Finance and accounting Books

Book SynopsisA practical advantage for entry-level fraud examiners with start-to-finish casework Fraud Examination Casebook with Documents provides critical practice for students and new CPAs; criminal and insurance investigators; and attorneys seeking additional guidance on real-world fraud investigation. With five cases that include over 100 pages of documentation, this guide helps you put your conceptual knowledge to work as you conduct full-length Fraud Examinations from predication through report. Short instructional narratives guide you through tools like horizontal and vertical analysis, report writing, and other important tasks, while Excel templates streamline the process and kick start your investigation. Multiple-choice questions help you gauge your understanding and practical mastery, while expert guidance throughout prompts you to draw on your existing knowledge and apply it to casework. With a focus on asset misappropriation and financial statement fraud, theseTable of ContentsForeword ix Preface xi Overview of the Serial Fraud Cases (A Family of Fraudsters) 1 Fraudulent Financial Statements 2 Check Fraud, Debit Card Fraud, Cash Larceny 2 Fraudulent Edits/Adjusting Journal Entries to Cash Receipts 3 Excel Pivot Analyzes and Summarizes a Huge Amount of Data 3 Tracing Excel Pivot Red Flags Back to Source Documents and Documenting the Flow of Money 3 Chapter 1: Case 1: Fraudulent Financial Statements 5 1-1 Larsen Convenience Store: Using Analytical Procedures in Detecting Financial Statement Fraud 5 1-2 How to Perform a Horizontal, Vertical, and Ratio Analysis 13 1-3 Exercises—Fraudulent Financial Statements (Larsen Convenience Store) 19 1-4 Exercise Templates 22 1-5 Review Questions—Fraudulent Financial Statements (Larsen Convenience Store) 26 Chapter 2: Case 2: Check Fraud, Debit Card Fraud, Cash Larceny 29 2-1 Anderson Internal Medicine: Preparing a Bank Reconciliation and Spreading/Analyzing Transactions on Monthly Statements from Financial Institutions 29 2-2 How to Perform a Bank Reconciliation 35 2-3 How to Read Checks and Decode Debit Card Transactions 38 2-4 How to Spread and Analyze Check and Debit Card Transactions 41 2-5 Exercises—Check Fraud, Debit Card Fraud, and Cash Larceny (Anderson Internal Medicine) 45 2-6 Exercise Templates 48 2-7 Review Questions—Check Fraud, Debit Card Fraud, and Cash Larceny (Anderson Internal Medicine) 50 Chapter 3: Case 3: Fraudulent Edits/Adjusting Journal Entries 53 3-1 Anderson Internal Medicine (Edits/AJEs): Vouching from a Schedule to Source Documents 53 3-2 How to Vouch/Trace between a Source Document and an Accounting Ledger, Journal, or Activity Log 56 3-3 Exercise—Fraudulent Edits (or AJEs) (Anderson Internal Medicine) 57 3-4 Exercise Template 58 Chapter 4: Case 4: Using Data Analytics: Analyzing and Summarizing Data with Excel Pivot 61 4-1 Anderson Internal Medicine (Data Analytics): Using Data Analytics—Analyzing and Summarizing Data with Excel Pivot 61 4-2 How to Use Excel Pivot to Analyze and Summarize Data 65 4-3 Exercises—Using Data Analytics (Anderson Internal Medicine) 77 4-4 Review Questions—Using Data Analytics (Anderson Internal Medicine) 81 Chapter 5: Case 5: Tracing Data Analytics Red Flags Back to Source Documents Using Subpoenas 85 5-1 Anderson Internal Medicine and Larsen Convenience Store (Conspiracy and Loan Fraud): Trace Transactions Discovered during Data Analytics Back to Source Documents Using Subpoenas 85 5-2 How to Write Wording to Subpoena Documents, Information, and/or Objects 89 5-3 Exercise—Anderson Internal Medicine and Larsen Convenience Store (Conspiracy and Loan Fraud) 91 Chapter 6: Reports, Schedules, and Audiovisuals 93 6-1 Writing a Fraud Examination Report 93 6-2 Formatting Schedules for Inclusion with Reports 100 6-3 How to Simplify the Complex with Audiovisuals 104 Chapter 7: Documents 115 7-1 Case 1: Fraudulent Financial Statements (Larsen Convenience Store) 115 Recorded Interview on January 2, 2016—Gregory Larsen 115 Authorization for Release of Financial Records 117 Sworn Statement in Proof of Loss 118 2013 IRS Individual Tax Returns (Schedules C) 121 2014 IRS Individual Tax Returns (Schedules C) 127 2015 IRS Individual Tax Returns (Schedules C) 133 2014 SBA Personal Financial Statements 138 2015 SBA Personal Financial Statements 141 2016 SBA Personal Financial Statements 144 Transcripts—2015 Sales and Use Taxes per Form ST-3 147 Shamrock Groceries 2015 Purchases by Month 148 Georgia-Tennessee Fuel Partners 2015 Purchases by Month 149 Marietta Beverage Company 2015 Purchases by Month 150 Discount Tobacco Supply 2015 Purchases by Month 151 Jenkins Media Services 2015 Purchases by Month 152 10-30-15 Physical Inventory 153 7-2 Case 2: Check Fraud, Debit Card Fraud, Cash Larceny (Anderson Internal Medicine) 155 Bank Reconciliation—April 1, 2016—Tonya Larsen 155 Bank Statement—March 2016 156 Canceled Checks (Front & Back) 158 Deposit Tickets—March 2016 168 Cash Receipts Journal—March 2016 173 Cash Disbursements Journal—March 2016 176 7-3 Case 3: Fraudulent Edits/Adjusting Journal Entries [Anderson Internal Medicine (Edits/AJEs)] 179 Report of Interview—Jennifer Anderson, MD 179 Data Extraction 203—Tonya Edits 181 Deposit tickets—January through March 2016 184 7-4 Case 4: Using Data Analytics: Analyzing and Summarizing Data with Excel Pivot [Anderson Internal Medicine (Excel Pivot)] 194 Excel Spreadsheet—Anderson Bank Transactions (Sep Oct Nov Dec Jan Feb) 194 7-5 Case 5: Tracing Data Analytics Red Flags Back to Source Documents Using Subpoenas [Anderson Internal Medicine and Larsen Convenience (Husband/Wife Loan Fraud and Conspiracy)] 210 Report of Interview—John Grayson 210 Credit Application—Waleska Bank 211 Waleska Bank Statement for Greg Larsen—December 2015 213 Front of Official Checks—Loan No. 15-3989 215 Back of Official Checks—Loan No. 16-3989 216 Front of Checks for Account 7011176 (Greg Larsen) 217 Back of Checks for Account 7011176 (Greg Larsen) 218 Sample U.S. Court Subpoena to Produce Documents, Information, or Objects or to Permit Inspection of Premises in a Civil Action 221 Sample U.S. Court Subpoena to Produce Documents, Information, or Objects in a Criminal Case 223 Sample U.S. Court Subpoena to Testify Before a Grand Jury 225 Sample U.S. Court Subpoena to Testify at a Deposition in a Criminal Case 227 Sample U.S. Court Subpoena to Testify at a Hearing or Trial in a Criminal Case 229 About the Authors 231 About the Website 233 Index 235

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Book SynopsisExploring the Human Element of Financial Planning Communication Essentials for Financial Plannerstackles thecounselingside of practice to help financial planners build more productive client relationships. CFP Board's third book and first in the Financial Planning Series, Communication Essentials will help you learn how to relate to clients on a more fundamental level, and go beyond hearing their words to reallylistenand ultimately respond to what they''re saying. Expert coverage of body language, active listening, linguistic signals, and more, all based upon academic theory. There is also an accompanied set of videos that showcase both good and bad communication and counseling within a financial planning context. By merging written and experiential learning supplemented by practice assignments, this book provides an ideal resource for any client-facing financial professional as well as any student on their pathway to CFP certification. Table of ContentsPreface xi Acknowledgments xxv How to Use This Book xxvii Introduction xxix Chapter 1 An Introduction to Applied Communication 1 Introduction Financial Planning Outcomes Communication Defined The Theory of Communication The Importance of Feedback Conclusion Summary Chapter Applications Notes Chapter 2 Structuring the Process of Interpersonal Communication 21 Introduction Social Penetration Theory Orientation Exploration Affective Exchange Stable Exchange Relationship Benefits and Costs Accounting for Stress Building Client Trust: An Appreciative Inquiry Example Summary Chapter Applications Notes Chapter 3 Structuring the Process of Communication through the Office Environment 37 Introduction Identifying Target Clientele Understanding the Office Environment Stress and Communication: Bringing the Pieces Together Summary Chapter Applications Notes Chapter 4 Listening Skills 57 Paying Attention to the Client Attending to What Is Said Interpreting What Is Heard Transference and Countertransference Passive versus Active Listening and Responding Silence: A Stressful Time for Client and Financial Planner Responding to “I Don’t Know” Summary Chapter Applications Notes Chapter 5 Questioning 75 Introduction Open-Ended Questions Closed-Ended Questions Choosing Between Open and Closed-Ended Questions Question Transformations Swing Questions Implied and Projective Questions Scaling Questions Summary Chapter Applications Notes Chapter 6 Nondirective Communication 91 Why Nondirective Communication? Outcomes Associated with Nondirective Communication Clarification Summarization Reflection Paraphrasing Styles of Paraphrasing Summary Chapter Applications Notes Chapter 7 Directive Communication 109 Direction: The Essence of Financial Planning Interpretation Reframing Explanation Advice Suggestion Urging Confrontation Ultimatum Summary Chapter Applications Notes Chapter 8 Trust, Culture, and Communication Taboos 135 Understanding a Client’s Cultural Attributes Interpersonal Preference Risk Management Culture and Trust Communication Taboos A Cultural Example Summary Chapter Applications Notes Chapter 9 Politeness and Sensitivity in Communicating with a Broad Range of Clients 157 The Power of Language Politeness Politeness through Inclusion versus Exclusion Sensitivity Language Sensitivity Summary Chapter Applications Notes Chapter 10 Financial Planning—A Sales Perspective 173 Sales Models The Challenger Model The Consultative Model Manipulation versus Persuasion Consultative Selling and Compensation Understanding Client Behavior Dealing with “No” The Ethics of Selling Summary Chapter Applications Notes Solutions 189 About the Authors 193 About the Companion Website 195 Index 197

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Book SynopsisDelve into the mind of a fraudster to beat them at their own game Corporate Fraud Handbook details the many forms of fraud to help you identify red flags and prevent fraud before it occurs.Table of ContentsPreface About the ACFE Chapter 1: Introduction Defining “Occupational Fraud and Abuse” Research in Occupational Fraud and Abuse 2016 Report to the Nation on Occupational Fraud and Abuse PART I: ASSET MISAPPROPRIATIONS Chapter 2: Introduction to Asset Misappropriations Overview Definition of “Assets” How Asset Misappropriations Affect Books of Account CHAPTER 3: Skimming Skimming Data from the ACFE 2015 Global Fraud Survey Unrecorded Sales Understated Sales and Receivables Theft of Checks Through The Mail Short-Term Skimming Converting Stolen Checks Concealing The Fraud Detection Prevention Chapter 4: Cash Larceny Overview Cash Larceny Data from the ACFE 2015 Global Fraud Survey Incoming Cash Cash Larceny from the Deposit Miscellaneous Larceny Schemes Detection Prevention Chapter 5: Check Tampering Overview Check Tampering Data from the ACFE 2015 Global Fraud Survey Forged Maker Schemes Intercepted Checks Forged Endorsement Schemes Altered Payee Schemes Concealed Check Schemes Authorized Maker Schemes Concealment Detection Check Tampering Red Flags Prevention Electronic Payment Tampering Chapter 6: Register Disbursement Schemes Overview Register Disbursement Data from the ACFE 2015 Global Fraud Survey False Refunds False Voids Concealing Register Disbursements Detection Prevention Chapter 7: Billing Schemes Overview Billing Scheme Data from the ACFE 2015 Global Fraud Survey Shell Company Schemes Non-Accomplice Vendor Schemes Personal Purchases with Company Funds Detection Prevention Chapter 8: Payroll and Expense Reimbursement Schemes Overview Payroll Scheme Data from the ACFE 2015 Global Fraud Survey Payroll Schemes Detection of Payroll Schemes Prevention of Payroll Schemes Expense Reimbursement Data from The ACFE 2015 Global Fraud Survey Expense Reimbursement Schemes Detection of Expense Reimbursement Schemes Prevention of Expense Reimbursement Schemes Chapter 9: Inventory and Other Noncash Assets Overview: Noncash Misappropriation Data from the ACFE 2015 Global Fraud Survey Misuse of Inventory and Other Assets Theft of Inventory and Other Assets Concealment Detection Prevention Misappropriation of Intangible Assets PART II: CORRUPTION Chapter 10: Bribery Overview Corruption Data from the ACFE 2015 Global Fraud Survey Bribery Schemes Something of Value Economic Extortion Illegal Gratuities Detection Prevention Anti-Corruption Legislation Chapter 11: Conflicts of Interest Overview Purchasing Schemes Sales Schemes Other Schemes Detection Prevention PART III: FINANCIAL STATEMENT FRAUD Chapter 12: Accounting Principles and Fraud Introduction Fraud in Financial Statements Major Generally Accepted Accounting Principles Responsibility for Financial Statements Users of Financial Statements Types of Financial Statements Sarbanes-Oxley Act Financial Statement Fraud Data from the ACFE 2015 Global Fraud Survey Chapter 13: Financial Statement Fraud Schemes Overview Defining Financial Statement Fraud Costs of Financial Statement Fraud Methods of Financial Statement Fraud Detection of Financial Statement Fraud Schemes Deterrence of Financial Statement Fraud Chapter 14: Occupational Fraud and Abuse: The Big Picture Defining “Abusive Conduct” Measuring the Level of Occupational Fraud and Abuse Understanding Fraud Deterrence Corporate Sentencing Guidelines Ethical Connection Concluding Thoughts Appendix: Sample Code of Business Ethics and Conduct Bibliography Index

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Book SynopsisThe writing bible for financial professionals The Investment Writing Handbook provides practical, accessible guidance for crafting more effective investor communications. Written by an award-winning writer, editor, and speechwriter, this book explains the principles and conventions that help writing achieve its purpose; whether you need to inform, educate, persuade, or motivate, you''ll become better-equipped to develop a broad range of communications and literature for investor consumption. Examples from real-world financial institutions illustrate expert execution, while explanations and advice targeted specifically toward investor relations give you the help you need quickly. From white papers and investment commentary to RFPs, product literature, and beyond, this book is the financial writer''s bible that you should keep within arm''s reach. Investment writing is one of the primary influences on investors'' attitudes. It educates, informs decisions, shapes Table of ContentsPreface xi Introduction: For Whom is This Handbook, and Why? xiii Acknowledgments xv About the Author xvii Chapter 1 The Building Blocks of Investment Writing 1 What’s Investment Writing All About? 1 Applying Journalistic Principles to Investment Writing 2 The Five Ws and the Pyramid Principle 3 Inquisitiveness 4 Proactive Idea Generation 6 The Strategic Purposes of Investment Writing 7 Note 8 Chapter 2 Writing for Investor Acquisition and Retention 9 Framing Your Investment Proposition as the Solution to a Problem 11 Step 1: Define Your Offering 12 Step 2: Identify Your Client’s Problem 12 Step 3: Acknowledge the Problem 14 Step 4: Frame Your Offering to Address the Investor’s Concerns 14 Investor Retention: It’s All in the Communication 15 Opportunities for Retentive Communications 17 Facts are Key for Reassuring Your Investors 19 Other Considerations for Reassuring Investors 27 Notes 31 Chapter 3 Writing for Intermediaries 33 How Intermediaries Expect You to Communicate 34 Communicate on a Consistent Basis 34 Crystallize the Details of Your Firm’s Offerings 35 Provide Timely, Turnkey Investment Literature 35 Keep Your Communications Targeted 37 Intermediaries Don’t Have It Easy, So Help Them Out 38 Chapter 4 Stylistic Considerations for Investment Writing 39 Setting the Appropriate Style 41 The Desired Image and Voice an Investment Firm or Professional Wishes to Project 42 The Type of Literature Being Written 43 The Investor’s Presumed Knowledge about the Subject Matter 47 On Using Jargon 48 Refrain from Explaining Certain Jargon to Highly Sophisticated Investors 49 Distinguish Between the Three Broad Levels of Investment Literacy 50 Alternatives to Explaining Jargon 52 Cut Through Extraneous Technical Detail 53 If You Risk Being Vague, Err on the Side of Clarity 54 Introduce Fresh Alternatives to Trite Jargon 56 Be Discerning about Nuance 58 Use Plain Language—Even If It’s Technical 62 Piquing Investors’ Interest 64 Forge a Compelling Storyline for Your Piece 64 Craft Alluring Headlines 64 Incorporate Storytelling and Anecdotes 66 Animate Your Writing with Quotations, Metaphors, and Other References 66 The Value of a Style Guide for Investment Writing 67 Key Areas to Cover in Your Firm’s Style Rules 68 Syntax, Wording, and Formatting 68 First-Person Pronouns and Possessives 69 Chart Labeling 70 International Considerations 70 Inessential Words 71 Cumbersome Constructions 72 Legal Considerations 72 Tone 73 Principles for Creating Scannable Copy 75 Addressing Common Language Mistakes 75 A Parting Note on Style 76 Notes 76 Chapter 5 Developing an Architecture of Investment Content 77 Part 1: Foundational Literature 78 Firm-Overview and Investment-Capabilities Brochures 78 Strategy and Product Profiles 84 Packaging Your Strategy or Product Profile with Other Literature 107 RFP Responses 107 Pitch Books 114 Case Studies 117 Topical Brochures 121 Concluding Foundational Literature with a Call to Action 126 Part 2: Intellectual Capital 126 The Strategic Use of Intellectual Capital 127 The Elements of Intellectual Capital 131 The Packaging of Intellectual Capital 132 The Process of Writing Long-Form Literature 140 Part 3: Educational Literature 144 Part 4: Digital and Social Media 147 Part 5: Shareholder Communications 149 Fund-Performance Commentary 150 Now That You’ve Mapped Architecture… 152 Notes 153 Chapter 6 How to Simplify Complex Investment Subjects 155 Think Bits—Not Pieces 155 Visualize the Idea for Your Readers 157 Start with a Preamble 158 Lay Out a Table 160 Use a Frame of Reference, Analogy, or Metaphor 160 Give an Example 162 Note 162 Chapter 7 How to Make Investment Writing Legally Compliant 163 Avoid Absolutes, Superlatives, and Definitive Statements… 165 You Can Be Predictive—But Not Promissory 167 Be Specific Enough for Clarity—Yet General Enough to Accommodate Exceptions 170 Time-Stamp Anything That’s Impermanent 171 Cherries are Not for Picking—and Securities Come at a Price 171 Negotiate Gray Areas with Your Legal Reviewer 172 Use Caution When Navigating Word Subtleties 174 Avoid Redundant Qualifications 174 Unless You’re Permitted, Do Not Dispense Investment Advice 175 Social (Media) Butterflies are Not Exempt from Regulatory Requirements 176 Consult a Legal Specialist When Writing about Investment Performance 177 Seek Ways to Streamline the Legal Review 177 Diversify Your Language 178 On Legalities, Creativity, and Integrity 179 Notes 179 Epilogue: Where Investment Writing is Headed in the Twenty-First Century 181 Index 185

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Book SynopsisA practical, informative guide to banks' major weakness Legal Data for Banking defines the legal data domain in the context of financial institutions, and describes how banks can leverage these assets to optimise business lines and effectively manage risk. Legal data is at the heart of post-2009 regulatory reform, and practitioners need to deepen their grasp of legal data management in order to remain compliant with new rules focusing on transparency in trade and risk reporting. This book provides essential information for IT, project management and data governance leaders, with detailed discussion of current and best practices. Many banks are experiencing recurrent pain points related to legal data management issues, so clear explanations of the required processes, systems and strategic governance provide immediately-relevant relief. The recent financial crisis following the collapse of major banks had roots in poor risk data management, and the regulators' unawareTable of ContentsPreface vii Acknowledgements ix 1 The Role of Data in a Financial Crisis 1 2 The Law, Legal System and Basics of Contract Law 11 3 Structured Finance and Financial Products – Derivatives 27 4 Data, Data Modelling and Governance 53 5 BCBS 239 – Legal Data in Risk Aggregation 81 6 Capital and Netting 89 7 Collateral – Enforceability, Reform and Optimisation 115 8 CASS – Client Assets and Client Money 155 9 Liquidity Risk Management and Reporting 167 10 Contractual Impediments – Recovery and Resolution Planning 187 11 Document Generation/Data-Driven Contracts 213 12 Smart Contracts 233 13 Electronic and Digital Signatures 259 Appendix A 267 Appendix B 271 Appendix C 279 Index 281

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Book SynopsisEnsure that you''re using the most up-to-date data available: Buy the2017 Valuation Handbook U.S. Guide to Cost of Capital + Quarterly PDF Updates together!The New Industry Standard in Business Valuation Reference Materials2017 Valuation Handbook U.S. Guide to Cost of Capital provides the key annual valuation data previously published in (i) the now discontinued Morningstar/IbbotsonSBBI Valuation Yearbook (discontinued in 2013), and (ii) the Duff & PhelpsRisk Premium Report Study (no longer published as a stand-alone publication).The size premia data previously published in theSBBI Valuation Yearbook is referred to as the CRSP Deciles Size Premia exhibits in the new2017 Valuation Handbook U.S. Guide to Cost of Capital, while the size and risk premia data published in the Duff & PhelpsRisk Premium ReportStudy has been publTable of ContentsAcknowledgements xiv Introduction xv Chapter 1 Cost of Capital Defined 1-1 Introduction 1-1 Income Approach Overview 1-2 Discounting versus Capitalizing Concepts 1-2 Valuation Date 1-5 Basic Cost of Capital Concepts 1-5 Sources of Capital 1-9 Cost of Capital Input Assumptions 1-10 Capital Structure Considerations 1-16 Calculating WACC 1-18 Estimates of Cost of Capital are Imprecise 1-19 Key Things to Remember about Cost of Capital 1-21 Chapter 2 Methods for Estimating the Cost of Equity Capital 2-1 Basic Framework 2-1 Types of Risk 2-6 Cost of Equity Capital Estimation Methods 2-8 Build-up 2-10 CAPM 2-11 Other Cost of Equity Capital Estimation Methods 2-15 Key Things to Remember about the Methods for Estimating the Cost of Equity Capital 2-17 Chapter 3 Basic Building Blocks of the Cost of Equity Capital– Risk-free Rate and Equity Risk Premium 3-1 The Risk-free Rate and Equity Risk Premium: Interrelated Concepts 3-1 Spot Risk-free Rates versus Normalized Risk-free Rates 3-2 Global Turbulence and Impact on Interest Rates 3-14 Methods of Risk-free Rate Normalization 3-19 Spot Yield or Normalized Yield? 3-23 Concluded Normalized Risk-free Rate 3-25 Equity Risk Premium 3-26 Estimating the Equity Risk Premium 3-27 Duff & Phelps Recommended U.S. ERP 3-38 Economic and Financial Market Indicators 3-39 Quantitative Models 3-44 Concluding on an ERP 3-48 Chapter 4 Basic Building Blocks of the Cost of Equity Capital – Size Premium 4-1 Size as a Predictor of Equity Returns 4-1 Possible Explanations for the Greater Returns of Smaller Companies 4-2 The Size Effect: Empirical Evidence 4-2 The Size Effect Over Longer Periods 4-3 The Size Effect Tends to Stabilize Over Time 4-6 The Size Effect Changes Over Time 4-7 Criticisms of the Size Effect 4-8 Data Issues 4-12 Has the Size Effect Disappeared in More Recent Periods? 4-17 Relationship of Size and Liquidity 4-21 Key Things to Remember about the Size Premium 4-26 Chapter 5 Basic Building Blocks of the Cost of Equity Capital – Betas and Industry Risk Premia 5-1 Beta 5-1 Differences in Estimation of Equity Betas 5-7 Full-Information Beta 5-11 Industry Risk Premia 5-12 Full-Information Beta Methodology 5-16 Debt Betas 5-17 Unlevering and Levering Equity Betas 5-18 Key Things to Remember about Betas and the Industry Risk Premia 5-19 Chapter 6 Basic Building Blocks of the Cost of Equity Capital – Company-specific Risk Premia 6-1 Introduction 6-1 Adjustments for Differences in Risk 6-2 Adjustments for Risk in Net Cash Flows and Biased Projections 6-5 Adjustments for Other Risk Factors 6-7 Matching Fundamental Risk and Return 6-8 Key Things to Remember about Company-specific Risk Premia 6-10 Chapter 7 The CRSP Deciles Size Premia Studies and the Risk Premium Report Studies– A Comparison 7-1 History of the CRSP Deciles Size Premia Studies 7-1 History of the Risk Premium Report Studies 7-2 Data Sources 7-2 Definitions of “Size” 7-6 Time Period Examined 7-7 Number of Portfolios 7-7 Portfolio Overlap 7-7 Guideline Portfolio Method and Regression Equation Method 7-8 Risk Premia Over CAPM (Size Premia) 7-8 “Smoothed” Premia versus “Average” Premia 7-12 OLS Beta versus Sum Beta 7-12 Risk Premia Over the Risk Free Rate 7-12 Unlevered Premia 7-13 Risk Study 7-13 Characteristics of Companies in Portfolios 7-13 Online Applications 7-14 Chapter 8 CRSP Deciles Size Premia Examples 8-1 Build-up Example 8-1 CAPM Example 8-4 Key Things to Remember about the CRSP Deciles Size Premia 8-7 Chapter 9 Risk Premium Report Exhibits – General Information 9-1 Appropriate Use of the Risk Premium Report Exhibits 9-1 How the Risk Premium Report Exhibits are Organized 9-2 Cost of Equity Capital Estimation Methods Available 9-3 Proper Application of the Equity Risk Premium (ERP) Adjustment 9-4 “Smoothed” Premia versus “Average” Premia 9-7 The “Guideline Portfolio Method” versus the “Regression Equation Method” 9-8 Example: Calculating an Interpolated Premium Using the Regression Equation Method 9-9 Tips Regarding the Regression Equation Method 9-10 Can the Regression Equation Method be Used If the Subject Company Is Small? 9-10 Size Study or Risk Study? 9-11 Key Things to Remember About the Risk Premium Report Exhibits 9-12 Chapter 10 Risk Premium Report Exhibits – Examples 10-1 Size Study 10-1 Reasons for Using Additional Measures of Size 10-1 The Difference Between the Size Study’s A Exhibits and the B Exhibits 10-2 The Difference Between “Risk Premia Over the Risk-free Rate” and “Risk Premia Over CAPM” 10-2 Calculating Custom Interpolated Premia for Smaller Companies 10-6 Overview of Methods Used to Estimate Cost of Equity Capital Using the Size Study 10-9 Size Study Examples: Assumptions Used 10-10 Size Study Examples 10-12 Unlevered Cost of Equity Capital 10-17 Overview of the Methodology and Assumptions Used to Unlever Risk Premia 10-18 Estimating Cost of Equity Capital Using the “Build-up 1-Unlevered” Method 10-22 Estimating Cost of Equity Capital Using the Capital Asset Pricing Model (CAPM) 10-26 Estimating Cost of Equity Capital Using the “Build-up 2” Method 10-30 Risk Study 10-35 Overview of Methods Used to Estimate Cost of Equity Capital Using the Risk Study 10-42 Risk Study Examples 10-45 Build-up 3-Unlevered 10-49 High-Financial-Risk Study 10-51 Overview of Methods Used to Estimate Cost of Equity Capital Using the High-Financial-Risk Study 10-57 Estimating Cost of Equity Capital Using the “Build-up 1-High-Financial-Risk” Method 10-58 Estimating Cost of Equity Capital Using the “CAPM-High-Financial-Risk” Method 10-61 Comparative Risk Study 10-63 Using the Comparative Risk Study to Refine Build-up Method Estimates 10-67 Using the Comparative Risk Study to Refine CAPM Estimates 10-69 Chapter 11 Real Estate 11-1 Individual Real Estate Assets 11-1 Real Estate Investment Trusts (REITs) 11-2 Structure of Real Estate Entities 11-3 Correlation of U.S. REITs Compared to Other U.S. Asset Classes 11-4 Summary Statistics of U.S. REITs Compared to Other U.S. Asset Classes 11-6 Real Estate Property Valuation Inputs 11-8 Key Things to Remember about Real Property Valuation 11-17 Chapter 12 Answers to Commonly Asked Questions 12-1 Glossary Index Appendix 1 – Definitions of Standard & Poor’s Compustat Data Items Used to Calculate the Risk Premium Report Exhibits Appendix 2 – Changes to the Risk Premium Report Over Time Appendix 3 – CRSP Deciles Size Premia Study: Key Variables Appendix 3a – Industry Risk Premium (RPi) Appendix 3b – Debt Betas Appendix 4 – Risk Premium Report Study Exhibits

