Essentials of investments, 7e

The last two decades have brought rapid, profound, and ongoing change to the investments industry. This is due in part to an abundance of newly designed securities, in part to the creation of new trading strategies that would have been impossible without concurrent advances in computer and communications technology, and in part to continuing advances in the theory of investments. Of necessity, our text has evolved along with the financial markets. In this edition, we address many of the changes in the investment environment.

At the same time, many basic principles remain important. We continue to organize our book around one basic theme–that security markets are nearly efficient, meaning that most securities are usually priced appropriately given their risk and return attributes.

Our book also focuses on investment analysis, which allows us to present the practical applications of investment theory, and to convey insights of practical value.