism with Chinese Characteristics 9 4. About the Significance of Studying the Auditing System of Socialism with Chinese Characteristics 12 Chapter 1: The Birth and Development of the Auditing System of Socialism with Chinese Characteristics 15 1. History of the Chinese Auditing System 15 (1) Official Auditing System during the Shang and Zhou Dynasties 16 (2) Censorate Auditing System during the Qin and Han Dynasties 19 (3) Bibu (Court of Auditors) Auditing System during the Tang and Song Dynasties 21 (4) Kedao Audit Supervising System during the Ming and Qing Dynasties 24 (5) Auditing System in the Early Days of the Republic of China and Nanjing KMT Government Period 26 2. Auditing System during the New Democratic Revolution Led by the Communist Party of China 28 (1) Auditing Exploration during the Establishment of the Communist Party of China and the Great Revolution Period 28 (2) Auditing during the Agrarian Revolutionary War Period 29 (3) Auditing during the Period of the National War of Resistance against Japanese Aggression 31 (4) Auditing during the Liberation War of China 32 3. Establishment and Development of the Auditing System of Socialism with Chinese Characteristics 35 (1) Establishment of the Auditing System in the Early Days of the Reform and Opening-up Period 36 1) Government Audit System Established Stipulated by the Constitution 36 2) Establishment of audit institutions 37 3) Thereafter, Audit Work Was Positively Explored and Carried Out 38 4) Standardization of Audit Work 39 (2) Auditing System in the Period of Transition from the Planned Economy to Socialist Market Economy 40 1) Continuous Improvement of the Audit Institution System 41 2) Establishing Professional Auditing System of Various Industries 42 3) Promoting Framework Building of Audit Laws and Regulations 45 (3) Auditing System at the Establishment of the Socialist Market Economic System 47 1) Adjusting the Institutional Setting and Reinforcing Audit Independence 48 2) Preliminary Establishment of the Audit Law System 48 3) Continuously Enhancing Audit Supervision 51 (4) Auditing System during Improvement of the Socialist Market Economic System 53 1) Defining Guidelines for Audit Work 54 2) Building the “3 + 1” Audit Pattern 55 3) Improving Talents Capacity, Legal Framework, and Technologies 57 4) Building the System of Announcement of Audit Findings 59 (5) Auditing System during the Overall Building of a Well-Off Society in the New Period 60 1) Improving the Government Audit Pattern 62 2) Exploring and Innovating the Audit Methods and Ways 63 3) Improving the Audit Law System 66 4. Conclusion and Enlightenment 67 Chapter 2: Foundation of the Auditing System of Socialism with Chinese Characteristics 73 1. Theoretical Foundation of the Auditing System of Socialism with Chinese Characteristics 73 (1) The Theoretical System of Socialism with Chinese Characteristics Provides the Ideological Foundation for the Establishment and Development of the Auditing System of Socialism with Chinese Characteristics 78 (2) The Theoretical System of Socialism with Chinese Characteristics Guides the Establishment and Development of the Auditing System of Socialism with Chinese Characteristics 79 (3) The Theoretical System of Socialism with Chinese Characteristics Provides the Practical and Theoretical Foundation for the Contents and Arrangements of the Auditing System of Socialism with Chinese Characteristics 80 (4) The Theoretical System of Socialism with Chinese Characteristics Leads the Continuous Exploration and Innovation of the Auditing System of Socialism with Chinese Characteristics, and Guides and Promotes the Development and Improvement of the Auditing System 80 2. Institutional Foundation of the Auditing System of Socialism with Chinese Characteristics 84 (1) State Political System Determines the Political Nature of the Auditing System 86 1) CPC Leadership is the Primary Political Precondition for the Establishment and Improvement of the Audit System of Socialism with Chinese Characteristics 86 2) The System of People’s Congresses is an Institutional Guarantee of the Establishment and Improvement of the Auditing System of Socialism with Chinese Characteristics 92 