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Financial Literacy: Finding Your Way in the Financial Markets
With record-breaking highs one minute and economy-rocking lows the next, it can seem as if there's no way to feel truly comfortable in the mysterious world of finance. But there is, and it's more accessible than you might think.
Financial Finding Your Way in the Financial Markets is an essential primer on this domain, from its functions, strengths, and possibilities to its weaknesses and vulnerabilities. In 24 eye-opening lectures, an award-winning Duke University professor reveals the interconnected workings of the financial markets and how society's financial strength -and your own - depend on money flowing through these channels.
You'll not only gain a new appreciation for the variety of financial products and services available to you, but also for how crucial we as individuals are to the functioning of the entire system.
You'll clearly see how these markets affect you - and vice versa - any time you're involved in a financial transaction, whether you're
financing a car; Applying for a mortgage Receiving a preapproved credit card offer Participating in your company's 401K plan or Making a deposit at your local bank. This course provides the concepts and tools you need to draw connections between headlines made globally and what's happening to your bottom line locally. By the final lecture, you'll understand just how interdependent the world's markets have become; feel newly at ease in the realm of stocks, bonds, derivatives, and credit; and be better able to make informed decisions for your financial future.
Financial Finding Your Way in the Financial Markets is an essential primer on this domain, from its functions, strengths, and possibilities to its weaknesses and vulnerabilities. In 24 eye-opening lectures, an award-winning Duke University professor reveals the interconnected workings of the financial markets and how society's financial strength -and your own - depend on money flowing through these channels.
You'll not only gain a new appreciation for the variety of financial products and services available to you, but also for how crucial we as individuals are to the functioning of the entire system.
You'll clearly see how these markets affect you - and vice versa - any time you're involved in a financial transaction, whether you're
financing a car; Applying for a mortgage Receiving a preapproved credit card offer Participating in your company's 401K plan or Making a deposit at your local bank. This course provides the concepts and tools you need to draw connections between headlines made globally and what's happening to your bottom line locally. By the final lecture, you'll understand just how interdependent the world's markets have become; feel newly at ease in the realm of stocks, bonds, derivatives, and credit; and be better able to make informed decisions for your financial future.
24 pages, Audible Audio
First published August 30, 2003
17 people are currently reading
194 people want to read
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Displaying 1 - 28 of 28 reviews
July 12, 2017
It's packed with information so one might need to listen to it more than once. I have only listened to another "Great Courses" audiobook before and there it was like attending a series of interesting lectures, without the need to write anything down. In this case it was more like a series of lectures at a university where one's expected to go through some reading material for things to really make sense. It's especially hard following along in some calculations when the author references parts of it as he speaks. Overall it was a good overview of the financial market and I'll probably listen to it again.
June 17, 2020
Very good book, with an author who is clearly in control of his subject matter.
It was mostly fairly easy to follow the detailed explanations of the different financial concepts and instruments, however it did become more and more complex over the course of the book (as one might expect). Definitely will need to hear the last third of the book again, to hammer home some of the finer points.
It was mostly fairly easy to follow the detailed explanations of the different financial concepts and instruments, however it did become more and more complex over the course of the book (as one might expect). Definitely will need to hear the last third of the book again, to hammer home some of the finer points.
August 29, 2019
Very well done
January 9, 2024
Given the role that financial markets play in our lives irrespective of whether we wish to be involved, financial literacy is an absolutely critical competency. Professor Connel Fullenkamp of Duke University presents 26 lectures which cover the basics of markets and various financial instruments.
Lectures 1 - 3 cover the six basic functions of financial markets: transferring resources across space and time (e.g., to yourself), pooling resources and sharing ownership, price discovery, dealing with information problems (e.g., asymmetric information), clearing and settling payments, and managing risk.
Lecture 4 is about credit, and the 5Cs that most lenders consider when evaluating a borrower: Capacity (the ability to pay off debt), Economic Conditions, Collateral, Capital, and Character. The Fair Isaac Corporation (FICO) uses a proprietary blend of the 5Cs to issue credit scores.
