Finance and the finance industry Books

Book SynopsisTable of Contents1 The Financial Manager and the Firm 1-1 1.1 The Role of the Financial Manager 1-2 1.2 Forms of Business Organization 1-7 1.3 Managing the Financial Function 1-10 1.4 The Goal of the Firm 1-13 1.5 Agency Conflicts: Separation of Ownership and Control 1-16 1.6 The Importance of Ethics in Business 1-22 Summary of Learning Objectives/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/Sample Test Problems Ethics Case: Incentives and Ethics: Cross-Selling at Wells Fargo 1-28 2 The Financial System and the Level of Interest Rates 2-1 2.1 The Financial System 2-2 2.2 Direct Financing 2-5 2.3 Types of Financial Markets 2-7 2.4 Market Efficiency 2-10 2.5 Financial Institutions and Indirect Financing 2-12 2.6 The Determinants of Interest Rate Levels 2-16 Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/Sample Test Problems 3 Financial Statements, Cash Flows, and Taxes 3-1 3.1 Financial Statements and Accounting Principles 3-2 3.2 The Balance Sheet 3-5 3.4 The Income Statement and the Statement of Retained Earnings 3-14 3.5 The Statement of Cash Flows 3-17 3.6 Tying Together the Financial Statements 3-20 3.7 Cash Flow to Investors 3-22 3.8 Federal Income Tax 3-27 Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/Sample Test Problems 4 Analyzing Financial Statements 4-1 4.1 Background for Financial Statement Analysis 4-2 4.2 Common-Size Financial Statements 4-4 4.3 Financial Ratios and Firm Performance 4-7 4.4 The Dupont System: A Diagnostic Tool 4-22 4.5 Selecting a Benchmark 4-27 4.6 Using Financial Ratios 4-30 Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/Sample Test Problems Ethics Case: A Sad Tale: The Demise of Arthur Andersen 4-45 5 The Time Value of Money 5-1 5.1 The Time Value of Money 5-2 5.2 Future Value and Compounding 5-4 5.3 Present Value and Discounting 5-16 5.4 Additional Concepts and Applications 5-22Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/Sample Test Problems 6 Discounted Cash Flows and Valuation 6-1 6.1 Multiple Cash Flows 6-2 6.2 Level Cash Flows: Annuities 6-9 6.3 Level Cash Flows: Perpetuities 6-22 6.4 Cash Flows That Grow at a Constant Rate 6-24 6.5 The Effective Annual Interest Rate 6-26 Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/Sample Test Problems/Appendix: Deriving the Formula for the Present Value of an Ordinary Annuity/Problem Ethics Case: America’s Ailing Drug Prices 6-38 7 Risk and Return 7-1 7.1 Risk and Return 7-2 7.2 Holding Period Returns 7-3 7.3 Expected Returns 7-4 7.4 Variance and Standard Deviation as Measures of Risk 7-8 7.5 Arithmetic Average and Geometric (Compounded) Average Returns 7-15 7.6 Risk and Diversification 7-17 7.7 Systematic Risk 7-26 7.8 The Capital Asset Pricing Model 7-31Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/Sample Test Problems Ethics Case: Pay for Performance or Just More Pay? The Conflicting Case for CEO Pay 7-41 8 Bond Valuation and the Structure of Interest Rates 8-1 8.1 Corporate Bonds 8-2 8.2 Bond Valuation 8-4 8.3 Bond Yields 8-12 8.4 Interest Rate Risk 8-15 8.5 The Determinants of Corporate Borrowing Costs 8-18 8.6 The Term Structure of Interest Rates 8-21Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/Sample Test Problems Ethics Case: The Subprime Mortgage Market Meltdown:How Did It Happen? 8-29 9 Stock Valuation 9-1 9.1 The Market for Stocks 9-2 9.2 Common and Preferred Stock 9-7 9.3 Common Stock Valuation 9-8 9.4 The General Dividend-Valuation Model 9-11 9.5 Stock Valuation: Some Simplifying Assumptions 9-12 9.6 The Relation between R and g 9-17 Mixed (Supernormal) Growth Dividend Model 9-18 9.7 Valuing Preferred Stock 9-21Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/Sample Test Problems Ethics Case: Insider Trading: Have I Got a Stock Tip for You! 9-29 10 The Fundamentals of Capital Budgeting 10-1 10.1 An Introduction to Capital Budgeting 10-2 10.2 Net Present Value 10-6 10.3 The Payback Period 10-14 10.4 The Accounting Rate of Return 10-18 10.5 Internal Rate of Return 10-19 10.6 Investment Decisions with Capital Rationing 10-29 10.7 Capital Budgeting in Practice 10-33Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/Sample Test Problems Ethics Case: Going Green: Can Automakers Invest in Environmental Solutions? 