For Readers Who Know Little or Nothing About Finance
Ben-Horim, Moshe and Haim Levy. Statistics Decisions and Applications
in Business and
Economics, 2nd ed. New York: Random House Business Division. [1984].
Basic Business Statistics text with lots of nice finance examples. Perhaps
the best elementary
statistics book for undergraduate and MBA students concentrating in
finance.
Bernstein, Peter L. Against the Gods: The Remarkable Story of Risk,
New York: John Wiley.
[1996].
A very readable non-technical book describing the history of risk, risk
management and
gambling.
Bernstein, Peter L. Capital Ideas: The Improbable Origins of Modern
Wall Street. New York:
Free Press. [1992].
This is a nice non-technical book which focuses on the academic minds
and personalities of
those responsible for creating tools and technique that prevail on Wall
Street.
Brealey, Richard A., Stewart C. Myers and Alan J. Marcus. Fundamentals
of Corporate Finance,
New York: McGraw-Hill. [1995].
One of the easiest and best introductory financial management textbooks.
Brealey, Richard A. and Stewart C. Myers. Principles of Corporate
Finance, 5th ed., New York:
McGraw-Hill. [1996].
An excellent and readable corporate finance textbook for readers with
somewhat stronger
analytical abilities.
Engle, Louis and Henry Hecht. How to Buy Stocks. Little, Brown and
Company. [1994].
This classic stock primer was first published almost 50 years ago and,
with its numerous updates,
remains an excellent and highly-readable first book on investments.
Heller, Joseph. Catch-22. New York: Dell Publishing Company. [1955].
No, this book isn’t about WWII pilots. Or about war, finance or any
other narrow issue. It’s what
our lives really are when our eyes are open and our brains switched
on.
Lewis, Michael. Liar’s Poker. New York: W.W. Norton and Company.
[1989].
A fun, comical and readable description of the author’s experiences
and onservations as a trader
with Salomon.
Michael Lewis, Moneyball, W.W. Norton & Co., Inc., New York,
NY, 2003
Consider this book to be a primer on decision-making and asset allocation,
even though its theme is
baseball.
Malkiel, Burton G. A Random Walk Down Wall Street. New York: W.W.
Norton and
Company. [1973].
This may be the single best book for those ready to start investing
and those who think they are
good at investing. It has been updated several times since 1973 and
remains an outstanding and
highly-readable book.
Ross, Stephan A., Randolph W. Westerfield and Bradford D. Jordan
(2001). Essentials of
Corporate Finance, 3rd ed., Boston: McGraw-Hill Irwin.
An excellent introductory corporate finance textbook.
Tobias, Andrew G. The Only Investment Guide You’ll Ever Need:
Expanded and
Updated. Harvest Books. [1999].
An excellent, fairly comprehensive and highly readable primer on investing.
An excellent book
to start with. Maybe the only book that some investors will need.
For Readers Who
Have Completed One Course in Finance
Ben-Horim, Moshe and Haim Levy. Statistics Decisions and Applications
in Business and
Economics, 2nd ed. New York: Random House Business Division. [1984].
Basic Business Statistics text with lots of nice finance examples
Benninga, Simon. Financial Modeling. Cambridge, Massachusetts: The
MIT Press, 1997.
Mostly Excel-related. Lots of nice spreadsheet material.
Bernstein, Peter L. Against the Gods: The Remarkable Story of Risk,
New York: John Wiley.
[1996].
A very readable non-technical book describing the history of risk, risk
management and
gambling.
Bernstein, Peter L. Capital Ideas: The Improbable Origins of Modern
Wall Street. New York:
Free Press. [1992].
This is a nice non-technical book which focuses on the academic minds
and personalities of
those responsible for creating tools and technique that prevail on Wall
Street.
Brealey, Richard A. and Stewart C. Myers. Principles of Corporate
Finance, 5th ed., New York:
McGraw-Hill. [1996].
An excellent and readable corporate finance textbook.
Brown, Stephen J. and Kritzman, Mark P. Quantitative Methods for
Financial Analysis, 2nd ed.
Homewood, Illinois: Dow Jones-Irwin, 1990.
A general and rather elementary text formed from a collection of dis-connected
readings. Used to
be CFA reading material (may still be).
Cottle, Sydney, Roger F. Murray and Frank E. Block. Graham and Dodd’s
Securities Analysis.
