{"product_id":"the-practical-guide-to-wall-street-isbn-9780470383728","title":"The Practical Guide to Wall Street","description":"\u003ci\u003eThe Practical Guide to Wall Street\u003c\/i\u003e is an indispensable resource for anyone who aspires to a front-office sales or trading position on Wall Street and an essential desk reference for market practitioners and those who interact with this exciting but widely misunderstood industry. Written by an experienced trader in a clear, conversational style and assuming no previous background in finance, The Practical Guide to Wall Street provides a thorough schooling in the core curriculum of the equity and equity derivatives sales and trading business - exactly what you would learn from sitting beside the traders at a tier-one Wall Street investment bank (except that in practice, traders rarely have time to provide such detailed explanations!) Topics covered include:  \u003cul\u003e \u003cli\u003eClear, detailed and intuitive explanations of all major products, their function, pricing and risks (several of which are unavailable anywhere else despite producing billions of dollars in annual revenue for Wall St.)\u003c\/li\u003e \u003cli\u003eThe layout of the trading floor, the roles and responsibilities of the different sales and trading groups and how they interact to service the client business\u003c\/li\u003e \u003cli\u003eAn overview of the structure of the macro-economy and the trader’s perspective on the significance of economic data releases and their impact on the financial markets\u003c\/li\u003e \u003cli\u003eA review of those concepts from fundamental valuation and financial statement analysis of greatest relevance on the trading floor (as opposed to abstract valuation models)\u003c\/li\u003e \u003cli\u003ePractical details of the structure and functioning of the equity and derivative markets including translations of trader jargon, Bloomberg tips, market conventions, liquidity and risk considerations and much more…\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eThis book provides the first comprehensive explanation of all aspects of the functioning of the equities division, with information, details and insights previously only available to those who already worked on a trading floor. The availability of this material in a format accessible to non-professionals fundamentally changes the level of industry knowledge employers in the financial services industry can expect of new hires.\u003c\/p\u003e \u003cp\u003ePreface xiii\u003c\/p\u003e \u003cp\u003eA Comment on the Events of 2008 xxiii\u003c\/p\u003e \u003cp\u003eAcknowledgments xxv\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart One What Is a Stock? 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Equity Fundamentals (Part 1): Introduction to Financial Statements 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 3\u003c\/p\u003e \u003cp\u003eEquity and Corporation 4\u003c\/p\u003e \u003cp\u003eIntroduction to Financial Statements 5\u003c\/p\u003e \u003cp\u003eThe Balance Sheet 6\u003c\/p\u003e \u003cp\u003eThe Income Statement 15\u003c\/p\u003e \u003cp\u003eStatement of Cash Flows 20\u003c\/p\u003e \u003cp\u003eSummary 24\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Equity Fundamentals (Part 2): Financial Ratios, Valuation, and Corporate Actions 27\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 27\u003c\/p\u003e \u003cp\u003eFinancial Ratios 28\u003c\/p\u003e \u003cp\u003eGrowth and Value 38\u003c\/p\u003e \u003cp\u003eBloomberg 39\u003c\/p\u003e \u003cp\u003eValuation 40\u003c\/p\u003e \u003cp\u003eTechnical Analysis 51\u003c\/p\u003e \u003cp\u003eCorporate Actions 54\u003c\/p\u003e \u003cp\u003eSummary 64\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Two Products and Services 67\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Cash Market 69\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 69\u003c\/p\u003e \u003cp\u003eHow a Stock Exchange