Completely revised and updated to include the ongoing financial crisis and the Obama administration's programs to combat it, this is the best available introductory text for undergraduate courses on Financial Markets and Institutions. It provides balanced coverage of theories, policies, and institutions in a conversational style that avoids complex models and mathematics, making it a student-friendly text with many unique teaching features.

Financial crises, global competition, deregulation, technological innovation, and growing government oversight have significantly changed financial markets and institutions. This new edition is designed to capture the ongoing changes, and to present an analytical framework that enables students to understand and anticipate changes in the financial system and accompanying changes in markets and institutions. Includes Learning Objectives and end-of-chapter Key Words and Questions.

"Provides a solid overview of the global financial system in an informative and engaging manner. The chapter on financial instability and crises is by far the best in any textbook, especially because it emphasizes that these events are part of normal capitalist processes rather than the product of random disturbances." — David A. Zalewski, Providence College

"The concepts and principles presented are highly pertinent to students and policymakers alike. The organization and natural flow of topics and how they are presented make this the most relevant Financial Markets and Institutions text for classroom use that I have ever encountered in my career." — Robert A. Uptegraff, Jr., Walsh College (*)

"[This text] fills an important market niche. It is less theoretical than other leading Financial Markets texts, but still presents the most relevant material in an accessible manner. Topics are well connected so that students can see the overall picture, and the boxed features relate to the body of the text in a very clear and instructive way. Anyone looking for a current, serious, and complete explanation of financial markets and institutions should take a close look at this well-organized and user-friendly book." — Edward P. McDevitt, UCLA