Equity Markets in Action: The Fundamentals of Liquidity, Market Structure & Trading + CD

"Schwartz and Francioni add liquidity to the traditional measures of risk and return in the analysis of markets and portfolios. This important book includes a comprehensive and readable account of the sources of liquidity and illiquidity. A chapter and companion CD–ROM provide a simulated market in which the reader can practice trading. All in all, this is a very appealing book."
Harry Markowitz
Nobel Laureate in Economics, President, Harry Markowitz Company

"This work deals comprehensively with the foundations of securities markets: information, trading, price discovery, market institutions, and architecture as they have been impacted by changing technology and competition. I highly recommend it as a valuable source and aid to understanding the dynamics of securities markets."
Vernon L. Smith
Nobel Laureate in Economics, George Mason University

"Whether academic, dilettante, or market professional, everything you could possibly want to know about the functioning of equity markets is in this book."
David Verey
Chairman, Blackstone Group, UK

"In a timely work by two recognized experts, Schwartz and Francioni provide an intellectual road map for anyone interested in the revolution sweeping global equity markets."
Frank Hatheway
Chief Economist, The NASDAQ Stock Market, Inc.

"Schwartz and Francioni have provided a well organized and clearly articulated path through the intricacies of equity markets in the United States and Europe. Both newcomers to the subject and longtime professionals will find it a very enlightening read."
Mr. Jean–Francois Théodore
Président Directeur Générale, Euronext Paris S.A.

"Technology was the crucial engine for changes in the international capital markets during the last twenty years. Robert Schwartz and Reto Francioni masterfully succeed in presenting both modern theoretical and practical aspects of the transformation in one book. I am sure that this book will find a lot of enthusiastic readers!"
Friedrich von Metzler
Frankfurt Managing Partner, B. Metzler seel. Sohn & Co.

Preface.

Chapter 1. Role of an Equity Market.

Chapter 2. From Information to Prices.

Chapter 3. Liquidity.

Chapter 4. What We Want From Our Markets.

Chapter 5. Institutional Order Flow.

Chapter 6. Order Driven Markets.

Chapter 7. Intermediated Markets.

Chapter 8. The Evolving Scene in the US.

Chapter 9. The Evolving Scene in Europe.

Chapter 10. Clearing and Settlement.

Chapter 11. Regulation.

Chapter 12. Simulated Trading.

Appendix A: Prices and Returns.

Appendix B: From Portfolio Decisions to Trading in a Frictionless Environment.

Appendix C: Dimensions of Informational Efficiency.

Appendix D: The Concept of Self–Regulation.

Selected Reading.

Biographies.

ROBERT A. SCHWARTZ is Marvin M. Speiser Professor of Finance and University Distinguished Professor in the Zicklin School of Business, Baruch College, CUNY. Prior to his current position, he was Professor of Finance and Economics and Yamaichi Faculty Fellow at New York University’s Leonard N. Stern School of Business. Professor Schwartz received his PhD in economics from Columbia University. He has produced numerous journal articles and eleven books, has been an associate editor for several finance journals, and has served as a consultant to various market centers including, the New York Stock Exchange, the American Stock Exchange, NASDAQ, Instinet, and Deutsche Börse. In December 1995, Professor Schwartz was named the first chairman of NASDAQ’s Economic Advisory Board and served on the EAB until spring 1999.
RETO FRANCIONI is President and Chairman of the Board of SWX, the Swiss Stock Exchange. Prior to assuming his current position in May 2002, he was co–CEO of Consors Discount Broker AG, Nuremberg. Earlier in his career, in 1993, Francioni was named to the executive board of Deutsche Börse AG, where he was responsible for its entire cash market division. In 1999, he became Deputy Chief Executive Officer. Francioni has a law degree and PhD in law from Zurich University, and is an adjunct Professor of Economics and Finance in the Zicklin School of Business, Baruch College, CUNY. He has held management positions in the securities exchange, corporate finance, and banking industry.

" Equity Markets in Action should be required reading for all aspiring traders and equity money managers. The computer simulation model should further enlighten the reader." –– Financial Analyst Journal, January/February 2005