New Features:

• New Co-author Milt Marquis of Florida State University has become a partner with Pete Rose.
• Streamlined from 26 chapters to 24 chapters.
• A rich totally NEW design creates a user-friendly text. Part Openers with brief explanations of the material better serve the reader. Chapter Summaries are bulleted and Key Terms for each chapter are listed at the end of the chapter and defined in the glossary to facilitate study.
• S&P Problems and web-based problems now appear in all end of chapter problems in all chapters.
• New boxed material - Ethics in the Money and Capital Markets and E-commerce and the Financial Marketplace in every chapter.
• The creation of a semester project: Study of the Federal Funds Market devoted to a study of one of the most important financial markets today-the Federal funds market. This semester-long project that users may enjoy following as the semester or term unfolds starts at the conclusion of Chapter One and proceeds through the first fourteen chapters of the new edition.

Rich New Content to the 9th edition

• The mutual fund scandal that has resulted in billions of dollars in losses to fund investors, traceable to the effects of after-hours trading and other violations of trading rules and marked by recent huge cash settlements levied by regulators and law-enforcement authorities, is discussed. See especially Chapters 1 and 16.
• The sharp expansion of asset-backed securities (ABS) issued in the corporate debt market, including both the advantages and the problems that ABS growth has created for leading corporations around the globe, is discussed. See Chapters 8, 19, and 22.
• The increasingly sharp controversy over the effectiveness and possible threats to civil liberties represented by recent terrorist legislation in the United States and Europe, including the Bank Secrecy and USA Patriot Acts, is discussed. See Chapter 17 in particular.
• The impact on publicly traded corporations (including publicly owned financial-service providers) of the Sarbanes-Oxley Accounting Standards Act, which imposes tough new auditing rules and requires CEO and CFO certification of the accuracy and honesty of corporate financial reports, is covered. See especially Chapter 17.
• The rapid rise of E-money (including the use of credit and debit cards, computer networks, web sites, etc.), supplanting checks as the number one route for making payments for purchases of goods and services in the United States and Europe, is discussed. See Chapters 1, 3, 14, 15, 18, and 22.
• The development of the new Basel II Agreement on bank capital standards in leading nations around the globe and what it implies for the future of bank regulation and for bank risk-taking is discussed. See Chapter 17 in particular.
• An expanded discussion of credit derivatives which have recently experienced explosive growth as a key device to reduce potential losses from defaulted loans is included. See especially Chapter 8.
• The expanding controversy over the extent and impact of outsourcing and the accounting treatment of stock options by major corporations around the globe is covered. See, in particular, Chapters 20 and 23.
• The development of new interest-rate futuresand option contracts, including the popular federal funds contracts that provide a basis for gauging future changes in monetary policy and for anticipating trends in market interest rates is covered. See Chapters 9 and 11 in particular.
• The growing use of transparency and inflationtargeting by major central banks around the world (including the Bank of Japan, the Bank of England, and the Bank of New Zealand) in an effort to reduce public confusion and uncertainty regarding central-bank money and credit policies and their objectives is discussed. See Chapters 12 and 13.
• The development and implementation of new discount window policies at the Federal Reserve banks, including "no hassle" loans and conversion of the Fed's discount rate to a penalty rate at a fixed spread above the key federal funds interest rate is covered. See, in particular, Chapter 13.
• An exploration of the widespread use today of credit scoring techniques to evaluate borrowers' requests for loans-their design, advantages for lenders and borrowers, and their possible limitations and weaknesses is included. See especially Chapter 21.
• The passage of Check 21 into law, allowing the transmission of check images, and its potential consequences for the expansion and changing makeup of the payments mechanism inside the United States is covered. See, in particular, Chapter 4.
• An expanded discussion of GSEs (government-sponsored enterprises), especially the Federal Home Loan Bank (FHLB) System, the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac), their incredible growth in both assets and debt, and the current concern over the devastating effects that may unfold should any of these agencies move to the brink of failure is included. See, for example, Chapters 11 and 22.
• The rise of financial holding companies (FHCs) in the United States and around the world and the transformation of the banking community and financial-service conglomerates that this recently developed organizational form has made possible is discussed. .See especially Chapters 4, 14, and 17.
• The alarming explosion of identity theft-the fastest growing crime of this new century-and the efforts of legislatures, regulators, private financial institutions, and consumers to slow the spread of this serious crime and preserve the confidence of the public in the markets for credit and payments services is covered. See, in particular, Chapter 21.
• The changing role of investment bankers within the financial system and the shifting structure of their industry is discussed. See, for example, Chapters 16, 19, and 20.
• The rise and fall of IPOs-one of the most volatile of all markets-and their implications for corporate financing and business restructuring is covered. See especially Chapters 16 and 20.
• The growing use of mortgage lock-ins and their advantages and disadvantages for borrowers and lenders in the huge home mortgage market is discussed. See Chapter 22
• The continuing expansion of the European Union and the new nations that have joined this elite "club" -their possible contribution toward the strengthening of Europe's collective economy and competition for trade with the United States is discussed. See especially Chapters 4, 12, 13, 23, and 24.
• The rise of China as a global power in trade and finance and the economic weaknesses China must still overcome (including repairing the troubled Chinese banking sector) if that nation is to continue to expand its economic and political influence in an increasingly competitive international marketplace is discussed. See, in particular, Chapters 23 and 24.