10-45 11 Cash Flows and Capital Budgeting 11-1 11.1 Calculating Project Cash Flows 11-2 11.2 Estimating Cash Flows in Practice 11-10 11.3 Forecasting Free Cash Flows 11-23 11.4 Special Cases 11-25 11.5 Harvesting an Asset 11-29Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/Sample Test Problems Ethics Case: Unilever’s Sustainable Living Plan 11-37 12 Evaluating Project Economics 12-1 12.1 Variable Costs, Fixed Costs, and Project Risk 12-2 12.2 Calculating Operating Leverage 12-9 12.3 Break-Even Analysis 12-11 12.4 The Economic Break-Even Point 12-15 12.5 Risk Analysis 12-19Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/Sample Test Problems 13 The Cost of Capital 13-1 13.1 The Firm’s Overall Cost of Capital 13-2 13.2 The Cost of Debt 13-7 13.3 The Cost of Equity 13-13 13.4 Using the WACC in Practice 13-21Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/Sample Test Problems 14 Working Capital Management 14-1 14.1 Working Capital Basics 14-2 14.2 The Operating and Cash Conversion Cycles 14-5 14.3 Working Capital Management Strategies 14-10 14.4 Accounts Receivable 14-13 14.5 Inventory Management 14-16 14.6 Cash Management and Budgeting 14-18 14.7 Financing Working Capital 14-20Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/Sample Test Problems 15 How Firms Raise Capital 15-1 15.1 Bootstrapping 15-2 15.2 Venture Capital 15-4 15.3 Initial Public Offering 15-9 15.4 IPO Pricing and Cost 15-15 15.5 General Cash Offer by a Public Company 15-19 15.6 Private Markets 15-22 15.7 Commercial Bank Loans 15-25Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/Sample Test Problems 16 Capital Structure Policy 16-1 16.1 Capital Structure and Firm Value 16-2 16.2 The Benefits and Costs of Using Debt 16-11 16.3 Two Theories of Capital Structure 16-24Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/Sample Test Problems Appendix: Leasing 16-33 Two Types of Leases 16-33 Motivations for Leasing 16-34 Conflicts between Lessees and Lessors 16-37 Evaluating a Leasing Opportunity 16-39 Summary of Learning Objective/Self-Study Problem/Solution to Self-Study Problem/Discussion Questions/Questions and Problems 17 Dividends, Stock Repurchases, and Payout Policy 17-1 17.1 Dividends 17-2 17.2 Stock Repurchases 17-7 17.3 Dividends and Firm Value 17-10 17.4 Stock Dividends and Stock Splits 17-16 17.5 Setting a Dividend Payout 17-19 Summary of Learning Objectives/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/Sample Test Problems 18 Business Formation, Growth, and Valuation 18-1 18.1 Starting a Business 18-2 18.2 The Role of the Business Plan 18-10 18.3 Valuing a Business 18-11 18.4 Important Issues in Valuation 18-26Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/Sample Test Problems 19 Financial Planning and Managing Growth 19-1 19.1 Financial Planning 19-2 19.2 Financial Planning Models 19-5 19.3 A Better Financial Planning Model 19-11 19.4 Beyond the Basic Planning Models 19-18 19.5 Managing and Financing Growth 19-20Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/Sample Test Problems 20 Options and Corporate Finance 20-1 20.1 Financial Options 20-2 20.2 Option Valuation 20-6 20.3 Real Options 20-15 20.4 Agency Costs 20-19 20.5 Options and Risk Management 20-22Summary of Learning Objectives/Summary of Key Equations/Self-Study Problems/Solutions to Self-Study Problems/Discussion Questions/Questions and Problems/Sample Test Problems 21 International Financial Management 21-1 21.1 Introduction to International Financial Management 21-2 21.2 Foreign Exchange Markets 21-7 21.3 International Capital Budgeting 21-16 21.4 Global Money and Capital Markets 21-21 21.5 International Banking 21-24 Appendix A Future Value and Present Value Tables A-1 Appendix B Solutions to Odd Problems B-1 AppendixC The 2017 Tax Cuts and Jobs Act: Implications for Cash Flow to Investors, the Cost of Capital, and Capital Structure C-1 Glossary G-1 Subject Index I-1 Company Index I-19