3) The Unitary State Structure is the Organizational Foundation of the Establishment and Improvement of Auditing System of Socialism with Chinese Characteristics 93 (2) State Economic System Determines the Duties and Responsibilities of the Auditing System 94 1) The Basic Economic System with Public Ownership as the Mainstay Determines the Audit Scope and Audited Entities 95 2) Government Functions under the Socialist Market Economy System Determine Audit Functions 96 3. Cultural Foundation of the Auditing System of Socialism with Chinese Characteristics 100 (1) Excellent Chinese Traditional Culture Constitutes the Cultural Source of the Auditing System of Socialism with Chinese Characteristics 100 (2) Socialist Core Value System Determines the Value Orientation of the Auditing System of Socialism with Chinese Characteristics 104 (3) The Socialist Core Value is the Ideological Force Propelling the Development of the Auditing of Socialism with Chinese Characteristics 106 (4) Core Values of Auditors Are the Dynamic Force for the Improvement of the Auditing System of Socialism with Chinese Characteristics 110 Chapter 3: Basic Framework of the Auditing System of Socialism with Chinese Characteristics 113 1. Audit Law and Regulations 113 (1) The Constitution of the People’s Republic of China 114 (2) The Audit Law and Other Relevant Laws 116 (3) Regulations for the Implementation of the Audit Law and Other Relevant Administrative Regulations 118 (4) Local Audit Regulations 119 (5) Audit Rules 120 2. Audit Organization System 123 (1) Establishment of Audit Institutions 124 (2) Relationship between Upper- and Lower-Level Audit institutions 125 (3) Audit Institutionalization Framework 126 3. Duties and Powers of Audit Institutions 128 (1) Duties of Audit Institutions 131 1) Supervision through Auditing Over the Statutory Subject Matters 131 2) Special Audit Investigation in Terms of Specific Matters Relating to State Financial Revenues and Expenditures 138 3) Guidance and Supervision Over the Internal Audit Work of Units that are Subject to Supervision through Auditing by Audit Institutions in Accordance with Law 138 4) Verifying the Audit Reports Issued by Public Audit Institutions for Units that are Subject to Supervision through Auditing by Audit Institutions in Accordance with Law 139 (2) Audit Jurisdiction System 139 1) General Principles of Audit Jurisdiction 140 2) Accountability Audit Jurisdiction System 140 3) Authorized Audit, Direct Auditing System, and Settlement Mechanism of Disputes Over Audit Jurisdiction 141 (3) Powers of Audit Institutions 141 1) Right to Request the Submission of Materials 142 2) Right to Examine 142 3) Right to Investigate and Obtain Evidence 143 4) Right to Adopt Administrative Compulsory Measures 143 5) Right to Seek Assistance 143 6) Right to Transfer and Recommend 144 7) Right to Dispose and Punish 144 8) Right to Notify or Publish Auditing Results 144 4. Auditor Management System 145 (1) Professional Requirements for Auditors 146 (2) System for Employment, Appointment, and Dismissal of Auditors 148 (3) Professional Qualification System of Auditors 149 (4) Professional Education System for Auditors 149 (5) Performance Evaluation System for Auditors 150 5. Audit Operation Mechanism 151 (1) Audit Work Plan 151 1) System of Strategic Plan on Audit Work 151 (2) Execution of Audit Assignments 152 1) System of Audit Notification 152 2) System of Audit Program 153 3) System of Audit Evidence 154 4) System of Audit Documentation 154 5) System of Audit Field Management 154 (3) Audit Results Reporting and Publication 155 1) System of Audit Report 155 2) System of Audit Disposal and Punishment and Audit Transfer 156 3) System of Audit Newsletter, Specific Report, and Comprehensive Report 157 4) System of “Two Reports” 158 5) System of Announcement of Audit Results 159 6) System of Disclosure of Government Information 159 (4) Audit Quality Control 160 1) Hierarchical Audit Quality Control 161 2) Mechanism of “Control Review-Assurance Review-Approval” for Audit Report 161 3) System of Registration and Reporting of Intervention in Audit Work 162 4) System of audit Quality Check 162 5) System of Excellent Audit Project