H.D.Vinod – Preparing for the Worst
When dealing with the topic of risk analysis, most books on investments treat downside and upside risk equally. Preparing for the Worst takes an entirely novel approach by focusing on downside risk and explaining how to incorporate it into investment decisions. Highlighting this asymmetry of the stock market, the authors describe how existing theories miss the downside and follow with explanations of how it can be included. Various techniques for calculating downside risk are demonstrated.
This book presents the latest ideas in the field from the ground up, making the discussion accessible to mathematicians and statisticians interested in applications in finance, as well as to finance professionals who may not have a mathematical background. An invaluable resource for anyone wishing to explore the critical issues of finance, portfolio management, and securities pricing, this book:
Incorporates Value at Risk into the theoretical discussion
Uses many examples to illustrate downside risk in U.S., international, and emerging market investments
Addresses downside risk arising from fraud and corruption
Includes step-by-step instructions on how to implement the methods introduced in this book
Offers advice on how to avoid pitfalls in calculations and computer programming
Provides software use information and tips
Bond -Stock Trading course: Learn about Bond -Stock Trading
Bond trading definition
Bond trading is one way of making profit from fluctuations in the value of corporate or government bonds.
Many view it as an essential part of a diversified trading portfolio, alongside stocks and cash.
A bond is a financial instrument that works by allowing individuals to loan cash to institutions such as governments or companies.
The institution will pay a defined interest rate on the investment for the duration of the bond, and then give the original sum back at the end of the loan’s term.
A stock trader or equity trader or share trader is a person or company involved in trading equity securities.
Stock traders may be an agent, hedger, arbitrageur, speculator, stockbroker.
Such equity trading in large publicly traded companies may be through a stock exchange.
Stock shares in smaller public companies may be bought and sold in over-the-counter (OTC) markets.
Stock traders can trade on their own account, called proprietary trading, or through an agent authorized to buy and sell on the owner’s behalf.
Trading through an agent is usually through a stockbroker. Agents are paid a commission for performing the trade.
Major stock exchanges have market makers who help limit price variation (volatility) by buying and selling a particular company’s shares on their own behalf and also on behalf of other clients.