Read more less

Book SynopsisThe latest must-read book from the authors of the New York Times and Wall Street Journal Bestselling Aftershock series of books, Fake Money, Real Danger strips away the confusion and exposes what's really happening to our economy and investmentsand shows you what to do about it now, before it's too late. Picking up where Aftershock left off, Fake Money, Real Danger reveals how the Covid-19 pandemicand the government's massive money printing and borrowing in response to itis providing investors with a once in a lifetime opportunity to build wealth in the near term, while also taking the crucial steps necessary to protect yourself and your investments from the inevitable Fake Money bubble pop in the longer term. What FAKE MONEY? Massive government money printing increased the U.S. money supply by more than 1,000% since 2008, printing more money in ONE MONTH in 2020 than during the two years of the Financial CrTable of ContentsPreface: Why We Wrote This Book Now vii Acknowledgments ix Chapter 1: Fake Money, Real Danger – Massive Covid Stimulus Boosted the Boom and Will Bring on the Bust 1 Chapter 2: Fake Money, Fake Wealth? 21 Chapter 3: Will We Ever Get High, Long-Lasting Inflation? If So, When? 33 Chapter 4: Won’t the Pandemic Stimulus End and Solve This Whole Fake Money Problem? 59 Chapter 5: How to Make the Most Money Now – First, Avoid Picking Individual Stocks Despite Enormous Pressure to Do So 71 Chapter 6: How to Beat the Market Now and Get Out Before the Bubble Pops Later 95 Chapter 7: How the Big Fake Money Bubble Will Pop 127 Chapter 8: What If We’re Wrong? Great, You’ll Make Tons of Money in the Ever-Rising Stock Market!137 Epilogue: It’s Productivity Growth, Stupid! 139 Appendix A: Buying Stock Is Not Investing 147 Appendix B: The Trouble with Bubbles 155 Appendix C: An Important Long-Term Lack of Correlation 165 Appendix D: Our New Model Reveals Why the Stock Market Bubble Is So Hard to See – And How It Will Likely Pop 173 Appendix E: Questions and Answers Regarding Inflation (Chapter 3) 191 Index 197

Read more less

Book SynopsisBy combining algebraic and graphical approaches with practical business and personal finance applications, FINANCIAL ALGEBRA, Second Edition, motivates high school students to explore algebraic thinking patterns and functions in a financial context. FINANCIAL ALGEBRA, Second Edition will help your students achieve success by offering an applications based learning approach incorporating Algebra I, Algebra II, and Geometry topics. Authors Gerver and Sgroi have spent more than 25 years working with students of all ability levels and they have found the most success when connecting math to the real world. With new features, such as What's the Problem?, FINANCIAL ALGEBRA, Second Edition encourages students to be actively involved in applying mathematical ideas to their everyday lives.Table of Contents1. Discretionary Expenses 2. Banking Services 3. Credit 4. Automobile Ownership 5. Employment 6. Taxes 7. Independent Living 8. Investing 9. Modeling A Business 10. Retirement 11. Prepare a Budget

