Readings List
 John Teall's Recommended Books for Finance Students
 
 
For Readers Who Know Little or Nothing About Finance  Teaching  and  Courses 
For Readers Who Have Completed One Course in Finance B40.3331: Equity Instruments and Markets
For Advanced Undergraduate & Advanced MBA Students in Finance e-mail John Teall
 
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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. 

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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.

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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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updated 06/03/07