In order to be a successful investor, it is not enough to be able to pick winners. You must be able to protect and enhance your investments and their performance over the long haul. This book will show the investor how to derive vastly improved results and benefits from whatever investment strategy they are following. This is possible by combining such investment strategies with the same equity derivative strategies that professional fund managers use. Armed with this book, a private investor will be able to invest like a professional. The knowledge of equity derivatives and the techniques explained allows any investor the full advantage of knowing how best to protect the value of an existing investment portfolio. The reader will also learn how to let an investment portfolio track an equity index, how to diversify stock and bond holdings, and how to "lock in" buying or selling prices as well as unrealised profits.
Invest Like a Pro will be a valuable addition to an investor's arsenal of knowledge on investment. It won't just present a substitute or alternative avenue for investment. If you're investing in stocks and bonds, do it like a pro.
Rezensionen / Stimmen
"John Stephens succeeds in explaining the business of hedging in an understandable manner whilst keeping the reader's interest with his stimulating way of handling a topic better understood by bankers than businessmen."
Chris Perold, General Manager, Finance, Denel Aerospace
"Indispensable reading for anyone who runs a business, is in risk management, or simply wants to learn more regarding the opposite side of speculating."
Erik Gebhard, President, ALTAVEST Worldwide Training , Inc.
"This work strikes an excellent balance between the professional and personal financial markets, between rigor and accessibility."
Paul Glasserman, Graduate School of Business, Columbia University, USA
"This book is rich in links between theory and industry practice, and covers many topics not easily found elsewhere. It is a valuable and authoritative resource for both novice professional and personal finance market."
Marek Rutkowski, Financial Mathematics centre, Warsaw, University of Technology, Poland.
Sprache
Verlagsort
Verlagsgruppe
Pearson Education Limited
Maße
Höhe: 234 mm
Breite: 157 mm
Dicke: 12 mm
Gewicht
ISBN-13
978-0-273-65679-1 (9780273656791)
Copyright in bibliographic data and cover images is held by Nielsen Book Services Limited or by the publishers or by their respective licensors: all rights reserved.
Schweitzer Klassifikation
John J. Stephens After reading Political Science and Law at the University of Witwatersrand in Johannesburg, South Africa, John Stephens was called to the bar. His time at the Bar included a term as Senior State Advocate in the Central Branch of the Attorney General's office, when he laft legal practice to act as business consultant and financial advisor for a portfolio of companies. This eventually included some of the largest financial institutions in South Africa. John shares his knowledge and experience of successful investing with private investors across the globe. his popular The Business of Hedging is also published by Pearson Education under the Financial Times Prentice Hall imprint.
Chapter 1 - How Professionals Invest With Derivatives
Background to modern investment practice
Portfolio risk management
How derivatives support investments
Financial derivatives Chapter 2 - The Fear of Derivatives and other Disasters
Some popular derivatives scandals
The background to Metallgesellschaft
The Procter & Gamble debacle
Chapter 3 - The Essence of Equity Derivatives
Equity market derivatives
Futures exchanges
Equity derivatives
Chapter 4 - Understanding Financial Options
The fundamental principles of options
Option pricing
The intrinsic value of an option
The time value of an option
The Greeks
Exercising options
The risk of the parties to an option
Equity option structures
Chapter 5 - Understanding Equity Futures, Treasury Futures and CFDs
Some basic features of futures contracts
The three innovations of the futures contract
A standardized contract
Contract negotiability or on-saleability
The virtual elimination of credit risk
Pricing the futures
The basis
Treasury futures
Certificates for Difference
Chapter 6 - The Simple Measure of Investment
Basic risk management theory
Single-factor risk models
Correlation
Determining the hedge ratio
Calculating the risk
Chapter 7 - Strategies for Building Investment Portfolios with Derivatives
The benchmark
Benchmarking a portfolio
Benchmarking with derivatives
Proxy trading or 'placeholders'
Restructuring a portfolio
Chapter 8 - Strategies to Protect Investment Value
Hedging in principle
When hedging is appropriate and when not
Hedging the value of a portfolio
Hedging the value of a single stock
Cost-reduction strategies with options
Conclusions on hedging.