Read more less

Book SynopsisEnsure compliance with 2022 updates to state and federal regulations on fundraising In this supplement to the newly revised Sixth Edition of The Law of Fundraising, distinguished lawyers and tax-exempt organization experts cover all changes made in 2022 to laws that apply to fundraising and philanthropy. The authors explore the administrative, tax, and constitutional implications of the latest legislation, regulation, IRS pronouncements, private letter rulings, and technical advice memoranda. A comprehensive and authoritative blueprint of the increasingly complex tangle of federal and state regulations and legislation that govern charitable fundraising in the United States, the text is supported by a companion website containing tables, appendices, IRS examination guidelines for charitable fundraising, and other documents. The book also includes: Different methods of fundraising and the roles of accountants and lawyers in the fundraising process

Read more less

Book SynopsisFooled by Randomness is a standalone book in Nassim Nicholas Taleb’s landmark Incerto series, an investigation of opacity, luck, uncertainty, probability, human error, risk, and decision-making in a world we don’t understand. The other books in the series are The Black Swan, Antifragile, Skin in the Game, and The Bed of Procrustes.Now in a striking new hardcover edition, Fooled by Randomness is the word-of-mouth sensation that will change the way you think about business and the world. Nassim Nicholas Taleb–veteran trader, renowned risk expert, polymathic scholar, erudite raconteur, and New York Times bestselling author of The Black Swan–has written a modern classic that turns on its head what we believe about luck and skill. This book is about luck–or more precisely, about how we perceive and deal with luck in life and business. Set against the backdrop of the most conspicuous for

Read more less

Book Synopsis

Read more less

Book SynopsisHow to Make Finance a Force for GoodJust as Thomas Piketty offered a sweeping critique and progressive reassessment of capitalism, former World Bank Group chief financial officer Bertrand Badré looks at the destructive role finance played in the global economic crisis of 2007-2008 and offers a bold prescription for making it a force for good. Badré describes how finance can be harnessed to help us solve many of the world''s biggest problems--climate change, poverty, infrastructure rebuilding, and more. As he writes, "When controlled and used intelligently, with benevolence and inventiveness, finance can accomplish great things."

Read more less

Book Synopsis

Read more less

Book SynopsisRe-illustrated and re-designed, OUR CALIFORNIA (previously CALIFORNIA, HERE WE COME!) is a lively tour of award-winning author Pam Muñoz Ryan''s home state. Spirited poems celebrate California''s major cities and regions. Backmatter includes state symbols and additional information about each place.Bold paintings by illustrator Rafael López capture the spirit of the land.

Read more less

Book SynopsisThe Road to Wealth is Suze Orman''s most authoritative and accessible resource for every stage of your financial life.Millions of readers have embraced Suze Orman''s New York Times bestselling The Road to Wealth since it was originally published in 2001. But the world has changed vastly since then, and it''s more important than ever for readers to have access to accurate and practical answers to every question they have about their financial futures-questions Suze answers in The Road to Wealth. Compassionate, straightforward, and easy to understand, this updated edition gives readers invaluable advice about: · Credit cards and the new bankruptcy laws  · FICO scores  · Changes in student financial aid  · Changes in the real estate market and mortgages  · Stocks and bonds  · The latest retirement investment strategies, including the new Roth 401(k)  · Mutual funds and annuities  · Wills and trusts  · Social Security  · Life insurance  · Disability and long-term care insurance · Identity theft (and what to do if you''re a victim of it)