Lecture 5 teaches the basics of a loan agreement and how to understand the fine print, which can be broken down into three components: (i) the basic terms and conditions (how much is borrowed, maturity, and interest rate); (ii) covenants to account for asymmetric information and moral hazard (e.g., duties to preserve the collateral); and (ii) enforcement mechanisms.
Lecture 6 (one of my favorites) is about how banks operate as well as the role they play in society with respect to the flow of money throughout the financial system. Professor Fullenkamp’s summary also proffers an optimistic explanation as to why certain banks have now become “too big to fail”.
Lectures 7 - 15 form the real meat of this lecture series, first covering the basics of bonds, stocks, derivatives, money markets, repo markets, foreign exchange markets, mutual funds, and hedge funds. As alluded to above, not only do these lectures provide fundamentals (pun) for those with no finance or accounting background, they also explain how and why these financial instruments play a huge role in everyone’s lives.
Lectures 16 and 17 are about companies, specifically how mergers and acquisitions work and what the market and certain investors look for in annual reports and financial statements, and methods for evaluating that information (e.g., book-to-market value ratio).
Lecture 18 identifies various economic indicators to be cognizant of, including labor statistics, consumer confidence, the ISM Manufacturing Survey (which provides data from manufacturers about raw materials as well as packing and shipping materials), inflation indicators including the Consumer Price Index (CPI) and Produce Price Index (PPI), commodity prices, the Chicago Board Options Exchange Volatility Index (VIX) aka the fear index which tracks the implied volatility of the S&P 500, and the Treasury-Eurodollar (TED) spread, which measures the difference between US Treasury bonds rates and LIBOR.
For me Lectures 19 and 20 were the most interesting, as they discussed central banks and the role they play with respect not only to monetary policy but the economy as a whole. It is inaccurate to think that central banks control interest rates, and more accurate to say that they influence interest rates through their actions. In the United States, two rates controlled by the Fed are noteworthy. The Discount Rate is what the Fed charges banks when they are in need of short term cash to meet unexpectedly high withdrawals, and the importance of such on financial markets is due more to the signal about potential changes to monetary policy. Compare this to the Federal Funds Rate, which is what banks charge each other for short term borrowing from the lending bank’s reserve deposit account at the Fed. The importance of the Fed Funds Rate is that it is a benchmark for other interest rates (because a bank has to at least charge this rate for borrowing and lending it does in the market). The Fed does not set the Fed Funds Rate by decree; rather it pegs a target rate and then gets there by buying or selling bonds (called open-market operations). Simply put: the Fed pushes down the Fed Funds Rate by making open-market purchases (i.e., buying bonds) thus expanding the country’s money-supply, and conversely increases the Fed Funds Rate by making open-market sales. This brings us to the Fed’s Quantitative Easing (QE) approach in 2008 - 2012, when it took on a massive amount of bonds (around $2 Trillion) in order to lower interest rates to induce more borrowing and spending. Professor Fullenkamp follows this discussion with the potential for inflation and explains the Fisher Effect (i.e., the relationship among nominal interest rates, expected inflation, and actual interest rates). Compelling stuff.
Lecture 21 covers risk management, specifically the different categories of financial risk and how individuals and entities can mitigate that risk. The topic of insurance is also briefly discussed. Liquidity, Credit, Interest Rate risks each played their respective roles in the Savings and Loan Crisis of the 1980s as well as the bank failures observed in 2023 (though this lecture series came out in 2013).
Lecture 22 provides a history of the mortgage industry, including the inception of Ginnie Mae, Fannie Mae, and Freddie Mac. The concept of securitization is explained using mortgage backed securities (MBS). Securitization means turning something into a security, and in most cases this security is a bond. For an MBS, an entity will collect monthly mortgage payments and then pool the cash together, which will then be used to make bond payments. Risk is thus theoretically reduced in two ways: (a) instead of a single mortgage and its risk of defaults there are instead large pools consisting of potentially thousands of mortgages; and (b) the time factor - whereas mortgages are paid monthly, bond coupon payments are typically paid every six months. Risk, of course, is relative and everyone remembers the role of MBSs in 2008 as well as the book and movie The Big Short regarding the same.
