• Feb 02, 2019
• Finance

Bubbles, Crashes, and Circuit Breakers: When Markets Go Wild (Chapter 28)

Previous: Floor vs Automated Trading

Chapter 28 is the most dramatic chapter in Trading and Exchanges. It covers the moments when markets go completely sideways. Bubbles that inflate until they pop. Crashes that destroy enormous wealth in hours. And the regulatory responses that try to prevent it all from happening again.

• Feb 02, 2019
• software-engineering

The Fragmented Market: Internalization and PFOF (Chapter 25)

The Private Auctions

In Chapter 25, Larry Harris explains why the stock market isn’t just one big room. It’s actually thousands of little private rooms all trying to steal business from the main floor. This is Market Fragmentation.

• Feb 02, 2019
• finance

Trading and Exchanges Chapter 13: How Dealers Make Money in Markets

Dealers are merchants. They buy low, sell high, pocket the difference. If you ever bought a used phone from a resale shop, you understand the concept. The shop bought it for less, sells it to you for more. Financial market dealers do the same thing with stocks, bonds, and currencies.

• Feb 02, 2019
• real-estate-investing

Understanding Leverage in Real Estate Investing

Book: Real Estate by the Numbers: A Complete Reference Guide to Deal Analysis Authors: J Scott and Dave Meyer Chapters: 33-36

• Feb 01, 2019
• finance

Behavioral Finance for Private Banking - Series Wrap-Up

So we made it. 17 posts later, and we’ve covered the entire “Behavioral Finance for Private Banking” by Thorsten Hens, Enrico G. De Giorgi, and Kremena K. Bachmann. That was a lot of ground.

• Feb 01, 2019
• Finance

Commercial Bank Operations: How Banks Make Money

Book: Financial Markets and Institutions, 11th Edition Author: Jeff Madura Publisher: Cengage Learning, 2015 ISBN: 978-1-133-94788-2

Chapter 17 shifts the book from financial markets to financial institutions. And it starts with the biggest ones: commercial banks. By total assets, they are the most important type of financial intermediary in the economy. Their core job is simple. Take money from people who have it (surplus units) and move it to people who need it (deficit units). But the way they do it is worth understanding.

• Feb 01, 2019
• real-estate-investing

Debt Metrics Explained: LTV, LTC, DSCR, and the Loan Constant

Book: Real Estate by the Numbers: A Complete Reference Guide to Deal Analysis Authors: J Scott and Dave Meyer Chapters: 31-32

• Feb 01, 2019
• finance

Final Thoughts on Behavioral Finance and Investor Types

So we made it through all 15 chapters of Behavioral Finance and Investor Types by Michael M. Pompian. Here’s what I think about the whole thing.

• Feb 01, 2019
• Finance

Floor Trading vs Automated Systems: The Technology Shift (Chapter 27)

Previous: Competition Among Markets

In 1999, the Bangladeshi Stock Exchange replaced its trading floor with an automated system. At the same time, the New York Stock Exchange was considering where to build a new trading floor.