Read more less

Book Synopsis

Read more less

Book Synopsis

Read more less

Book Synopsis

Read more less

Book Synopsis

Read more less

Book SynopsisThe City, as London's financial centre is known, is the world's biggest international banking and foreign exchange market, shaping the development of global capital. It is also, as this groundbreaking book reveals, a crucial part of the mechanism of power in the world economy. Based on the author's twenty years' experience of City dealing rooms, The City is an in-depth look at world markets and revenues that exposes how this mechanism works. All big international companies-not just the banks-utilize this system, and The City shows how the operations of the City of London are critical both for British capitalism and for world finance. Tony Norfield details, with shocking and insightful research, the role of the US dollar in global trading, the network of British-linked tax havens, the flows of finance around the world and the system of power built upon financial securities. Why do just fifty companies now have control of a large share of world economic production? The City explains how this situation came about, examining the history of the world economy from the post-war period to the present day.Trade ReviewNorfield writes from a position of experience: he has worked in the belly of the beast, and the book is the better for it...In The City, he has done the research and pulled together the financial statistics that explain how the bloodsucking works. * Financial Times *With heaps of empirical research and a clear style of argumentation, he demonstrates that the City isn't a "satellite of Wall Street" as many think, but its own beast, using Britain's imperialist privilege to extract value from the world economy. Much of the book is directed against bad arguments made by the liberal-left - the distinction between "productive" capitalism and"casino" banking; the populist vitriol against "the banks"- which Norfield believes aren't just analytically false but let capitalism off the hook. * Vice *This book does the seemingly impossible: rendering finance's mysteries transparent to the average reader, and at the same time delivering a penetrating analysis of the global economic system that will enlighten even experts. Tony Norfield has written a truly exciting and important book. -- Paul Mattick, author of Business as UsualTheCity is a valuable addition to the critical analysis of the financialisation of our world. And Tony Norfield is an experienced and radical guide to London's role in this process. This book should be required reading for both bankers and activists alike. -- Joris Luyendjik, author of Swimming with Sharks: My Journey into the World of the BankersA timely and insightful book...It is an excellent read foranyone seriously wanting to consider the financial system * Scottish Business Insider *How many Marxists are at work in the dealing rooms of the City? Presumably they keep their heads well down. Tony Norfield is-or was-one. Twenty years a trader at the centre of the financial web, he has married the insights into the workings of the system he gained to a thorough Marxist understanding of political economy. The result is this fascinating book. * Morning Star *Tony Norfield has had20 years experience in City of London financial dealing rooms, for ten years asan executive director and global head of FX strategy in a major European bank.He went on to complete a PhD in economics at SOAS, London. Above all, he is aMarxist. It's a perfect recipe for an excellent book on modern Britishimperialism and the features of global finance in the 21st century. -- Michael Roberts, author of The Long DepressionNorfield's unusual clarity as both an analyst and expositor is reflected in his ability to lay out for his readers an easy-to-grasp introduction to how finance works today in the process of offering a detailed historically-rooted account of the multiple hierarchies and privileged relationships through which global economic domination is constructed and reproduced. The City is a tour de force, which will soon be recognized as a formidable challenge to conventional wisdom and an essential contribution in its own right. -- Robert Brenner, author of The Economics of Global Turbulence

Read more less

Book SynopsisFrom "The Godfather of FI", a follow-up to his international bestselling personal finance sensation The Simple Path to Wealth! Pathfinders brings together scores of amazing and insightful real-life stories from real people on the journey to financial independence-providing practical encouragement and inspiration for anyone who wants to join them. Lighting the way in the real world to The Simple Path to Wealth, these are fascinating, heartfelt, often surprising tales: - of struggles overcome and the rewards that followed - of enterprising solutions to unexpected problems - of sacrifices made and the kindness of strangers - of surprisingly simple steps-and the amazing places they can take you and much, much more. Author JL Collins accompanies these readers' stories with reflections on his "rules for the road"-as well as a candid conversation about the journey to financial freedom with his daughter, the inspiration for his original international bestseller. Pathfinders is the ultimate companion for your own journey to financial freedom-and the true and lasting wealth that lies at the end.