Selection 163 (5) Rectification of Problems Disclosed by the Audit 164 1) System of Rectification by Auditees 164 2) System of Government Supervision Over Rectification 164 3) System of Supervising and Assisting Rectification by Relevant Authorities 165 4) System of Follow-up of Rectification by Audit Institutions 165 (6) Settlement of Audit Disputes 166 1) System of Applying for Government Ruling 167 2) System of Applying for Administrative Reconsideration or Instituting Any Administrative Litigation 167 3) System of Complaint, Review, and Reexamination 167 (7) Coordination and Cooperation with Parties Concerned 168 1) Coordination and Cooperation at the Stage of Audit Planning, Implementation, and Utilization of Audit Results 168 2) Coordination and Cooperation in the Accountability Audit 168 3) Coordination and Cooperation in Investigating the Major Irregularities 169 Chapter 4: Features, Effects, and Experience of the Auditing System of Socialism with Chinese Characteristics 171 1. Features of the Auditing System of Socialism with Chinese Characteristics 172 (1) Features of the Auditing System 172 1) Audit Institutions Belong to Administrative Institutions 172 2) Local Audit Institutions Are Responsible to the Governments at Corresponding Levels and Audit Institutions at the Next Higher Level 173 3) Reporting to the Standing Committee of the National People’s Congress upon Entrustment by the Government 176 (2) Features of Auditing Duties and Authorities 179 1) Supervision Scope of Government Auditing Reflects Chinese Characteristics 179 2) Economic Accountability Audit of Leading Officials 181 3) Follow-up Audit of Implementation of Policies and Measures 185 4) Authority in Regard to Audit Disposal and Punishment and Taking Coercive Measures 188 (3) Features of the Auditor Management System 189 1) High Professional Requirements 189 2) Strict Disciplinary Requirements 190 3) Comprehensive Examination and Evaluation 191 (4) Features of the Audit Operating Mechanism 192 1) Integrating Audit Resources to Realize Interaction between Higher and Lower Levels 192 2) Follow-up Audit on Major Matters 194 3) Stress on Revealing and Investigating Major Violations of Laws and Rules 197 4) Focus on the Role of Trial Mechanism in the Audit Quality Control 200 5) Publish the Auditing Findings to the Public 201 2. Practical Effects of Auditing System of Socialism with Chinese Characteristics 205 (1) Improve Economic Benefits 205 (2) Ensure Smooth Policy Implementation 210 (3) Safeguard National Security 216 (4) Promote Administration According to Law 218 (5) Promote Anti-corruption 219 (6) Safeguard the Interests of the People 223 (7) Promote the Deepening of Reform 228 (8) Promote Openness and Transparency 232 3. Experience of Building the Socialist System with Chinese Characteristics 233 Chapter 5: Future Development of the Auditing System of Socialism with Chinese Characteristics 247 1. General Goal and Requirement for Further Improvement of the Auditing System of Socialism with Chinese Characteristics 247 (1) General Goal 247 (2) General Requirement 248 2. Principles Indispensable for Development and Further Improvement of the Auditing System of Socialism with Chinese Characteristics 255 3. Key to Development and Further Improvement of the Auditing System of Socialism with Chinese Characteristics 257 (1) About the Auditing Arrangement 258 (2) About the Scope of Audit Duty and Authority 263 1) Improving the Working Mechanism Commensurate with Full Coverage of Auditing 263 2) Establishing and Improving the Real-Time Auditing System on the Implementation of National Major Policies and Measures and Macro-control Deployments 268 3) Improving the Auditing System of Budget Implementation and Final Accounts Drafting 271 4) Establishing and Improving the Auditing System of State Capitals of State-Owned Enterprises 273 5) Establishing the Auditing System of Off-Term Officials regarding Natural Resources and Assets 275 (3) About the Audit Operation Mechanism 276 1) Improving the Audit Plan and Program Systems 276 2) Improving the Organizational Way of Joint Auditing from Multidimensional and Multiple Angles 277 3) Creating an Audit Work Pattern of Big