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Book SynopsisA comprehensive and fully up-to-date introductory textbook to Islamic finance and banking Islamic finance and banking is being used increasingly globally especially in the regions of Middle East and North Africa, South East and South Asia. To cater to the need of trained Islamic finance staff, a large number of Educational institutions are beginning to offer courses, majors and minors in Islamic finance and banking. The major challenge faced by these institutions are suitable textbooks for both undergrad and post-grad levels and especially with the relevant instructor resources (PPTs, test bank, practice activities and answer keys). Luckily, Fundamentals of Islamic Finance and Banking is here to cover the most important topics related to Islamic finance and banking (IF&B) that are relevant for students of business, finance and banking. Offers an historical background of Islamic financeCovers the principles of Sharia Law as pertinent to finance and bankingProvides in-depth discussioTable of ContentsList of Figures xv List of Tables xvii Acknowledgements xix About the Author xxi Preface xxiii About the Website xxv Chapter 1 Introduction to Islamic Finance and Islamic Economics 1 Introduction 1 Creation of Money and Conventional Finance and Banking 2 Definition of Islamic Finance and Banking 3 Distinctive Features of Islamic Finance 3 Economics and Islam 4 Economics in Ancient Times 4 Modern Economics 5 Islamic Economics 6 History of Islamic Economic Thought 6 Principles of Islamic Economics 7 Islam’s Solution to the Classic Economic Problem 7 Islam and the Welfare Economy 8 Property Ownership in Islamic Economics 8 Zakat and Sadaqah 8 Ban on Interest versus Cost of Capital in Islam 9 Conventional Economics versus Islamic Economics 9 Evolution of Islamic Finance 11 Early Days 11 Birth of Modern Islamic Finance 12 Institutional Developments During the Revival of Modern Islamic Finance 12 The Mit Ghamr Experiment 13 Tabung Haji 13 Islamic Development Bank 14 Dubai Islamic Bank 14 Rapid Growth of the Islamic Finance and Banking Industry 14 Islamic Finance and Banking in Muslim Communities and Countries 15 Islamic Finance and Banking in Non-Muslim Countries 16 Sub-sectors in the Islamic Finance and Banking Industry 16 Current Status of Modern Islamic Finance and Banking 17 Timeline of Development of Contemporary Islamic Finance and Banking 18 Key Terms and Concepts 21 Chapter Summary 21 Chapter 2 Shariah Law and the Shariah Supervisory Board 27 Introduction to the Islamic Law – Shariah 27 Sources of Shariah 28 Schools of Islamic Jurisprudence 29 Ethics in Shariah-Compliant Business and Finance 30 Major Shariah Prohibitions and Principles and their Implications 31 Prohibition of Interest or Riba 31 Prohibition of Uncertain Dealings or Gharar 32 Prohibition of Speculative Behaviour or Maysir 33 Shariah Supervisory Board (SSB) 34 Introduction to the SSB 34 Formation of the SSB 35 Status of the SSB Within the Industry 36 Functions of the SSB 36 Corporate and Shariah Governance 38 Shariah Governance Process 38 Key Terms and Concepts 39 Chapter Summary 39 Chapter 3 Islamic Banking versus Conventional Banking 47 Introduction to Islamic Banking 47 Islamic Banking versus Conventional Banking 49 Similarities Between Conventional and Islamic Banks 49 Differences Between Conventional and Islamic Banking 49 Relationship with the Central Banks 50 Risks of Banks – Generic and Specific to Islamic Banks 51 Generic Risks 51 Risks Specific to Islamic Banks 52 Financial Intermediation 54 The Definition of Financial Intermediation 54 Conventional Financial Intermediation 54 Islamic Financial Intermediation 54 Islamic Financial Intermediation Models 56 Distribution of Islamic Banking Products 58 Conventional versus Islamic Financial Intermediation 58 Balance Sheet of an Islamic Bank – Sources and Uses of Funds by an Islamic Bank 59 Sources of Funds 59 Application of Funds 60 Contracts in Shariah Law 61 Contracts of Exchange in Shariah-Compliant Commerce and Finance 62 Common Islamic Banking Products 63 Retail Islamic Banking Products 63 Corporate Islamic Banking Products 64 Financial Accounting in Islamic Banking 65 Objectives of Islamic Financial Accounting 66 Features of Islamic Financial Accounting 66 Challenges Faced by Islamic Banks 67 Islamic Finance and the Financial Crisis 68 International Islamic Regulatory and Standard Setting Bodies 68 Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) 69 Islamic Financial Services Board (IFSB) 69 Liquidity Management Centre (LMC) and International Islamic Liquidity Management (IILM) 70 International Islamic Financial Market (IIFM) 70 International Islamic Rating Agency (IIRA) 70 General Council for Islamic Banks and Financial Institutions (CIBAFI) 71 International Islamic Centre for Reconciliation and Commercial Arbitration for Islamic Finance Industry (IICRCA) 71 Islamic Development Bank (IDB) 71 International Islamic Fiqh Academy 72 Key Terms and Concepts 73 Chapter Summary 73 Chapter 4 Murabaha 79 Introduction to Murabaha 79 Conditions Related to Murabaha 81 Calculation of Murabaha Profit 83 The Murabaha Process 83 Practical Applications of Murabaha 85 Tawarruq, Reverse Murabaha or Commodity Murabaha 85 Challenges and Problems Associated with Murabaha 86 Comparison of Murabaha with Conventional Loans 88 Key Terms and Concepts 90 Chapter Summary 90 Chapter 5 Mudaraba 95 Introduction to Mudaraba 95 Use of Mudaraba for Financial Intermediation of Islamic Banks 96 Profit Calculation in Mudaraba 97 Provisions and Reserves Related to Mudaraba 98 Mudaraba as a Limited Recourse Debt Finance 99 Types of Mudaraba 99 Shariah Conditions Related to Mudaraba 100 Additional Conditions Related to Mudaraba 101 Challenges and Problems Related to Mudaraba 102 Practical Applications of Mudaraba 102 Comparison of Mudaraba with Interest-Based Conventional Banking 102 Accounting Issues Related to Mudaraba 104 Key Terms and Concepts 104 Chapter Summary 105 Chapter 6 Musharaka 111 Introduction to Musharaka 111 Types of Musharaka 112 Shariah Rules and General Principles Guiding Musharaka Contracts 114 Problems Related to Musharaka 115 Practical Uses of Musharaka 116 Examples of the Use of Diminishing Musharaka 118 Securitization of Musharaka 121 Comparison of Musharaka with Interest-Based Financing 121 Comparison of Musharaka with Mudaraba Financing 122 Key Terms and Concepts 123 Chapter Summary 123 Chapter 7 Ijara 129 Introduction to Ijara 129 Ijara in Islamic Banks 130 Types of Ijara 130 Ijara, Regular Ijara or Operating Lease 130 Ijara wa Iqtina, Ijara Muntahia Bittamleek or Financial Lease 131 Ijara Thumma al Bay 132 Shariah Rules and General Principles Guiding Ijara Contracts and their Characteristics 132 Documentation Related to the Ijara Contract 136 Main Differences Between Ijara and a Conventional Lease 136 Differences Between Ijara and a Conventional Loan Contract 138 Differences and Similarities Between Ijara Wa Iqtina and Diminishing Musharaka 139 Practical Applications of the Ijara Contract 139 Calculation of Lease Rentals 139 Practice Calculations 139 Key Terms and Concepts 140 Chapter Summary 140 Chapter 8 Salam 145 Introduction to Salam 145 Important Characteristics of the Salam Contract 146 History of the Salam Contract and its Shariah Acceptability 147 Benefits of the Salam Contract 148 Role of Islamic Banks in Salam and the Parallel Salam Contract 148 Salam and Parallel Salam Diagram and Process 149 Practical Application of Salam 150 A Practical Example 150 Problems Related to Salam Contracts 151 Comparison of Salam Contract with Conventional Banking 151 Key Terms and Concepts 151 Chapter Summary 152 Chapter 9 Istisna 155 Introduction to Istisna 155 Shariah Rules and General Principles Guiding Istisna Contracts and their Characteristics 156 Role of Islamic Banks in Istisna and Parallel Istisna 158 Description of the Process 159 Problems Related to Istisna and Parallel Istisna 160 Comparison of Istisna with Interest-Based Finance, Salam and Ijara 161 Difference Between Salam and Istisna 162 Comparison of Istisna with Ijara 163 Practical Application of Istisna 163 Key Terms and Concepts 164 Chapter Summary 164 Chapter 10 Takaful 169 Background of Takaful 169 Modern Takaful Industry as an Alternative to Conventional Insurance 170 Parties in Takaful 171 Shariah Rules and General Principles Guiding Takaful Contracts and their Characteristics 172 The Development of Takaful 174 During the Time of the Prophet 174 The 18th and 19th Centuries 174 20th Century 174 The 21st Century and Moving Forward 175 Challenges Faced by the Modern Takaful Industry 176 Types of Takaful 177 General Takaful 177 Family Takaful 178 Operational Structure of Takaful 180 Takaful Models 181 Pure Wakala Model 181 Pure Mudaraba Model 183 Wakala and Mudaraba Combined or Hybrid Model 185 Waqf–Wakala–Mudaraba Model 185 Comparison of the Different Takaful Models 187 Underwriting Surplus or Deficit and Technical Provisions 189 Allocation of Underwriting Surplus 189 Management of Underwriting Deficit 190 Conventional Mutual Insurance and Takaful 190 Similarities and Difference Between Takaful and Conventional Insurance 191 Similarities 191 Differences 191 Retakaful 196 Similarities Between Retakaful and Reinsurance 197 Differences Between Retakaful and Reinsurance 197 Key Terms and Concepts 198 Chapter Summary 199 Chapter 11 Islamic Investments and Sukuks 205 Investment Markets and Products 205 Islamic Investments 207 Money Markets – Islamic Perspective 207 Capital Markets – Islamic Perspective 208 Dealing with Non-compliant Stocks 209 Purification of Income Distribution 210 Islamic Asset and Fund Management 210 Islamic Unit Trust or Mutual Fund 211 Common Types of Islamic Investment Fund 212 Islamic Real Estate Investment Trusts 213 Similarities Between REITs and I-REITs 214 Differences Between REITs and I-REITs 215 Risks and Challenges Inherent in the Islamic Capital Markets 216 Shariah Governance and the Shariah Supervisory Board in Islamic Investment 216 Comparison of Islamic Investments with Conventional Investments 217 Introduction to Sukuks 218 Characteristics of the Islamic Investment Product – Sukuk 218 Types of Sukuks 220 Ijara Sukuk 220 Istisna Sukuk 222 Salam Sukuk 223 Murabaha Sukuk 223 Mudaraba Sukuk 224 Musharaka Sukuk 226 Controversy Related to Sukuks 227 Rating of Sukuks 229 Trading of Sukuks on the Secondary Markets 229 Comparison of Sukuks with Conventional Bonds 230 Common Advantages of Both Conventional Bonds and Sukuks 230 Differences Between Conventional Bonds and Sukuks 231 Key Terms and Concepts 235 Chapter Summary 235 Chapter 12 Global Standing of Islamic Finance and Banking 241 Background of Modern Islamic Finance and Banking 241 Conventional versus Islamic Finance 242 Global Growth of the Islamic Finance and Banking Industry 243 Islamic Finance and Banking and the Muslim Community 245 Banking and Islamic Banking in the Middle East and the GCC 246 Banking and Islamic Banking in South and South-East Asia and Beyond 247 Achievements and Opportunities in Global Islamic Finance and Banking 247 Challenges Faced by Islamic Finance and Banking 248 Social Responsibilities of Islamic Finance 253 Going Forward 254 Key Terms and Concepts 255 Chapter Summary 255 Glossary 257 References 271 Index 277

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Book SynopsisIllustrates how R may be used successfully to solve problems in quantitative finance Applied Probabilistic Calculus for Financial Engineering: An Introduction Using R provides R recipes for asset allocation and portfolio optimization problems. It begins by introducing all the necessary probabilistic and statistical foundations, before moving on to topics related to asset allocation and portfolio optimization with R codes illustrated for various examples. This clear and concise book covers financial engineering, using R in data analysis, and univariate, bivariate, and multivariate data analysis. It examines probabilistic calculus for modeling financial engineeringwalking the reader through building an effective financial model from the Geometric Brownian Motion (GBM) Model via probabilistic calculus, while also covering Ito Calculus. Classical mathematical models in financial engineering and modern portfolio theory are discussedalong with the Two Mutual Fund TheoTable of ContentsPreface Dedication Chapter 1: Introduction to Financial Engineering 1 Introduction to Financial Engineering 1.1 What is Financial Engineering? 1.2 The Meaning of the Title of this Book 1.3 The Continuing Challenge in Financial Engineering 1.4 “Financial Engineering 101”: Modern Portfolio Theory[2] 1.5 Asset Class Assumptions Modeling 1.6 Typical Examples of Proprietary Investment Funds 1.7 The Dow Jones Industrial Average (DJIA) and Inflation 1.8 Some Less Commendable Stock Investment Approaches 1.9 Developing Tools for Financial Engineering Analysis Solutions to Exercises in Chapter 1: Chapter 2: Probabilistic Calculus for Modeling Financial Engineering 2.1 Introduction to Financial Engineering 2.2 Mathematical Modeling in Financial Engineering 2.3 Building an Effective Financial Model from GBM via Probabilistic Calculus 2.4 A Continuous Financial Model Using Probabilistic Calculus (Stochastic Calculus, Ito Calculus) 2.5 Numerical Examples of Representation of Financial Data Using R Chapter 3: Classical Mathematical Models in Financial Engineering and Modern Portfolio Theory 3.0 An Introduction to the Cost of Money in the Financial Market 3.1 Modern Theories of Portfolio Optimization 3.2 The Black-Litterman Model 3.3 The Black-Scholes Option Pricing Model Chapter 4: Data Analysis Using R Programming 4.1 Data and Processing 4.2 Beginning R 4.3 R as a Calculator 4.4 Using R in Data Analysis in Financial Engineering 4.5 Univariate, Bivariate, and Multivariate Data Analysis Appendix 1: Documentation for the plot function Special References for Chapter 4 Chapter 5: Assets Allocation Using R 5.1 Risk Aversion and the Assets Allocation Process 5.2 Classical Assets Allocation Approaches 5.3 Allocation with Time Varying Risk Aversion 5.4 Variable Risk Preference Bias 5.5 A Unified Approach for Time Varying Risk Aversion 5.6 Assets Allocation Worked Examples Chapter 6: Financial Risk Modeling and Portfolio Optimization Using R 6.1 Introduction to the Optimization Process 6.2 Optimization Methodologies in Probabilistic Calculus for Financial Engineering 6.3 Financial Risk Modeling and Portfolio Optimization References Index

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Book SynopsisA career's worth of portfolio management knowledge in one thorough, efficient guide Portfolio Management is an authoritative guide for those who wish to manage money professionally. This invaluable resource presents effective portfolio management practices supported by their underlying theory, providing the tools and instruction required to meet investor objectives and deliver superior performance. Highlighting a practitioner's view of portfolio management, this guide offers real-world perspective on investment processes, portfolio decision making, and the business of managing money for real clients. Real world examples and detailed test casessupported by sophisticated Excel templates and true client situationsillustrate real investment scenarios and provide insight into the factors separating success from failure. The book is an ideal textbook for courses in advanced investments, portfolio management or applied capital markets finance. It is also a useful tool for practitioners who seek hands-on learning of advanced portfolio techniques. Managing other people's money is a challenging and ever-evolving business. Investment professionals must keep pace with the current market environment to effectively manage their client's assets while students require a foundation built on the most relevant, up-to-date information and techniques. This invaluable resource allows readers to: Learn and apply advanced multi-period portfolio methods to all major asset classes. Design, test, and implement investment processes. Win and keep client mandates. Grasp the theoretical foundations of major investment tools Teaching and learning aids include: Easy-to-use Excel templates with immediately accessible tools. Accessible PowerPoint slides, sample exam and quiz questions and sample syllabiVideo lectures Proliferation of mathematics in economics, growing sophistication of investors, and rising competition in the industry requires advanced training of investment professionals. Portfolio Management provides expert guidance to this increasingly complex field, covering the important advancements in theory and intricacies of practice.Table of ContentsAbout the Authors ix Acknowledgments xi Preface xiii Chapter 1 Introduction 1 Chapter 2 Client Objectives for Diversified Portfolios 13 Chapter 3 Asset Allocation: The Mean - Variance Framework 59 Chapter 4 Asset Allocation Inputs 117 Chapter 5 Advanced Topics in Asset Allocation 161 Chapter 6 The Investment Management Process 219 Chapter 7 Introduction to Equity Portfolio Investing: The Investor’s View 255 Chapter 8 Equity Portfolio Construction 285 Chapter 9 Fixed-Income Management 323 Chapter 10 Global Investing 385 Chapter 11 Alternative Investment Classes 427 Chapter 12 Portfolio Management Through Time: Taxes and Transaction Costs 467 Chapter 13 Performance Measurement and Attribution 503 Chapter 14 Incentives, Ethics, and Policy 541 Chapter 15 Investor and Client Behavior 569 Chapter 16 Managing Client Relations 593 Sample Cases 617 Jerry W. 619 MSSI 625 McClain Capital 631 The Fairbanks Fund 639 Glossary 645 References 661 Index 671

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Book SynopsisYou are the CEO of My Wealth, Inc. so Take Charge! Wealth Management Unwrapped provides you with the tools and tips you need to take back control and more effectively manage your money. Wall Street veteran Charlotte Beyer conducts a tour of the wealth management industry, guiding you through the complexities and jargon with straightforward, no-nonsense expertise. From choosing an advisor and understanding the fine print, to fulfilling your responsibilities as CEO of My Wealth, Inc. this book offers all-in-one guidance for anyone ready to take charge of their finances. This revised and expanded version has been updated with NEW information, for women investors who seek the best advisor, older investors who confront investment choices, and a discussion on both robo-advisors and the impact of your wealth on your children. The companion website includes new interactive diagnostics to help you get started, assess your progress and then see how you compare to others who face similar challenTable of ContentsForeword xiii Introduction xv Acknowledgments xvii About the Author xix Prologue xxi Chapter 1: Who’s in Charge of My Wealth, Inc.? 1 Chapter 2: My Money, Myself 9 Chapter 3: Are You a Do-It-Yourselfer? 17 Chapter 4: If You Don’t Know Where You’re Going, Any Investment Will Get You There 27 Chapter 5: If You Don’t Know Who the Sucker Is at the Table, It Might Be You! 37 Chapter 6: Resist the Razzle Dazzle: How to Judge the Beauty Contest 45 Chapter 7: Transparency, or How I Learned to Love Conflicts of Interest 53 Chapter 8: Courtship Is Usually More Fun Than Marriage 63 Chapter 9: Can This Marriage Be Saved? When to Fire Your Advisor 73 Chapter 10: Aging—Grave Concerns 83 Chapter 11: Born Rich—A Curse or a Blessing? 93 Chapter 12: I’m a Robot, and I’m Here to Help 105 Chapter 13: Women with Wallets 117 Chapter 14: The 10 Principles of Principal 131 Appendix 135 Endnotes 149 Index 169

