This book begins with an introduction to the four product types and to capital markets in general. The next chapter discusses the trading of equities and fixed-income securities after their initial sale and the markets in which derivatives are created. Then three important topics - namely, transaction costs, clearing and settlement, and regulation - are considered in successive chapters. At least one chapter is devoted to each of the four product types - equities, debt, foreign exchange, and derivatives. Issues related to debt, foreign exchange, and derivatives, such as the term structure of interest rates, purchasing power parity, and hedging, are dealt with in seperate chapters