Data 277 4) Improving the Audit Reporting System, the System of Government Information Disclosure, and the Rectification and Examination Mechanism 278 5) Improving the Performance Report System of Audit institutions 278 6) Improving the System of Purchasing Social Audit Services 279 (4) About the Audit Professionalization 279 1) Establishing a Classified Management System for Auditors 280 2) Establishing a Post Order of Professional and Technical Civil Servants of Auditing 280 3) Improving the Selection and Appointment Mechanism for Auditors 280 4) Improving the Responsibility Investigation Mechanism for Auditing Posts 281 5) Improving the Occupational Guarantee Mechanism of Auditing 281 (5) About Supervision of Audit institutions 281 1) Strengthening the Supervision of Higher-Level Audit institutions Over Lower-Level Audit institutions 282 2) Improving the Accountability Audit System for Main Leading Officials of Local Audit institutions 282 3) Creating a List of Powers and Responsibilities of Audit institutions 282 4) Improving the System of Special Auditors 283 5) Exploring and Establishing an External Auditing System for Audit institutions 283 6) Strengthening the Supervision of Society and Public Opinion 283 (6) About the Audit Law System 283 Appendix A: Information on Development of China’s Auditing System 285 Appendix B: Brief Introduction to the Auditing Systems of 12 Major Countries 297 Major References 313 Postscript 319 Index 321

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Book SynopsisProperty Investing the Wealth Dragon Way Property Entrepreneur explains how anyone can make money from property, regardless of their financial situation.Trade Review"...contains a good mix of personal anecdote and pratcical strategy outlined in an accessible way." (Scottish Business Insider, January 2017)Table of ContentsPreface ix Acknowledgments xi About the Author xiii Introduction: My Property Journey 1 Part I The Old Deal Chapter 1 The History Of Property 9 Chapter 2 Traditional Property Investing 17 Chapter 3 Who Wants To Be A Property Investor? 21 Part II The New Deal Chapter 4 What’s Wrong With The Old Deal? 41 Chapter 5 Understanding The New Deal 47 Chapter 6 Starting Your Property Business 59 Chapter 7 A Systemized Business Is A Successful Business 65 Chapter 8 Seven Dealmaking Strategies 93 Chapter 9 Dealing With Objections 129 Chapter 10 The Seven Golden Rules For Property Entrepreneurs 139 Part III The Real Deal Chapter 11 Probate Property In Leeds 147 Chapter 12 Property With Registered Charges Against It In Stanmore 151 Chapter 13 Urgent Sale Needed To Clear Debts In Birmingham 157 Chapter 14 From BMV To Lease-Option Deal In Liverpool 163 Chapter 15 Urgent Lease-Option Deal In Lincoln 167 Chapter 16 Lease-Option Deal On Dilapidated Property In Sheffield 169 Chapter 17 Part Now, Part Later Deal On Probate Property In Barnsley 173 Chapter 18 The Dutch Deals 175 Final Word: The Future Of The Property Business – Your Role 183 Index 187

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Book SynopsisA deeper examination of Basel III for more effective capital enhancement The Handbook of Basel III Capital Enhancing Bank Capital in Practice delves deep into the principles underpinning the capital dimension of Basel III to provide a more advanced understanding of real-world implementation. Going beyond the simple overview or model, this book merges theory with practice to help practitioners work more effectively within the regulatory framework, and utilise the complex rules to more effectively allocate and enhance capital. A European perspective covers the CRD IV directive and associated guidance, but practitioners across all jurisdictions will find value in the strategic approach to decisions surrounding business lines and assets; an emphasis on analysis urges banks to shed unattractive positions and channel capital toward opportunities that actually fit their risk and return profile. Real-world cases demonstrate successful capital initiatives as models for implemeTable of ContentsPreface xiii About the Author xv Chapter 1 Overview of Basel III 1 1.1 Introduction to Basel III 1 1.2 Expected and Unexpected Credit Losses and