Includes index.

PART I: OVERVIEW OF THE FINANCIAL ENVIRONMENT -- 1. Role of Financial Markets and Institutions -- 2. Determination of Interest Rates -- 3. Structure of Interest Rates -- PART 2: THE FED AND MONETARY POLICY -- 4. Functions of the Fed -- 5. Monetary Policy -- PART 3: DEBT SECURITY MARKETS -- 6. Money Markets -- 7. Bond Markets -- 8. Bond Valuation and Risk -- 9. Mortgage Markets -- PART 4: EQUITY MARKETS -- 10. Stock Offerings and Investor Monitoring -- 11. Stock Valuation and Risk -- 12. Market Microstructure and Strategies -- PART 5: DERIVATIVE SECURITY MARKETS -- 13. Financial Futures Markets -- 14. Options Markets -- 15. Swap Markets -- 16. Foreign Exchange Derivative Markets -- PART 6: COMMERCIAL BANKING -- 17. Commercial Bank Operations -- 18. Bank Regulation -- 19. Bank Management -- 20. Bank Performance -- PART 7: NONBANK OPERATIONS -- 21. Thrift Operations -- 22. Finance Company Operations -- 23. Mutual Fund Operations -- 24. Securities Operations -- 25. Insurance and Pension Fund Operations -- 26. Pension Funds Operations.