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Book SynopsisUpgrade your programming language to more effectively handle high-frequency data Machine Learning and Big Data with KDB+/Q offers quants, programmers and algorithmic traders a practical entry into the powerful but non-intuitive kdb+ database and q programming language. Ideally designed to handle the speed and volume of high-frequency financial data at sell- and buy-side institutions, these tools have become the de facto standard; this book provides the foundational knowledge practitioners need to work effectively with this rapidly-evolving approach to analytical trading. The discussion follows the natural progression of working strategy development to allow hands-on learning in a familiar sphere, illustrating the contrast of efficiency and capability between the q language and other programming approaches. Rather than an all-encompassing bible-type reference, this book is designed with a focus on real-world practicality to help you quickly get up to speed and become productive withTable of ContentsPreface xvii About the Authors xxiii Part One Language Fundamentals Chapter 1 Fundamentals of the q Programming Language 3 1.1 The (Not So Very) First Steps in q 3 1.2 Atoms and Lists 5 1.2.1 Casting Types 11 1.3 Basic Language Constructs 14 1.3.1 Assigning, Equality and Matching 14 1.3.2 Arithmetic Operations and Right-to-Left Evaluation: Introduction to q Philosophy 17 1.4 Basic Operators 19 1.5 Difference between Strings and Symbols 31 1.5.1 Enumeration 31 1.6 Matrices and Basic Linear Algebra in q 33 1.7 Launching the Session: Additional Options 35 1.8 Summary and How-To’s 38 Chapter 2 Dictionaries and Tables: The q Fundamentals 41 2.1 Dictionary 41 2.2 Table 44 2.3 The Truth about Tables 48 2.4 Keyed Tables are Dictionaries 50 2.5 From a Vector Language to an Algebraic Language 51 Chapter 3 Functions 57 3.1 Namespace 59 3.1.0.1 .quantQ. Namespace 60 3.2 The Six Adverbs 60 3.2.1 Each 60 3.2.1.1 Each 61 3.2.1.2 Each-left \: 61 3.2.1.3 Each-right /: 62 3.2.1.4 Cross Product /: \: 62 3.2.1.5 Each-both ' 63 3.2.2 Each-prior ': 66 3.2.3 Compose (’) 67 3.2.4 Over and Fold / 67 3.2.5 Scan 68 3.2.5.1 EMA: The Exponential Moving Average 69 3.2.6 Converge 70 3.2.6.1 Converge-repeat 70 3.2.6.2 Converge-iterate 71 3.3 Apply 72 3.3.1 @ (apply) 72 3.3.2 . (apply) 73 3.4 Protected Evaluations 75 3.5 Vector Operations 76 3.5.1 Aggregators 76 3.5.1.1 Simple Aggregators 76 3.5.1.2 Weighted Aggregators 77 3.5.2 Uniform Functions 77 3.5.2.1 Running Functions 77 3.5.2.2 Window Functions 78 3.6 Convention for User-Defined Functions 79 Chapter 4 Editors and Other Tools 81 4.1 Console 81 4.2 Jupyter Notebook 82 4.3 GUIs 84 4.3.1 qStudio 85 4.3.2 Q Insight Pad 88 4.4 IDEs: IntelliJ IDEA 90 4.5 Conclusion 92 Chapter 5 Debugging q Code 93 5.1 Introduction to Making It Wrong: Errors 93 5.1.1 Syntax Errors 94 5.1.2 Runtime Errors 94 5.1.2.1 The Type Error 95 5.1.2.2 Other Errors 98 5.2 Debugging the Code 100 5.3 Debugging Server-Side 102 Part Two Data Operations Chapter 6 Splayed and Partitioned Tables 107 6.1 Introduction 107 6.2 Saving a Table as a Single Binary File 108 6.3 Splayed Tables 110 6.4 Partitioned Tables 113 6.5 Conclusion 119 Chapter 7 Joins 121 7.1 Comma Operator 121 7.2 Join Functions 125 7.2.1 ij 125 7.2.2 ej 126 7.2.3 lj 126 7.2.4 pj 127 7.2.5 upsert 128 7.2.6 uj 129 7.2.7 aj 131 7.2.8 aj0 134 7.2.8.1 The Next Valid Join 135 7.2.9 asof 138 7.2.10 wj 140 7.3 Advanced Example: Running TWAP 144 Chapter 8 Parallelisation 151 8.1 Parallel Vector Operations 152 8.2 Parallelisation over Processes 155 8.3 Map-Reduce 155 8.4 Advanced Topic: Parallel File/Directory Access 158 Chapter 9 Data Cleaning and Filtering 161 9.1 Predicate Filtering 161 9.1.1 The Where Clause 161 9.1.2 Aggregation Filtering 163 9.2 Data Cleaning, Normalising and APIs 163 Chapter 10 Parse Trees 165 10.1 Definition 166 10.1.1 Evaluation 166 10.1.2 Parse Tree Creation 170 10.1.3 Read-Only Evaluation 170 10.2 Functional Queries 171 10.2.1 Functional Select 174 10.2.2 Functional Exec 178 10.2.3 Functional Update 179 10.2.4 Functional Delete 180 Chapter 11 A Few Use Cases 181 11.1 Rolling VWAP 181 11.1.1 N Tick VWAP 181 11.1.2 TimeWindow VWAP 182 11.2 Weighted Mid for N Levels of an Order Book 183 11.3 Consecutive Runs of a Rule 185 11.4 Real-Time Signals and Alerts 186 Part Three Data Science Chapter 12 Basic Overview of Statistics 191 12.1 Histogram 191 12.2 First Moments 196 12.3 Hypothesis Testing 198 12.3.1 Normal p-values 198 12.3.2 Correlation 201 12.3.2.1 Implementation 202 12.3.3 t-test: One Sample 202 12.3.3.1 Implementation 204 12.3.4 t-test: Two Samples 204 12.3.4.1 Implementation 205 12.3.5 Sign Test 206 12.3.5.1 Implementation of the Test 208 12.3.5.2 Median Test 211 12.3.6 Wilcoxon Signed-Rank Test 212 12.3.7 Rank Correlation and Somers’ D 214 12.3.7.1 Implementation 216 12.3.8 Multiple Hypothesis Testing 221 12.3.8.1 Bonferroni Correction 224 12.3.8.2 Šidák’s Correction 224 12.3.8.3 Holm’s Method 225 12.3.8.4 Example 226 Chapter 13 Linear Regression 229 13.1 Linear Regression 230 13.2 Ordinary Least Squares 231 13.3 The Geometric Representation of Linear Regression 233 13.3.1 Moore–Penrose Pseudoinverse 235 13.3.2 Adding Intercept 237 13.4 Implementation of the OLS 240 13.5 Significance of Parameters 243 13.6 How Good is the Fit: R2 244 13.6.1 Adjusted R-squared 247 13.7 Relationship with Maximum Likelihood Estimation and AIC with Small Sample Correction 248 13.8 Estimation Suite 252 13.9 Comparing Two Nested Models: Towards a Stopping Rule 254 13.9.1 Comparing Two General Models 256 13.10 In-/Out-of-Sample Operations 257 13.11 Cross-validation 262 13.12 Conclusion 264 Chapter 14 Time Series Econometrics 265 14.1 Autoregressive and Moving Average Processes 265 14.1.1 Introduction 265 14.1.2 AR(p) Process 266 14.1.2.1 Simulation 266 14.1.2.2 Estimation of AR(p) Parameters 268 14.1.2.3 Least Square Method 268 14.1.2.4 Example 269 14.1.2.5 Maximum Likelihood Estimator 269 14.1.2.6 Yule-Walker Technique 269 14.1.3 MA(q) Process 271 14.1.3.1 Estimation of MA(q) Parameters 272 14.1.3.2 Simulation 272 14.1.3.3 Example 273 14.1.4 ARMA(p, q) Process 273 14.1.4.1 Invertibility of the ARMA(p, q) Process 274 14.1.4.2 Hannan-Rissanen Algorithm: Two-Step Regression Estimation 274 14.1.4.3 Yule-Walker Estimation 274 14.1.4.4 Maximum Likelihood Estimation 275 14.1.4.5 Simulation 275 14.1.4.6 Forecast 276 14.1.5 ARIMA(p, d, q) Process 276 14.1.6 Code 276 14.1.6.1 Simulation 277 14.1.6.2 Estimation 278 14.1.6.3 Forecast 282 14.2 Stationarity and Granger Causality 285 14.2.1 Stationarity 285 14.2.2 Test of Stationarity – Dickey-Fuller and Augmented Dickey-Fuller Tests 286 14.2.3 Granger Causality 286 14.3 Vector Autoregression 287 14.3.1 VAR(p) Process 288 14.3.1.1 Notation 288 14.3.1.2 Estimator 288 14.3.1.3 Example 289 14.3.1.4 Code 293 14.3.2 VARX(p, q) Process 297 14.3.2.1 Estimator 297 14.3.2.2 Code 298 Chapter 15 Fourier Transform 301 15.1 Complex Numbers 301 15.1.1 Properties of Complex Numbers 302 15.2 Discrete Fourier Transform 308 15.3 Addendum: Quaternions 314 15.4 Addendum: Fractals 321 Chapter 16 Eigensystem and PCA 325 16.1 Theory 325 16.2 Algorithms 327 16.2.1 QR Decomposition 328 16.2.2 QR Algorithm for Eigenvalues 330 16.2.3 Inverse Iteration 331 16.3 Implementation of Eigensystem Calculation 332 16.3.1 QR Decomposition 333 16.3.2 Inverse Iteration 337 16.4 The Data Matrix and the Principal Component Analysis 341 16.4.1 The Data Matrix 341 16.4.2 PCA: The First Principal Component 344 16.4.3 Second Principal Component 345 16.4.4 Terminology and Explained Variance 347 16.4.5 Dimensionality Reduction 349 16.4.6 PCA Regression (PCR) 350 16.5 Implementation of PCA 351 16.6 Appendix: Determinant 354 16.6.1 Theory 354 16.6.2 Techniques to Calculate a Determinant 355 16.6.3 Implementation of the Determinant 356 Chapter 17 Outlier Detection 359 17.1 Local Outlier Factor 360 Chapter 18 Simulating Asset Prices 369 18.1 Stochastic Volatility Process with Price Jumps 369 18.2 Towards the Numerical Example 371 18.2.1 Numerical Preliminaries 371 18.2.2 Implementing Stochastic Volatility Process with Jumps 374 18.3 Conclusion 378 Part Four Machine Learning Chapter 19 Basic Principles of Machine Learning 381 19.1 Non-Numeric Features and Normalisation 381 19.1.1 Non-Numeric Features 381 19.1.1.1 Ordinal Features 382 19.1.1.2 Categorical Features 383 19.1.2 Normalisation 383 19.1.2.1 Normal Score 384 19.1.2.2 Range Scaling 385 19.2 Iteration: Constructing Machine Learning Algorithms 386 19.2.1 Iteration 386 19.2.2 Constructing Machine Learning Algorithms 389 Chapter 20 Linear Regression with Regularisation 391 20.1 Bias–Variance Trade-off 392 20.2 Regularisation 393 20.3 Ridge Regression 394 20.4 Implementation of the Ridge Regression 396 20.4.1 Optimisation of the Regularisation Parameter 401 20.5 Lasso Regression 403 20.6 Implementation of the Lasso Regression 405 Chapter 21 Nearest Neighbours 419 21.1 k-Nearest Neighbours Classifier 419 21.2 Prototype Clustering 423 21.3 Feature Selection: Local Nearest Neighbours Approach 429 21.3.1 Implementation 430 Chapter 22 Neural Networks 437 22.1 Theoretical Introduction 437 22.1.1 Calibration 440 22.1.1.1 Backpropagation 441 22.1.2 The Learning Rate Parameter 443 22.1.3 Initialisation 443 22.1.4 Overfitting 444 22.1.5 Dimension of the Hidden Layer(s) 444 22.2 Implementation of Neural Networks 445 22.2.1 Multivariate Encoder 445 22.2.2 Neurons 446 22.2.3 Training the Neural Network 448 22.3 Examples 451 22.3.1 Binary Classification 451 22.3.2 M-class Classification 454 22.3.3 Regression 457 22.4 Possible Suggestions 463 Chapter 23 AdaBoost with Stumps 465 23.1 Boosting 465 23.2 Decision Stumps 466 23.3 AdaBoost 467 23.4 Implementation of AdaBoost 468 23.5 Recommendation for Readers 474 Chapter 24 Trees 477 24.1 Introduction to Trees 477 24.2 Regression Trees 479 24.2.1 Cost-Complexity Pruning 481 24.3 Classification Tree 482 24.4 Miscellaneous 484 24.5 Implementation of Trees 485 Chapter 25 Forests 495 25.1 Bootstrap 495 25.2 Bagging 498 25.2.1 Out-of-Bag 499 25.3 Implementation 500 25.3.1 Prediction 503 25.3.2 Feature Selection 505 Chapter 26 Unsupervised Machine Learning: The Apriori Algorithm 509 26.1 Apriori Algorithm 510 26.2 Implementation of the Apriori Algorithm 511 Chapter 27 Processing Information 523 27.1 Information Retrieval 523 27.1.1 Corpus: Leonardo da Vinci 523 27.1.2 Frequency Counting 524 27.1.3 tf-idf 528 27.2 Information as Features 532 27.2.1 Sample: Simulated Proteins 533 27.2.2 Kernels and Metrics for Proteins 535 27.2.3 Implementation of Inner Products and Nearest Neighbours Principles 535 27.2.4 Further Topics 539 Chapter 28 Towards AI – Monte Carlo Tree Search 541 28.1 Multi-Armed Bandit Problem 541 28.1.1 Analytic Solutions 543 28.1.2 Greedy Algorithms 543 28.1.3 Confidence-Based Algorithms 544 28.1.4 Bayesian Algorithms 546 28.1.5 Online Gradient Descent Algorithms 547 28.1.6 Implementation of Some Learning Algorithms 547 28.2 Monte Carlo Tree Search 558 28.2.1 Selection Step 561 28.2.2 Expansion Step 562 28.2.3 Simulation Step 563 28.2.4 Back Propagation Step 563 28.2.5 Finishing the Algorithm 563 28.2.6 Remarks and Extensions 564 28.3 Monte Carlo Tree Search Implementation – Tic-tac-toe 565 28.3.1 Random Games 566 28.3.2 Towards the MCTS 570 28.3.3 Case Study 579 28.4 Monte Carlo Tree Search – Additional Comments 579 28.4.1 Policy and Value Networks 579 28.4.2 Reinforcement Learning 581 Chapter 29 Econophysics: The Agent-Based Computational Models 583 29.1 Agent-Based Modelling 584 29.1.1 Agent-Based Models in Society 584 29.1.2 Agent-Based Models in Finance 586 29.2 Ising Agent-Based Model for Financial Markets 587 29.2.1 Ising Model in Physics 587 29.2.2 Ising Model of Interacting Agents 587 29.2.3 Numerical Implementation 588 29.3 Conclusion 592 Chapter 30 Epilogue: Art 595 Bibliography 601 Index 607

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Book SynopsisAn Introduction to Machine Learning in Finance, With Mathematical Background, Data Visualization, and R Nonparametric function estimation is an important part of machine learning, which is becoming increasingly important in quantitative finance. Nonparametric Finance provides graduate students and finance professionals with a foundation in nonparametric function estimation and the underlying mathematics. Combining practical applications, mathematically rigorous presentation, and statistical data analysis into a single volume, this book presents detailed instruction in discrete chapters that allow readers to dip in as needed without reading from beginning to end. Coverage includes statistical finance, risk management, portfolio management, and securities pricing to provide a practical knowledge base, and the introductory chapter introduces basic finance concepts for readers with a strictly mathematical background. Economic significance is emphasized over statistical significance throTable of ContentsPreface xxiii 1 Introduction 1 1.1 Statistical Finance 2 1.2 Risk Management 3 1.3 Portfolio Management 5 1.4 Pricing of Securities 6 Part I Statistical Finance 11 2 Financial Instruments 13 2.1 Stocks 13 2.2 Fixed Income Instruments 19 2.3 Derivatives 23 2.4 Data Sets 27 3 Univariate Data Analysis 33 3.1 Univariate Statistics 34 3.2 Univariate Graphical Tools 42 3.3 Univariate ParametricModels 55 3.4 Tail Modeling 61 3.5 Asymptotic Distributions 83 3.6 Univariate Stylized Facts 91 4 Multivariate Data Analysis 95 4.1 Measures of Dependence 95 4.2 Multivariate Graphical Tools 103 4.3 Multivariate ParametricModels 107 4.4 Copulas 111 5 Time Series Analysis 121 5.1 Stationarity and Autocorrelation 122 5.2 Model Free Estimation 128 5.3 Univariate Time Series Models 135 5.4 Multivariate Time Series Models 157 5.5 Time Series Stylized Facts 160 6 Prediction 163 6.1 Methods of Prediction 164 6.2 Forecast Evaluation 170 6.3 Predictive Variables 175 6.4 Asset Return Prediction 182 Part II Risk Management 193 7 Volatility Prediction 195 7.1 Applications of Volatility Prediction 197 7.2 Performance Measures for Volatility Predictors 199 7.3 Conditional Heteroskedasticity Models 200 7.4 Moving Average Methods 205 7.5 State Space Predictors 211 8 Quantiles and Value-at-Risk 219 8.1 Definitions of Quantiles 220 8.2 Applications of Quantiles 223 8.3 Performance Measures for Quantile Estimators 227 8.4 Nonparametric Estimators of Quantiles 233 8.5 Volatility Based Quantile Estimation 240 8.6 Excess Distributions in Quantile Estimation 258 8.7 Extreme ValueTheory in Quantile Estimation 288 8.8 Expected Shortfall 292 Part III Portfolio Management 297 9 Some Basic Concepts of Portfolio Theory 299 9.1 Portfolios and Their Returns 300 9.2 Comparison of Return andWealth Distributions 312 9.3 Multiperiod Portfolio Selection 326 10 Performance Measurement 337 10.1 The Sharpe Ratio 338 10.2 Certainty Equivalent 346 10.3 Drawdown 347 10.4 Alpha and Conditional Alpha 348 10.5 Graphical Tools of Performance Measurement 356 11 Markowitz Portfolios 367 11.1 Variance Penalized Expected Return 369 11.2 Minimizing Variance under a Sufficient Expected Return 372 11.3 Markowitz Bullets 375 11.4 Further Topics in Markowitz Portfolio Selection 381 11.5 Examples of Markowitz Portfolio Selection 383 12 Dynamic Portfolio Selection 385 12.1 Prediction in Dynamic Portfolio Selection 387 12.2 Backtesting Trading Strategies 393 12.3 One Risky Asset 394 12.4 Two Risky Assets 405 Part IV Pricing of Securities 419 13 Principles of Asset Pricing 421 13.1 Introduction to Asset Pricing 422 13.2 Fundamental Theorems of Asset Pricing 430 13.3 Evaluation of Pricing and Hedging Methods 456 14 Pricing by Arbitrage 459 14.1 Futures and the Put–Call Parity 460 14.2 Pricing in Binary Models 466 14.3 Black–Scholes Pricing 485 14.4 Black–Scholes Hedging 505 14.5 Black–Scholes Hedging and Volatility Estimation 515 15 Pricing in IncompleteModels 521 15.1 Quadratic Hedging and Pricing 522 15.2 Utility Maximization 523 15.3 Absolutely Continuous Changes of Measures 530 15.4 GARCH Market Models 534 15.5 Nonparametric Pricing Using Historical Simulation 545 15.6 Estimation of the Risk-Neutral Density 551 15.7 Quantile Hedging 555 16 Quadratic and Local Quadratic Hedging 557 16.1 Quadratic Hedging 558 16.2 Local Quadratic Hedging 583 16.3 Implementations of Local Quadratic Hedging 595 17 Option Strategies 615 17.1 Option Strategies 616 17.2 Profitability of Option Strategies 625 18 Interest Rate Derivatives 649 18.1 Basic Concepts of Interest Rate Derivatives 650 18.2 Interest Rate Forwards 659 18.3 Interest Rate Options 666 18.4 Modeling Interest Rate Markets 669 References 673 Index 681

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Book SynopsisStop crunching numbers and start truly serving your clients Integrative Advisory Services is the CPA, accounting professional and bookkeeper''s guide to the future. As technology paves the way for increased self-reliance and DIY financial services, much of the traditional data entry tasks of accounting professionals and bookkeepers will be reduced. Yet, nothing can replace the human side of the client-advisor experience and the desire to improve your clients'' businesses with financial information. Technology will continue marching on, so accounting professionals must adapt to the changing marketplace to thrive in this new paradigm. This book shows you how to provide the kind of value that technology cannot: human connection. Rather than simply reporting data, today''s accounting professionals have an opportunity to take a much more active role in their clients'' business by analyzing the story behind the numbers, understanding both operations and finance, and guiding Table of ContentsPreface v Acknowledgments vi Introduction vii Chapter 1 History of the Accounting Profession: From Compliance to Advisory 1 Technology and Humans 3 Looking Back on Accounting 5 Reaching for the Cloud 10 Humanity versus Machine 12 New Opportunities Abound 13 Where Does Your Business Go from Here? 15 Summary 17 Endnotes 18 Chapter 2 Bringing the Human Side to Technology 19 The Old Way of Data Flowing versus the New Way 21 What CEOs Want from Their CFOs 23 Choosing Your Vertical Industry Niche 25 Steps to Create Your Cloud Platform 34 The Cherished Advisor Journey 39 Summary 43 Endnotes 43 Chapter 3 The Cherished Advisor: The Transformation Journey beyond the Technology 45 Documenting the Business Processes 47 Obtaining Needed Technical and Business Skills 55 New Staffing Model 60 Pricing and Packaging 66 Summary 70 Endnotes 70 Chapter 4 Strategies for Marketing Your New Advisory Experience 71 How Do You Want to Design the Client Experience? 73 Building an Overall Architecture 74 Creating and Implementing a Marketing Strategy 81 Online Marketing 87 Networking 97 Referrals 98 Summary 99 Endnotes 99 Chapter 5 Creating a Successful Sales Model and Client Onboarding Process 100 The Science of the Sale 101 The Simple Sales Process 102 Client Onboarding Process 116 Creating a Project Plan 123 Automating Your Internal Processes with CRM 131 Summary 133 Endnotes 133 Chapter 6 Building Lasting Relationships 135 Creating Personalized Virtual Relationships 140 Creating Touch Points to Stay Engaged 142 Interpersonal Awareness to Succeed as an Advisor: Collaboration, Influence, Negotiation, and Communication 147 Leadership Capabilities to Grow the People Around You: Team Satisfaction and Rewards 158 Succession Planning Tactics for Bringing Up the Next Generation of Leadership 167 Summary 175 Endnotes 176 About the Author 177 Index 179

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Book SynopsisUnderstand Regulation A+ and other alternative funding methods Regulation A+ and Other Alternatives to a Traditional IPO delves into the details of the new SEC rules under the JOBS Act of 2012 to examine the benefits and pitfalls for entrepreneurs and investors. Written by the ''Godfather of Reg A+,'' this book breaks down the complex details of Regulation A+ and other alternative funding methods to help small businesses determine how best to go public and raise capital. A traditional IPO comes with barriers that can be insurmountable for a small company seeking to enter the public markets; thus far, reverse mergers have provided a challenging ''back door'' to the market, but Regulation A+ re-opens the front door to allow small cap companies to raise capital while keeping offering and compliance costs manageable in a way not possible with a traditional IPO. More complex than simple crowdfunding, yet just as accessible by all investors, Regulation A+ is a step up for enTable of ContentsPreface Acknowledgments Chapter 1: Why Go Public? Advantages of Being Public Disadvantages of Being Public Weighing the Pros and Cons Chapter 2: Pre-2012: The History of Regulation A & the Death of Small Company IPOs Regulation A – Not Too Popular Before 2012 Reg A Through the Years Why Small Companies Struggled to Go Public before the JOBS Act Reg A vs. Private Offering Under Regulation D And so…… Chapter 3: The Jobs Act and Its Genesis “Old” Regulation A Feldman First Proposes “Reg A+” at SEC Conference Development and Enactment of the JOBS Act Other Key Elements of the JOBS Act Reg A+ Title IV Language And so... Chapter 4: The SEC’s Rules Under Title IV Regulation A+; Court Challenge SEC’s Reg A+ Rule Proposal Comment Process Final Reg A+ Rules Massachusetts and Montana’s Failed Lawsuit Against the SEC And so…… Chapter 5: Offering Statement and Light Reporting Preparation; Testing the Waters Offering Statement Preparation Light Reporting Preparation Testing the Waters And so…… Chapter 6 – Early Experience With Regulation A+ – Wall Street Partners With Main Street Who Is Utilizing Reg A+? Attractive Industries And so…… Chapter 7 – Potential Changes To Regulation A OTC Markets Petition Blue Sky Issues Testing the Waters Issues Other Issues And so…… Chapter 8 – Basics of Reverse Mergers Overview of Reverse Mergers IPOs vs. Reverse Mergers A Little History, Rule 419 and Subsequent Rulemakings The Importance of Due Diligence in Reverse Mergers And so…… Chapter 9 – Troubled Industry: China, Seasoning Rules, Bogus Shells The China Bubble Pops The SEC Responds With Draconian Seasoning Rules Bogus Shells and Prosecutions And so…… Chapter 10 – the Future of Reverse Mergers Reverse Merger then OTC Trading Bypass Seasoning with $40MM Public Offering Merger with an Operating Public Company The Real Risks of Using Bogus Shells The Future Supply and Cost of Shells And so…… Chapter 11: Special Purpose Acquisition Companies (SPACs) Introduction to SPACs: The GKN Experience The First SPAC Resurgence—Bubble and Bust SPACs’ Recent Return What Is the Future of SPACs? And so… Chapter 12: Self-Filings How Do Shares of Stock Become Tradable? Self-Filing Through Form S-1 Resale Registration Mechanics of Form S-1 Self-Filing Self-Filing Through Form 10 Registration And so… Chapter 13: Other IPO Alternatives Intrastate Exemption Rule 504 Regulation S And so… Chapter 14: The Experts Speak – A Look Ahead Current Political and Economic Environment Current Developments And so… About the Author Index