Professor Fullencamp closes out the lecture series with Lectures 23 and 24. The former espouses his views on the need and role of regulation in spite of his professed belief in free markets. The latter is about some predictions about the future of finance, which includes digital currency and the potential collapse (or at least restructuring) of Social Security and Medicare.
Lectures 1 - 3 cover the six basic functions of financial markets: transferring resources across space and time (e.g., to yourself), pooling resources and sharing ownership, price discovery, dealing with information problems (e.g., asymmetric information), clearing and settling payments, and managing risk.
Lecture 4 is about credit, and the 5Cs that most lenders consider when evaluating a borrower: Capacity (the ability to pay off debt), Economic Conditions, Collateral, Capital, and Character. The Fair Isaac Corporation (FICO) uses a proprietary blend of the 5Cs to issue credit scores.
Lecture 5 teaches the basics of a loan agreement and how to understand the fine print, which can be broken down into three components: (i) the basic terms and conditions (how much is borrowed, maturity, and interest rate); (ii) covenants to account for asymmetric information and moral hazard (e.g., duties to preserve the collateral); and (ii) enforcement mechanisms.
Lecture 6 (one of my favorites) is about how banks operate as well as the role they play in society with respect to the flow of money throughout the financial system. Professor Fullenkamp’s summary also proffers an optimistic explanation as to why certain banks have now become “too big to fail”.
Lectures 7 - 15 form the real meat of this lecture series, first covering the basics of bonds, stocks, derivatives, money markets, repo markets, foreign exchange markets, mutual funds, and hedge funds. As alluded to above, not only do these lectures provide fundamentals (pun) for those with no finance or accounting background, they also explain how and why these financial instruments play a huge role in everyone’s lives.
Lectures 16 and 17 are about companies, specifically how mergers and acquisitions work and what the market and certain investors look for in annual reports and financial statements, and methods for evaluating that information (e.g., book-to-market value ratio).
Lecture 18 identifies various economic indicators to be cognizant of, including labor statistics, consumer confidence, the ISM Manufacturing Survey (which provides data from manufacturers about raw materials as well as packing and shipping materials), inflation indicators including the Consumer Price Index (CPI) and Produce Price Index (PPI), commodity prices, the Chicago Board Options Exchange Volatility Index (VIX) aka the fear index which tracks the implied volatility of the S&P 500, and the Treasury-Eurodollar (TED) spread, which measures the difference between US Treasury bonds rates and LIBOR.
For me Lectures 19 and 20 were the most interesting, as they discussed central banks and the role they play with respect not only to monetary policy but the economy as a whole. It is inaccurate to think that central banks control interest rates, and more accurate to say that they influence interest rates through their actions. In the United States, two rates controlled by the Fed are noteworthy. The Discount Rate is what the Fed charges banks when they are in need of short term cash to meet unexpectedly high withdrawals, and the importance of such on financial markets is due more to the signal about potential changes to monetary policy. Compare this to the Federal Funds Rate, which is what banks charge each other for short term borrowing from the lending bank’s reserve deposit account at the Fed. The importance of the Fed Funds Rate is that it is a benchmark for other interest rates (because a bank has to at least charge this rate for borrowing and lending it does in the market). The Fed does not set the Fed Funds Rate by decree; rather it pegs a target rate and then gets there by buying or selling bonds (called open-market operations). Simply put: the Fed pushes down the Fed Funds Rate by making open-market purchases (i.e., buying bonds) thus expanding the country’s money-supply, and conversely increases the Fed Funds Rate by making open-market sales. This brings us to the Fed’s Quantitative Easing (QE) approach in 2008 - 2012, when it took on a massive amount of bonds (around $2 Trillion) in order to lower interest rates to induce more borrowing and spending. Professor Fullenkamp follows this discussion with the potential for inflation and explains the Fisher Effect (i.e., the relationship among nominal interest rates, expected inflation, and actual interest rates). Compelling stuff.
Lecture 21 covers risk management, specifically the different categories of financial risk and how individuals and entities can mitigate that risk. The topic of insurance is also briefly discussed. Liquidity, Credit, Interest Rate risks each played their respective roles in the Savings and Loan Crisis of the 1980s as well as the bank failures observed in 2023 (though this lecture series came out in 2013).
