Guide to Financial Markets

That financial markets now have an enormous influence on modern life is not news. They provide a way of setting prices and valuing assets, raising capital and investing it, and managing exposure to risk. But although people speak glibly of 'Wall Street' or 'the bond market' or 'the currency markets,' the meanings they attach to these phrases are often vague and usually out of date. This book explains why the different financial markets exist, how they work and who trades in them, and gives a rundown of the factors that affect prices and rates. This updated fourth edition provides a clear explanation of the different markets, including such recent innovations as electronic trading and credit derivatives.