New York: McGraw Hill. [1988]
Still the Wall Street standard after 40 years of updating. Rumored to
be Warren Buffet’s guide to
investing.
Engle, Louis and Henry Hecht. How to Buy Stocks. Little, Brown and
Company. [1994].
This classic stock primer was first published almost 50 years ago and,
with its numerous updates,
remains an excellent and highly-readable first book on investments.
Foster, George. Financial Statement Analysis, 2nd ed. Englewood Cliffs,
New Jersey: Prentice
Hall. [1986].
An excellent text on the analysis of financial statements with an emphasis
on how capital
markets reacts to information. A little less emphasis on accounting
issues and more on market
issues than other financial statement analysis texts. This book may
be a bit difficult for some
readers.
Ghosh, Sukesh K. Econometrics: Theory and Applications. Prentice
Hall [1991]
A readable basic econometrics text.
Holden, Craig W. Spreadsheet Modeling in the Fundamentals of Investments.
Upper Saddle
River, N.J.: Prentice Hall. [2002].
Discusses the process of spreadsheet modeling for finance
Lewis, Michael. Liar’s Poker. New York: W.W. Norton and Company.
[1989].
A fun, comical and readable description of the author’s experiences
and onservations as a trader
with Salomon.
Michael Lewis, Moneyball, W.W. Norton & Co., Inc., New York,
NY, 2003
Consider this book to be a primer on decision-making and asset allocation,
even though its theme is
baseball.
Malkiel, Burton G. A Random Walk Down Wall Street. New York: W.W.
Norton
and Company. [1973].
This may be the single best book for those ready to start investing
and those who think they are
good at investing. It has been updated several times, but remains an
outstanding and highly-
readable book.
Pickford, James. Financial Tiimes Mastering Investment. Prentice
Hall [2002].
A collection of eclectic and highly readable articles and columns in
finance from the Financial Times.
Shiller, Robert J. Irrational Exuberance. Princeton, N.J.: Princeton
University Press. [2000]
A readable scholarly review of the evidence concerning market efficiency.
Siegel, Jeremy J. Stocks for the Long Run, 2nd. ed. New York: McGraw-Hill,
1998.
Easy to read discussion of stock market investing
Strong, Robert A. Portfolio Construction, Management, and Protection,
2nd ed. Southwestern
College Publishing, 2000.
An excellent applied text in portfolio analysis that includes CFA questions,
Internet exercises and
cases. Somewhat quantitative, but less so than the Elton and Gruber
discussed below.
Taggart, Robert. Quantitative Analysis for Investment Management.
Englewood Cliffs, New
Jersey: Prentice Hall,1996.
A rather general and elementary text. A bit like a condensed investments
text with a focus on
mathematical formulas.
Taleb, Nassim Nicholas. Fooled by Randomness, Texere, New York, NY,
2001.
Tobias, Andrew G. The Only Investment Guide You’ll Ever Need:
Expanded and
Updated. Harvest Books. [1999].
An excellent, fairly comprehensive and highly readable primer on investing.
An excellent book
to start with.
For Advanced Undergraduate and Advanced
MBA Students in Finance
Alexander, Gordon J. and Jack Clark Francis. Portfolio Analysis,
3rd ed., Englewood Cliffs, New
Jersey: Prentice Hall. [1986].
A nicely written portfolio analysis text with academic citations.
Ben-Horim, Moshe and Haim Levy. Statistics Decisions and Applications
in Business and
Economics, 2nd ed. New York: Random House Business Division. [1984].
Basic Business Statistics text with lots of nice finance examples
Benninga, Simon. Financial Modeling. Cambridge, Massachusetts: The
MIT Press, 1997.
Mostly Excel-related. Lots of nice spreadsheet material.
Bernstein, Peter L. Against the Gods: The Remarkable Story of Risk,
New York: John Wiley.
[1996].
A very readable non-technical book describing the history of risk, risk
management and
gambling.
Bernstein, Peter L. Capital Ideas: The Improbable Origins of Modern
Wall Street.
New York: Free Press. [1992].
This is a nice non-technical book which focuses on the academic minds
and personalities of
those responsible for creating tools and technique that prevail on Wall
Street.
Copeland, Thomas, J. Fred Weston and Kuldeep Shastri. Financial
Theory and Corporate Policy, 4th ed. Addison-
Wesley, [2005].