Lecture 22 provides a history of the mortgage industry, including the inception of Ginnie Mae, Fannie Mae, and Freddie Mac. The concept of securitization is explained using mortgage backed securities (MBS). Securitization means turning something into a security, and in most cases this security is a bond. For an MBS, an entity will collect monthly mortgage payments and then pool the cash together, which will then be used to make bond payments. Risk is thus theoretically reduced in two ways: (a) instead of a single mortgage and its risk of defaults there are instead large pools consisting of potentially thousands of mortgages; and (b) the time factor - whereas mortgages are paid monthly, bond coupon payments are typically paid every six months. Risk, of course, is relative and everyone remembers the role of MBSs in 2008 as well as the book and movie The Big Short regarding the same.
Professor Fullencamp closes out the lecture series with Lectures 23 and 24. The former espouses his views on the need and role of regulation in spite of his professed belief in free markets. The latter is about some predictions about the future of finance, which includes digital currency and the potential collapse (or at least restructuring) of Social Security and Medicare.
June 9, 2021
He did a really good job of explaining key concepts in a way that makes it relatable to understand. I work in finance but don't have a background in it; this course legitimately improved my understanding.
June 24, 2017
Fantastic audiobook: 11.5 hours of a passionate down-to-earth professor explaining the basics of financial markets and answering questions you have always wanted to ask like what exactly does it mean to go public, how and why do shareholders influence the company, and what does a hedge fund do? I'll probably replay the second half of this course to really solidify my understanding of the complex financial packages (securities, etc.). Highly recommended.
May 12, 2021
Gathered a lot of good, useful information from this audiobook. Primarily, information that will help me understand conversations that happen on financial shows like Bloomberg Television and CNBC. Also, the book provides information that teaches you how to read indicators that could possibly influence the market's direction. Unlike the typical financial book, it wasn't dry and painful to listen to.
October 31, 2022
This was really easy to understand and enjoyable to listen to, if you find finance and economics interesting. Connel Fullencamp explained all key aspects of finance in plain English with examples and, at times, his own opinion. The PDF is extensive and has all details of each topic we listened to. 100% recommend.
June 6, 2023
Very good book and does exactly what it claims to do, teach how the financial markets work. I wish the Goodreads rating system was a little different as I would rate this at a 5, but if I compare it to some of my other financial books rated at a 5, this one will only hit a 4. Long story short, if you want to get a broad understanding of how financial banks and markets work, get this book.
October 21, 2020
Another great course with a great professor providing useful information starting with the basics. Course was much too short for me but then again there's just way too much to cover when it comes to finance and the markets.
December 29, 2020
I'll be honest: About 50% of this went right over my head. I used to think finance was just finance--but, wow, this is only an overview of financial markets and I can barely keep it straight. I'm glad I used an audible credit for this, though, so I can revisit as I learn more.
August 2, 2018
About as good as could be hoped for given the dry nature of the material. This isn't a personal finance course, but more of economic finance course.
April 16, 2019
Not exactly riveting material, but quite informative.
January 29, 2020
This book helped me gain a new appreciation for finance.
October 18, 2021
Excellent book for beginners
May 15, 2022
Precise and to the point.
October 23, 2022
Explains the financial markets very well. These lectures helped me with understanding my own finances and future.
April 27, 2019
This book is a part of the “Great Courses” theory. It contains several lectures by Prof. Fullenkamp about the financial market from personal financing point of view. It explains the function of financial markets, the basic ideas of stocks and bonds, and the mechanism of trading. More advanced coverages include pricing (with expected future income, time-discount, and risk factors), how to read financial news and corporation financial reports, and the process of IPO. The book also includes some topics in macroeconomics, such as the relationship between GDP growth, unemployment rate, and interest rates.
The book explains complex financial ideas with plain language and everyday examples. It is very useful for people without formal education in economics and financing. It focuses on basic principles instead of specific advice. It is not a “how to” book, but a “why” book.
The book explains complex financial ideas with plain language and everyday examples. It is very useful for people without formal education in economics and financing. It focuses on basic principles instead of specific advice. It is not a “how to” book, but a “why” book.
