Finance: The Basics is a clear and practical introduction to the world of
finance, allowing the reader to grasp relevant financial concepts and apply them to daily
activities and studies.
This fully revised and updated edition captures the most important aspects of a
changing financial landscape, incorporating new and expanded sections on:
- Behavioral finance, securitization and financial crises
- Risk management, including loss control, loss financing and risk reduction
- Investment management, including conventional asset management, alternatives and
private wealth.
Illustrated throughout with timely, real-world examples and case studies,
Finance: The Basics contains useful equations, statistics and suggestions for further
reading. It is ideal for anyone looking for a straightforward but comprehensive guide to
the key elements of finance.
Erik Banks is a senior risk advisor at the European universal bank UniCredit. He
has held senior risk positions at Citibank, Merrill Lynch and in the hedge fund sector, in
New York, Tokyo, Hong Kong, London and Munich. He is the author of several books on risk,
derivatives, emerging markets and governance.
Table of Contents
List of illustrations vii
Acknowledgements x
Concepts and tools 1
The world of finance 3
The financial statements 21
Financial concepts and tool 48
Instruments and transactions 77
Common and preferred stock 79
Loans and bonds 103
Investment funds 132
Derivatives and insurance 152
Corporate finance 185
Participants and marketplaces 205
Financial participants 207
The global financial markets 225
Selected references 242
Index 255
296 pages, Paperback