Read more less

Book SynopsisThis book provides a detailed study of Financial Mathematics. In addition to the extraordinary depth the book provides, it offers a study of the axiomatic approach that is ideally suited for analyzing financial problems. This book is addressed to MBA's, Financial Engineers, Applied Mathematicians, Banks, Insurance Companies, and Students of Business School, of Economics, of Applied Mathematics, of Financial Engineering, Banks, and more.Table of ContentsPreface xvii Part I. Deterministic Models 1 Chapter 1. Introductory Elements to Financial Mathematics 3 Chapter 2. Theory of Financial Laws 13 Chapter 3. Uniform Regimes in Financial Practice 41 Chapter 4. Financial Operations and their Evaluation: Decisional Criteria 91 Chapter 5. Annuities-Certain and their Value at Fixed Rate 147 Chapter 6. Loan Amortization and Funding Methods 211 Chapter 7. Exchanges and Prices on the Financial Market 289 Chapter 8. Annuities, Amortizations and Funding in the Case of Term Structures 331 Chapter 9. Time and Variability Indicators, Classical Immunization 363 Part II. Stochastic Models 409 Chapter 10. Basic Probabilistic Tools for Finance 411 Chapter 11. Markov Chains 457 Chapter 12. Semi-Markov Processes 481 Chapter 13. Stochastic or Itô Calculus 517 Chapter 14. Option Theory 553 Chapter 15. Markov and Semi-Markov Option Models 607 Chapter 16. Interest Rate Stochastic Models – Application to the Bond Pricing Problem 641 Chapter 17. Portfolio Theory 687 Chapter 18. Value at Risk (VaR) Methods and Simulation 703 Chapter 19. Credit Risk or Default Risk 743 Chapter 20. Markov and Semi-Markov Reward Processes and Stochastic Annuities 791 References 831 Index 839

Read more less

Book SynopsisWith the impact of the recent financial crises, more attention must be given to new models in finance rejecting “Black-Scholes-Samuelson” assumptions leading to what is called non-Gaussian finance. With the growing importance of Solvency II, Basel II and III regulatory rules for insurance companies and banks, value at risk (VaR) – one of the most popular risk indicator techniques plays a fundamental role in defining appropriate levels of equities. The aim of this book is to show how new VaR techniques can be built more appropriately for a crisis situation.VaR methodology for non-Gaussian finance looks at the importance of VaR in standard international rules for banks and insurance companies; gives the first non-Gaussian extensions of VaR and applies several basic statistical theories to extend classical results of VaR techniques such as the NP approximation, the Cornish-Fisher approximation, extreme and a Pareto distribution. Several non-Gaussian models using Copula methodology, Lévy processes along with particular attention to models with jumps such as the Merton model are presented; as are the consideration of time homogeneous and non-homogeneous Markov and semi-Markov processes and for each of these models. Contents 1. Use of Value-at-Risk (VaR) Techniques for Solvency II, Basel II and III.2. Classical Value-at-Risk (VaR) Methods.3. VaR Extensions from Gaussian Finance to Non-Gaussian Finance.4. New VaR Methods of Non-Gaussian Finance.5. Non-Gaussian Finance: Semi-Markov Models.Table of ContentsINTRODUCTION ix CHAPTER 1. USE OF VALUE-AT-RISK (VAR) TECHNIQUES FOR SOLVENCY II, BASEL II AND III 1 1.1. Basic notions of VaR 1 1.2. The use of VaR for insurance companies 6 1.3. The use of VaR for banks 13 1.4. Conclusion 16 CHAPTER 2. CLASSICAL VALUE-AT-RISK (VAR) METHODS 17 2.1. Introduction 17 2.2. Risk measures 18 2.3. General form of the VaR 19 2.4. VaR extensions: tail VaR and conditional VaR 25 2.5. VaR of an asset portfolio 28 2.6. A simulation example: the rates of investment of assets 32 CHAPTER 3. VAR EXTENSIONS FROM GAUSSIAN FINANCE TO NON-GAUSSIAN FINANCE 35 3.1. Motivation 35 3.2. The normal power approximation 37 3.3. VaR computation with extreme values 40 3.4. VaR value for a risk with Pareto distribution 56 3.5. Conclusion 62 CHAPTER 4. NEW VAR METHODS OF NON-GAUSSIAN FINANCE 63 4.1. Lévy processes 63 model with jumps 76 4.2. Copula models and VaR techniques 90 4.3. VaR for insurance 109 CHAPTER 5. NON-GAUSSIAN FINANCE: SEMI-MARKOV MODELS 115 5.1. Introduction 115 5.2. Homogeneous semi-Markov process 116 5.3. Semi-Markov option model 139 5.4. Semi-Markov VaR models 143 5.5. The Semi-Markov Monte Carlo Model in a homogeneous environment 147 CONCLUSION 159 BIBLIOGRAPHY 161 INDEX 165

