In today’s largely market-based global economy, financial markets such as stock and bond markets play an increasingly important role. As a result, an understanding of the workings of the modern market economy almost certainly requires knowledge of the basic functions of financial markets.

Finance – Markets, Instruments & Investments provides a comprehensive yet relatively short and non-technical introduction to financial markets and the principal financial instruments traded there. The material is up-to-date and, in addition to the treatment of traditional financial markets such as bond, stock and derivatives markets, the book provides an overview of the market for credit and credit derivatives. This edition also contains a completely new chapter on the commodities market, which has grown as an asset class as of lately, and merits a place in any modern textbook on finance.

The book is written with a wide readership in mind. It is not only suitable for introductory finance courses at undergraduate or MBA level, but anyone who needs a basic understanding, or refreshment, of the core principles of finance will find it helpful. Since the level of mathematical analysis has been consciously kept to a minimum, readers will find that the book requires only the most elementary knowledge of mathematics and statistics. The appendix contains the most important statistical concepts. Each chapter ends with a list of questions with complete answers and solutions and the book’s website contains additional study material.