Financial Trading and Investing


  • John Teall, Rensselaer Polytechnic Institute, Troy, NY, USA

A former member of the American Stock Exchange introduces trading and financial markets to upper-division undergraduates and graduate students who are planning to work in the finance industry. Unlike standard investment texts that cover trading as one of many subjects, Financial Trading and Investing gives primary attention to trading, trading institutions, markets, and the institutions that facilitate and regulate trading activities-what economists call "market microstructure." The text will be accompanied by a website that can be used in conjunction with TraderEx, Markit, StocklinkU, Virtual Trade, Vecon Lab Experiment, Tradingsim, IB Student Trading Lab, Brenexa, Stock Trak and How the Market Works.
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Upper-division undergraduates and graduate students worldwide working in financial investments and portfolio theory. These students typically seek entry-level jobs trading stocks, bonds, and commodities.


Book information

  • Published: August 2012
  • ISBN: 978-0-12-391880-2


"Teall’s Financial Trading and Investing presents clear and up-to-date coverage of trading and market microstructure. Arbitrage and hedging examples in currency, forwards, fixed income and options markets are well developed, with particular attention devoted to implementing transactions."--Ahmet K. Karagozoglu, Hofstra University

"I enjoyed reading the material in Financial Trading and Investing. Dr. Teall’s coverage of the content in this text is very thorough, and it fills a niche in academic and professional literature on trading and market microstructure."--Travis Jones, Florida Gulf Coast University

"The presentation is well supported not only by the extensive use of professional literature but also by examples in each chapter. The end-of-chapter questions enhance learning by enabling students to apply concepts in meaningful ways. They make the material more ‘real world' for advanced undergraduates or graduate students."--Kevin Klein, Illinois College

Table of Contents

Chapter 1 - Introduction to Securities Trading and Markets
Chapter 2 - Financial Markets, Trading Processes, and Instruments
Chapter 3 - Institutional Trading
Chapter 4 - Regulation of Trading and Securities Markets
Chapter 5 - Adverse Selection, Trading, and Spreads
Chapter 6 - Random Walks, Risk and Arbitrage
Chapter 7 - Arbitrage and Hedging with Fixed Income Instruments and Currencies
Chapter 8 - Arbitrage and Hedging with Options
Chapter 9 - Evaluating Trading Strategies and Performance
Chapter 10 - The Mind of the Investor
Chapter 11 - Market Efficiency
Chapter 12 - Trading Gone Awry
Mathematics Appendix
End-of-Chapter Exercise Solutions