Read more less

Book Synopsis

Read more less

Book SynopsisDie Finanzkrise und die spätestens seit 2010 einsetzende Eurokrise haben die Frage nach der Rolle des Staates in einer Marktwirtschaft im Allgemeinen und auf den Finanzmärkten im Besonderen wieder auf die Tagesordnung der gesellschaftlichen Diskussion gesetzt. Der "laisser-faire-Kapitalismus" der Finanzmärkte steht zunehmend in der Kritik, das richtige Maß staatlicher Intervention und deren Ausgestaltung im Einzelnen bleiben aber umstritten. Alexander Thiele untersucht in diesem Zusammenhang erstmals umfassend den grundgesetzlichen Rahmen für mögliche nationale Reformen der staatlichen Finanzaufsicht. Er kommt dabei zu dem Ergebnis, dass der nationale Gesetzgeber insoweit nur wenigen konkreten verfassungsrechtlichen Vorgaben unterliegt. Dieser hat mithin einen weiten Spielraum für die Ausgestaltung "seiner" Aufsicht, der auch durch europäische und internationale Regelungen kaum begrenzt wird.

Read more less

Book SynopsisFragen der Alterssicherung berühren früher oder später wohl alle Bürger und erlangen immer wieder große politische Bedeutung, und zwar sowohl Leistungen und deren Finanzierung als auch die Organisation der Alterssicherung, ob freiwillig oder verpflichtend, privat oder staatlich. Auf die Alterssicherungssysteme und die Alterssicherungspolitik wirken mannigfache Faktoren ein: ökonomische, politische, zunehmend auch solche aus dem internationalen Umfeld.Winfried Schmähl liefert - basierend auf reichhaltigem Quellenmaterial - eine detaillierte Darstellung der Alterssicherungspolitik in Deutschland. Der Schwerpunkt liegt dabei auf der Zeit seit 1945, beginnend mit der Situation in den Besatzungszonen in der BRD und DDR, die sich immer weiter auseinanderentwickelten. Schließlich geht er ausführlich auf den Prozess der deutschen Wiedervereinigung ein wie auch auf das sich daran anschließende Jahrzehnt. Unabdingbar ist dafür aber auch der Blick auf die "Vorgeschichte", die seit Ende des 19. Jahrhunderts im Kaiserreich, in der Weimarer Republik und schließlich während der Nazi-Herrschaft zu wichtigen Weichenstellungen im deutschen Alterssicherungssystem führte. Im Zentrum der Darstellung stehen nicht etwa nur die Ergebnisse politischen Handelns, sondern die Prozesse, die zu bestimmten Entscheidungen führten, Ziele und Handlungen staatlicher und privater Akteure sowie Auswirkungen auf die Einkommenslage der Bürger und auf öffentliche Haushalte und Unternehmungen. Der Band endet mit der Bundestagswahl vom Herbst 1998, deren Ergebnis bald zu einer grundlegenden Umorientierung der deutschen Alterssicherungspolitik führte und in einem Folgeband behandelt werden soll.

Read more less

Book Synopsis

Read more less

Book Synopsis

Read more less

Book Synopsis

Read more less

Book Synopsis

Read more less

Book SynopsisThe banking system in Europe is large in relation to the economy. It is characterized by universal banking, and driven by a significant number of globally active national champions that are systemically important. Banks perform a vital role for the economy. But their leverage and deposit funding makes them inherently vulnerable to bank runs. Axel Wieandts role as former CEO of Hypo Real Estate, which he assumed immediately after the Lehman crisis in the fall of 2008, makes him uniquely placed to both examine the causes of the current situation of the European banking system and make suggestions for getting it back on track. His starting point is a comprehensive description of the European banking system and an analysis of the role of banks in the economy. He goes on to examine the root causes and implications of the Great Financial Crisis for the European banking system. He argues for full implementation of Banking Union with greater emphasis on market discipline and accountability.

Read more less

Book Synopsis

Read more less

Book Synopsis

Read more less

Book Synopsis

Read more less

Book Synopsis

Read more less

Book Synopsis

Read more less