Six Myths in Modern Finance that Every Investor Needs to Know

by Richard R Joss

No Synopsis Available.

• Format: Paperback
• Language: English
• ISBN: 1598490680
• ISBN13: 9781598490688
• Release Date: June 2009
• Publisher: Classic Day Publishing
• Length: 240 Pages
• Weight: 0.88 lbs.

Customer Reviews

What an eye-opener!

In "Six Myths in Modern Finance" Mr. Joss clearly and patiently demonstrates that a commonly used method of analyzing past investment returns creates unrealistic expectations for investment returns in the future. He goes on to challenge a long-accepted financial model for determining the value of stock options by presenting a very convincing case that the model contains flaws that cause such values to be systematically miscalculated. More importantly, he clearly identifies those flaws, and proposes improvements to the model. So is this a book that only a green-eye-shaded accountant can appreciate? Not at all! Despite the fact that the subject matter can be complex, you don't need a math or finance degree to understand the key points in this book. That's because the author goes about his myth-busting using simple, everyday examples and analogies to illustrate and elaborate upon complex financial models. There are plenty of gratifying "ahh haaa" moments along the way. And you can read it all in a single weekend. Who should read this book? Anyone interested in whether today's financial press provides accurate information regarding expected future returns from common financial instruments, particularly in the current very challenging financial environment. Anyone who invests in stock options, given the alarming implications of the author's analysis of the legitimacy of option prices as they are calculated today. And, anyone in corporate finance responsible for accurately reflecting the cost of an employer's stock option compensation program in the company's financial statements (not to mention the auditors certifying the accuracy of those statements!). In short, there's something of value here for anyone who wants to better understand the role that today's investment marketplace can play in building financial security for the future.