Bank Capital 3 1.3 The Three‐Pillar Approach to Bank Capital 4 1.4 Risk‐Weighted Assets (RWAs) 8 Chapter 2 Minimum Capital Requirements 11 2.1 Components and Minimum Requirements of Bank Capital 11 2.2 Components and Minimum Requirements of Capital Buffers 12 2.3 Capital Conservation Buffer 13 2.4 Countercyclical Buffer 14 2.5 Systemic Risk Buffers 19 2.6 Going Concern vs. Gone Concern Capital 23 2.7 Case Study: UBS vs. JP Morgan Chase G-SIB Strategies 25 2.8 Transitional Provisions 36 Chapter 3 Common Equity 1 (CET1) Capital 39 3.1 CET1 Minimum Requirements 39 3.2 Eligibility Requirements of CET1 Instruments 39 3.3 Case Study: UBS Dividend Policy and Its Impact on CET1 48 3.4 Case Study: Santander Dividend Policy and Its Impact in CET1 54 3.5 Accumulated Other Comprehensive Income 58 3.6 Case Study: Banco BPI’s Partial Disposal of Portfolio of Portuguese and Italian Government Bonds 69 3.7 Other Items Eligible for CET1 Capital 74 3.8 CET1 Prudential Filters 75 3.9 Additional Valuation Adjustments 76 3.10 Intangible Assets (Including Goodwill) 76 3.11 Case Study: Danske Bank’s Goodwill Impairment 84 3.12 Case Study: Barclays Badwill Resulting From Its Acquisition of Lehman Brothers N.A. 85 3.13 Deferred Tax Assets 87 3.14 Fair Value Reserves Related to Gains or Losses on Cash Flow Hedges 87 3.15 Negative Amounts Resulting From the Calculation of Expected Loss Amounts 97 3.16 Equity Increases Resulting from Securitised Assets 98 3.17 Gains or Losses on Liabilities Valued at Fair Value Resulting from Changes in Own Credit Standing 99 3.18 Defined‐Benefit Pension Plans 110 3.19 Case Study: Lloyds’ De‐Risking of its Defined Benefit Pension Plans 119 3.20 Holdings by a Bank of Own CET1 Instruments 121 3.21 Case Study: Danske Bank’s Share Buyback Programme 124 3.22 Case Study: Deutsche Bank’s Treasury Shares Strategy 125 3.23 Holdings of the CET1 Instruments of Financial Sector Entities 140 3.24 Deduction Election of 1,250% RW Assets 140 3.25 Amount Exceeding the 17.65% Threshold 141 3.26 Foreseeable Tax Charges Relating To CET1 Items 142 3.27 Excess of Qualifying AT1 Deductions 142 3.28 Temporary Filter on Unrealised Gains and Losses on Availablefor‐Sale Instruments 142 Chapter 4 Additional Tier 1 (AT1) Capital 144 4.1 AT1 Minimum Capital Requirements 144 4.2 Criteria Governing Instruments Inclusion in AT1 Capital 144 4.3 Deductions from AT1 Capital 151 4.4 Holdings of AT1 Instruments of Other Financial Institutions 154 4.5 Case Study: Lloyds Banking Group Exchange Offer of Tier 2 for AT1 Securities 158 Chapter 5 Tier 2 Capital 172 5.1 Tier 2 Capital Calculation and Requirements for Inclusion 172 5.2 Negative Amounts Resulting from the Calculation of Expected Loss Amounts 177 5.3 Deductions from Tier 2 Capital 178 5.4 Holdings of Tier 2 Instruments of Other Financial Institutions 179 5.5 Case Study: Deutsche Bank’s Tier 2 Issue 183 Chapter 6 Contingent Convertibles (CoCos) 187 6.1 Types of CoCos 187 6.2 Trigger Levels 189 6.3 CoCos’ Statutory Conversion or Write‐Down – Point of Non‐Viability 190 6.4 CoCo’s Coupon Suspension – Maximum Distributable Amount 195 6.5 Adding Pillar 2 Capital Requirements to the MDA Calculation 200 6.6 Case Study: Barclays’ Equity Convertible CoCo 200 6.7 Case Study: Deutsche Bank’s Write‐Down CoCo 210 6.8 CoCos from an Investor’s Perspective 226 Chapter 7 Additional Valuation Adjustments (AVAs) 228 7.1 Fair Valuation Accounting Framework (IFRS 13) 229 7.2 Case Study: Goldman Sachs Investment in Industrial and Commercial Bank of China 241 7.3 Prudent Valuation vs. Fair Valuation 243 7.4 Additional Valuation Adjustments (AVAs) Under the Core Approach 248 7.5 Market Price Uncertainty AVA 250 7.6 Close‐Out Costs AVA 266 7.7 Model Risk AVA 267 7.8 Unearned Credit Spreads AVA 268 7.9 Investing and Funding Costs AVA 269 7.10 Concentrated Positions AVA 269 7.11 Future Administrative Costs AVA 271 7.12 Early Terminations Costs AVA 272 7.13 Operational Risk AVA 272 Chapter 8 Accounting vs. Regulatory Consolidation 275 8.1 Accounting Recognition of Investments in Non‐Structured Entities 275 8.2 Accounting for Full Consolidation 276 8.3 Working Example on Consolidation 283 8.4 Loss of Control 294 8.5 The Equity Method – Associates 295 8.6 Case Study: Deutsche Bank’s Acquisition of Postbank 298 8.7 IFRS Consolidation vs. Regulatory Consolidation 309 Chapter 9 Treatment of Minority Interests in Consolidated Regulatory Capital 312 9.1 Minority Interests Included in Consolidated CET1 312 9.2 Minority Interests Included in Consolidated AT1, Tier 1, Tier 2 and Qualifying Total Capital 316 9.3 Illustrative Example 1: Calculation of the Impact of Minority Interests on Consolidated Capital 319 9.4 Illustrative Example 2: Calculation of the Impact of Minority Interests on Consolidated Capital 322 9.5 Case Study: Artificial Creation of Minority Interests 325 9.6 Case Study: Banco Santander Repurchase of Minority Interests in Santander Brasil 326 Chapter 10 Investments in Capital Instruments of Financial Institutions 334 10.1 Basel III Treatment of Investments in Capital Instruments of Financial Institutions 335 10.2 Worked Examples of Investments in Capital Instruments of Unconsolidated Financial Institutions 347 10.3 Case Study: BBVA’s Acquisition of Garanti 354 Chapter 11 Investments in Capital Instruments of Insurance Entities 370 11.1 The Concept of Double Leverage 370 11.2 Case Study: ING’s Double Leverage 371 11.3 Regulatory Peculiarities of Investments in Insurance Entities 377 11.4 Case Study: Lloyds Banking Group’s Capital Enhancement Initiatives Related to its Insurance Subsidiaries 379 Chapter 12 Equity Investments in Non‐financial Entities 384 12.1 Basel III and Equity Exposures to Non‐Financial Entities in the Banking Book 384 12.2 Equity Exposures Under the Standardised Approach 385 12.3 Equity Exposures Under the IRB Approach 386 12.4 Expected Losses from Equity Exposures Under the IRB Approach 392 12.5 Qualified Holdings Outside the Financial Sector Exceeding the 15% Threshold 393 12.6 Temporary Exemption from the IRB Treatment of Certain Equity Exposures 394 12.7 Case Study: CaixaBank’s Mandatory Exchangeable on Repsol 395 12.8 Case Study: Mitsubishi UFJ Financial Group’s Corporate Stakes 405 Chapter 13 Deferred Tax Assets (DTAs) 411 13.1 Taxes from an Accounting Perspective 411 13.2 Accounting for Deferred Taxes Arising from Temporary Differences – Application to Equity Investments at Either FVTPL or FVTOCI 415 13.3 Worked Example: Temporary Differences Stemming from Debt Instruments Recognised at Fair Value 428 13.4 Case Study: UBS’s Deferred Tax Assets 435 13.5 Deferred Tax Assets from a Regulatory Capital Perspective 442 13.6 Case Study: Spanish Banks Conversion of DTAs Into Tax Credits, Improving Their CET1 Positions 449 13.7 Case Study: Lloyds Banking Group’s Expected Utilisation of Deferred Tax Assets 452 13.8 Initiatives to Reduce Impacts of Deferred Tax Assets on Bank Capital 459 Chapter 14 Asset Protection Schemes and Bad Banks 469 14.1 ING’s Illiquid Asset Back‐Up Facility With the Dutch State 469 14.2 Royal Bank of Scotland’s Asset Protection Scheme 476 14.3 Case Study: SAREB, The Spanish Bad Bank 486 14.4 Case Study: NAMA, The Irish Bad Bank 489 14.5 Asset Protection Schemes Versus Bad Banks 493 Chapter 15 Approaching Capital Enhancement Initiatives 495 15.1 Initial Thoughts 495 15.2 Overview of Main CET1 Capital Ratio Enhancement Initiatives 497 15.3 Case Study: Deutsche Bank’s Rights Issue 501 15.4 Case Study: Structuring the Disposal of a Portfolio of NPLs 502 15.5 Case Study: Banco Popular Joint Venture with Verde Partners and Kennedy Wilson 508 15.6 Case Study: Co‐Operative Bank’s Liability Management Exercise 516 Glossary 523 Bibliography 531 Index 533

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Book SynopsisMake your money make a differenceand enjoy attractive returns Small Money, Big Impactexplores and explains the globally growing importance of impact investing. Today, the investor''s perspective has become as important as the actual social impact. Based on their experience with over 25 million micro borrowers, the authors delve into the mechanics, considerations, data and strategies that make microloans and impact investing an attractive asset class. From the World Bank to the individual investor, impact investing is attracting more and more attention. Impact investing is a global megatrend and is reshaping the