Functions 69\u003c\/p\u003e \u003cp\u003eExchange Structure 76\u003c\/p\u003e \u003cp\u003eOrder Types 81\u003c\/p\u003e \u003cp\u003eHow the Cash Trading Business Works 102\u003c\/p\u003e \u003cp\u003eCommunication 112\u003c\/p\u003e \u003cp\u003ePurchasing a Stock in a Foreign Currency 115\u003c\/p\u003e \u003cp\u003eSummary 121\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Equity Indices 123\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 123\u003c\/p\u003e \u003cp\u003eIndex Construction 125\u003c\/p\u003e \u003cp\u003eWhat an Index Doesn’t Tell Us 129\u003c\/p\u003e \u003cp\u003eValuation and Calculation 131\u003c\/p\u003e \u003cp\u003eReplicating Portfolio 134\u003c\/p\u003e \u003cp\u003eTrading an Index Portfolio 136\u003c\/p\u003e \u003cp\u003eIndex Changes 139\u003c\/p\u003e \u003cp\u003eIndex Dividend Points 142\u003c\/p\u003e \u003cp\u003eTotal Return Index Calculation 144\u003c\/p\u003e \u003cp\u003eMulticurrency Indices 145\u003c\/p\u003e \u003cp\u003eEquity Indices in Practice 147\u003c\/p\u003e \u003cp\u003eInternational Indices 156\u003c\/p\u003e \u003cp\u003eSummary 165\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Program Trading 167\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 167\u003c\/p\u003e \u003cp\u003eExplanation of a Sample Trade 173\u003c\/p\u003e \u003cp\u003eWhen Is Program Trading More Beneficial? 182\u003c\/p\u003e \u003cp\u003ePortfolio Analytics 184\u003c\/p\u003e \u003cp\u003eTransition Management 189\u003c\/p\u003e \u003cp\u003ePrincipal Trades 191\u003c\/p\u003e \u003cp\u003eSummary 201\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Exchange-Traded Funds (ETFs) 203\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 203\u003c\/p\u003e \u003cp\u003eTrading Mechanics 205\u003c\/p\u003e \u003cp\u003eNet Asset Value (NAV) 207\u003c\/p\u003e \u003cp\u003ePopularity 208\u003c\/p\u003e \u003cp\u003eTrading versus Holding 212\u003c\/p\u003e \u003cp\u003eETFs in Practice 214\u003c\/p\u003e \u003cp\u003eSummary 214\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Forwards and Futures 217\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 217\u003c\/p\u003e \u003cp\u003eCalculation of Fair Value 219\u003c\/p\u003e \u003cp\u003eFutures 223\u003c\/p\u003e \u003cp\u003eIndex Arbitrage 233\u003c\/p\u003e \u003cp\u003eThe Futures Roll 240\u003c\/p\u003e \u003cp\u003eExchange for Physical (EFP) 245\u003c\/p\u003e \u003cp\u003eBasis Trades 254\u003c\/p\u003e \u003cp\u003eFutures Contracts in Practice 259\u003c\/p\u003e \u003cp\u003eTechnical Comment on the Accuracy of Approximations 263\u003c\/p\u003e \u003cp\u003eSummary 264\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Swaps 267\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 267\u003c\/p\u003e \u003cp\u003eMotivation for a Swap 267\u003c\/p\u003e \u003cp\u003eA Long Equity Swap Example 269\u003c\/p\u003e \u003cp\u003eThe Swap in Detail: Definitions and Terminology 272\u003c\/p\u003e \u003cp\u003eCalculation of Payments 277\u003c\/p\u003e \u003cp\u003eShort Swap 279\u003c\/p\u003e \u003cp\u003eBack-to-Back Swaps 280\u003c\/p\u003e \u003cp\u003eSwaps as a Trading Tool 281\u003c\/p\u003e \u003cp\u003eA Comment on Hedging 286\u003c\/p\u003e \u003cp\u003eSwap Valuation: Accrual versus NPV 287\u003c\/p\u003e \u003cp\u003eCurrency Exposure 289\u003c\/p\u003e \u003cp\u003eISDA 293\u003c\/p\u003e \u003cp\u003eRisks and Other Considerations 294\u003c\/p\u003e \u003cp\u003eSummary 296\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Options (Part 1) 299\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 299\u003c\/p\u003e \u003cp\u003eDefinitions and Terminology 300\u003c\/p\u003e \u003cp\u003ePayoff Structure 301\u003c\/p\u003e \u003cp\u003eOption Values Prior to Maturity 311\u003c\/p\u003e \u003cp\u003eQuantitative Considerations 323\u003c\/p\u003e \u003cp\u003eThe Black-Scholes Derivation 326\u003c\/p\u003e \u003cp\u003eTypes of Volatility 337\u003c\/p\u003e \u003cp\u003eSummary 