An excellent advanced general finance and investments text.
Cottle, Sydney, Roger F. Murray and Frank E. Block. Graham and
Dodd’s Securities
Analysis. New York: McGraw Hill. [1988]
Still the Wall Street standard after 40 years of updating. Rumored to
be Warren Buffet’s guide to
investing
Cox, John C. and Mark Rubinstein. Options Markets. Englewood Cliffs,
New Jersey: Prentice
Hall. [1985]
Used to be the Wall Street standard options primer before Hull.
Elton, Edwin, Martin Gruber, Stephen Brown and William Goetzman.
Modern Portfolio
Theory and Investment Analysis, 6th ed. John Wiley, [2002].
An excellent quantitatively-oriented portfolio analysis text with an
academic focus.
Foster, George. Financial Statement Analysis, 2nd ed. Englewood Cliffs,
New Jersey: Prentice
Hall. [1986].
An excellent text on the analysis of financial statements with an emphasis
on how capital
markets reacts to information. A little less emphasis on accounting
issues and more on market
issues than other financial statement analysis texts.
Ghosh, Sukesh K. Econometrics: Theory and Applications. Prentice
Hall [1991]
A readable basic econometrics text.
Holden, Craig W. Spreadsheet Modeling in the Fundamentals of Investments.
Upper Saddle
River, N.J.: Prentice Hall. [2002].
Discusses the process of spreadsheet modeling for finance
Hull, John C. Futures, Options and Other Derivatives, 6th ed.
Englewood Cliffs, New
Jersey: Prentice Hall. [2006].
This text is currently the favorite on both the Street and in academia.
Jarrow, Robert and Andrew Rudd. Option Pricing. Irwin, [1983]. Used
to be the standard option
valuation book in both academia and on the street. Still an excellent
options primer, though is
now old. And may be out of print. It is best for plain vanilla options.
Judd, Kenneth L. Numerical Methods in Economics. Cambridge, Massachusetts:
MIT Press.
[1998]
Decent numerical methods text written for economists. It does have some
financial problems.
You should have a decent background in Calculus before attempting this
text.
Lewis, Michael. Liar’s Poker. New York: W.W. Norton and Company.
[1989].
A fun, comical and readable description of the author’s experiences
and onservations as a trader
with Salomon.
Michael Lewis, Moneyball, W.W. Norton & Co., Inc., New York,
NY, 2003
Consider this book to be a primer on decision-making and asset allocation,
even though its theme is
baseball.
Malkiel, Burton G. A Random Walk Down Wall Street. New York: W.W.
Norton and
Company. [1973].
This may be the single best book for those ready to start investing
and those who think they are
good at investing. It has been updated several times, but remains an
outstanding and highly-
readable book.
Neftci, Salih N. An Introduction to the Mathematics of Financial
Derivatives, 2nd ed.
New York: Academic Press. [2001].
This book is now the Wall Street standard for mathematics for derivatives
and fixed income
analytics. It is well-written and accessible to readers with a
background in probability and
calculus.
Pickford, James. Financial Tiimes Mastering Investment. Prentice
Hall [2002].
A collection of eclectic and highly readable articles and columns in
finance from the Financial Times.
Shiller, Robert J. Irrational Exuberance. Princeton, N.J.: Princeton
University Press. [2000]
A somewhat technical scholarly review of the evidence concerning market
efficiency.
Siegel, Jeremy J. Stocks for the Long Run, 2nd. ed. New York: McGraw-Hill,
1998.
Easy to read discussion of stock market investing
Taggart, Robert.Quantitative Analysis for Investment Management.
Englewood Cliffs, New
Jersey: Prentice Hall,1996.
A rather general and elementary text. A bit like a condensed investments
text with a focus on
mathematical formulas.
Teall, John L. Financial Market Analytics. Westport, Connecticut:
Quorum Press, 1999.
General financial math. Obviously a great book.
Tobias, Andrew G. The Only Investment Guide You’ll Ever Need: Expanded
and Updated.
Harvest Books. [1999].
An excellent, fairly comprehensive and highly readable primer on investing.
An excellent book
to start with.
Wilmott, Paul. Derivatives. John Wiley [1998].
Thorough, including discussion and valuations of many exotic options.
Quite readable for a
rigorous text.
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