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Financial Markets & Institutions

By Jeff Madura

13th Edition © 2021
Discipline:Finance
Course:Financial Markets and Institutions
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Clearly demonstrate how today's financial institutions are integrated within financial markets with Madura's best-selling FINANCIAL MARKETS AND INSTITUTIONS, 13E. Known for its solid conceptual framework, this trusted resource explores the functions of the Federal Reserve System and its recent changes, major debt and equity security markets, and derivative security markets. Expanded coverage now discusses stock valuation, market microstructure strategies, and liquidity in today's financial markets. In addition, new content introduces popular sources of funding, such as crowdfunding. Students study the management, performance, and regulatory environment of each type of financial institution. Critical-Thinking Questions, Flow of Funds Exercises, and online research assignments help students apply what they learn, while timely examples connect concepts to financial trends. In addition, new MindTap online course solutions provide an integrated e-text, algorithmic and Excel Online practice problems and Aplia homework assignments.

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About this product

Clearly demonstrate how today's financial institutions are integrated within financial markets with Madura's best-selling FINANCIAL MARKETS AND INSTITUTIONS, 13E. Known for its solid conceptual framework, this trusted resource explores the functions of the Federal Reserve System and its recent changes, major debt and equity security markets, and derivative security markets. Expanded coverage now discusses stock valuation, market microstructure strategies, and liquidity in today's financial markets. In addition, new content introduces popular sources of funding, such as crowdfunding. Students study the management, performance, and regulatory environment of each type of financial institution. Critical-Thinking Questions, Flow of Funds Exercises, and online research assignments help students apply what they learn, while timely examples connect concepts to financial trends. In addition, new MindTap online course solutions provide an integrated e-text, algorithmic and Excel Online practice problems and Aplia homework assignments.

CURRENT, RELEVANT EXAMPLES REINFORCE REAL-WORLD APPLICATION OF CONCEPTS. Numerous updated examples throughout this edition reflect the latest developments in today's financial world. Striking examples reinforce key concepts and clearly demonstrate the practical applications and importance of the material students are learning.

SUBSTANTIAL END-OF-CHAPTER QUESTIONS CHECK AND REINFORCE STUDENT COMPREHENSION. Your students can check their understanding of important concepts and skills using the large variety of questions at the end of each chapter. In addition, students can use midterm and final self-examinations to ensure they fully comprehend course material.

ONGOING FLOW OF FUNDS EXERCISE EMPHASIZES PRACTICAL APPLICATION OF USING FINANCIAL MARKETS AND SERVICES. The continuing Flow of Funds Exercise at the end of each chapter clearly illustrates how a single manufacturing company relies on all types of financial markets, institutions, and services.

INTEGRATIVE PROBLEMS DEMONSTRATE HOW FINANCIAL CONCEPTS FROM EACH CHAPTER WORK TOGETHER. An integrative problem at the end of each part clearly illustrates how concepts from each of the chapters in every part work together and rely upon or impact one another.

Table of contents

Chapters

Cover Page
Title Page
Copyright Page
Dedication
Preface
Acknowledgments
About the Author
Part 1. Overview of the Financial Environment
Part 2. The Fed and Monetary Policy
Part 3. Debt Security Markets
Part 4. Equity Markets
Part 5. Derivative Security Markets
Part 6. Commercial Banking
Part 7. Nonbank Operations
Appendix A. Comprehensive Project
Appendix B. Using Excel to Conduct Analyses
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Part 1. Overview of the Financial Environment

Chapter 1. Role of Financial Markets and Institutions
Preview this section ↗
1-1. Role of Financial Markets ↗
1-1a. Accommodating Corporate Finance Needs ↗
1-1b. Accommodating Investment Needs ↗
1-2. Securities Traded in Financial Markets ↗
1-2a. Money Market Securities ↗
1-2b. Capital Market Securities ↗
1-2c. Derivative Securities ↗
1-2d. Valuation of Securities ↗
1-2e. Securities Regulations on Financial Disclosure ↗
1-2f. International Financial Markets ↗
1-3. Role of Financial Institutions ↗
1-3a. Role of Depository Institutions ↗
1-3b. Role of Nondepository Financial Institutions ↗
1-3c. Comparison of Roles among Financial Institutions ↗
1-3d. Relative Importance of Financial Institutions ↗
1-3e. Consolidation of Financial Institutions ↗
1-4. Systemic Risk among Financial Institutions ↗
Summary ↗
Point/Counterpoint ↗
Questions and Applications ↗
Flow of Funds Exercise ↗
Internet/Excel Exercises ↗
WSJ Exercise ↗
Online Articles with Real-World Examples ↗
Chapter 2. Determination of Interest Rates
2-1. Loanable Funds Theory
2-1a. Household Demand for Loanable Funds
2-1b. Business Demand for Loanable Funds
2-1c. Government Demand for Loanable Funds
2-1d. Foreign Demand for Loanable Funds
2-1e. Aggregate Demand for Loanable Funds
2-1f. Supply of Loanable Funds
2-1g. Equilibrium Interest Rate
2-2. Factors That Affect Interest Rates
2-2a. Impact of Economic Growth on Interest Rates
2-2b. Impact of Inflation on Interest Rates
2-2c. Impact of Monetary Policy on Interest Rates
2-2d. Impact of the Budget Deficit on Interest Rates
2-2e. Impact of Foreign Flows of Funds on Interest Rates
2-3. Forecasting Interest Rates
Summary
Point/Counterpoint
Questions and Applications
Problems
Flow of Funds Exercise
Internet/Excel Exercises
WSJ Exercise
Online Articles with Real-World Examples
Chapter 3. Structure of Interest Rates
3-1. Why Debt Security Yields Vary
3-1a. Credit (Default) Risk
3-1b. Liquidity
3-1c. Tax Status
3-1d. Term to Maturity
3-2. Modeling the Yield to be Offered on a Debt Security
3-3. A Closer Look at the Term Structure
3-3a. Pure Expectations Theory
3-3b. Liquidity Premium Theory
3-3c. Segmented Markets Theory
3-3d. Integrating the Term Structure Theories
3-3e. Use of the Term Structure
3-3f. How the Yield Curve Has Changed over Time
3-3g. International Structure of Interest Rates
Summary
Point/Counterpoint
Questions and Applications
Problems
Flow of Funds Exercise
Internet/Excel Exercises
WSJ Exercise
Online Articles with Real-World Examples
Part 1. Integrative Problem

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