way people invest as pension funds, insurance companies, foundations, family offices and private investors jump on board. This book explains for the first time how it works, why it works and what you should know if you''re ready to help change the world. Impact investing has proven over the last 20 years as the first-line offense against crushing pTable of ContentsForeword ix Preface xi Acknowledgments xiii About the Authors xv CHAPTER 1 Introduction 1 1.1 Fighting Poverty 2 1.2 Investing in Financial Infrastructure 7 1.3 Content Overview 8 Notes 9 CHAPTER 2 Microfinance – the Concept 11 2.1 History 12 2.2 Definition and Goals 15 2.3 Double Bottom Line 18 2.4 Financial Inclusion 21 2.5 Market Participants 24 2.6 Impact Investing 25 2.7 Preliminary Conclusions 29 Notes 31 CHAPTER 3 The Microfinance Value Chain 33 3.1 The Protagonists and Their Tasks 34 3.2 Regulatory Environment 36 3.3 Development Finance Institutions 37 3.4 Market Overview 39 3.5 Geneva: Birthplace of Modern Microfinance 42 3.6 Preliminary Conclusions 46 Notes 47 CHAPTER 4 Micro Entrepreneurs 49 4.1 Definition 50 4.2 Needs and Requirements 52 4.3 Micro Entrepreneurs 59 4.4 Preliminary Conclusions 67 Notes 68 CHAPTER 5 Microfinance Institutions 71 5.1 Definition and Goals 72 5.2 Types of MFIs 73 5.3 MFI Funding 76 5.4 Services 85 5.5 Regulation 88 5.6 Preliminary Conclusions 94 Notes 96 CHAPTER 6 Lending Methodologies 99 6.1 Traditional Credit Theory and Microfinance 100 6.2 Lending Methodologies 101 6.3 Socio-Economic Factors 104 6.4 Late Payments and Over-Indebtedness of Clients 108 6.5 Default Prevention and Restructuring 110 6.6 Occupation: Loan Officer 113 6.7 Preliminary Conclusions 114 Notes 116 CHAPTER 7 Loan Pricing 119 7.1 Interest Rate Components 120 7.2 Setting Sustainable Interest Rates 127 7.3 Regional Differences 127 7.4 Loan Recipients’ Willingness to Repay 129 7.5 Preliminary Conclusions 130 Notes 132 CHAPTER 8 Social Performance Management 133 8.1 Social Performance 134 8.2 Measuring Social Performance 135 8.3 Measuring the Outcome of Microfinance 149 8.4 Social Rating Agencies 151 8.5 Technical Assistance 153 8.6 Linking Social Performance with Profitability 156 8.7 Preliminary Conclusions 157 Notes 159 CHAPTER 9 Beyond the Reach of Microfinance? 161 9.1 Prejudices and Reservations 162 9.2 Preliminary Conclusions 171 Notes 172 CHAPTER 10 Investing in Microfinance 175 10.1 Market Development 176 10.2 Microfinance Investment Vehicles 177 10.3 The Investment Process 181 10.4 Loan Agreements and Pricing Policy 187 10.5 Microfinance in the Overall Investment Portfolio 191 10.6 Incentives for Investing in Microfinance 195 10.7 Preliminary Conclusions 197 Notes 199 CHAPTER 11 Real and Financial Economy 201 11.1 Microfinance Is Crisis-Proof 202 11.2 Real Economy and Local Influencing Factors 203 11.3 Financial Economy 205 11.4 Stability Mechanisms 207 11.5 Preliminary Conclusions 208 Notes 209 CHAPTER 12 Discussion of Results and Conclusions 211 12.1 Win-Win-Win 212 12.2 Onwards and Upwards 212 Notes 215 APPENDIX A Example of a Loan Application 217 APPENDIX B Due Diligence of Socio-Economic Impact Factors 221 List of Abbreviations 227 Glossary 229 References 233 Photo Credits 243 Index 245

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Book SynopsisA real-world guide for adapting to the new energy era The Energy Disruption Triangle is a treatise on the energy revolution's real-world impacts, and a handbook for anyone looking to weather the storm. Three major technologies are already changing the energy paradigm: solar energy, electric vehicles, and energy storage. As technology continues to evolve and become more accessible to the masses, the nation's energy habits will experience a dramatic upheaval; this book provides actionable guidance to help you adapt. We are already in the beginning stages of this black swan event, and most people don't know what's comingbut it will come much sooner and much faster than anyone thinks. This book reveals the revolution happening right before our eyes, and shows you how to thrive in this new era. Learn how our energy suppliesand usageare changingUnderstand why energy storage matters, and how the technology is