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Book SynopsisIdentifying malpractice and misconduct should be top priority for financial risk managers today Corruption and Fraud in Financial Markets identifies potential issues surrounding all types of fraud, misconduct, price/volume manipulation and other forms of malpractice. Chapters cover detection, prevention and regulation of corruption and fraud within different financial markets. Written by experts at the forefront of finance and risk management, this book details the many practices that bring potentially devastating consequences, including insider trading, bribery, false disclosure, frontrunning, options backdating, and improper execution or broker-agency relationships. Informed but corrupt traders manipulate prices in dark pools run by investment banks, using anonymous deals to move prices in their own favour, extracting value from ordinary investors time and time again. Strategies such as wash, ladder and spoofing trades are rife, even on regulated exchanTable of ContentsAbout the Editors xv List of Contributors xvii Foreword xix Acknowledgements xxi Chapter 1: Introduction 1Carol Alexander and Douglas Cumming Part I What are Manipulation and Fraud and Why Do They Matter? 11 Chapter 2: An Overview of Market Manipulation 13Tālis J. Putniņš 2.1 Introduction 14 2.2 Definitions of Market Manipulation 16 2.2.1 Legal Interpretation and Provisions against Market Manipulation 16 2.2.2 Economics and Legal Studies Perspective 18 2.3 A Taxonomy of the Types of Market Manipulation 19 2.3.1 Categories of Market Manipulation 19 2.3.2 Market Manipulation Techniques 22 2.4 Research on Market Manipulation 26 2.4.1 Theoretical Literature 27 2.4.2 Empirical Literature 30 2.4.3 Conclusions from the Research on Market Manipulation 35 2.5 Summary and Conclusions 39 References 40 Chapter 3: A Taxonomy of Financial Market Misconduct 45Ai Deng and Priyank Gandhi 3.1 Introduction 46 3.2 Challenges in Research on Financial Market Misconduct 50 3.3 Defining Financial Market Misconduct 51 3.3.1 Price Manipulation 53 3.3.2 Circular Trading 54 3.3.3 Collusion and Information Sharing 55 3.3.4 Inside Information 56 3.3.5 Reference Price Influence 56 3.3.6 Improper Order Handling 57 3.3.7 Misleading Customers 58 3.4 Defining Financial Fraud 59 3.4.1 Credit Card Fraud 59 3.4.2 Money Laundering 60 3.4.3 Financial Statement Fraud 60 3.4.4 Computer Intrusion Fraud 61 3.5 Conclusion 61 References 61 Chapter 4: Financial Misconduct and Market-Based Penalties 65Chelsea Liu and Alfred Yawson 4.1 Introduction 66 4.2 Notable Cases of Financial Reporting Fraud 69 4.3 Financial Reporting Misconduct and Legal Redress 70 4.4 Evolution of US Financial Regulations 71 4.4.1 Private Securities Litigation Reform Act (1995) 72 4.4.2 Sarbanes–Oxley Act (2002) 72 4.4.3 Dodd–Frank Act (2010) 73 4.5 Legal versus Market-Based Penalties for Financial Misconduct 74 4.5.1 Common Forms of Legal Penalties 74 4.5.2 Role of Market-Based Penalties 75 4.6 Firm-Level Penalties for Corporate Financial Misconduct 75 4.6.1 Direct Economic Costs Captured in Loss of Market Value 83 4.6.2 Loss of Firm Reputation 83 4.6.3 Spillover of Reputational Effect 84 4.6.4 Governance Risk and Insurance Premiums 85 4.6.5 Reduced Liquidity 85 4.6.6 Access to Financing 85 4.6.7 Reduced Innovation 86 4.6.8 Mergers and Acquisitions 86 4.7 Individual-Level Penalties for Corporate Financial Misconduct 87 4.7.1 Executive and Director Turnover 87 4.7.2 Impaired Career Progression 95 4.7.3 Loss of Reputation 96 4.7.4 Executive Compensation 97 4.7.5 Strengthened Monitoring 97 4.8 Causes, Risks, and Moderators of Financial Misconduct 98 4.8.1 Fraud Incentives 98 4.8.2 Risk Factors 113 4.8.3 Public Enforcement: Regulatory and Judicial Stringency 115 4.8.4 Public Enforcement: Detection and Surveillance 116 4.8.5 Private Enforcement 117 4.9 Other Non-Financial Misconduct 118 4.10 Concluding Remarks 119 References 120 Chapter 5: Insider Trading and Market Manipulation 135Jonathan A. Batten, Igor Lončarski, and Peter G. Szilagyi 5.1 Introduction 135 5.2 Regulatory Framework on Insider Trading and Market Manipulation 140 5.3 Recent Examples of Market Manipulation and Insider Trading 145 5.4 Conclusions 148 References 149 Chapter 6: Financial Fraud and Reputational Capital 153Jonathan M. Karpoff 6.1 Financial Frauds in the 2000s 154 6.2 The Effects of Fraud Revelation on Firm Value and Reputational Capital 156 6.2.1 Market Value Losses When Financial Misconduct is Revealed 156 6.2.2 Spillover Effects 157 6.2.3 Reputational Losses for Financial Misconduct 158 6.2.4 Direct Measures of Lost Reputational Capital 159 6.2.5 Do Misconduct Firms Always Lose Reputational Capital? 160 6.2.6 Rebuilding Reputational Capital 161 6.3 The Effects of Fraud Revelation on Shareholders and Managers 162 6.3.1 Should Shareholders Pay? Do Managers Pay? 162 6.3.2 Do Shareholders Pay Twice? 162 6.3.3 Are Firm-Level Penalties Efficient? 163 6.3.4 Consequences for Managers and Directors 163 6.4 Why Do Managers Do It? Motives and Constraints 165 6.4.1 Motives for Financial Misconduct 165 6.4.2 Constraints on Financial Misconduct 167 6.5 Proxies and Databases Used to Identify Samples of Financial Statement Misconduct 168 6.6 Conclusion: Reputation, Enforcement, and Culture 170 References 171 Part II How and Where Does Misconduct Occur? 179 Chapter 7: Manipulative and Collusive Practices in FX Markets 181Alexis Stenfors 7.1 Introduction 181 7.2 Different Types of FX Orders 183 7.3 The Unique FX Market Structure 184 7.4 Examples of Manipulative and Collusive Practices in FX Markets 188 7.4.1 Front Running 188 7.4.2 Triggering Stop-Loss Orders 190 7.4.3 ‘Banging the Close’ 192 7.4.4 Collusion and Sharing of Confidential Information 193 7.4.5 Spoofing 195 7.4.6 Market Abuse via Electronic Trading Platforms 196 7.5 The Reform Process 197 References 199 Chapter 8: Fraud and Manipulation within Cryptocurrency Markets 205David Twomey and Andrew Mann 8.1 Introduction 206 8.2 Why Do fraud and Manipulation Occur in Cryptocurrency Markets? 212 8.2.1 Lack of Consistent Regulation 212 8.2.2 Relative Anonymity 213 8.2.3 Low Barriers to Entry 214 8.2.4 Exchange Standards and Sophistication 214 8.3 Pump and Dumps 215 8.3.1 Case Studies 217 8.4 Inflated Trading Volume 217 8.4.1 Case Study: January 2017 and PBoC Involvement 219 8.5 Exchange DDoS Attacks 220 8.5.1 Case Study 223 8.6 Hacks and Exploitations 224 8.6.1 Exchange Hacks 224 8.6.2 Smart Contract Exploits 229 8.6.3 Protocol Exploitation 230 8.7 Flash Crashes 230 8.7.1 GDAX-ETH/USD Flash Crash 234 8.8 Order Book-Based Manipulations 235 8.8.1 Quote Stuffing 236 8.8.2 Order Spoofing 237 8.9 Stablecoins and Tether 239 8.9.1 Tether Historical Timeline 240 8.9.2 Tether Controversy and Criticism 242 8.9.3 Tether’s Significance in Cryptocurrency Global Markets 245 8.10 Summary and Conclusions 245 References 249 Chapter 9: The Integrity of Closing Prices 251Ryan J. Davies 9.1 Why Closing Prices Matter 251 9.2 Painting the Tape and Portfolio Pumping 252 9.3 ‘Bang-the-Close’ Manipulation: The Response of Financial Intermediaries 255 9.4 Stock Price Pinning on Option Expiration Dates 259 9.5 Conclusion: Lessons for the Regulation and Design of Financial Markets 263 References 269 Chapter 10: A Trader’s Perspective on Market Abuse Regulations 275Sam Baker 10.1 Introduction 275 10.2 Getting the Trading Edge 278 10.3 A Typical Trader’s Market Window 281 10.4 Wash Trades 282 10.5 High Ticking/Low Ticking – Momentum Ignition 284 10.6 Spoofing 286 10.7 Layering 290 10.8 Smoking 292 10.9 Case Study: Paul Rotter a.k.a. ‘The Flipper’ 295 10.10 The Innocent and the Guilty 299 10.11 What are Exchanges Doing to Prevent Market Abuse? 301 10.11.1 CME Group 301 10.11.2 ICE 302 10.12 What are Trading Companies Doing to Prevent Abuse? 302 10.13 Will There Be an End to Market Abuse? 303 Part III Who are These Scoundrels? 305 Chapter 11: Misconduct in Banking: Governance and the Board of Directors 307Duc Duy Nguyen, Jens Hagendorff, and Arman Eshraghi 11.1 Introduction 307 11.2 Literature Review 311 11.3 Research Design 312 11.3.1 Data 312 11.3.2 Empirical Design 313 11.3.3 Variables 314 11.4 Empirical Results 316 11.4.1 Main Results 316 11.4.2 Results for Different Classes of Enforcement Actions 320 11.4.3 Does Better Board Quality Alleviate Shareholder Wealth Losses? 323 11.5 Conclusion 323 References 325 Chapter 12: Misconduct and Fraud by Investment Managers 327Stephen G. Dimmock, Joseph D. Farizo, and William C. Gerken 12.1 Introduction 327 12.2 Related Research 329 12.3 The Investment Advisers Act of 1940 and Mandatory Disclosures 331 12.4 Data 332 12.4.1 Investment Fraud 332 12.4.2 Form ADV Data and Variables 337 12.5 Predicting Fraud and Misconduct 340 12.5.1 Predicting Fraud by Investment Managers 340 12.5.2 Interpreting the Predictive Content of the Models 345 12.5.3 K-Fold Cross-Validation Tests 346 12.6 Predicting the Initiation vs. the Continuance of Fraud 347 12.7 Firm-Wide Fraud vs. Fraud by a Rogue Employee 349 12.8 Out-of-Sample Prediction and Model Stability 351 12.9 Policy Implications and Conclusions 352 References 355 Chapter 13: Options Backdating and Shareholders 359Johan Sulaeman and Gennaro Bernile 13.1 Introduction 359 13.2 Stock Return Patterns around Option Grants 360 13.3 The Backdating Practice 361 13.4 Media Coverage, Restatement, and Investigation 362 13.5 Stock Market Reaction to Public Revelations of Backdating 363 13.6 Investor Reaction to (and Anticipation of) Public Revelations 364 13.7 Other Types of Misbehaviour Related to Option Grants 365 13.7.1 Forward Dating 365 13.7.2 Selective Disclosure 366 13.7.3 Option Exercise Backdating 366 13.7.4 Independent Director Backdating 366 13.8 Connections with Questionable Practices by Corporate Executives and Other Agents 366 13.9 Conclusion 367 References 368 Chapter 14: The Strategic Behaviour of Underwriters in Valuing IPOs 371Stefano Paleari, Andrea Signori, and Silvio Vismara 14.1 Valuing IPOs 371 14.2 The Underwriter’s Incentives in the Valuation of IPOs 373 14.3 Literature Review 374 14.4 Sample, Data, and Methodology 376 14.4.1 Sample and Data 376 14.4.2 Alternative Selection Criteria of Comparable Firms 380 14.4.3 Valuation Bias and IPO Premium 380 14.5 Results 381 14.5.1 Algorithmic Selections 381 14.5.2 Affiliated and Unaffiliated Analysts 386 14.5.3 Underwriters’ Selection of Comparable Firms Pre- vs. Post-IPO 390 14.5.4 Pre- vs. Post-IPO Selections and Industry Effects 394 14.6 Conclusions 396 References 397 Chapter 15: Governance of Financial Services Outsourcing: Managing Misconduct and Third-Party Risks 399Joseph A. McCahery and F. Alexander de Roode 15.1 Introduction 399 15.2 The Four Components in Outsourcing 402 15.2.1 Efficient Outsourcing 402 15.2.2 The Four-Factor Governance Model 404 15.2.3 Misconduct in Outsourcing and the Ability of Financial Institutions to Monitor 407 15.3 The Interaction between Contracting and Monitoring 408 15.3.1 Characterization of Financial Institutions 409 15.3.2 Risks in Outsourcing Services 412 15.4 Governance Mechanisms to Detect Misconduct in Financial Outsourcing 413 15.4.1 Screening and Detection 414 15.5 Conclusion 416 References 417 Part IV Detection and Surveillance of Financial Misconduct 423 Chapter 16: Identifying Security Market Manipulation 425Mike Aitken, Ann Leduc, and Shan Ji 16.1 Introduction 425 16.2 Background Legislation 427 16.2.1 Australia 427 16.2.2 UK 428 16.2.3 Hong Kong 428 16.2.4 Canada 429 16.2.5 Singapore 430 16.2.6 Malaysia 430 16.2.7 New Zealand 431 16.3 Attributes of Manipulation 431 16.3.1 How Traders Minimize the Resources Needed for Manipulative Trading 432 16.3.2 Difficulties in Determining Whether Trading Behaviour is Manipulative 433 16.3.3 Surveillance Systems 434 16.4 Detection Algorithms 436 16.5 Conclusion 439 Chapter 17: The Analytics of Financial Market Misconduct 441Ai Deng and Priyank Gandhi 17.1 Introduction 442 17.2 Financial Economic Analysis 446 17.2.1 Benchmarking to Historical or Past Data 447 17.2.2 Benchmarking to Alternate Proxies 451 17.2.3 Benchmarking to a Model 454 17.3 Quantitative Techniques 456 17.3.1 The Principles of Fraud Detection 457 17.3.2 Popular Supervised Learning Techniques for Fraud Detection 458 17.3.3 Popular Unsupervised Learning Techniques for Fraud Detection 460 17.3.4 Dynamic Misconduct Detection 462 17.4 Conclusion 464 References 466 Chapter 18: Benford’s Law and Its Application to Detecting Financial Fraud and Manipulation 473Christina Bannier, Corinna Ewelt-Knauer, Johannes Lips, and Peter Winker 18.1 Introduction 474 18.2 Benford’s Law and Generalizations 476 18.2.1 The Basic Principle of Benford’s Law 476 18.2.2 Illustration of Benford’s Law 477 18.2.3 Testing for Conformity with Benford’s Law 478 18.2.4 Considering Further Digits with Benford’s Law 480 18.2.5 When Do Data Conform to Benford’s Law? 482 18.2.6 Limitations of Using Benford’s Law for Identification of Manipulations 483 18.2.7 Generalizations of Benford’s Law for Identification of Manipulations 484 18.3 Usage of Benford’s Law for Detecting Fraud and Deviant Behaviour 485 18.3.1 Forensic Accounting in the Context of Auditing, Internal Control Systems, and Taxation 486 18.3.2 Finance 487 18.3.3 Surveys and Research 490 18.4 A Case Study: Benford’s Law and the LIBOR 491 18.5 Policy Implications 498 18.6 Summary, Limitations, and Outlook 498 References 499 18.A Appendix 504 Part V Regulation and Enforcement 505 Chapter 19: The Enforcement of Financial Market Crimes in Canada and the United Kingdom 507Anita Indira Anand 19.1 Introduction 507 19.2 Existing Scholarship 508 19.3 Comparative Analysis 512 19.3.1 Canada 512 19.3.2 The United Kingdom 513 19.4 Reform 515 19.4.1 Resource Allocation 515 19.4.2 Principles-Based Regulation 516 19.4.3 Targeted Regulatory Reforms 518 19.5 Conclusion 520 References 520 Chapter 20: A Pyramid or a Labyrinth? Enforcement of Registrant Misconduct Requirements in Canada 527Mary Condon 20.1 Introduction 527 20.2 Definitional and Institutional Quagmires 529 20.3 The Compliance/Enforcement Continuum 531 20.4 Enforcement Options Available to Sanction Registrant Misconduct 533 20.5 Empirical Information Available about Registrant Misconduct in Canada 535 20.5.1 Criminal Enforcement 535 20.5.2 CSA Non-Criminal Enforcement 536 20.5.3 Director’s Decision Data in Ontario 537 20.5.4 SRO Enforcement 538 20.6 Analysis 538 Chapter 21: Judicial Local Protectionism and Home Court Bias in Corporate Litigation 541Michael Firth, Oliver M. Rui, and Wenfeng Wu 21.1 Introduction 542 21.2 Institutional Background 544 21.2.1 Decentralization and Local Protectionism 544 21.2.2 Judicial Independence 545 21.2.3 The Heterogeneity of the Legal Environment across Regions 548 21.3 Empirical Evidence 548 21.3.1 Sample 549 21.3.2 Basic Statistics 550 21.3.3 The Wealth Effect for Defendants and Plaintiffs around the Filing Announcements at Different Courts 556 21.3.4 The Impact of Court Location on the Wealth Effect 560 21.3.5 Regression Analysis of the Wealth Effects from a Filing Announcement 560 21.3.6 Heckman Two-Step Analysis of Sample Selection Bias 567 21.3.7 The Impact of Court Location on the Likelihood to Appeal 573 21.3.8 Sensitivity Tests 576 21.4 Conclusion 579 References 580 Index 583

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Book SynopsisSmart financial decisions boost more than your bottom linethey''ll make you healthier and happier too! Are you one of the 90% of people who are stressed about money? If so, you know it can take its toll on every part of your life. Financial health, physical health and happiness are profoundly interconnected. It''s almost impossible to enjoy any one of these without the help of the other two. The authors describe this phenomenon as the intersection of money, health, and happiness. Leveraging Your Financial Intelligence will teach you a powerful values-based approach to achieving your most important life goals. As you take steps to improve your financial well-being, you''ll discover that leveraging your financial intelligence will also fuel your physical and emotional well-being. Backed by the latest research findings in neuroscience, psychology, health, and cultural anthropology, the authors'' invaluable advice focuses on the practical actions you caTable of ContentsPreface v Acknowledgments ix Chapter 1 Money, Health, and happiness: How they’re Connected 1 Chapter 2 Living in alignment 22 Chapter 3 Setting and Achieving goals 36 Chapter 4 Money 54 Chapter 5 Health 77 Chapter 6 Happiness 103 Afterword 130 Appendix A: Exercise: What are your Top values? 132 Appendix B: Exercise: Values and Behavior alignment 133 Appendix C: Exercise: What is your life’s purpose? 136 Appendix D: Exercise: Visualize yourself living your Purpose 138 Appendix E: Goal Achievement planning 140 Appendix F: Exercise: Play the freeze game 143 Index 145

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Book SynopsisSell your house in any market Whether you're selling your home yourself or using a realtor, this helpful guide offers all the information you need to make an otherwise-stressful undertaking go smoothly. In Selling Your House For Dummies, you'll find plain-English, easy-to-follow information on the latest mortgage application and approval processes, the hottest websites used in the house-selling process, and revised tax laws that affect the housing and real estate markets. From the author team behind America's #1 bestselling real estate book, Home Buying Kit For Dummies, this book offers Eric Tyson and Ray Brown's time-tested advice, recommendations, and strategies for selling your house given current market conditions. From staging your home to utilizing technology to sell your house directly to home buyers, this trusted resource is packed with tips and ideas to make your home the most appealing house on the block. Prepare your property for the best offerStage and market your house sucTable of ContentsIntroduction 1 How This Book Is Different: The Eric Tyson/Ray Brown Difference 1 Foolish Assumptions 2 Icons Used in This Book 3 Beyond the Book 4 Where to Go from Here 4 Part 1: Getting Started with Selling Your House 5 Chapter 1: Deciding to Sell 7 Figuring Out If You Really Need to Sell 9 Good reasons to stay 10 Reasons to consider selling 15 Knowing the Health of Your Housing Market 17 Selling in a depressed housing market 17 Selling during a strong market 21 Chapter 2: Selling and Your Personal Finances 23 Trading Up 23 Examining your housing budget 24 Figuring your expected expenses after trading up 27 Determining the financial impact on your future goals 31 Exploring the other costs of trading up 31 Making Retirement Housing Decisions 32 Trading down 32 Researching reverse mortgages 38 Tax Facts Sellers and Landlords Ought to Know 43 Chapter 3: Exploring the Economics of Selling 45 Estimating Proceeds of Sale 46 Estimated sale price 46 Closing costs 47 Mortgage payoff 48 Moving expenses 50 Putting it all together 51 Assessing the Financial Feasibility of a Move 52 Researching living costs and employment opportunities 52 Avoiding relocation traps 54 Chapter 4: Confronting Financing Issues 57 Financing Decisions When Trading Up 58 Choosing your mortgage 58 Financing improvements 59 The Trials and Tribulations of Seller Financing 61 Asking yourself why you’d ever want to be a lender 62 Deciding if seller financing is for you 63 Finding creditworthy buyers 64 Deciding what to charge 72 Protecting yourself legally 73 Part 2: Tactical Considerations 75 Chapter 5: Timing Is Everything 77 Timing the Sale of Your House 77 First peak season: Spring flowers and For Sale signs bloom 79 First valley: Summer doldrums 79 Second peak season: Autumn leaves and houses of every color 80 Death Valley: Real estate activity hibernates until spring 82 The Seller’s Quandary: Timing the Purchase of Your Home 82 Consolidating Your Sale and Purchase 83 Determine your house’s current value 83 Check your buying power 84 Familiarize yourself with the market 85 Take action 86 Chapter 6: For Sale By Owner 89 Eyeing the Potential FSBO Advantages 89 You want to save money on commissions 90 You may already have a ready, willing, and able buyer 90 You may know the house and neighborhood well 91 You may be more motivated than an agent 91 You like challenges 92 You want to be in control 93 Your house may sell itself 93 Focusing on Potential FSBO Disadvantages 93 You may not know how to price property 93 You may not know how to prepare your house for sale 94 You may not know how to market your property 94 You may not know how to separate real buyers from fakes 94 You may not have enough experience as a negotiator 95 You may get yourself into legal trouble 95 You may not know how to close the sale 95 Increasing Your Chances of Success 96 Educate yourself 96 Ensure that other team members are especially strong 96 Cooperate with agents 97 Financially qualify prospective buyers 97 Chapter 7: Your Real Estate Team 99 Teaming Up — A Winning Concept 99 Landing the Perfect Listing Agent 101 Understanding agent relationships 102 Recognizing the best listing agents 104 Choosing your listing agent 105 Achieving top performance from the winner 112 Bringing in the Broker 113 Handling House Inspectors 114 Arranging premarketing property inspections 114 Exploring the advantages of inspecting before marketing 115 Investigating inspectors 117 The Officiating Escrow Officer 120 Finding Financial and Tax Advisors 121 Locating a Good Lawyer 122 Choosing among lawyers 123 Working well with your lawyer 124 Chapter 8: Listing Contracts and Commissions 125 Understanding Listing Contracts 125 Considering the Types of Listings 127 Exclusive listings 127 Open listings 137 Examining Broker Compensation 139 Commissions 139 Net listings 144 Discount brokers 145 Preparing Seller Disclosure Statements 147 What information should you disclose? 147 An ounce of prevention is worth a pound of cure 152 Part 3: Getting Top Dollar When You Sell 155 Chapter 9: Preparing Your House for Sale 157 Handling Presale Preparation 158 Creating curb appeal 158 Exteriors attract, but interiors sell 160 Staging 162 Think Again: Avoiding Major Improvements 165 Chapter 10: Determining Your House’s Value 167 Defining Cost, Price, and Value 168 Value is elusive 168 Cost is history 169 Price is the here and now 170 Determining Fair Market Value (FMV) 170 Need-based pricing isn’t FMV 171 Median prices aren’t FMV 171 Using a Comparable Market Analysis 173 Playing with the numbers 176 Interpreting CMA adjustments and flaws 177 Considering appraisals versus CMAs 179 Bidding Wars 180 How buyers and sellers get to FMV 180 Why “buying a listing” ruins property pricing 181 Chapter 11: Price It Right and Buyers Will Come 183 Getting a Grasp on Pricing Methods 184 Four-phase pricing: Prevalent but ineffective 184 Pleasure-pleasure-panic pricing: Fast, top-dollar sales 185 Quantum pricing: An effective technique 188 Identifying Incentives and Gimmicks 190 Deal-making incentives 191 Deceptive gimmicks 191 Overpricing Your House 192 Can’t sell versus won’t sell 193 Three factors all buyers consider 193 Danger signs of overpricing 194 The foolproof way to correct overpricing 195 Placing the blame where it belongs 197 Part 4: the Brass Tacks of Selling Your House 199 Chapter 12: Marketing Your House 201 Advertising That Works 201 For Sale sign 202 Classified ads 203 Multiple listing service (MLS) 206 Listing statement 207 Computers 208 Word of mouth 208 Arranging Open Houses 209 Brokers’ opens 210 Weekend open houses 210 Showing Your Property 211 Preshowing preparations 212 The final showing 213 Chapter 13: Using Technology to Sell Your House 215 Sell Your House 216 Ensure good web promo of your house 216 Knowing the truth about for-sale-by-owner (FSBO) sites 217 Realize the limits of valuing your house online 219 Relying on Technology to Determine Whether to Sell 220 Chapter 14: Negotiating Strategies for Sellers 223 Mastering Your Feelings 224 Putting emotions in their place 225 Gaining detachment through an agent 226 Following Some Basic Rules 227 Surviving the Bargaining Process 227 Receiving an offer to purchase 229 Dealing with contingencies — necessary uncertainty 231 Making a counteroffer 232 Negotiating from a Position of Strength 236 Handling multiple offers 237 Delaying presentation of offers 237 Setting guidelines for an orderly presentation process 238 Selecting the best offer 239 Negotiating from a Position of Weakness 241 Rejecting lowball offers 242 Considering other offers usually made in weak markets 244 Negotiating credits in escrow 247 Distinguishing Real Buyers from Fakes 251 Are the buyers creditworthy? 252 Are the buyers realistic? 252 Are the buyers motivated? 252 Do the buyers have a time frame? 252 Are the buyers cooperative? 253 Chapter 15: It Ain’t Over ’til the Check Clears 255 Entering the Neutral Territory of an Escrow 255 Understanding the role of the escrow officer 256 Maximizing your escrow 257 Avoiding the curse of December escrows 261 Letting Go of Your House 262 Moving daze 263 The final verification of condition 265 Surviving Seller’s Remorse or (Gasp) the Dreaded Double Whammy 265 Confronting your fears 266 Facing the ultimate test 267 Chapter 16: Income Tax Filings after the Sale 269 Profits from a House Sale 269 Defining profits 270 Excluding house sale profits from tax 270 Tax Filings Required after the Sale 271 Schedule D: Capital Gains and Losses 272 State income taxes on housing profits 275 Part 5: the Part of Tens 277 Chapter 17: Ten Things to Do After You Sell 279 Keep Copies of the Closing and Settlement Papers 279 Keep Proof of Improvements and Prior Purchases 280 Stash Your Cash in a Good Money Market Fund 280 Double-Check the Tax Rules for Excluding Tax on House Sale Profits 281 Cast a Broad Net When You Consider Your Next Home 282 Remember That Renting Can Be a Fine Strategy 282 Reevaluate Your Personal Finances When Things Change 283 Don’t Simply Rehire Your Listing Agent When You Repurchase 283 Think Through Your Next Down Payment 284 Remember to Send Change of Address Notices 284 Chapter 18: Ten Tips for Selling Rental Real Estate 287 Don’t Inadvertently Convert Your House into Income Property 287 Exercise Extra Care When You Sell Rental Property 289 Know How to Defer Your Investment Property Profits 289 Understand Your Local Market to Time Your Sale 290 Understand Opportunities for Adding Value 291 Maximize Your Property’s Rental Income 292 Minimize Your Property’s Expenses 292 Utilize Agents with Investment Property Experience 293 Visit Comparables and Review the Valuation Analysis 293 Work with Tax and Legal Advisors Who Understand Rental Property 294 Chapter 19: Answers for Ten Questions Home Buyers May Ask 295 What Do You Like Best and Least about Living Here? 296 Why Are You Selling This Lovely House? 296 How Much Did You Pay for This House? 297 How Did You Establish the Asking Price? 298 Have You Received Inspection Reports? 298 May I See Your Written Defect Disclosure Statement? 298 Are There Any Neighborhood Changes That May Affect the Home’s Desirability? 299 How Many Times in the Last Year Have You Called the Police and Why? 299 What Problems Have You Had with the House? 300 What Are the Local Public Schools Like? 301 Part 6: Appendixes 303 Appendix A: Sample Real Estate Purchase Contract 305 Appendix B: Example of a Good Inspection Report 317 Appendix C: Glossary 333 Index 349

