I.

INTRODUCTORY PARAGRAPH
FINANCE- Introduction to institutions Investments and Management. A book that published by the joint
ventures of Ronald W. Melicher and Edgar A. Norton it consist a total of 570 pages and this pages include
18 chapter. It was published by Leyh Publishing team. This book features eighteen men and women who
discuss their jobs and skills needed to obtain positions in different areas of finance. This book was set in
10/12 Minion by leyh publishing and printed on acid free paper. Copyright in 2005 by John Wiley and Sons
inc. it is the twelfth edition of this book.

II.

PLOT SUMMARY PARAGRAPH

It is a book in finance that discusses the introduction to institutions, investment and management. The three
major financial areas involving the financial system investments and business finance. It was set by leyh
publishing in 10/12 minion while this book nothing mentioned about the time period when it is set in. For
the student who does not plan to take additional courses in finance this book provides a valuable overview
of the major concepts of discipline. Students can immediately gain an integrated perspective of the
interrelationship between financial institutions and management. They will appreciate how both business
and individuals are affected by markets and institution as well as how markets and institutions can be used
to help meet individual or firm goals.
In chapter 1 the financial environment which identify the four pillars of finance which we refer to at
various points in the text . these pillars are the money has a time value higher returns are expected for taking
on more risk financial markets are efficient in pricing securities and that reputation matters in financial
dealings.chapter 2 provides pictorial illustrations of how the monetary system interacts with and operates
within the financial system. Chapter3 its all about ethics application which include mismanagement and
greed factor that have led to fraudulent activities by some officers.chapter 4 it is all about federal reserve
system. This chapter focuses on understandings the structure and function of the fed and discuss if the us
banking system prior to the establishment of the fed.chapter 5 this began with with a discussion of the four
national policy objectives economic growth,stable prices ,high levels of employment and abalance in

international transactions.chapter 6 it discussed the development of international finance and the

international monetary system as it evolved from a gold standards system to a flexible rates.chapter7 is
about savings and investmsnt process that focused on how savings are created and how they are converted
into investment.chapter8 this chapter began by illustrating how interest rates change given shifts in demand
and or supply curves .then it discussed the following the determinants of markrt rates like athe
inflation.chapter9 in this chapter it discussed about time value of money which is the basis of many
financial applications.and gives reader the concept of it.chapter10 its all about the bonds and stocksthat
focus on the characteristics and valuation of it.chapter 11 in this chapter it described the role of the
investment banking industry in facilitating this process. Chapter12 introduction to futures and options it
review much of modern investment analysis portfolio management and corporate finance,chapter13
business organization and financial data.it reviews on how to study a firms financial position and how the
FS can be used when planning for the future.chapter14financial analysis and long term planning this chapter
focus on the practical application of financial statements for analysis forecasting the information in FS can
be examined by using various financial ratios . chapter 15 managing working capital it discussed several
aspects of working capital management that will be a practical concern to those watching the firms cashflow
. chapter 16 short term business financing firms have many possible sources of short term financing from
bank loans commercial paper to trade credit,an aggressive strategy that uses more short term financing has
less liquidity but may increase company profits, chapter 17 capital budgating analysis it is a framework for
evaluating all business decisions it is not only a tool for the financial types.chapter18 the last chapter of this
book it is all about capital structures and the cost of capital. It reviewed several tools that can be used to
examine a firms capital structure including EBIT/eps analysis.,business risk,financial risk,and combined
leaverage.