June 11, 2024
I picked this audio book up because I really like The Great Courses and, you know, financial literacy is generally a good and responsible thing to strive for. It's also a goal I've had of late. Overall I tend to agree with several of the reviewers on here: most of the information is obviously very helpful, but it sort of goes over the head for a portion of the book. I'm kind of alarmed at the simple everyday things I didn't know. But everything requires context, and lived experience is really helpful. It's only recently that I've begun to properly participate in multiple credit cards, mortgages, loans, mutual funds and investing, etc.
Anyway, this was well worth listening to. Yes, a certain portion of the book went over my head, particularly when talking about stocks and other related things. But the most important thing was learning material that is relevant to my life, with some occasional snippets of "fun to know" information. I also like that the message at the end of the lecture is to take more responsibility for our own futures.
Anyway, this was well worth listening to. Yes, a certain portion of the book went over my head, particularly when talking about stocks and other related things. But the most important thing was learning material that is relevant to my life, with some occasional snippets of "fun to know" information. I also like that the message at the end of the lecture is to take more responsibility for our own futures.
August 20, 2015
It's entirely possible that I'm just a complete dim-wit, but for a course intended to lead me to financial literacy, I felt like Fullenkamp was speaking a foreign language. After the third lecture he left me in the dust. However, I kept on until the end in the hopes that it would all come together into an Aha! moment. And while I am definitely more knowledgeable now than I was before the course, I did find myself really feeling like this one was a bit overly ambitious in terms of wanting to cover every single little concept in the financial world in only 24 lectures. I needed a course just to understand the terminology, and I felt like, had a firmer groundwork been set in that regard throughout, then I would have understood the concepts. Or maybe not. I have another Great Courses series on the stock markets, so we'll see how that goes.
May 7, 2015
I listened to the audio book version of this book. As promised, the book provides a solid overview of the US financial markets. The level of the material is college level and the Prof Fullenkamp delivers an enthuastic presentation. A video is also available however it isn't necessary to follow the course. I found the audio version sufficient. However, having a copy of the course material would have been helpful. Not during the course but as a way to look up subjects and remind myself of various details in the future. It's not easy to search an audio book. A detailed description of each of the 24 chapters is available at The Great Courses web site.
January 24, 2016
Despite my skepticism of how much I could learn from this type of course, I decided to give it a try based on many positive reviews. I'm glad I did. I have a decent understanding of these types of things, and this course filled in many holes very nicely.
I think this course could be beneficial for anyone but particularly for young people about to start out with loans and credit cards. I especially appreciated the history that explained many of the reasons that things are done the way they are.
Highly recommended!
I think this course could be beneficial for anyone but particularly for young people about to start out with loans and credit cards. I especially appreciated the history that explained many of the reasons that things are done the way they are.
Highly recommended!
March 15, 2016
Audio Version. This book offers a good basic look at a great many aspects of the financial markets. Some reviewers mentioned that it was a bit over their heads in some areas, but don't let that turn you away! I didn't feel that way, but everyone will go into this with a different grasp on financial basics. if something doesn't make sense to you at least you're getting exposed to it now. Perhaps it will make sense later in your search for financial knowledge. If you feel you have an interest in the markets, then I would recommend this book.
July 22, 2015
Very good overview of financial markets, securities, asset categories, risks, etc. Admittedly after two business degrees and decades of reading financial press, I didn't learn anything I didn't already know, but the reason I listened to it was to determine if it was a tool I could use for a financial education company I'm looking at - for that purpose, I would recommend this course for someone looking to get a basic primer on finance.
August 1, 2015
Great series to listen to and the narrator/author has done a great job. Can be a bit difficult to keep up taking the nature of the subject. Would be great if there were some visuals as with other audiobooks.
May 16, 2015
It was a great overview of the financial industry; its products, their function and use. A must read for anyone who takes their personal finances seriously.
April 23, 2016
Pretty elementary.
March 2, 2016
I have combined this book with http://www.audible.com/pd/Business/Ho... that gave me a good idea how stock market works.
Displaying 1 - 28 of 28 reviews