Book: Real Estate by the Numbers | Authors: J Scott and Dave Meyer | Chapters: 38-39
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Book: Financial Markets and Institutions, 11th Edition Author: Jeff Madura Publisher: Cengage Learning, 2015 ISBN: 978-1-133-94788-2
Chapter 20 wraps up the commercial banking section by asking a simple question: how do you know if a bank is doing well? Regulators need to spot problems early. Shareholders need to know if their investment is paying off. And bank managers need feedback on whether their strategies are working.
In Chapter 27, Larry Harris looks at the ultimate showdown: The Floor vs. The Computer. In an age of high-speed fiber optics, why do we still have people in colorful jackets yelling at each other in lower Manhattan?
In Part 1 we covered dealer spreads, the two spread components (transaction costs and adverse selection), and why uninformed traders lose no matter what order type they use. Now Harris finishes the chapter with equally important stuff: what determines equilibrium spreads in real markets, how public traders compete with dealers, and what factors predict whether a given instrument will have wide or narrow spreads.
That is 29 chapters. Seven major parts. Hundreds of concepts. One very thorough book about how financial markets actually work beneath the surface.
Book: Financial Markets and Institutions, 11th Edition Author: Jeff Madura Publisher: Cengage Learning, 2015 ISBN: 978-1-133-94788-2
Chapter 19 is where the rubber meets the road. You know what banks are (Chapter 17) and how they are regulated (Chapter 18). Now the question is: how do bank managers actually run these things day to day? The answer involves juggling several types of risk at once while trying to maximize shareholder value.
Most people think insider trading is straightforwardly evil. Rich executives cheating the system by trading on secret information. Easy call, right?
Book: Real Estate by the Numbers: A Complete Reference Guide to Deal Analysis Authors: J Scott and Dave Meyer Chapter: 37
In Chapter 26, Larry Harris looks at the high-stakes competition between the marketplaces themselves. If you’re a developer building an ECN or a regulator at the SEC, this is the battlefield.
Harris calls chapter 14 the most important chapter in the book. Bold claim for page 297, but he backs it up. The lesson is simple and painful: uninformed traders lose money no matter what they do. Not because they pick the wrong side. Because they trade at all.