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Book SynopsisTable of ContentsIntroduction xix The Pricing Puzzle: Foundational HOLT Concept and a Key to Better Valuation xix Overview of Book Chapters xxvi Who Are We and What Do We Hope to Achieve xxviii I Financial Performance Assessment 1 Never Forget the Golden Rule: Pursue Strategies with Positive NPV 3 Key Learning Points 3 Introduction 4 What Do Corporate Financial Managers Do During the Day? 6 What Is Value? 8 The Golden Rule of Financial Decision Making 12 Back-of-the-Envelope Basics 15 Is the NPV Rule Foolproof? 20 The Price of Short-Termism 22 Thinking Clearly about Actions, Reactions, and Value 28 2 The Flying Trapeze of Performance Metrics 31 Key Learning Points 31 Measures of Corporate Performance 32 Return on Equity 33 What about Debt and Leverage? 36 Return on Assets 39 Return on Invested Capital 39 P/E as a Valuation Metric and Discounted Cash Flow Valuation Approach 44 Hallmarks of a Sound Economic Performance and Valuation Model 51 Chapter Appendix 53 3 Accounting to Cash Flow Return on Investment 57 Key Learning Points 57 Is CFROI a Better Measure of Performance? 58 Return on Invested Capital (ROIC) 62 Cash Return on Gross Assets (CROGA) 63 Cash Flow Return on Investment (CFROI) 63 CFROI Adjustments Using Amazon’s 2013 Annual Report 65 Inflation-Adjusted Gross Investment 66 Depreciating Assets 68 Gross Plant Recaptured 81 Total Depreciating Assets 81 Non-Depreciating Assets 82 Asset Life 89 Gross Plant Asset Life 90 Life of Capitalized Operating Leases 91 Capitalized R&D Life 91 Calculating the Life of Depreciating Assets 91 Gross Cash Flow 94 Net Income after Tax 95 Depreciation and Amortization 97 Interest Expense 97 Rental Expense 98 Research and Development Expense 98 Net Monetary Asset Holding Gain 99 FIFO Profits 99 Stock Compensation Expense 100 Pension Expense 101 Minority Interest 102 Special Items 102 CFROI Calculation for Amazon 103 Understanding the Relative Wealth Chart 105 A Comment on Goodwill 106 Chapter Appendix: Gross Plant Recaptured 109 II Discounted Cash Flow and Economic Profit Valuation 4 What’s It Worth? Valuing the Firm 113 Key Learning Points 113 A Review of Conventional Valuation Approaches 114 The Entity Free Cash Flow Approach 114 Valuing the End of the Line 118 Economic Profit Approach 124 What Is Fade? 127 Fade in Economic Profit Equation 129 HOLT Approach to FCFF Valuation 130 Nominal Gross Cash Flow 130 Total Investment 132 Debt and Equivalents 136 Valuing Different Forecast Scenarios for Amazon in the HOLT Framework 138 Valuing Air Liquide in HOLT Lens 145 5 Quantifying the Value and Risk of a Company’s CAP 151 Key Learning Points 151 Introduction 152 The Worst Investment I Ever Made 154 Quantifying the Magnitude and Sustainability of CAP 158 Thought Experiment: The Valuation of Core Unlimited 164 The Probability of Permanent Disruption 168 The Characteristics of Competitive Advantage 169 Fade Is a Value Driver 172 The Fundamental Pricing Model 172 The Value Driver Tree 174 ROIC 174 Investment Growth 175 Fade 175 Cost of Capital 177 Investment Growth Is a Value Driver 177 Applying the Fundamental Pricing Model 178 Final Thoughts for the Moment 183 Chapter Appendix 184 Valuation Mathematics 184 Inputs for Valuing Macy’s and Assessing Its Competitive Advantage Period 186 A Detour Through the Twilight Zone: Making Sense of P/E 187 6 HOLT Economic Profit 191 Key Learning Points 191 Introduction 193 Calculating CFROI as a Ratio 196 HOLT Economic Profit 200 The Power of Simplicity: Spread, Fade, and Growth in an EP Framework 204 Using Economic Profit to Measure the Value of Acquisitions 205 Decomposing Value Creation into Delta EP Components 208 What about Goodwill? 210 Case Study: Danaher Corporation 212 7 Risk, Reward, and the HOLT Discount Rate 217 Key Learning Points 217 Risk, Return, and Diversification 218 What Is Risk? 221 How Do Corporate Managers Discount Cash Flows to Present Value? 223 How Should Investors Think about Risk When Discounting Cash Flows? 223 How Large Is the Equity Risk Premium (ERP)? 226 Should I Use the Arithmetic or Geometric Average? 228 Other Risk Factors to Consider 228 Introduction to the HOLT Approach of Estimating a Firm’s Discount Rate 231 Relating the HOLT Discount Rate and Framework to CAPM and APV 237 What Type of Discount Rate Is the HOLT Cost of Capital? 238 Valuation Method Equivalence 239 Capital Cash Flows 243 Cost of Capital and Its Relationship to Debt 243 Chapter Appendix: Do Equity Discount Rates Mean Revert? 245 General Observations about Annual Changes in the U.S. Discount Rate 247 How Does the Monthly Change in the U.S. Discount Rate Behave? 249 Does the Discount Rate Mean-Revert? 250 How Do Changes in the Discount Rate Manifest in the Equity Risk Premium? 252 The Bitter Truth about Mean Reversion 253 III Value Driver Forecasting 8 The Competitive Life-Cycle of Corporate Evolution 257 Key Learning Points 257 Introduction 258 What Is Fade? 262 The Competitive Life-Cycle 262 Determining a Firm’s Life-Cycle Position 264 Question Marks (Early Life-Cycle) 265 Stars 267 Cash Cows 270 Dogs (Turnarounds or Restructuring) 274 Final Remarks on the Competitive Life-Cycle 276 Essential Facts about the Competitive Life-Cycle 278 9 The Persistence of Corporate Profitability 281 Key Learning Points 281 Long-Term Real Return on Investment 282 The Long-Term Real Required Rate of Return 283 Measuring Persistence 286 Transition Matrices as a Means of Quantifying Fade 286 Industry Persistence: Does Industry Matter? 287 Reversion to the Mean 290 Competitive Advantage and Its Effect on Fade 292 Industry CFROI Persistence 295 Does CFROI Persistence Vary over Time? 296 Putting It All Together: Developing a Mean-Reverting Forecast Model 297 Conclusion 300 10 Forecasting Growth 303 Key Learning Points 303 Median Real Asset Growth Rate 306 The Average Growth Rate as Companies Mature 307 Is Corporate Growth Mean-Reverting? 309 The Sustainability of Growth 312 Forecasting Growth 313 Measuring a Firm’s Sustainable Growth Rate 313 Why HOLT Uses a Normalized Growth Rate 315 Forecasting Growth: Near-Term and Long-Term Dynamics 317 Conclusions 319 11 Evaluating Market Expectations 321 Key Learning Points 321 The Relative Wealth Chart as a Decision Aid for Efficiently Assessing Stock Opportunities 322 Distilling Expectations from a Stock Price 323 Can It Beat the Fade? 326 The Green Dot 328 Thinking about Expectations at Different Life-Cycle States 332 Why the Green Dot Is So Helpful 336 Picking Stocks Across the Life-Cycle 340 Question Mark (Tesla) 340 Star (Amazon) 343 eCAP (Nestlé) 346 Cash Cow (DuPont) 348 Dog (BP) 349 Final Remarks 353 Chapter Appendix: Gauging Expectations Using PVGO 356 12 Closing Thoughts 359 Index 363

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Book SynopsisUnderstand the investment template that dominates the pension industry Liability-Driven Investment is the practitioner's guide to this increasingly popular investment template. Already the dominant framework for pension schemes in Europe and the UK, the LDI market is expected to grow significantly with the shift from Defined Benefit to Defined Contribution, and then into Digital Asset Management or Robo-Advice. With an aging population and significant under-saving globally, more and more finance professionals will need to know how to work within and around the LDI framework; this book provides clear explanations for the framework''s usefulness and growing popularity to help practitioners find their bearings in and around the LDI space. The ultimate goal of LDI is to move beyond simple asset value maximisation and ensure that investors have sufficient funds to pay liabilities. This informative guide digs into that basic premise to show the various mechaniTable of ContentsPreface xi CHAPTER 1 Liability-Driven Investment and Multi-Asset Class Investing 1 Moving Beyond Modern Portfolio Theory: Introducing the World of Liability-Driven Investment 1 The Cult of Equity 6 The Pension Protection Fund 7 Summary 13 CHAPTER 2 Introduction to Investment Risk 15 Risk Management 18 The Importance of Risk vs Return 18 Quantifying Risk 19 Systematic and Nonsystematic Risk 19 Creating A Risk Profile 20 Summary 21 Some Basic Rules of Investment Risk 21 CHAPTER 3 Introductory Steps into the World of Multi-Asset Class Investment 23 Some Handy Definitions 25 The Starting Point 26 Introducing Modern Portfolio Theory 27 More Handy Definitions 29 But How Does the Asset Allocation Decision work? 30 Home Country Bias: 32 Developing a Strategy for Multiple Asset Classes 33 Handy Definitions 34 Quick Aside: 36 Summary 36 CHAPTER 4 Building Investment Portfolios 39 (Fundamental, Technical and Quantitative Techniques) 39 An Introduction to Single Stock Selection 40 The Types of Analysis 40 Fundamental Analysis of Securities 41 Introducing Ratio Analysis 42 Liquidity and Solvency Ratios 43 Current Ratio 43 The Quick Ratio or Acid Test 43 Cash Ratio 44 Financial Leverage or Debt Ratios 44 Technical Analysis of Securities 45 The Main Assumptions of Technical Analysis 46 Quantitative Analysis 47 Passive Investors 48 The Passive vs Active Debate 48 Introducing the Efficient Market Hypothesis 48 So Why Use Active Managers? 51 So Passive or Active? 56 Summary 57 CHAPTER 5 Building Investment Portfolios 59 Choosing the Manager 61 Moving on to Operational Due Diligence 63 A Sample (Non-Exhaustive) List of Operational Checks 63 Quick Aside: Replicating Private Equity and a Passive Venture Capital Fund 65 Part 3 Portfolio Selection 69 CHAPTER 6 Moving Towards Liability Driven Investing 73 The Time Value of Money 73 More Extreme than the Extreme 76 The Basics Continued: Real Versus Nominal Discounting 77 A Simple and Brief Look at Bonds 78 Some Other Types of Bonds 79 How to Price a Bond 80 Key Terms 80 Immunisation Theory and Frank Redington 81 An Introduction to Interest Rate Swaps 82 What Is an Interest Rate Swap? 83 The Mechanics 83 Some Terms Used in the Market 83 A Quick Aside: Forward Rate Agreements (FRAs) 84 An Introduction to Inflation-Linked Securities 85 Why Do Governments Issue Inflation-Linked Bonds? 87 The Basic Mechanics 88 Inflation-Linked Swaps 89 The Global Market 90 Payers vs Receivers 91 The Zero-Coupon Swap 91 CHAPTER 7 The Defined Benefit Pension Plan and Explicit Liabilities 93 The Boots Example 95 The Stakeholders in a Typical Plan 97 A Checklist for Trustees 97 What Are the Liabilities? 98 CHAPTER 8 ESG, Governance and the Pensions Industry 101 The UN PRI 103 The Increasing Importance of ESG 105 What Does ESG Represent? 106 The Main Approaches to Ethical Investing 107 Screening and Beyond 107 ESG: A Screening Approach 108 Implementing a Screen 110 ESG: An Integration-Based Approach 111 Best in Class Positive Screening 112 Impact-Based ESG Investing 114 Engagement-Based ESG Investing 117 ESG in History 119 The Case of Cowan vs Scargill 119 Incorporating ESG into the SIP 121 The Revised Statement Should 122 CHAPTER 9 Moving Beyond Liability-Driven Investment 123 The World of CDI 123 What is the Difference Between LDI and CDI? 125 Credit Where It's Due 126 Moving into Illiquid Credit 126 Cash Flow-Driven Investment in Action 128 The ABC Scheme 128 What Are the Objectives of Our Typical CDI Scheme? 129 CHAPTER 10 The Statement of Investment Principles 131 Drawing up a Statement of Investment Principles 131 What the SIP must include 131 Preparing the SIP 132 A Sample Statement of Investment Principles 132 Statement of Investment Principles for the ABC Plan 132 Investment Objective and Strategy 133 Investment Strategy 133 Investment Restrictions 134 Investment Risk 134 Realising Investments 135 Responsible Investment 135 Additional Voluntary Contributions (AVCs) 136 CHAPTER 11 Liability-Driven RoboAdvice and the Development and Digitisation of the Industry 139 WealthTech: How Wealth Managers and their Clients are Embracing New Technologies 139 From WealthTech to Robo-Advice 143 Robo-Advice in Ten Points 143 A Brief Introduction to Robo-Advice 145 Pricing Structures for Digital Advice 147 Advice or Guidance: Robo-advice or Partially Automated Digital Guidance 148 From the FCA 150 Further Developments in LDI 151 The Evolution of LDI and the Creation of Cash Flow-Driven Investment 151 What is Cash Flow-Driven Investment? 151 The Evolution of LDI 152 INDEX 155

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Book SynopsisTable of ContentsChapter 1 Introduction 1 Chapter 2 Behavioral Biases 5 2.1 Information Selection Biases 6 2.2 Information Processing Biases 11 2.3 Biases after Receiving Feedback 31 2.4 Are More Heads Smarter Than One? 33 2.5 Summary of Biases 35 2.6 Conclusion 39 Chapter 3 Cultural Differences in Investors’ Behavior 41 3.1 What Is Financial Culture? 41 3.2 The INTRA Study 43 3.3 Conclusion 46 Chapter 4 Neurological Foundations and Biases’ Moderation 47 4.1 The Human Brain 47 4.2 Insights for Behavioral Finance 48 4.3 Moderation of Biases 49 4.4 Conclusion 50 Chapter 5 Diagnostic Tests for Investment Personality 51 5.1 A Case Study 51 5.2 Design of Diagnostic Questionnaires 52 5.3 Knowledge and Investment Experience 53 5.4 Psychology and Emotions 59 5.5 Client’s Diagnostic Profile 65 Chapter 6 Decision Theory 69 6.1 Introduction 69 6.2 A (Very) Short History of Decision Theory 70 6.3 Expected Utility 73 6.4 Mean-Variance Analysis 76 6.5 Prospect Theory 78 6.6 Rationality of Mean-Variance and Prospect Theory 87 6.7 The Optimal Asset Allocation 91 6.8 Comparing the Decision Theories 102 6.9 Conclusion 103 Chapter 7 Product Design 105 7.1 Introduction 105 7.2 Case Study 107 7.3 Theory of Product Design 114 7.4 Structured Products Designed by Customers 120 7.5 Conclusion 123 Chapter 8 Dynamic Asset Allocation 125 8.1 Time Diversification 126 8.2 Rebalancing 129 8.3 Conclusion 134 Chapter 9 Life-Cycle Planning 137 9.1 Case Study 137 9.2 Case Study Werner Bruni 139 9.3 Consumption Smoothing 140 9.4 The Life-Cycle Hypothesis 141 9.5 The Behavioral Life-Cycle Hypothesis 143 9.6 Conclusion 146 Chapter 10 Risk Profiling 147 10.1 Risk-Profiling Methodologies 148 10.2 Comparing Risk-Profiling Methodologies 151 10.3 A Case Study 152 10.4 The Risk Dimensions 153 10.5 Behavioral Risk Profiler 155 10.6 Risk Profiling and Its Regulation 166 10.7 Conclusion 167 Chapter 11 Structured Wealth Management Process 169 11.1 Benefits 172 11.2 Implementation 173 11.3 Regulatory Requirements 174 11.4 Structuring the Wealth Management Process 177 11.5 Relevance of Different Theories 196 11.6 Complying with the Regulatory Requirements 197 11.7 Information Technology in Client Advisory Services 197 Chapter 12 Fintech 201 12.1 History of Fintech 201 12.2 Current State of Fintech 201 12.3 Assessment of Fintech Solutions 202 Chapter 13 Case Studies 203 13.1 Case Study 1: Structured Wealth Management 204 13.2 Case Study 2: Experience Sampling 209 13.3 Case Study 3: Goal-based Approach 210 Chapter 14 Conclusions 219 Chapter 15 Appendix: Mathematical Arguments 221 15.1 Proof that Expected Utility Satisfies the Axioms of Rational Choice 221 15.2 Derivation of the Fourfold Pattern of Risk Taking 222 15.3 Mean-Variance as a Special Case of Prospect Theory 222 15.4 Prospect Theory Optimal Asset Allocation 224 15.5 No Time Diversification Theorem 225 References 227 Index 235

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Book SynopsisStrengthen and unify your Financial Advisor Team Teams are the principle building blocks of the strategy of successful organizations. The focus of your organization may be on service, quality, cost, value, speed, efficiency, performance, or any other similar goals, but teams remain the central methodology of most organizations across sectors. Vertical teams and horizontal teams can transcend organizational silos and boundaries if properly focused and supported. Building collaborative teams can improve the client experience. In Supernova Teams: Effective Team Strategies for Financial Advisors, you'll discover the macro rationale and justification for teams, as well as the micro benefits of team formation. Boost your team's effectiveness Discover different leadership styles Write winning team vision statements Get familiar with communication strategies From on-boarding a new team member to finding effective ways to bolTable of ContentsForeword vii Preface xi Acknowledgments xv Introduction: Why Form a Team? xvii Chapter 1 Stepping Outside of Your Comfort Zone 1 Chapter 2 Distinct Types of Teams 11 Chapter 3 Team Effectiveness 23 Chapter 4 Leadership Styles/Leading the Team 33 Chapter 5 Establishing a Vision, Mission Statement, Value Proposition, and Elevator Pitch 43 Chapter 6 Operationalizing the Five Star Model 61 Chapter 7 Team Collaboration 73 Chapter 8 Shock Trauma Surgery Teams: A Compare and Contrast View 87 Chapter 9 Team Contract and Agreement 99 Chapter 10 The Key Drivers of Your Business, Forecasting Growth, and Building Your Business Plan 111 Chapter 11 Recruiting, Hiring, and Retaining Good People 123 Chapter 12 Onboarding and Mentoring a New Team Member 139 Chapter 13 Team Dysfunction: The Elephant in the Room 149 Chapter 14 The Leader/Manager Role in Building and Coaching Teams 161 Chapter 15 Wealth Management in the Digital Age 173 Chapter 16 Diverse Teams and Niche Markets 185 Chapter 17 Team Summary 199 Index 211

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Book SynopsisSustain and grow your family's capital throughout generations Families need to have vision and foresight to sustain the family's capital throughout generations. Unfortunately, many of them build wealth effectively but find, near the end of their lives, that it has little sustainability to prepare the next generations that will be the beneficiaries of their hard work. Passing the Torch teaches high net-worth families how to foster a strong family dynamic to be truly generational. Inside, first-generation wealth creators will learn how to create a culture of sustainability and growth and endow subsequent generations with the tools and mindset necessary to prosper. Subsequent generations will learn how to receive the torch, sustain and grow the family's capital and pass the torch to the next generation. Discover the importance of emotional intelligence Learn to view generational wealth from a behavioral lens Transcend financial instruction to find a sense of purpose and directioTable of ContentsForeword xi Preface xiii From Shirtsleeves-to-Shirtsleeves in Three Generations xiv My Story xv True Family Wealth xvii Why Are You Reading This Book? xix Chapter 1 What You Perceive Is Missing Drives You 1 Perceiving a Lack of Money and What That Can Ignite 3 The Power of Knowing What’s Most Important to You 7 Live Your Destiny and Leave Your Mark 12 Chapter 2 The Wealth Creator Extraordinaire 17 Live with a Vision and a Mission 19 Vision, Mission, Dream, and Legacy—Building Your Powerful Family 22 Chapter 3 The Genius of the Wealth Creator Extraordinaire 33 Traits of a Mentally Empowered, Intelligent Person 34 Understand and Apply Universal Principles 40 Chapter 4 The Wealth Creator Extraordinaire as a Business Leader 43 Unlocking the Leader Inside 43 How to Be a Great Businessperson 46 Chapter 5 The Wealth Creator Extraordinaire as a Money Manager 53 CHAPTER 6 The Wealth Creator Extraordinaire as a Family Leader 59 How to Build Powerful and Strong Family Relationships 60 Eight Keys to a Successful Marriage 64 Traits of a Family Leader 67 Chapter 7 The Wealth Creator Extraordinaire as a Social Leader 79 Guideposts for Leading 80 Tips for Leaders 83 Shaping Your Legacy 85 Philanthropy, a Thinking Man’s Gift to the World 89 Chapter 8 The Wealth Creator Extraordinaire as a Health and Vitality Leader 93 Healthy Eating and Drinking Habits 94 The Value of Exercise and Body Movement 96 The Value of Breathing 97 The Value of Rest and Restoration 98 The Body-Mind Connection 100 Is Gratitude the Key to Unlocking Happiness? 101 The Twenty-One-Day Gratitude-Habit-Forming Process 103 Chapter 9 A Conversation with Dr. John Demartini 107 Chapter 10 Principles of the Demartini Method: Based on Universal Laws and Truths 137 Principle 1 137 Principle 2 138 Principle 3 138 Principle 4 138 Principle 5 138 Principle 6 138 Principle 7 139 Principle 8 139 Principle 9 139 Principle 10 140 Principle 11 140 Principle 12 140 Principle 13 140 Chapter 11 A Conversation with James E. Hughes, Author of Family Wealth 141 Chapter 12 My Letter of Wishes for You 159 The Wealth Model 161 Afterword 163 Index 165