341\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Options (Part 2) 343\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eVolatility Trading 343\u003c\/p\u003e \u003cp\u003eOption Sensitivities: The “Greeks” 354\u003c\/p\u003e \u003cp\u003eImplied Volatility Revisited 374\u003c\/p\u003e \u003cp\u003eOTC and Exotic Options 377\u003c\/p\u003e \u003cp\u003eSummary 383\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 The Trading Floor 385\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 385\u003c\/p\u003e \u003cp\u003eOrganization of the Sales and Trading Businesses 386\u003c\/p\u003e \u003cp\u003eOther Groups 390\u003c\/p\u003e \u003cp\u003eSummary 404\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Three Economics 405\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 Macroeconomics for Trading and Sales 407\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 407\u003c\/p\u003e \u003cp\u003eCapital Asset Pricing Model (CAPM) 408\u003c\/p\u003e \u003cp\u003eOverview of Macroeconomics 408\u003c\/p\u003e \u003cp\u003eThe Fed 417\u003c\/p\u003e \u003cp\u003eMoving beyond the Big Three: Other Macroeconomic Concepts 424\u003c\/p\u003e \u003cp\u003eOther Variables 426\u003c\/p\u003e \u003cp\u003eA Final Observation 428\u003c\/p\u003e \u003cp\u003eSummary 429\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 13 Economic Data Releases 431\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 431\u003c\/p\u003e \u003cp\u003ePreliminary Definitions 433\u003c\/p\u003e \u003cp\u003ePrincipal U.S. Economic Indicators 436\u003c\/p\u003e \u003cp\u003eRest of the World Economics 456\u003c\/p\u003e \u003cp\u003eEurope 457\u003c\/p\u003e \u003cp\u003eEuropean Economic Statistics 462\u003c\/p\u003e \u003cp\u003eAsia 466\u003c\/p\u003e \u003cp\u003eThe Market’s Reaction Function 471\u003c\/p\u003e \u003cp\u003eWhat the Market Tells Us about the Economy 476\u003c\/p\u003e \u003cp\u003eSummary 480\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAppendix Mathematical Review 481\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 481\u003c\/p\u003e \u003cp\u003eFunctions 482\u003c\/p\u003e \u003cp\u003eCompound Interest and Exponential Growth 483\u003c\/p\u003e \u003cp\u003eCalculus 487\u003c\/p\u003e \u003cp\u003eRandom Variables, Probability, and Statistics 494\u003c\/p\u003e \u003cp\u003eSummary 505\u003c\/p\u003e \u003cp\u003eNotes 507\u003c\/p\u003e \u003cp\u003eAbout the Author 519\u003c\/p\u003e \u003cp\u003eIndex 521\u003c\/p\u003e \u003cp\u003eMatthew Tagliani, CFA, has more than ten years of trading and risk management experience in equity swaps, ETFs, futures, and program trading. He has worked at Morgan Stanley, Goldman Sachs, and Credit Suisse and holds a master's degree in applied mathematics from the University of Massachusetts Amherst.\u003c\/p\u003e   \u003cp\u003eYour guide to the institutional equity and equity derivatives business\u003c\/p\u003e \u003cp\u003eDespite countless financial books on many different specialties and methods, no one has taken a comprehensive look at the professional trading floor. The Practical Guide to Wall Street fills this gap, serving both as an essential go-to for new hires and as a helpful reference for more experienced traders and salespeople.\u003c\/p\u003e \u003cp\u003eWritten by a seasoned practitioner in a clear, conversational style and assuming no previous background in finance, The Practical Guide to Wall Street provides a thorough schooling in the core curriculum of the equity and equity derivatives sales and trading business. Starting with the basics, it gives you exactly what you would learn from traders at a tier-one investment bank.