Introduction to Finance
Markets, Investments, and Financial Management
17. Edition March 2021
688 Pages, Softcover
Wiley & Sons Ltd
Introduction to Finance, 17th Edition offers students a balanced introduction to the three major areas of finance: institutions and markets, investments, and financial management. Updated to incorporate recent economic and financial events, this new edition is an ideal textbook for first courses in finance--reviewing the discipline's essential concepts, principles, and practices in a clear, reader-friendly manner. Students gain an integrated perspective of finance by learning how markets and institutions influence, and are influenced by, individuals, businesses, and governments.
Designed to impart financial literacy to readers with no previous background in the subject, the text provides a solid foundation for students to build upon in later courses in financial management, investments, or financial markets. Equations and mathematical concepts are kept to a minimum, and include understandable, step-by-step solutions. Divided into three parts, the book explains financial markets, discusses the functions of financial systems, reviews savings and investments in different sectors, describes accounting concepts and organizational structures, and more. Real-world examples featured throughout the text help students understand important concepts and appreciate the role of finance in various local, national, and global settings.
Author Bios xii
Part 1 Institutions and Markets
1 The Financial Environment 5
2 Money and the Monetary System 24
3 Banks and Other Financial Institutions 49
4 Federal Reserve System 82
5 Policy Makers and the Money Supply 109
6 International Finance and Trade 137
Part 2 Investments
7 Savings and Investment Process 173
8 Interest Rates 197
9 Time Value of Money 225
10 Bonds and Stocks: Characteristics and Valuations 262
11 Securities and Markets 308
12 Financial Return and Risk Concepts 352
Part 3 Financial Management
13 Business Organization and Financial Data 391
14 Financial Analysis and Long-Term Financial Planning 432
15 Managing Working Capital 466
16 Short-Term Business Financing 503
17 Capital Budgeting Analysis 533
18 Capital Structure and the Cost of Capital 578
Appendix A-1
Glossary G-1
Index I-1