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Book SynopsisTransform your approach to oprisk modelling with a proven, non-statistical methodology Operational Risk Modeling in Financial Services provides risk professionals with a forward-looking approach to risk modelling, based on structured management judgement over obsolete statistical methods. Proven over a decade's use in significant banks and financial services firms in Europe and the US, the Exposure, Occurrence, Impact (XOI) method of operational risk modelling played an instrumental role in reshaping their oprisk modelling approaches; in this book, the expert team that developed this methodology offers practical, in-depth guidance on XOI use and applications for a variety of major risks. The Basel Committee has dismissed statistical approaches to risk modelling, leaving regulators and practitioners searching for the next generation of oprisk quantification. The XOI method is ideally suited to fulfil this need, as a calculated, coordinated, consistent apprTable of ContentsList of Figures xi List of Tables xv Foreword xix Preface xxi Part One Lessons Learned in 10 Years of Practice Chapter 1 Creation of the Method 3 1.1 From Artificial Intelligence to Risk Modelling 3 1.2 Model Losses or Risks? 5 Chapter 2 Introduction to the XOI Method 7 2.1 A Risk Modelling Doctrine 7 2.2 A Knowledge Management Process 8 2.3 The eXposure, Occurrence, Impact (XOI) Approach 9 2.4 The Return of AI: Bayesian Networks for Risk Assessment 10 Chapter 3 Lessons Learned in 10 Years of Practice 13 3.1 Risk and Control Self-Assessment 13 3.2 Loss Data 24 3.3 Quantitative Models 30 3.4 Scenarios Workshops 36 3.5 Correlations 41 3.6 Model Validation 47 Part Two Challenges of Operational Risk Measurement Chapter 4 Definition and Scope of Operational Risk 57 4.1 On Risk Taxonomies 57 4.2 Definition of Operational Risk 68 Chapter 5 The Importance of Operational Risk 71 5.1 The Importance of Losses 71 5.2 The Importance of Operational Risk Capital 74 5.3 Adequacy of Capital to Losses 76 Chapter 6 The Need for Measurement 77 6.1 Regulatory Requirements 77 6.2 Nonregulatory Requirements 82 Chapter 7 The Challenges of Measurement 93 7.1 Introduction 93 7.2 Measuring Risk or Measuring Risks? 93 7.3 Requirements of a Risk Measurement Method 95 7.4 Risk Measurement Practices 98 Part Three The Practice of Operational Risk Management Chapter 8 Risk and Control Self-Assessment 105 8.1 Introduction 105 8.2 Risk and Control Identification 107 8.3 Risk and Control Assessment 113 Chapter 9 Losses Modelling 121 9.1 Loss Distribution Approach 122 9.2 Loss Regression 134 Chapter 10 Scenario Analysis 137 10.1 Scope of Scenario Analysis 137 10.2 Scenario Identification 150 10.3 Scenario Assessment 163 Part Four The Exposure, Occurrence, Impact Method Chapter 11 An Exposure-Based Model 179 11.1 A Tsunami Is Not an Unexpectedly Big Wave 179 11.2 Using Available Knowledge to Inform Risk Analysis 180 11.3 Structured Scenarios Assessment 181 11.4 The XOI Approach: Exposure, Occurrence, and Impact 182 Chapter 12 Introduction to Bayesian Networks 185 12.1 A Bit of History 185 12.2 A Bit of Theory 186 12.3 Influence Diagrams and Decision Theory 187 12.4 Introduction to Inference in Bayesian Networks 187 12.5 Introduction to Learning in Bayesian Networks 189 Chapter 13 Bayesian Networks for Risk Measurement 191 13.1 An Example in Car Fleet Management 191 Chapter 14 The XOI Methodology 203 14.1 Structure Design 203 14.2 Quantification 209 14.3 Simulation 214 Chapter 15 A Scenario in Internal Fraud 219 15.1 Introduction 219 15.2 XOI Modelling 219 Chapter 16 A Scenario in Cyber Risk 227 16.1 Definition 227 16.2 XOI Modelling 234 Chapter 17 A Scenario in Conduct Risk 239 17.1 Definition 239 17.2 Types of Misconduct 241 17.3 XOI Modelling 246 Chapter 18 Aggregation of Scenarios 255 18.1 Introduction 255 18.2 Influence of a Scenario on an Environment Factor 257 18.3 Influence of an Environment Factor on a Scenario 258 18.4 Combining the Influences 261 18.5 Turning the Dependencies into Correlations 262 Chapter 19 Applications 265 19.1 Introduction 265 19.2 Regulatory Applications 267 19.3 Risk Management 278 Chapter 20 A Step towards “Oprisk Metrics” 287 20.1 Introduction 287 20.2 Building Exposure Units Tables 288 20.3 Sources for Driver Quantification 289 20.4 Conclusion 290 Index 291

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Book SynopsisWhat works best for clients? Learn the pros and cons of the LLC, general partnership, limited partnership, and limited liability partnership by focusing on planning and potential tax traps. This title offers a review of distinct advantages of these entities coupled with an examination of the risk members and partners face if they do not have a solid tax plan to minimize their exposure. In addition, the authors explore some of the more intricate rules and regulations of these entities so you can move your working knowledge of partnership and LLC taxation beyond the basics. This book prepares the reader to do the following: Analyze a partnership or LLC agreement to determine whether any special allocations in the agreement will be allowed under Code Section 704(b)Identify the potential economic consequences of special allocations to a partner or LLC memberIdentify the potential tax consequences when a partner or LLC member has a negative balance in his or her capital accountRecognize Table of ContentsChapter 1 1-1 Allocation of Partnership and LLC Income Under Section 704(b) 1-1 Economic Effect: The General Test 1-3 Deemed Economic Effect 1-13 Alternate Test for Economic Effect 1-14 Substantiality 1-18 Denied Allocations: Deter 1-23 Other Issues 1-26 Allocation of Deductions Attributable to Nonrecourse Debt 1-31 Summary 1-35 Chapter 2 2-1 Allocations With Respect to Contributed Property: Section 704(c)(1)(A) 2-1 The Traditional Method 2-4 The Traditional Method With Curative Allocations 2-13 The Remedial Allocations Method 2-16 Special Rules 2-21 Summary 2-24 Chapter 3 3-1 Allocation of Partnership Recourse Liabilities Under Section 752 3-1 How Liabilities Affect Partner Tax Consequences 3-2 Allocation of Liabilities Among the Partners: In General 3-12 Allocation of Recourse Liabilities 3-15 Chapter 4 4-1 Allocation of Partnership Nonrecourse Liabilities and Related Deductions Under Sections 752 and 704(b) 4-1 Distinguishing Between Recourse and Nonrecourse Liabilities 4-2 Allocation of Nonrecourse Debts 4-7 Treatment of Contingent Liabilities 4-16 Chapter 5 5-1 Advanced Distribution Rules 5-1 Non-Liquidating Distributions Generally 5-2 Distribution of Multiple Properties 5-7 Summary 5-20 Chapter 6 6-1 Adjustments to the Basis of Partnership or LLC Assets 6-1 Section 743: Adjustments Following the Transfer of a Partnership Interest 6-3 Distributions of Partnership Property 6-6 Allocating the Adjustment Amount Among Partnership Properties 6-16 Chapter 7 7-1 Sale of an Interest in a Partnership or LLC 7-1 General Tax Consequences Associated With Sale 7-2 “Hot” Assets and Section 751(a) 7-6 Collectibles and Unrecaptured Section 1250 Gain 7-11 Installment Sales 7-13 Net Investment Income Tax 7-15 Sale of an Active (Non-passive) Interest in a Partnership or LLC 7-16 Sale of a Passive Interest in a Partnership or LLC 7-18 Potential for Termination of the Partnership 7-19 Consequences to the Purchaser 7-25 Tax Glossary Tax Glossary 1 Index Index 1 Solutions Solutions 1 Chapter 1 Solutions 1 Chapter 2 Solutions 4 Chapter 3 Solutions 6 Chapter 4 Solutions 9 Chapter 5 Solutions 12 Chapter 6 Solutions 15 Chapter 7 Solutions 18

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Book SynopsisThe need-to-know essentials of investing This book explains the conceptual foundations of investing to improve investor performance. There are a host of investment mistakes that can be avoided by such an understanding. One example involves the trade-off between risk and return. The trade-off seems to imply that if you bear more risk you will have higher long-run average returns. That conclusion is false. It is possible to bear a great deal of risk and get no benefit in terms of higher average return. Understanding the conceptual foundations of finance makes it clear why this is so and, thereby, helps an investor avoid bearing uncompensated risks. Another choice every investor has to make is between active versus passive investing. Making that choice wisely requires understanding the conceptual foundations of investing. Instructs investors willing to take the time to learn all of the concepts in layman's terms Teaches concepts without overwhelmingTable of ContentsPreface vii 1 Returns 1 2 The Economic Structure of Investment Markets 23 3 Bonds and Inflation 53 4 RiskandReturn 97 5 Fundamental Analysis and Valuation 121 6 Transaction Costs, Fees, and Taxes 159 7 Can History Be Trusted? 175 8 Can Behavioral Anomalies Be Exploited? 193 9 Alternative Investments 209 10 Investment Suggestions and Postscript 227 Index 237

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Book SynopsisPraise for LEARNING PRACTICAL FINTECH FROM SUCCESSFUL COMPANIES Throughout my career I've seen the world of finance transformed by technology, from the earliest days of online lending to the current innovations happening with blockchain and cryptocurrency. I believe we're at a critical point in history where a new Internet of Value is starting to emerge, and I'm excited to see so many talented entrepreneurs tackling problems in global finance today. ?CHRIS LARSEN, Cofounder and Executive Chairman of Ripple Blockchain technology is changing the way the world does business. This book offers an inside look at how institutions from all corners of financial services and other areas of commerce are collaborating with software firms like R3 to re- engineer the infrastructure that enables money, goods, and information to flow around the globe. ?DAVID RUTTER, Founder, Chief Executive Officer of R3 When we think about FinTech, we often think about New York, Silicon Valley, and London, but this bTable of ContentsPreface vii List of Contributors ix Planning and Editing Staff of the SBI Group xi Chapter 1 Internet Revolution and Evolution of FinTech 1 Chapter 2 Evolution of the SBI Group 11 Chapter 3 Background of the FinTech Revolution 27 Chapter 4 Breakthrough FinTech Companies 31 Chapter 5 Issues for Financial Institutions and the Legal System 133 Afterword 151 About the Author and Editor 155 Index 157

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Book SynopsisSimplify your financial life and ensure financial success into the future Feeling paralyzed by the overwhelming number of complex decisions you need to make with your money? You don't need to be an expert to achieve financial freedom. You just need a framework that makes the right choices simple and easy to make.Making Money Simpleprovides that much-needed process so you can get on the right track to long-term financial security. This valuable resource provides a solid foundation for all the nuanced personal finance decisions you need to make as you go through your career, hit major life milestones, and look to grow wealth. It's a blueprint for financial achievementeven through tough-to-navigate situations where there are no clear-cut rules. After you readMaking Money Simple, you'll be able to create your personal plan for success using proven wealth management methods and real-world financial strategies. From basic financial principles to advanced investing techniques, you'll get comprehensive coverage of fundamental financial topics with easy-to-follow advice from author Peter Lazaroff, who draws from his expertise as the Chief Investment Officer of a multi-billion-dollar wealth management firm to give you the tools you need to simplify your financial situation and make the right moves at every opportunity. Getting your finances in order doesn't have to be hard. It doesn't require fancy, convoluted investment strategies. Nor does it require keeping track of detailed spreadsheets. You just need this step-by-step process to get your financial house in order and keep it that way forever. It doesn't matter what your specific situation is. We all need to understand our moneyand what to do with it.Making Money Simpleshows you how to: Develop clear financial goals and plan for your futureUnderstand the three crucial elements of building a strong financial houseImplement effective investment strategies to grow your wealth and avoid costly mistakesLearn ten smart questions to ask when hiring financial professionals For those seeking to secure a solid financial future, MakingMoney Simple: A Complete Guide to Getting Your Financial House in Order and Keeping It That Way Foreveris the roadmap to get you there.Table of ContentsIntroduction vii Chapter 1 The Power of Time and Compounding 1 Chapter 2 Where Do You Want to Go? 9 Chapter 3 Where Are You Today? 25 Chapter 4 Creating a System for Financial Success 33 Chapter 5 Your Introduction to Investing 43 Chapter 6 Harnessing the Power of Markets 53 Chapter 7 Building a Portfolio to Meet Your Goals 63 Chapter 8 How and Where to Invest Your Savings 79 Chapter 9 Facing the Realities of Market Downturns 95 Chapter 10 Family Finances 103 Chapter 11 Big Financial Decisions at Critical Junctions in Life 115 Chapter 12 How To Create Your Own Team of Professionals to Help You Succeed 129 Conclusion: Building a System for Financial Success 143 About The Author 147 Quiz: Is Your Financial House in Order? 149 Index 151

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Book SynopsisLoss Models: From Data to Decisions, Fifth Editioncontinues to supply actuaries with a practical approach to the key concepts and techniques needed on the job. With updated material and extensive examples, the book successfully provides the essential methods for using available data to construct models for the frequency and severity of future adverse outcomes. The book continues to equip readers with the tools needed for the construction and analysis of mathematical models that describe the process by which funds flow into and out of an insurance system. Focusing on the loss process, the authors explore key quantitative techniques including random variables, basic distributional quantities, and the recursive method, and discuss techniques for classifying and creating distributions. Parametric, non-parametric, and Bayesian estimation methods are thoroughly covered along with advice for choosing an appropriate model.Throughout the book, numerous examples showcase the reaTable of Contents1 Introduction 1 2 Chapter 2 Solutions 3 Section 2.2 3 3 Chapter 3 Solutions 9 Section 3.1 9 Section 3.2 14 Section 3.3 15 Section 3.4 15 Section 3.5 19 4 Chapter 4 Solutions 23 Section 4.2 23 5 Chapter 5 Solutions 29 Section 5.2 29 Section 5.3 39 Section 5.4 40 6 Chapter 6 Solutions 43 Section 6.1 43 Section 6.5 43 Section 6.6 44 7 Chapter 7 Solutions 47 Section 7.1 47 Section 7.2 48 Section 7.3 50 Section 7.5 54 8 Chapter 8 Solutions 59 Section 8.2 59 Section 8.3 61 Section 8.4 63 Section 8.5 63 Section 8.6 67 9 Chapter 9 Solutions 71 Section 9.1 71 Section 9.2 71 Section 9.3 72 Section 9.4 81 Section 9.6 82 Section 9.7 87 Section 9.8 89 10 Chapter 10 Solutions 95 Section 10.2 95 Section 10.3 99 Section 10.4 99 Section 10.5 103 11 Chapter 11 Solutions 105 Section 11.2 105 Section 11.3 110 Section 11.4 110 Section 11.5 114 Section 11.6 119 Section 11.7 121 12 Chapter 12 Solutions 123 Section 12.7 123 13 Chapter 13 Solutions 129 Section 13.2 129 Section 13.3 138 14 Chapter 14 Solutions 141 Section 14.2 141 Section 14.3 144 Section 14.4 149 Section 14.5 151 Section 14.6 155 Section 14.7 157 Section 14.8 158 15 Chapter 15 Solutions 161 Section 15.3 161 Section 15.4 164 Section 15.5 170 16 Chapter 16 Solutions 177 Section 16.7 177 17 Chapter 17 Solutions 181 Section 17.9 181 18 Chapter 18 Solutions 211 Section 18.5 211 19 Chapter 19 Solutions 219 Section 19.1 219 Section 19.2 220 Section 19.4 221 Section 19.4 221

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Book SynopsisLearn to start open, productive talks about money with your parents as they age As your parents age, you may find that you want or need to broach the often-difficult subject of finances. In Mom and Dad, We Need to Talk: How to Have Essential Conversations with Your Parents About Their Finances, you'll learn the best ways to approach this issue, along with a wealth of financial and legal information that will help you help your parents into and through their golden years. Sometimes parents are reluctant to address money matters with their adult children, and topics such as long-term care, retirement savings (or lack thereof), and end-of-life planning can be particularly touchy. In this book, you'll hear from others in your position who have successfully had the talk with their parents, and you'll read about a variety of conversation strategies that can make talking finances more comfortable and more productive. Learn conversation starters and strategies to open the lines of communTable of ContentsIntroduction: Why the Money Talk Is Essential ix Chapter 1 Get Over Your Fear of Having “The Talk” 1 Chapter 2 Don’t Wait 13 Chapter 3 Reasons Your Parents Might Be Reluctant to Talk 23 Chapter 4 What Happens If You Don’t Have the Conversation 33 Chapter 5 Start by Talking to Your Siblings 41 Chapter 6 What Not to Say 51 Chapter 7 Conversation Starters 59 Chapter 8 A Step-by-Step Approach to a Successful Conversation 73 Chapter 9 What You Need to Know 83 Chapter 10 Talking to Your Parents About Estate Planning Documents 97 Chapter 11 Talking to Your Parents About Scammers 113 Chapter 12 Talking to Your Parents About Long-Term Care 133 Chapter 13 Talking to Your Parents About When It’s Time to Move 157 Chapter 14 If at First You Don’t Succeed . . . 173 Chapter 15 Getting Through to Reluctant Parents: Success Stories 181 Chapter 16 What to Do If Your Parents Won’t Talk 191 Chapter 17 Pay It Forward: Start Talking to Your Kids 201 A Final Note 215 Additional Resources 217 About the Author 225 Acknowledgments 227 Index 229

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Book SynopsisTake your Supernova practice to even greater heights of performance and profitability The Supernova Multiplierprovides expert guidance to the revolutionary wealth management model that has transformed the lives and businesses of financial professionals worldwide. The innovative Supernova method enables financial advisors to rapidly grow their business, efficiently manage time, and maximize client satisfaction. The Five Stars of the Supernova modelSegmentation, Organization, Planning, Acquisition, and Leadershipprovide financial advisors with the tools and knowledge to propel their practices to new heights of performance. The acknowledged pioneer of the Supernova model, author Rob Knapp offers in-depth examination of every aspect of the Supernova model, from client experience to leadership development. This invaluable resource addresses significant issues facing disciples of the model, including areas of chronic underperformance, and delivers proven solutiTable of ContentsForeword vii Acknowledgments ix Introduction xi Chapter 1 Hitting the Wall: The Why Behind The Supernova Multiplier 1 Chapter 2 Organize and Operate: Raising Our Productivity by Maximizing Our Efficiency 15 Chapter 3 Giving More and Keeping Score 37 Chapter 4 90 Days 90 Prospects 57 Chapter 5 Using Centers of Influence to Grow Your Practice 65 Chapter 6 Niches 81 Chapter 7 Mastermind Groups 95 Chapter 8 Niche Mastermind Groups—A Radical Idea 109 Chapter 9 Giving to Give 121 Chapter 10 Leveraging Social Media 137 Chapter 11 Leveraging Debt to Your Client’s Advantage 149 Chapter 12 The Art of Asking for and Getting Introductions 159 Chapter 13 The Branch Manager’s Role as a Supernova Multiplier 179 Enthusiastically Endorsed Resources 191 Index 193

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Book SynopsisMaster the online tools available to grow your business and conquer the competition Business Hack is your essential roadmap to business growth and online marketing success. Author and successful entrepreneur John Lee shares his proven methods to harness the power of online tools, including using social mediaoffering practical steps to create and implement highly effective cyber-marketing campaigns. Thanks to the digital revolution, you no longer need teams of marketing experts and other expensive overheads to build and promote your business. This unique and valuable resource covers everything you need to consider when building your marketing strategy, from established principles of sales to cutting-edge digital techniques. In today's dynamic business environment, strong and ongoing engagement in social media marketing is no longer an optionit is a necessity. From local craft-based businesses to new tech start-ups and even global multinational corpoTable of ContentsPreface xi Acknowledgments xiii About the Author xv Introduction: My Business Journey 1 Part I The Old Rules Chapter 1 Your Business and Products 19 Chapter 2 Sales and Marketing 27 Chapter 3 Building Your Sales Machine 41 Chapter 4 The Psychology of Selling 71 Part II The New Rules Chapter 5 The Digital Revolution 87 Chapter 6 Your Online Presence 95 Chapter 7 The Power of Social Media 113 Chapter 8 A Guide to Building Successful Social Media Campaigns 123 Chapter 9 Branding in the Digital Age 139 Chapter 10 Cautionary Tales (Adapt or Die!) 153 Part III The Future Rules Chapter 11 Predicting Future Trends 161 Chapter 12 Don’t Become a Human Bot! 171 Part IV Their Rules (Case Studies) Chapter 13 Case Studies 177 Final Word: Your Business Story 193 Index 195

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Book SynopsisThe Advanced Single Audit Certificate exam tests your ability to plan, perform and evaluate single audits in accordance with the latest requirements of the new Uniform Guidance. This exam is offered in a timed online format and consists of 75 multiple choice questions. In order to successfully pass the examination, you must be able to evaluate and analyze the core concepts related to client acceptance, engagement planning, engagement analysis, concluding an engagement and guiding principles for single audits. Topics that will be tested on the exam include:Planning the auditPerforming the auditInternal control over complianceCompliance testingAudit samplingSingle Audits - special considerationsReporting on the compliance auditOnline Access InstructionsA personal pin code is enclosed in the physical packaging that may be activated online upon receipt. Once activated, you will gain immediate online access to the product. Your Certificate and Digital BadgeAfter passing the exam, you

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Book SynopsisThe Cybersecurity Fundamentals for Finance and Accounting Professionals Certificate course (15.5 CPE Credits) will help you develop fluency and gain confidence to make sound strategic decisions regarding cybersecurity risk. You'll also learn what you should be doing as a non-IT professional, to help protect your clients and your organization from cyber threats. Understand cybersecurity-and be part of the solution. The threats from cyber-attacks are real, and can:Disrupt businessesResult in financial lossesDestroy an organization's reputationIn fact, cybercrime damage costs are expected to hit $6 trillion annually by 2021. Organizations are under pressure to show that they have effective processes in place to detect, mitigate, and recover from cybersecurity events. This certificate course gives you a foundation in cybersecurity so you can provide valuable leadership within your organization-or with your clients. What do you need to know about cybersecurity?You don't have to beco

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Book SynopsisThe Advanced Defined Contribution Plans Audit Certificate exam tests your ability to plan, perform and evaluate defined contribution plans, in accordance with AICPA standards and DOL rules and regulations. This exam is offered in a timed online format and consists of 75 multiple choice questions. In order to successfully pass the examination, you must be able to evaluate and analyze the core concepts related to client acceptance, engagement planning, engagement analysis, concluding an engagement and guiding principles for defined contribution plan audits. Some of the topics that will be tested on the exam include:Planning and general proceduresInternal controlNet assets available for benefitsChanges in net assets available for benefitsPlan tax statusFinancial statement presentation, disclosure, and regulatory reportingAudit reportsOnline Access InstructionsA personal pin code is enclosed in the physical packaging that may be activated online upon receipt. Once activated, you will gai

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Book SynopsisThe Advanced Health and Welfare Plans Audit Certificate exam tests your ability to plan, perform and evaluate health and welfare plans, in accordance with AICPA standards and DOL rules and regulations. This exam is offered in a timed online format and consists of 75 multiple choice questions. In order to successfully pass the examination, you must be able to evaluate and analyze the core concepts related to client acceptance, engagement planning, engagement analysis, concluding an engagement and guiding principles for health and welfare plan audits. Some of the topics that will be tested on the exam include: Planning and General ProceduresInternal ControlNet Assets Available for BenefitsChanges in Net Assets Available for BenefitsBenefit Obligations and Changes in Benefit ObligationsPlan Tax StatusFinancial Statement Presentation, Disclosure & Regulatory ReportingAudit Reports & Concluding the AuditOnline Access InstructionsA personal pin code is enclosed in the physical packaging th

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Book SynopsisThe Intermediate Employee Benefit Plans Audit Certificate exam tests your knowledge related to auditing employee benefit plans, including defined contribution, defined benefit, and health and welfare plans, in accordance with AICPA standards and DOL rules and regulations. This exam is offered in a timed online format and consists of 100 multiple choice questions. In order to successfully pass the examination, you must understand and apply the core concepts related to client acceptance, engagement planning, engagement analysis, concluding an engagement and guiding principles for employee benefit plan audits. Some of the topics that will be tested on the exam include:Planning and general proceduresInternal controlInvestments and investment issuesTypes of plansKey compliance elementsLimited scope issuesFinancial statement presentation, disclosure, and regulatory reportingOnline Access InstructionsA personal pin code is enclosed in the physical packaging that may be activated online upon

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Book SynopsisThe Fundamentals of Forensic Accounting Certificate Program (21.5 CPE credits) covers those areas representative of the AICPA's Body of Knowledge in the financial forensics area. This certificate program is tailored to provide an introduction to financial forensics and help you become familiar with the forensic accountant's professional responsibility. It provides a foundational knowledge of:The legal systemHow to plan and prepare a forensic engagementGathering informationDiscoveryReportingProviding expert testimonyThis online CPE self-study certificate program consists of 19 required modules that utilize interactive scenario-based learning, including audio and video animation, to guide you through the concepts, including:AICPA Guidance for the Forensic EngagementUnderstanding the Forensic Accountant RoleUnderstanding the Basic Structure of the Legal SystemManaging the Forensic EngagementIdentifying and Obtaining EvidenceConducting Effective InterviewsCommon Investigative TechniquesDep

