Basic Finance: An Introduction to Financial Institutions, Investments, and Management

SUCCINCT CHAPTERS OFFER STREAMLINED AND FLEXIBLE COVERAGE. Most of the chapters in this edition are brief enough for you to cover in one class period, giving you the flexibility of a modular approach. Two exceptions are the chapters on time value of money (Ch. 7) and risk (Ch. 8), both of which provide enough detailed coverage of these complex topics to ensure thorough student understanding.

CONCISE, EXTREMELY READER FRIENDLY CONTENT OFFERS THE IDEAL INTRODUCTION TO FINANCE. The authors have carefully designed each chapter to emphasize only one or two topics. Concise content focuses on key issues that are most important for students to master in your introductory course.

THIS EDITION PRESENTS THE BASICS OF MORE ADVANCED TOPICS. The authors introduce more advanced topics, such as derivatives (including puts, calls, and futures contracts), on a fundamental level to give you the option of challenging your students with more sophisticated material.

LEARNING FEATURES LET STUDENTS CHECK THEIR UNDERSTANDING AS THEY PROGRESS THROUGH THE TEXT. Students can find answers to selected problems in the appendix as well as additional problems with worked-out solutions in appropriate chapters. These additional examples enable review and opportunities for further practice.

ADDITIONAL EXPLANATIONS AND TIME-SAVING TIPS HELP LEARNERS MAXIMIZE STUDY TIME AND COMPREHENSION. This edition features keystrokes for time value of money examples in the margins throughout the text. In addition, illustrations using equations and interest tables explain the math associated with each example, such as the determination of bond prices and the yield to maturity.

LEARNING OBJECTIVES DIRECT STUDENT ATTENTION TO KEY TOPICS. Learning objectives at the beginning of each chapter include specific page references to help students quickly review key topics.

APPENDIX E FEATURES BEST PRACTICES FOR USING MS EXCEL. Your students are able to use the helpful information in Appendix E to complete problems throughout this edition. This appendix illustrates step-by-step best practices for maximizing the finance capabilities of Excel.

CHAPTERS REINFORCE KEY CONCEPTS TO IMPROVE RETENTION. This edition reviews important concepts in various chapters, offering a repeated exposure that reinforces understanding. Students review concepts from different perspectives to help improve retention.

MORE IN-CHAPTER REFERENCES DIRECT STUDENTS TO SPECIFIC INFORMATION FOR A COHESIVE TEXT. Each chapter includes additional references showing where students can find more information on the chapter’s specific topics in this edition. These cross-references not only assist in additional study, but also clearly demonstrate how the individual topics are interrelated to form a cohesive study of finance.

SIGNIFICANT REFERENCES HIGHLIGHT RECENT REAL EVENTS RELATED TO THE FINANCE TOPICS. This edition attracts and retains your students’ interest as the authors point to familiar, recent and interesting real-world events, clearly connecting basic financial theory with non-financial phenomena.

UPDATES ADDRESS NOTABLE ADVANCEMENTS AND CHANGES IN FINANCE TODAY. Revisions discuss today’s numerous currency updates and applications. New content examines cryptocurrencies and bitcoin (Ch. 2); environmental, social and governance (ESG) investing (Ch. 8); and the increasing power of retail investors, such as meme stocks, RobinHood and WallStreetBets (Ch. 10). Other revisions focus on active versus passive investment management (Ch. 17) and the impact of data analytics, machine learning, neural networks and business intelligence in financial decision making (Ch. 19).

EXPANDED STEP-BY-STEP CALCULATIONS WALK STUDENTS THROUGH CRITICAL FINANCIAL PROCESSES. The authors have significantly expanded and further clarified this edition’s step-by-step calculations for net present value (NPV) and internal rate of return (IRR) in Chapter 16.

UPDATED MATERIAL ADDRESSES RECENT CHANGES IN TAXATION. Revisions ensure all content related to taxation in Chapter 18 reflects the latest changes in the field. Updates discuss pass-through entities, 2017 Tax Cuts and Jobs Act and territorial versus residence-based taxation.

NEW APPENDIX G PROVIDES DETAILED SUPPORTING CALCULATIONS. This additional, helpful material in Appendix G is designed to provide extra assistance and clarification, when needed, to ensure your students can follow the more complex calculations covered within the text.