\u003c\/p\u003e \u003cp\u003eIn this guide, you'll find:\u003c\/p\u003e \u003cul\u003e \u003cli\u003e \u003cp\u003eClear, detailed, and intuitive explanations of all major products, their structure, pricing, and risks—many of which are unavailable elsewhere\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eThe layout of the trading floor, the roles and responsibilities of the different sales and trading groups, and how they interact to service the client business\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eAn overview of the structure of the macroeconomy with explanations of economic data releases as seen from Wall Street's perspective\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eA review of the concepts, from fundamental valuation and financial statement analysis, with the greatest applicability and rele-vance on the trading floor\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003ePractical details of the structure and functioning of the equity and deriva-tive markets, including translations of trader jargon, Bloomberg tips, mar-ket conventions, liquidity and risk considerations, and much more. . .\u003c\/p\u003e \u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eThe first comprehensive explanation of how an equity division functions, The Practical Guide to Wall Street is packed with detailed information previously available only to those already working on the trading floor. This invaluable resource is your key to a successful career in finance.\u003c\/p\u003e  \u003cp\u003ePraise for The Practical Guide to Wall Street\u003c\/p\u003e \u003cp\u003e\"An extraordinary accomplishment. This clear, well-written, and insightful book is an indispensable resource for any new entrant to the business and an enormously useful reference for more experienced practitioners as well. Books on finance come and go, this one will stay the course.\"\u003cbr\u003e —Sam Kellie-Smith, Managing Director, Global Head of Equity and Equity Derivative Trading, Morgan Stanley\u003c\/p\u003e \u003cp\u003e\"The Practical Guide to Wall Street is an excellent introduction to the wide range of products traded in an equities business today. I'd enthusiastically recommend it to any new hire in the sales or trading business.\"\u003cbr\u003e —Simon Yates, Managing Director, Global Head of Equity Derivatives and Co-Head of European Securities, Credit Suisse\u003c\/p\u003e \u003cp\u003e\"Since 2002 I have been teaching MBA courses on equity markets and equity derivatives. Prior to that, I worked for eighteen years at Goldman Sachs in equity derivatives. Until now, I have never found a textbook that combines practical wisdom with academic rigor. Matthew Tagliani's book, The Practical Guide to Wall Street, provides that unique combination. I hope to use it in the classroom immediately.\"\u003cbr\u003e —Mark Zurack, Professor and Visiting Lecturer, Columbia Business School and Johnson School of Management, Cornell University\u003c\/p\u003e \u003cp\u003e\"Mr. Tagliani has done what few have managed to do before—demystify the machinery of the financial industry in plain and accessible language. A hands-on introduction to what happens on the Street—if you are entering or thinking of joining the financial industry; or even if you simply want to understand what your next door neighbor does, this book is a must.\"\u003cbr\u003e —Nikunj Kapadia, Associate Professor, Isenberg School of Management, University of Massachusetts Amherst\u003c\/p\u003e \u003cp\u003e\"This book will provide a great head start for?anyone considering joining an equities trading floor. It contains a wealth of detail and covers the issues that traders, salespeople, and their customers deal with on a day-to-day basis.? It spares the reader unnecessary technicalities and focuses on the points that matter to finance professionals.\"\u003cbr\u003e —Sandy Rattray, Portfolio Manager, GLG Partners\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47990318891237,"sku":"NP9780470383728","price":73.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470383728.jpg?v=1761787337","url":"https:\/\/k12savings.com\/es\/products\/the-practical-guide-to-wall-street-isbn-9780470383728","provider":"K12savings","version":"1.0","type":"link"}