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Book SynopsisThe Intermediate Single Audit Certificate exam tests your ability to plan, perform and evaluate single audits in accordance with the latest requirements of the new Uniform Guidance. This exam is offered in a timed online format and consists of 100 multiple choice questions. In order to successfully pass the examination, you must be able to evaluate and analyze the core concepts related to client acceptance, engagement planning, engagement analysis, concluding an engagement and guiding principles for single audits. Topics that will be tested on the exam include:Comprehending single auditsSchedule of Expenditures of Federal AwardsPlanning the auditMajor program determinationUsing the Compliance SupplementInternal control over complianceTesting complianceSingle audit reportingOnline Access InstructionsA personal pin code is enclosed in the physical packaging that may be activated online upon receipt. Once activated, you will gain immediate online access to the product. Your Certific

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Book SynopsisTax Staff Essentials, Level 1 - New Staff (58.5 CPE Credits) is designed to help beginning staff members develop a strong set of core skills. It focuses on individual and S corporation tax compliance plus professional business communications and more. This series covers key areas to ensure your young tax force is well prepared to begin their careers. They'll learn about: Individual, partnership and S corporation tax complianceEffective online tax research techniquesClear and precise workpaper documentationEffective professional business communications Your future tax professionals will also receive a broad range of practical tax instruction, including key issues surrounding: Individual taxationNew cost and repair regulationsS corporation distributionsItems affecting shareholder basisPassive activity loss rules, and moreCourses Include:Tax Research IIndividual Tax FundamentalsCapitalized Costs & DepreciationWorking Paper DocumentationS Corporation FundamentalsEffective Business Commun

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Book SynopsisAs globalization is redefining the field of corporate finance, international finance is now part and parcel of the basic literacy of any financial executive. This is why International Corporate Finance is a must text for upper-undergraduates, MBAs aspiring to careers in global financial services and budding finance professionals. International Corporate Financeoffers thorough coverage of the international monetary system, international financing, foreign exchange risk management and cross-border valuation. Additionally, the book offers keen insight on how disintermediation, deregulation and securitization are re-shaping global capital markets. What is different about International Corporate Finance? Each chapter opens with a real-life mini-case to anchor theoretical concepts to managerial situations. Provides simple decision rules and how to do answers to key managerial issues. Cross-border Mergers & Acquisitions, Table of ContentsPreface xvii Acknowledgments xxv About the Author xxvii Chapter 1 What is International Corporate Finance? 1 The Uneven Reach of Globalization 2 The Rise of the Multinational Corporation 3 What is Different about International Corporate Finance? 6 Risks in the Wonderland of International Finance 8 Internationalization and the Locus of the Finance Function 12 The International Control Conundrum 15 Exploiting The Multinational Enterprise System 16 Summary 19 Questions for Discussion 19 References 20 Part One The International Monetary Environment 21 Chapter 2 Exchange Rates Regimes 23 Some First Principles about Exchange Rate Determination 24 World Map of Exchange Rate Regimes: The Flexibility × Convertibility Space 29 Floating Exchange Rates 31 Stabilized or Pegged Exchange Rates 39 Controlled Exchange Rates 46 To Float or to Fix: The Trilemma of International Finance 49 Summary 50 Questions for Discussion 51 Problems 52 Internet Exercises 54 References 54 Chapter 3 Yesterday and Yesteryear 57 Chronology of the International Monetary System 58 The Gold Standard (1878–1914, 1925–1931) 61 The Bretton Woods System (1944–1971) 63 Managed Floating Exchange Rates (1973–Present) 67 European Monetary System and the European Currency Unit (1979–1999) 68 Emerging Markets Currency Regimes and Crises 72 European Monetary Union and the Birth of the Euro (1999–Present) 76 Today and Tomorrow: The Current Map of Exchange Rates 84 Summary 86 Questions for Discussion 87 Problems 88 Internet Exercises 90 References 90 Case Study 3.1: Will the Eurozone Shutter? Plant Location and Exchange Rates for Hyundai 91 Chapter 4 The Balance of Payments 99 Fundamentals of Balance of International Payments Accounting 100 Current Account 105 Financial Account 107 Official Reserve Account 109 Statistical Discrepancies: Errors and Omissions 111 Balance of Payments and the Foreign Exchange Market 111 Debtor Versus Creditor Nations 115 Linking the Balance of Payments to National Income 118 Summary 119 Questions for Discussion 120 Problems 121 Internet Exercises 122 References 124 Case Study 4.1: When One of the BRIC(k)s Falls: Trials and Tribulations of the Indian Rupee 124 Part Two The Foreign Exchange Market and Currency Derivatives 129 Chapter 5 The Foreign Exchange Market 131 How Forex is Traded: The Institutional Framework 132 Foreign Exchange Products 140 Exchange Rate Quotations 142 Summary 155 Questions for Discussion 156 Problems 157 Internet Exercises 160 References 160 Case Study 5.1: Banco Mercantil Internacional’s Forex Losses 160 Chapter 6 Interest Rate Arbitrage and Parity 165 Interest Rate Arbitrage Theorem 166 Interest Rate Parity 174 Uncovered Interest Rate Arbitrage and the Carry Trade 181 Summary 184 Appendix 6A: Transaction Costs: Interest Rate Arbitarge with Bid-Ask Spreads (Advanced) 185 Appendix 6B: Interest Rate Parity and Asymmetric Taxation 187 Questions for Discussion 188 Problems 188 Internet Exercises 195 References 195 Case Study 6.1: Brazil Rede Globo’s Short-Term Funding 195 Chapter 7 Purchasing Power Parity and the International Parities Framework 199 Purchasing Power Parity 200 The Linkages Between Interest, Inflation, and Exchange Rates 213 Questions for Discussion 220 Problems 220 Internet Exercises 221 References 222 Chapter 8 Currency Futures and Options 223 A Brief History of Derivatives 223 Currency Futures 228 Currency Options 234 Risk Profile of Currency Options 236 Option Strategies 239 Put-Call Parity Theorem 245 The Valuation of Currency Options 248 Derivatives and Zero-Premium Options 254 Summary 258 Appendix 8A: Pricing Currency Options 259 Questions for Discussion 261 Problems 261 Internet Exercises 264 References 264 Case Study 8.1: Daewoo’s Unorthodox Funding Strategy 264 Part Three International Financing 269 Chapter 9 The International Financial Sector and the Dynamics of Global Capital Markets 271 Financing as a Global Procurement Decision 272 The Financial System and Financial (Dis)Intermediation 273 Securitization and the (Lower) Cost of Consumer Financing 281 Deregulation 287 Mapping the Financial System/Capital Market Emergence Process 290 Summary 297 Questions for Discussion 298 Problems 298 Internet Exercises 300 References 300 Case Study 9.1: How Thai Airways FOILs Jet Fuel Price Risk 301 Chapter 10 Sourcing Equity Globally 307 A Grand Tour of Equity Markets 308 Global Equity Financing as a Procurement Decision 317 Internationalizing the Cost of Capital: The Landmark Case of Novo Industri 318 Why do Firms Cross-List? 323 How to Source Equity Globally 325 Summary 331 Questions for Discussion 332 Problems 333 Internet Exercises 334 References 335 Case Study 10.1: Jazztel’s Foreign IPO 335 Chapter 11 Sourcing Debt from Global Bond Markets 345 The International Debt Procurement Decision 346 Grand Tour of the Global Debt Market 347 Cost of Foreign Currency Debt Financing 356 Debt Refinancing 361 The International Debt Financing Conundrum 364 Summary 366 Questions for Discussion 366 Problems 367 Internet Exercises 372 References 372 Case Study 11.1: McDonald’s Dim Sum Bonds: “Lovin’ It” 372 Chapter 12 Currency, Interest Rate, and Credit Default Swaps 377 Currency Swaps 378 Interest Rate Swaps 383 Credit Default Swaps 391 Summary 397 Questions for Discussion 397 Problems 398 Internet Exercises 400 References 400 Case Study 12.1: The Demise of AIG 400 Chapter 13 International Trade Financing 405 A Brief History of International Trade 406 The Trilogy of Risks in Exporting 407 Managing Credit Risk 409 Managing Currency Risk 410 Managing Country Risk 411 The Mechanics of Trade Financing with a Letter of Credit 412 Financing Exports 415 Pre-Export Financing 418 Government-Sponsored Export Credit Agencies 422 Summary 423 Questions for Discussion 424 Problems 424 Internet Exercises 426 Case Study 13.1: Warrick Pharmaceuticals Inc. 426 Part Four Managing Foreign Exchange Risk 431 Chapter 14 The Case for Foreign Exchange Risk Management 433 Defining Foreign Exchange Risk Management and its Objectives 435 Can Hedging Currency Risk Increase the Value of the Firm? 437 When is Hedging Currency Risk Irrelevant? 440 From Hedging to Managing Currency Risk 441 The Building Blocks of Foreign Exchange Risk Management 443 Summary 445 Appendix 14A: Foreign Exchange Risk Management: What do Firms do? 446 Questions for Discussion 446 References 447 Case Study 14.1: Bio-Oils Energy S.L. 447 Chapter 15 Forecasting Exchange Rates 455 Market-Based Forecasts 456 Model-Based Forecasts: Technical Versus Econometric Modeling Approaches 461 Composite Forecasts 468 How to Use Currency Forecasts 469 Summary 470 Appendix 15A: Forecasting Pegged Yet Adjustable Exchange Rates 470 Questions for Discussion 476 Problems 477 Internet Exercises 479 References 479 Case Study 15.1: Euclides Engineering, Ltd. 480 Chapter 16 Managing Transaction Exposure 483 Measuring Transaction Exposure 484 The Mechanics of Hedging Transaction Exposure 488 Hedging and Financing International Trade 500 Eliminating Foreign Exchange Rate Risk in Long-Term Contracts 501 Exchange Rate Risk in International Bidding 508 How Much to Hedge Transaction Exposure 512 Summary 513 Questions for Discussion 514 Problems 514 References 520 Case Study 16.1: Hedging Currency Risk at TT Textiles 521 Chapter 17 Managing Translation Exposure 531 What is Translation Exposure? 531 Should Translation Exposure be Hedged? 532 Alternative Translation Methods 533 The Mechanics of Contractual Hedging 539 The Mechanics of Financial Hedging 546 Summary 550 Appendix 17A: Accounting Valuation and the Concept of Translation Exposure 551 Questions for Discussion 555 Problems 555 Internet Exercises 560 References 560 Case Study 17.1: Wilkinson Sword’s Trials and Tribulations in Turkey 560 Chapter 18 Managing Economic Exposure 567 A Taxonomy of Economic Exposures 568 Toward an Operational Measure of Economic Exposure 575 Managing Operating Exposure 578 Summary 583 Questions for Discussion 584 Problems 584 References 587 Case Study 18.1: Peugeot Citroën SA’s Economic Exposure to the South Korean Won 588 Part Five Cross-Border Valuation and Foreign Investment Analysis 591 Chapter 19 Foreign Market Entry Strategies and Country Risk Management 593 Contractual Modes of Foreign Market Entry 594 Foreign Market Entry Through Foreign Direct Investments 599 Country Risk 600 Costs/Benefits of Foreign Direct Investment to Host Countries 608 Summary 612 Questions for Discussion 613 Internet Exercises 613 References 614 Case Study 19.1: Carrefour’s Indian Entry Strategy 614 Chapter 20 International Capital Budgeting 619 The Foreign Direct Investment Decision-Making Process 619 A Primer on Evaluating Investment Opportunities 622 What is Different About Evaluating Foreign Investment Proposals? 624 Case Study: Renault Invests in India 629 Global Cost of Equity Capital 639 Optimal Worldwide Capital Structure 643 Summary 644 Appendix 20A: Adjusted Present Value 645 Appendix 20B: Real Options 648 Questions for Discussion 656 Problems 656 Internet Exercises 660 References 660 Chapter 21 Cross-Border Mergers and Acquisitions 661 A Brief History of Mergers and Acquisitions 662 The Industrial Logic of Mergers and Acquisitions 662 Are Cross-Border Acquisitions Different? 664 Valuation of Foreign Acquisitions 671 Ciments Lafarge Enters Vietnam 673 Summary 680 Questions for Discussion 681 Problems 681 Internet Exercises 683 Case Study 21.1: Etihad’s Proposed Acquisition of Malaysia Airlines 684 Chapter 22 Project Finance 689 What is Project Finance? 690 Anatomy of Project Finance: The Case of the Ras Laffan Liquefied Natural Gas Company 696 Valuing Project Finance: The Esty Model 696 Summary 704 Questions for Discussion 705 References 705 Case Study 22.1: Clean Infra Ltd Project Finance 706 Chapter 23 Global Investing 713 The Basics of International Portfolio Management 714 The Gains from International Diversification 722 Trials and Tribulations in Foreign Equity Investing 729 Currency Risk in Global Investing 730 Alternative Modes of Investing in Foreign Equity 733 The New Landscape of Global Investing 734 Summary 741 Appendix 23A: In Search of Alpha at Global Thematic Partner is found on the Book Website at www.wiley.com/go/intlcorpfinance2e 741 Questions for Discussion 742 Problems 742 Internet Exercises 744 References 744 Part Six Managing the Multinational Financial System 747 Chapter 24 Managing the Multinational Financial System 749 A Primer on International Taxation 749 The Multinational Financial System 753 Exploiting the System’s Potential to Minimize Global Tax Liabilities 755 Designing a Global Dividends Remittance Strategy 761 Centralizing Cash Management 765 Summary 774 Questions for Discussion 775 Problems 775 Internet Exercises 777 References 777 Appendix: Answers to Selected Problems 779 About the Companion Website 787 Index 789 Continued on the Website Chapter 25 International Control Conundrum (extension of Part 6) 805 A Primer on Managerial Control 806 The International Control Conundrum 809 EVA-Based Contingent Budgeting and Performance Assessment 815 Summary 821 Appendix 25A: Applying The EVA-Based Control System 822 Questions for Discussion 826 References 826 Chapter 26 Asian Finance and Banking (extension of Part 3) 827 Asian Finance: Common Historical Roots, Diverse Paths 828 Adaptive Responses: Crises and Institutional Change in Asian Finance 832 Business Organization, Corporate Ownership, and Governance 836 Corporate Governance 841 Capital Market Development 846 Capital Structure and the Cost of Capital 855 Performance, Value, and the Practice of Corporate Finance 857 Summary 860 Questions for Discussion 860 References 861 Chapter 27 Islamic Banking and Finance (extension of Part 3) 863 The Underlying Principles of Islamic Finance 864 The Evolution of Islamic Finance 868 Islamic Financing Products 872 Shariah-Compliant Asset Management 879 Islamic Banking 880 Islamic Finance and the Global Financial Meltdown 885 Summary 886 Questions for Discussion 888 References 888 Case Study 27.1: When Emirates Airline Taps Islamic Finance 888 Appendix 23A to Chapter 23: In Search of Alpha at Global Thematics Partners (GTP) 894 Glossary 899

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Book SynopsisStep-by-step guidance on creating internal controls to manage risk Internal control is a process for assuring achievement of an organization's objectives in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations, and policies. This is a toolkit approach that addresses a practical need for a series of standards of internal controls that can be used to mitigate risk within any size organization. Inadequate internal controls can cause a myriad of problems that adversely affect its ability to provide reliable, timely, and useful financial and managerial data needed to support operating, budgeting, and policy decisions. Reliable data is necessary to make sound business decisions. Toolkit approach with detailed controls and risks outlined for key business processes Foundational for SOX 404 initiatives Key material to improve internal control efforts Guidance during M&A projects Poor controls over data quality can cause financiaTable of ContentsIntroduction to The Internal Controls Toolkit 9 Introduction 9 Internal Controls And Fraud Prevention 9 Internal Controls And Fraud Prevention: Additional Statistics 10 Who Will Benefit From This Toolkit 11 About The Standards of Internal Control 12 How Were The Standards Developed? 12 How Are The Standards Used? 12 What Is The Basic Premise of The Standards? 12 When Should The Standard Be Updated? 12 What Is A Best Practice For Implementing And Using The Standards? 12 General Standards of Internal Control 13 How This Toolkit Is Organized 14 1.0 Background On Internal Controls 15 The Goals And Challenges of Internal Controls 15 Risk Based Internal Controls 15 Application of Internal Controls 16 The Three Critical Corporate Controls 17 The Background And History of Internal Controls 19 Securities Act of 1933 19 Securities Exchange Act of 1934 19 Trust Indenture Act of 1939 19 Investment Company Act of 1940 19 Investment Advisors Act of 1940 19 Foreign Corrupt Practices Act (Fcpa) of 1977 19 Comprehensive Crime Control Act – 1984 20 Federal Sentencing Guidelines For Organizations – 1991 20 Internal Control – Integrated Framework – 1992 And 2013 20 Coso’s Monitoring Guidance 21 Cobit – 1996 23 Systrust – 1999 23 Corporate Frauds – 2001-2002 23 U.S. Sarbanes Oxley Act of 2002 24 Enterprise Risk Management (Erm) Integrated Framework – 2004 And 2013 25 Example: Enterprise Risk Management (Erm) And The Application to The Procure to Pay (P2p) Cycle 26 An Erm Checklist 27 Internal Control Over Financial Reporting — Guidance For Smaller Public Companies - 2006 28 Guidance On Monitoring Internal Control Systems – 2009 28 Definition of Internal Controls 29 Types of Internal Controls And Control Mechanisms 29 Major Types of Internal Control 29 Compensating Controls 30 Other Controls 30 Organization Controls 30 Policy Controls 31 Procedure Controls 31 Supervisory Controls 31 Review Controls 31 Leveraging The Standards of Internal Control to Implement A Controls Self-Assessment (Csa) Program 32 Ethics And “Tone At The Top” 34 What Is ‘Tone At The Top’? 34 What Are The Components of An Effective Ethics Policy? 34 What Are The Components of A Well-Defined Code of Conduct? 34 What Are Examples of Poor “Tone At The Top”? 35 Code of Conduct Considerations 35 Entity Level Controls 36 Benefits For Entity Level Controls 36 “Tone At The Top” 36 Roles And Responsibilities For Internal Control 38 2.0 The Order to Cash (O2c) Process 42 2.1 Order Entry/Edit 45 2.1 Order Entry/Edit (Continued) 46 2.1 Order Entry/Edit (Continued) 47 2.2 Export Controls 48 2.2 Export Controls (Continued) 50 2.2 Export Controls (Continued) 51 2.3 Sales Contracts 53 2.3 Sales Contracts (Continued) 54 2.4 Credit 55 2.4 Credit (Continued) 56 2.5 Shipping 58 2.5 Shipping (Continued) 59 2.5 Shipping (Continued) 60 2.6 Revenue Recognition/Billing 61 2.6 Revenue Recognition/Billing (Continued) 62 2.6 Revenue Recognition/Billing (Continued) 63 2.6 Revenue Recognition/Billing (Continued) 64 2.7 Accounts Receivable (Ar) 66 2.7 Accounts Receivable (Ar) (Continued) 67 2.8 Collection 69 2.9 Cash Receipts And Application 70 2.9 Cash Receipts And Application (Continued) 71 2.10 Price Establishment 72 2.10 Price Establishment (Continued) 73 2.11 Promotional Activities 74 2.11 Promotional Activities (Continued) 75 2.11 Promotional Activities (Continued) 76 3.0 Treasury Process 77 3.1 General Treasury Controls 80 3.1 General Treasury Controls (Continued) 81 3.1 General Treasury Controls (Continued) 82 3.2 Financing Operations 83 3.2 Financing Operations (Continued) 84 3.3 Investment of Available Funds 85 3.3 Investment of Available Funds (Continued) 86 3.4 Foreign Exchange 87 3.4 Foreign Exchange (Continued) 88 4.0 Procure to Pay (P2p) Process 89 4.2 Purchasing/Ordering 99 4.2 Purchasing/Ordering (Continued) 100 4.2 Purchasing/Ordering (Continued) 101 4.2 Purchasing/Ordering (Continued) 102 4.3 Import Controls 103 4.3 Import Controls (Continued) 104 4.4 Receiving 105 4.4 Receiving (Continued) 106 4.4 Receiving (Continued) 107 4.5 Accounts Payable 108 4.5 Accounts Payable (Continued) 109 4.5 Accounts Payable Continued) 110 4.6 The Payment Process - General 111 4.6 The Payment Process – General (Continued) 112 4.6 The Payment Process – General (Continued) 113 4.7 The Payment Process - Travel And Entertainment 114 4.7 The Payment Process - Travel And Entertainment 115 4.8 Research And Product Development 116 4.8 Research And Product Development (Continued) 117 4.8 Research And Product Development (Continued) 118 4.9 Procurment Cards (P-Cards) 119 4.9 Procurment Cards (P-Cards) (Continued) 120 4.9 Procurment Cards (P-Cards) (Continued) 121 5.0 Hire to Retire (H2r) Process 122 5.1 Payroll Preparation And Security 125 5.1 Payroll Preparation And Security (Continued) 126 5.2 Payroll Payment Controls 128 5.2 Payroll Payment Controls 129 5.3 Distribution of Payroll 130 5.4 Compensation And Benefits 131 5.4 Compensation And Benefits (Continued) 132 5.5 Hiring And Termination 133 5.5 Hiring And Termination (Continued) 134 5.6 Education, Training, And Development 135 5.7 Contingent Workforce 136 5.7 Contingent Workforce (Continued) 138 6.0 The Supply Chain Process 139 6.1 Planning & Control 142 6.1 Planning & Control (Continued) 143 6.2 Inventory Control 144 6.2 Inventory Control (Continued) 145 6.2 Inventory Control (Continued) 146 6.3 Inventory Verification 147 6.3 Inventory Verification (Continued) 148 6.4 Inventory Valuation 149 6.5 Product Cost Management 150 6.5 Product Cost Management (Continued) 151 6.5 Product Cost Management (Continued) 152 6.6 Original Equipment Manufacturers (Oems) / Alliance Partners 153 6.6 Original Equipment Manufacturers (Oems) / Alliance Partners (Continued) 154 6.6 Original Equipment Manufacturers (Oems) / Alliance Partners (Continued) 155 6.8 Tranportation And Logistics 158 6.8 Tranportation And Logistics (Continued) 159 7.0 Record to Report (R2r) 161 7.1 International Transfer Pricing 166 7.2 Intercompany Transactions 167 7.2 Intercompany Transactions (Continued) 168 7.3 Accumulation of Financial Information 169 7.3 Accumulation of Financial Information (Continued) 170 7.4 Processing And Reporting of Financial Information (The Final Mile) 171 7.5 Fixed Assets 174 7.5 Fixed Assets (Continued) 175 7.5 Fixed Assets (Continued) 176 8.0 Government Contracts 177 8.1 United States Government Contracts - General 178 8.1 United States Government Contracts – General (Continued) 179 8.1 United States Government Contracts – General (Continued) 180 8.1 United States Government Contracts – General (Continued) 181 8.1 United States Government Contracts – General (Continued) 182 8.2 United States Government Contracts - Non-Commercial Products 183 8.2 United States Government Contracts - Non-Commercial Products (Continued) 184 8.3 United States Government Contracts - Commercial Products 185 8.3 United States Government Contracts - Commercial Products (Continued) 186 8.3 United States Government Contracts - Commercial Products (Continued) 187 8.4 Contracts With State And Local Governments And Educational Institutions Within The United States 188 8.5 Contracts With Governments Outside The United States 190 8.5 Contracts With Governments Outside The United States (Continued) 191 9.0 Records And Information Management 192 9.2 Standards of Internal Record Keeping Requirements 197 9.2 Standards of Internal Record Keeping Requirements (Continued) 198 9.2 Standards of Internal Record Keeping Requirements (Continued) 198 10.0 Computer, Telecommunication And Systems Controls 201 10.1 Owners, Users, And Service Providers 206 10.1 Owners, Users, And Service Providers 207 10.1 Owners, Users, And Service Providers (Continued) 208 10.1 Owners, Users, And Service Providers (Continued) 209 10.3 Computer Access Control 214 10.4 Network Operations And Security Controls 224 10.4 Network Operations And Security Controls (Continued) 225 10.5 Systems Development Methodology 228 10.5 Systems Development Methodology (Continued) 229 10.5 Systems Development Methodology (Continued) 230 10.6 Change Management 231 10.6 Change Management (Continued) 232 10.7 Computer And Telecommunications Backup For Production Restart/Recovery 235 10.8 Disaster Recovery And Business Contingency Planning 237 10.8 Disaster Recovery And Business Contingency Planning (Continued) 241 10.8 Disaster Recovery And Business Contingency Planning (Continued) 242 10.9 Input Controls 243 10.10 Output Controls 245 10.11 Paperless Transactions, Electronic Commerce, And Edi 247 10.12 Non-Company Networks And Bulletin Boards 250 11.0 Protection of Assets: Human, Physical And Intellectual 256 11.1 Security Framework 258 11.1 Security Framework (Continued) 259 11.1 Security Framework (Continued) 260 11.2 Perimeter Security 261 11.2 Perimeter Security (Continued) 262 11.3 Interior Security 264 11.3 Interior Security 265 11.4 Protecting Intellectual Property 266 12.0 The Insurance Process 268 12.1 Protection Against Physical Damage And Other Accidents 269 12.2 Insurance (Property & Casualty Risks) 270 12.3 Business Continuity 272 13.0 Environmental, Health, And Safety (Eh&S) 273 13.1 General Controls 275 13.1 General Controls (Continued) 276 14.0 Customer Services 277 14.1 Policy 279 14.1 Policy (Continued) 280 14.1 Policy (Continued) 281 14.2 Call Center Management 282 14.2 Call Center Management (Continued) 283 14.3 Warranty 284 14.3 Warranty (Continued) 285 14.3 Warranty (Continued) 286 14.4 Support Sales 287 15.0 Professional Services (Ps) 288 15.1 General Controls 290 15.1 General Controls (Continued) 291 15.2 Opportunity-Bid Process 292 15.2 Opportunity-Bid Process (Continued) 293 15.2 Opportunity-Bid Process (Continued) 294 15.3 Program Management 295 15.3 Program Management (Continued) 296 15.3 Program Management (Continued) 297 15.3 Program Management (Continued) 298 15.3 Program Management (Continued) 299 15.4 Customer Order Management 300 15.4 Customer Order Management (Continued) 301 15.4 Customer Order Management (Continued) 302 16.0 Entity Level Controls 303 16.1 Compliance And Compliance Screening 305 16.1 Compliance And Compliance Screening (Continued) 306 16.2 Internal Controls Roles And Responsibilities 308 16.2 Internal Controls Roles And Responsibilities (Continued) 309 16.4 Audit Committee Controls 313 16.4 Audit Committee Controls (Continued) 314 16.4 Audit Committee Controls (Continued) 315 17.0 Glossary 318 18.0 Addendum – Additional Tools 327 18.1 Example Internal Controls Policy 327 18.2 Delegation of Authority (Doa) Policy 330 18.3 Segregation of Duties (Sod) Policy 338 18.4 System Access (Sa) Policy 352 18.5 Pricing Policy Example 355 18.6 Testing Internal Controls And Selecting Sample Sizes 357 References 361