evolvingExplore the history and future of groundbreaking energy technologiesDeTable of ContentsForeword xiii Introduction xix Acknowledgments xxxiii About the Author xxxv Section 1 The US Solar Build Out: Disrupting Energy Supplies 1 Chapter 1 The History of Solar Energy 3 Chapter 2 The Workings of a Modern Solar Energy System 18 Chapter 3 Is a Solar System Right for You? 31 Chapter 4 Utility-Scale Solar Takes Off 51 Chapter 5 What’s Ahead for Solar Energy 69 Section 2 Electric Vehicles: Disrupting Transportation 95 Chapter 6 The History of Electric Vehicles 97 Chapter 7 Henney’s Kilowatt and GM’s EV1: Ahead of their Time 118 Chapter 8 The Vision of Elon Musk 127 Chapter 9 Everybody into the EV Pool 159 Chapter 10 EVS and Stranded Oil (Peak Demand is Here) 188 Section 3 Cheap Battery Storage: The Biggest Energy Disruptor 199 Chapter 11 The Rise of Energy Storage 201 Chapter 12 Energy Storage Technologies 210 Chapter 13 Why Cheap Energy Storage Matters 221 Chapter 14 Disrupting the US Energy Supply 233 Chapter 15 Say Goodbye to Conventional Power Plants 244 Chapter 16 EVS as an Energy Source 262 Chapter 17 Greenhouse Gases Disappear 273 Chapter 18 Getting to Net Zero: US Energy Independence 285 Chapter 19 Energy 2118: A Look Ahead 298 Glossary 313 Index 321

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Book SynopsisNamed the 2019 Investment and Retirement Planning Book of the Year by the Institute for Financial LiteracyIt's never too late to start planning for retirement You Don't Have to Drive an Uber in Retirement is a survival guide for your golden years, and a lifeline for those entering the Retirement Crisis unprepared. Roughly 45 percent of Americans have zero dollars saved for retirementbut the average retiree will spend $154,000 in out-of-pocket health care costs alone. We need to figure out how to generate more income, even in retirement, and spend less. How do we boost our retirement income? Is investing the way to go? How much do we need, anyway? This book does more than just answer the important questionsit gives you real-world tips to help you reach your financial goals. Yes, it is possible to increase your income in or as you approach retirement. These guidelines will help you optimize your assets and put away more money for the years you'll need it most. Planning for retirement does not mean holding off on fun today; there are many ways the average American can reduce everyday costs of living without living like a pauper. This book will help you take stock of what you have and what you'll need, and show you how to bridge the gap. Maximize your savings while minimizing the lifestyle impactUnique ways for generating a meaningful amount of income, that don't require you to get a jobLearn just how much you'll need for a comfortable retirement Adopt new everyday strategies that will help you bolster your funds Add new income streams, optimize your portfolio, and learn to spend less without living lessthese are the key factors in making your golden years truly golden. You Don't Have to Drive an Uber in Retirement is an important resource and insightful guide for those hoping to one day leave the workforcein comfort.Table of ContentsForeword xi Introduction xv Part I Generating Income 1 Chapter 1 Give Yourself a Raise 3 Chapter 2 Using Options for Income 13 Chapter 3 Be the Bank 23 Chapter 4 Become the IRS: Have People Pay Taxes to You 37 Chapter 5 Get Paid More from Social Security 43 Chapter 6 You Don’t Have to Drive for Uber – But You May Want To 53 Chapter 7 The 401k You’ve Never Heard Of 61 Part II Cutting Costs 67 Chapter 8 Lower Your Medicare Costs 69 Chapter 9 Medical Tourism 75 Chapter 10 Pay Less for Your Medicine 81 Chapter 11 Pay Less in Taxes 87 Chapter 12 Lower Your Investment Costs 95 Chapter 13 How to Buy a Car for 25% Off 103 Chapter 14 How to Travel for Less 109 Part III Small Ideas That Add Up 117 Chapter 15 Small Ideas That Add Up 119 Part IV Ideas I Don’t Like 141 Chapter 16 The Worst Investment You Can Make 143 Chapter 17 Lose Your Life Insurance 153 Chapter 18 Reverse Mortgages 163 Conclusion 167 About the Author 169 Acknowledgments 171 Index 173

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