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Book SynopsisThis publication focuses on the critical methods that can be used to dramatically improve the fiscal closing process. The Record to Report (R2R) or Fiscal Closing Process is at the core of the controllership function. The process includes transaction processing, internal and external reporting, and the internal controlsthe people, processes, and technologythat constitute the corporate organizational hierarchy. CFOs, controllers, and corporate finance departments require timely, accurate, and consistent data to make appropriate operational and strategic decisions and fulfill statutory, regulatory, and compliance requirements with accurate and timely data. The Fast Close Toolkit offers both strategic and tactical suggestions that can significantly improve the fiscal closing process and provides guidance on new legislation requirements, systems and best practice processes. Checklists, templates, process narratives, and sample policies are provided for every component of the fiscal closTable of ContentsPreface xiii How This Toolkit is Organized xiv Guide to Toolkit Organization xv Table of Best Practices xvii Table of Policies xviii Table of Checklists xviii Table of Process Narratives xviii Table of Standards of Internal Control xix Introduction 1 Improving the Fiscal Close 3 Best Practice 1: Consider the Use of a Single ERP System 4 Best Practice 2: Employ Cloud-Based Computing 5 Chapter 1: Why the Continued Focus on the Fiscal Closing Process? 7 An Overview of the Fiscal Close 9 Cycle Time to Monthly Close 10 Chapter 2: Key Pain Points and Bottlenecks 13 Chapter 3: The Components of the Fiscal Close 15 Cutoff Dates 16 Best Practice 3: Implement Cutoff Dates 16 Chapter 4: Governing the Fiscal Close Process 19 Best Practice 4: Implement a Fiscal Close Governance Process 20 Composition of GAAP 21 GAAP Hierarchy 22 Other Disclosure Standards 22 Chapter 5: The Transaction Accumulation, Reconciliation, and Sub-Ledger Close 27 Best Practice 5: Complete General Ledger Reconciliations 30 Accounting Bodies 31 Other Regulatory Requirements 31 Chapter 6: Introduction to the Standards of Internal Control 33 Best Practice 6: Implement an Internal Controls Program 34 Ensuring Success 36 Chapter 7: Roles and Responsibilities During the Fiscal Close 39 Tactical Responsibilities 40 Executive Responsibilities 43 Chapter 8: The General Ledger and Trial Balance 45 Chapter 9: The Common Chart of Accounts 47 Best Practice 7: Implement a Common Chart of Accounts 47 Sample Chart of Accounts 49 Chapter 10: Cost Centers 53 Best Practice 8: Define Business Rules for Establishing Cost Centers 54 Best Practice 9: Define Allocation Risks 55 Common Allocation Challenges 57 Best Practice 10: Implement an Indirect Cost Allocation Methodology 59 Chapter 11: The Journal Entry Process 63 Best Practice 11: Streamline Recurring Journal Entries 64 Chapter 12: Spreadsheet Controls 65 Best Practice 12: Address Spreadsheet Risks and Implement Controls 65 Balancing Risks with Controls 67 Chapter 13: Checklists for the Transaction Accumulation, Reconciliation, and Sub-Ledger Close 69 Checklist 1: Transaction Accumulation and Fiscal Close Checklist 69 Checklist 2: Fiscal Year-End Close Sample Schedule 72 Checklist 3: Accounts Payable Roles and Responsibilities Year-End Checklist 73 Checklist 4: Reconciliation Template 74 Chapter 14: Sample Policies for the Transaction Accumulation, Reconciliation, and Sub-Ledger Close 75 Policy 1: Account Reconciliation Policy 75 Policy 2: Accounts Payable Accruals 78 Policy 3: Spreadsheet Controls 81 Controls Standards 83 Best Practice Guidelines 84 Chapter 15: Process Narratives for the Transaction Accumulation, Reconciliation, and Sub-Ledger Close Process 87 Process Narrative 1: Journal Entry (JE) Process 87 Process Narrative 2: Management Approval of Journal Entries 88 Process Narrative 3: Other Current and Long-Term Assets 89 Process Narrative 4: Other Current and Long-Term Liabilities 92 Chapter 16: Standards of Internal Control for the Transaction, Accumulation, Reconciliation, and Sub-Ledger Close Process 97 Standards of Internal Control 1: Journal Entry (JE) Process 97 Standards of Internal Control 2: Management Approval of Journal Entries 99 Standards of Internal Control 3: Other Current and Long-Term Assets 101 Standards of Internal Control 4: Other Current and Long-Term Liabilities 109 Chapter 17: Corporate Close and Consolidation 117 Differences Between IFRS and U.S. GAAP That Impact the R2R Process 118 How Often are New IFRS Pronouncements Issued? 119 Is IFRS, as Issued by the IASB, the Same for All Companies and Industries, in All Countries? 119 What is The Principal Standard Governing Conversion to IFRS? 120 Does IFRS Use the Same Financial Statements as Those Required under U.S. GAAP? 121 How Will IFRS Impact Internal Control Reporting and Certification under the Sarbanes Oxley Act of 2002? 122 Chapter 18: The Number of Consolidation Points 123 Best Practice 13: Automate the Consolidation Process 124 Best Practice 14: Include the People Who Impact the Close 124 Best Practice 15: Create Consistent Closing Schedules 124 Best Practice 16: Consider Fiscal Close Process Improvements 125 Chapter 19: The Number of Closing Cycles 127 Best Practice 17: Reduce the Number of Closing Cycles 127 Chapter 20: Post-Closing Entries 129 Financial Closing Strategies 129 Best Practice 18: Develop Business Rules for Post-Closing Entries 130 Chapter 21: Communication and Accountability 131 Fiscal Close Postmortem Meetings 132 Chapter 22: Financial Statement Assertions 133 Financial Statement Assertion Requirements and Application 134 Chapter 23: Checklists for the Corporate Close and Consolidation Process 137 Checklist 5: Corporate Close and Consolidation 137 Checklist 6: Executive-Level Closing Checklist 139 Checklist 7: Twenty Critical Areas to Review at Year-End 142 Checklist 8: The Year-End Financial Statement Checklist 143 Checklist 9: The Year-End Transaction Checklist 144 Checklist 10: The Year-End Payroll Process Checklist 146 Chapter 24: Sample Policies for the Corporate Close and Consolidation Process 149 Policy 4: Fiscal Close and Consolidation Process 149 The Timely Communication of Delays 152 Adjustments Requested by Field and Corporate Personnel 152 Adjustments Between Preliminary and Final Results 153 “Late” Adjustments 153 Chapter 25: Process Narratives for the Corporate Close and Consolidation Process 155 Process Narrative 5: Balance Sheet Consolidation 155 Process Narrative 6: Assets Held for Sale Due to Discontinued Operations 157 Chapter 26: Standards of Internal Control for the Corporate Close and Consolidation Process 161 Standards of Internal Control 5: Balance Sheet Consolidation 161 Standards of Internal Control 6: Assets Held for Sale Due to Discontinued Operations 164 Chapter 27: Analysis and Reporting (The Final Mile) 169 Chapter 28: Internal and External Reporting 171 Internal Reporting 171 Best Practice 19: Ask Key Questions to Define Your Internal Financial Reporting Process 172 External Reporting 175 Chapter 29: Budgeting and Forecasting 181 About the Budget Process 182 Types of Budget Processes 182 Best Practice 20: Consider Five Steps for a Successful Budget Process 184 Ten Considerations for a Successful Budget Process 188 Variance Analysis 191 Other Factors to Consider 192 Corporate Performance Management (CPM) 194 A Moving Target 194 Chapter 30: Reduce Fiscal Close Cycle Times by Moving Your Finance Function to “Dynamic” Budgeting and Planning 197 Dynamic Budgeting and Planning 197 Chapter 31: Fixed Assets and the Capital Budget 199 Best Practice 21: Establish a Capital Budget Process 199 Developing the Capital Budget 200 Best Practice 22: Implement the Capital Review and Approval Board (CARB) Process 201 Construction in Process Accounting 207 Fixed Asset Management 207 Depreciation Methods 208 Intangible Assets 211 Asset Appreciation and Asset Impairment 212 Disposal of Fixed Assets 214 The Capital Budget and Fixed Assets Business Process Risks and Challenges 217 Chapter 32: The Forecast Process 221 About the Forecast Process 222 Types of Forecasting Models 222 The Forecasting Process for Small Businesses 224 Chapter 33: The Fiscal Close and Strategic Planning 227 Expected Outcomes of the Strategic Plan 227 Best Practice 23: Include Finance and Accounting in the Strategic Planning Process 228 Best Practice 24: Use a Strategic Planning Readiness Checklist 229 Best Practice 25: Follow These Seven Steps for Your Strategic Planning Process 230 Best Practice 26: Implement Six Key Elements for Your Strategic Plan 230 Best Practice 27: Use a Standardized Table of Contents for Your Strategic Plan 231 Strategic Planning Methodologies 232 Best Practice 28: Establish Performance Metrics to Determine the Effectiveness of Your Strategic Plan 236 Chapter 34: Analytics to Detect Financial Statement Fraud 237 Best Practice 29: Use Red Flags to Detect Financial Statement Fraud 238 The National Commission on Fraudulent Financial Reporting (The Treadway Commission) 240 Use Detection Methods for General Financial Statement Fraud 243 Chapter 35: Checklists for the Analysis and Reporting Process 247 Checklist 11: Quarter-End Fiscal Close (10Q) 247 Checklist 12: Year-End Fiscal Close (10K) 251 Checklist 13: Performing Financial Statement Analysis 257 Checklist 14: Trend Analysis 264 Chapter 36: Sample Policies for the Analysis and Reporting Process 271 Policy 5: Basic Policies on Financial Reporting 271 Chapter 37: Process Narratives for the Analysis and Reporting Process 273 Process Narrative 7: Disclosure Checklist 273 Process Narrative 8: Fluctuation Analysis 274 Process Narrative 9: Cash Flow Statement Reconciliation 276 Process Narrative 10: Reporting Debt 277 Chapter 38: Standards of Internal Control for the Analysis and Reporting Process 283 Standards of Internal Control 7: Disclosure Checklist 283 Standards of Internal Control 8: Fluctuation Analysis 284 Standards of Internal Control 9: Cash Flow Statement Reconciliation 287 Standards of Internal Control 10: Reporting Debt 290 Chapter 39: The Virtual Close: Myth or Reality? 299 What is the Virtual Close? 299 How is the Virtual Close Different from the Soft Close? 300 Case Study: The Virtual Close at Cisco 300 Implementing a Virtual Close 303 Chapter 40: Roadmap: Benefits of the Fast Close 305 Different Types of Fast Fiscal Closing Processes 306 Soft Close 306 Virtual Close 307 Legal Issues Impacting the Fast Financial Close 307 Steps to Achieve a Faster Financial Close 307 Conclusion 310 Chapter 41: Accelerating the Close with Automation 311 Key Requirements for Automating the Fiscal Close 311 Key Questions to Ask During Implementation 312 System Ease of Use 312 Quality of Financial Information 313 Accounts Payable and Purchasing 314 Project Accounting 314 Addendum: Fast Close Tools and Additional Best Practices 315 Contingency Planning 315 Best Practice 30: Establish Escalation Procedures 322 Roadmap: 25 Steps to Shorten the Fiscal Close 323 The Monthly Financial Close Process Checklist 327 Foreign Corrupt Practices Act (FCPA) 336 Accelerate Your Financial Close: A 35-Step Roadmap 337 The Fast Close Compliance Toolkit 340 The M&A Due Diligence Checklist 362 Finance and Accounting Key Business Partnerships Matrix 372 Fiscal Close Risks and Challenges 374 Fiscal Close Standards of Internal Control 376 The Fiscal Close Dashboard 379 The Controller’s Dashboard 380 The Detailed Fiscal Close Scorecard 380 The Project Management Toolkit 382 Glossary 387 Index 403

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Book SynopsisTax Staff Essentials, Level 2: Experienced Staff (49 CPE Credits) is designed for junior tax staff who want to take on a wider variety of firm engagements and establish a supervisory role within the firm. Level 2 will broaden your tax knowledge in the areas of multistate taxation, C Corporations, accounting methods and periods and choice of entity. Key subject matters covered include Inventory Valuation and Property Transactions which will be essential for servicing more complex clients. The Tax Staff Essentials courses establish a strong set of skills necessary to grow the abilities and confidence of junior and senior level staff, allowing them to work with greater independence and expand their role in your firm. Note: This course has been updated for the Tax Cuts and Jobs Act (TCJA) of 2017 (Tax Reform). Included with your course, you will have free access to a specially-prepared Course Supplement that provides an explanation of the key provisions of TCJA (including topics not cove

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Book SynopsisDetect accounting fraud before it's too late Accounting fraud is the deliberate manipulation of accounting records in order to make a company''s financial performance seem better or worse than it actually is. Accounting scandals often have catastrophic consequences for shareholders and employees. Thus, analysts and auditors must be equipped to detect accounting fraud. This book is a comprehensive guide to detecting accounting fraud for auditors investigating accounting fraud and analysts/managers seeking to prevent it. A wide variety of warning signs are described, as are several techniques for detecting and addressing fraud. Understand the motivations and warning signs behind accounting fraud Get to know how accounting fraud is done and how to detect it Avoid the losses that often come from accounting fraud Benefit from case studies throughout to that help illustrate the author''s points It's unfortunate thaTable of ContentsPrologue xi Introduction xiii Chapter 1 Fraud and Accounting Manipulations 1 1.1 Fraud and Its Effects 1 1.2 Modifying Companies’ Financial Information 2 1.3 Calling Things by Their Name: From Creative Accounting to Big Baths 4 Chapter 2 Accounting Fraud: An Ancient Practice 9 2.1 The First Accounting Frauds 9 2.2 Accounting Frauds Continue with the Double Entry 10 2.3 The Crash of 1929 and the Obligation to Audit Accounts 12 2.4 Reinforcement of the Commercial Law and Auditing After the String of Scandals of 2000 13 2.5 With the Crisis of 2008, History Repeats Itself 15 Chapter 3 Problems with Legislation and Those Involved in the Financial Information 19 3.1 How Financial Information Is Generated 19 3.2 Auditing of Accounts: Essential, but Not Infallible 20 3.3 Analysts and Rating Agencies 23 3.4 Regulators and the Limitations of Accounting Regulations 26 3.5 Role of the Media 29 Chapter 4 Why Are Accounts Manipulated? 31 4.1 Motivation, Opportunity, and Rationalization 31 4.2 The Door to Fraud 34 Chapter 5 Legal Accounting Manipulations 47 5.1 Alternatives, Estimations, and Legal Gaps 47 5.2 Main Legal Manipulations 52 5.3 Impact of Legal Manipulations in the Accounts 58 Chapter 6 Illegal Accounting Manipulations 61 6.1 Accounting Crime 61 6.2 How Illegal Manipulations Are Done 63 6.3 Operations Through Tax Havens 65 6.4 Main Illegal Manipulations 68 6.5 Main Items Affected by Accounting Frauds 70 Chapter 7 Ethical Considerations and Economic Consequences of Manipulations 75 7.1 The Ethical Dimensions of Accounting Fraud 75 7.2 Economic Consequences of Accounting Fraud 77 7.3 Consequences to Managers and Companies that Manipulate Accounts 77 7.4 What to Do When a Company Deteriorates 79 Chapter 8 Personal Warning Signs 85 8.1 Moments the Warning Signs Occur 85 8.2 Warning Signs Before Fraud Occurs 87 8.3 Warning Signs After the Fraud Occurs 89 8.4 Language of Fraudsters 91 8.5 Successful Businessmen Who End Up in Jail 93 Chapter 9 Organizational Warning Signs and Nonfinancial Indicators 99 9.1 Warning Signs Before a Fraud Occurs 99 9.2 Warning Signs After a Fraud Occurs 106 9.3 Warning Signs Based on Nonfinancial Indicators 107 Chapter 10 Warning Signs in the Accounts 111 10.1 Auditing of Accounts 111 10.2 Balance Sheet 112 10.3 Income Statement 113 10.4 Cash Flow Statement 115 10.5 Statement of Changes in Equity 119 10.6 Notes 120 10.7 Ratios That Anticipate Frauds 121 10.8 Variations in Accounts that Warn of Frauds Already Produced 123 10.9 Ratios That Warn of Frauds Already Produced 124 10.10 Synthetic Index to Detect Manipulating Companies 133 Chapter 11 Some Suggestions to Improve the Current Situation 141 11.1 Reinforce Values and Institute Ethical Codes 141 11.2 Improve Control Systems in Organizations 143 11.3 Improve Regulation 147 11.4 Reinforce Supervision 148 11.5 Reinforce the Sanctioning Regime 149 11.6 The Challenge of Providing Relevant Information for Decision-Making 150 Epilogue 155 Appendix 1 Criminal Responsibility of Legal Entities and Regulatory Compliance 157 Appendix 2 Audit Program for the Identification of Fraud Risks 161 List of Companies Mentioned in the Book and Section in which They Appear 179 Index 183

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Book SynopsisFamilies share how they have maintained and grown their wealth from generation to generation. While creating wealth is a wonderful achievement, business families are also concerned with how their wealth is used to support their values, the lives of their children and the well-being of the community. Over several generations, families who are successful in growing their wealth have been able to reinvent themselves and their business in the face of significant environmental transformations and internal differences cause by family dynamics. Borrowed from my Grandchildren is a fascinating look at how large, long-lasting business families succeed across generations. Author Dennis T. Jaffe, one of the leading architects of the field of family enterprise consulting, has interviewed members of successful, well known, 100-year family enterprises from 20 countries, whoserve as role models for those wishing to see their wealth positively impact their cTable of ContentsForeword: Rice Paddy to Rice Paddy xv Preface xxi Part One The Wisdom of Generative Families 1 Chapter 1 Learning from the Best: Researching Long-Term Family Enterprises 3 Chapter 2 Creating a Great Family: The Virtuous Circle of Family and Business 19 Chapter 3 The Social History of Family Dynasties 35 Part Two The Evolution of the Resilient Family Enterprise 59 Chapter 4 The First Four Generations 61 Chapter 5 Business Resiliency: Common Transformations Along the Path 87 Chapter 6 The Generative Alliance: Building and Sustaining a Values-Based Culture 113 Chapter 7 Corporate Social Responsibility: Changing the World from Local to Global 151 Chapter 8 Owners’ Mindset: Stewardship and the Board of Directors 177 Part Three Inside the Family: Family Governance to Create a Great Family 199 Chapter 9 The Family Tribe: Creating Purposeful Extended Family Community Beyond the Enterprise 201 Chapter 10 Governance: Organizing the Interconnection of Family and Business 215 Chapter 11 The Family Council: Conducting the Work of the Family 237 Chapter 12 The Family Constitution: Governing Document of the Generative Family 259 Part Four The Rising Generation: Sustaining the Future 283 Chapter 13 Releasing the Potential of the Rising Generation: How to Develop Capable Successors 285 Chapter 14 Family as a Cross-Generational Learning Community 309 Chapter 15 Family Philanthropy: Balancing Roots and Wings 333 Chapter 16 Reflections on the Economic and Social Future of Family Enterprise 351 Appendix: Tools for Families (and Advisors) 357 About the Author 361 About the Research Team 365 About Wise Counsel Research Associates 369 Acknowledgments 371 Index 373

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Book SynopsisActionable, intelligent CFO training for the Chief Family Financial Officer Family Inc. is a roadmap to financial security for the family CFO. Too much personal wealth management advice essentially boils down to goal-setting, which isn''t helpful or effective in terms of overall financial planning. This book takes a different track, giving you a crash course in corporate finance and the tools to apply the field''s proven, time-tested principles in the context of your family''s financial situation. You''ll learn the key principles of wealth creation and management, and learn how to make your intellectual and real capital work for you. Your family situation is unique, and your principles must sometimes differ from the standard financial adviceand that''s okay. Life is not a template, and even the best strategy must be able to adapt to real-life situations. You''ll learn to chart your own path to financial security, utilizing the author''s own tools that he developed overTable of ContentsForeword ix Acknowledgments xiii With Appreciation for America’s Armed Forces Service Members xv Introduction xvii Section I Every Family Needs a Chief Financial Officer 1 Chapter 1 Why Do I Need a CFO? I Don’t Even Own a Business 3 Section II Maximize the Value of Your Single Biggest Asset—Your Labor 17 Chapter 2 Double the Value of Y our Labor through Education 19 Chapter 3 Make Career Choices That Extend Your Possibilities 29 Chapter 4 Think Like an Investor When Making Career Decisions 33 Chapter 5 Don’t Overlook Retirement Benefits Just Because They’re Not Imminent 45 Chapter 6 Complement Your Career Decisions with Insurance 49 Section III Manage Your Assets Like a CFO Manages a Business 55 Chapter 7 Your Financial Assets Serve Many Functions in Your Family Business 57 Chapter 8 Diversify Your Family Business with the Right Investments 61 Chapter 9 Define the Right Goals for Your Asset Management Business 75 Chapter 10 Use History to Make Reasonable Investment Assumptions 81 Chapter 11 Safeguard Your Assets from the Main Risks 97 Chapter 12 Not All Debt Is Bad! Use Debt to Purchase Assets and Maximize Your Liquidity 101 Chapter 13 Which Is Better, Active or Passive Investment Management? It Depends. . . . 105 Chapter 14 Use Indexing for Your Low-Cost Investment Portfolio 113 Chapter 15 Understand When It Makes Sense to Pick Individual Stocks and Managers 117 Chapter 16 The CFO’s Step-by-Step Guide to Building the Family Investment Program 125 Chapter 17 Know Yourself—Understand the Psychological Factors That Can Torpedo Your Goals 131 Chapter 18 Don’t Sweat the Details of Your Asset Management Business 135 Section IV Family Inc. Does Not Manage Itself 139 Chapter 19 Create Tools and a Reporting Dashboard for Managing Family Inc. 141 Section V Manage Your Family Endowment in Retirement 165 Chapter 20 Understand How Your Family Business Changes in Retirement 167 Chapter 21 Sleep Well—Protect Your Retirement through Insurance 169 Chapter 22 What’s Your Number? Determine When and How Much You Can Afford to Spend in Retirement 179 Section VI Avoid the Rat Race—Change the Game by Changing the Rules 201 Chapter 23 Pay Yourself What You’re Worth through Entrepreneurship 203 Chapter 24 Jump-Start Your Heirs’ Financial Security 209 Chapter 25 Develop a Succession Plan to Groom Your Replacement(s) 213 Chapter 26 Develop and Manage Your Estate or Uncle Sam Will 217 Chapter 27 Maximize Your Charitable Legacy 221 Section VII A Call to Action 225 Chapter 28 “But It’s Different This Time. . . .” 227 Chapter 29 Put Down the Book—Just Do It! 229 Appendix: How to Calculate Expected Lifetime Labor Value 231 Glossary 233 Notes 237 Index 243

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