Nelson Higher Education

Higher Education

Financial Markets and Institutions, 11th Edition

  • includes Stock Trak Coupon
  • Jeff Madura
  • ISBN-10: 1133947875
  • ISBN-13: 9781133947875
  • 784 Pages | Hardcover
  • Previous Editions: 2012, 2010, 2008
  • COPYRIGHT: 2015 Published
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About the Product

Help students understand why financial markets exist, how financial institutions serve these markets, and what services those institutions offer with the solid conceptual framework in this best-selling finance text. Madura's leading FINANCIAL MARKETS AND INSTITUTIONS 11E emphasizes securities traded by financial institutions and the scope of participation of those financial institutions within each market. This text also focuses on the management, performance, and regulatory aspects of financial institutions and explores the functions of the Federal Reserve System, the major debt and equity security markets, and derivative security market. This text places significant emphasis on current reform with updates that reflect the most recent changes, developments, and trends in today's financial industry. Known for a solid, reader-friendly approach, author Jeff Madura blends clear writing and contemporary coverage with hands-on learning applications such as "Using the WALL STREET JOURNAL," and online research assignments. Timely examples further connect concepts to today's developments and financial trends. Each new copy of this edition includes a discount for Stock-Trak Global Portfolio Simulations Gold Service, the online trading simulation created specifically for classrooms worldwide that enables students to buy and sell stocks, bonds, mutual funds, options, future options, and more using hypothetical brokerage accounts.


  • CONTINUED EMPHASIS ON FINANCIAL REFORM HIGHLIGHTS DEVELOPMENTS RESHAPING THE INDUSTRY. This text prepares your students for the financial world of tomorrow with a focus on reform in the financial industry. "Financial Reform" call-outs appear next to all applicable content.

  • CONNECTION WITH GLOBAL MARKETS. This text shows your students the interconnectedness of the U.S. and global financial markets with "Global Aspects" call-outs next to all applicable content.

  • "ONLINE ARTICLES" ENCOURAGE FINANCIALLY RELATED INTERNET RESEARCH. This text provides an online research assignment at the end of each chapter that prompts students to both practice their internet research skills as well as connect the content to timely financial activities.

  • TIMELY UPDATES THROUGHOUT THIS EDITION REFLECT THE MOST RECENT FINANCIAL DEVELOPMENTS AND TRENDS. Updated content prepares your students to deal with the most recent financial changes, developments and trends in today's ever-changing financial industry.

  • "USING THE WALL STREET JOURNAL" FEATURE CONNECTS KEY TOPICS TO CONTEMPORARY NEWS COVERAGE. Complement and reinforce your coverage of key topics throughout the text by demonstrating how concepts relate to THE WALL STREET JOURNAL – the prestigious periodical that leads business and financial news and analysis.

  • CLEAR LEARNING OBJECTIVES AND LISTS OF KEY CONCEPTS GUIDE STUDENT READING AND STUDY. To direct your students in their individual study, reading and review, learning objectives and key concepts are located at the beginning of each chapter. These learning tools assist students in preparation for mid-term and final exams.

  • TIMELY, RELEVANT EXAMPLES REINFORCE PRACTICAL APPLICATION OF CONCEPTS. Numerous memorable examples throughout this edition reinforce key concepts and show students the practical applications and importance of the material they are learning.

  • ONGOING FLOW OF FUNDS EXERCISE EMPHASIZES PRACTICAL APPLICATION OF USING FINANCIAL MARKETS AND SERVICES. This running Flow of Funds Exercise at the end of each chapter clearly illustrates how a manufacturing company relies on all types of financial markets, institutions, and services. Special accompanying Excel® exercises highlight spreadsheet applications related to key topics, such as yield curves, risk premiums, and stock volatility.

About the Author

Jeff Madura

Dr Jeff Madura is Emeritus Professor of Finance at Florida Atlantic University. He has written several successful finance texts, including Financial Markets and Institutions (now in its 12th edition). His research on international finance has been published in numerous journals, including Journal of Financial and Quantitative Analysis; Journal of Banking and Finance; Journal of Money, Credit and Banking; Journal of International Money and Finance; Financial Management; Journal of Financial Research; Financial Review; Journal of International Financial Markets, Institutions and Money; Global Finance Journal; International Review of Financial Analysis and Journal of Multinational Financial Management. Dr Madura has received multiple awards for excellence in teaching and research, and he has served as a consultant for international banks, securities firms and other multinational corporations. He served as a director for the Southern Finance Association and the Eastern Finance Association, and he is also former president of the Southern Finance Association.

Table of Contents

1. Role of Financial Markets and Institutions.
2. Determination of Interest Rates.
3. Structure of Interest Rates.
4. Functions of the Fed.
5. Monetary Policy.
6. Money Markets.
7. Bond Markets.
8. Bond Valuation and Risk.
9. Mortgage Markets.
10. Stock Offerings and Investor Monitoring.
11. Stock Valuation and Risk.
12. Market Microstructure and Strategies.
13. Financial Futures Markets.
14. Options Markets.
15. Swap Markets.
16. Foreign Exchange Derivative Markets.
17. Commercial Bank Operations.
18. Bank Regulation.
19. Bank Management.
20. Bank Performance.
21. Thrift Operations.
22. Finance Company Operations.
23. Mutual Fund Operations.
24. Securities Operations.
25. Insurance and Pension Fund Operations.
Appendix A: Comprehensive Project.
Appendix B: Using Excel to Conduct Analyses.

New to this edition

  • SIGNIFICANT REVISIONS AND UPDATES to Chapter 4 (Functions of the Fed), Chapter 5 (Monetary Policy), Chapter 7 (Bond Markets), Chapter 10 (Stock Offerings and Investor Monitoring), Chapter 18 (Bank Regulation), and Chapter 20 (Bank Performance).
  • "USING THE WALL STREET JOURNAL" FEATURE CONNECTS KEY TOPICS TO CONTEMPORARY NEWS COVERAGE. Complement and reinforce your understanding of key topics throughout the text by seeing how concepts relate to THE WALL STREET JOURNAL – the prestigious periodical that leads business and financial news and analysis. There are new "Using the WALL STREET JOURNAL" features throughout the text, located in chapters 3, 7, 10, 11, 12, 13, 16, and 23.
  • EXPANDED QUESTIONS AND APPLICATIONS PROVIDE TIMELY REVIEW. More comprehensive Questions and Applications at the end of each chapter offer engaging exercises to help your students review and apply concepts from the text. Averages of two to three new problems have been added to this section in most chapters.


All supplements have been updated in coordination with the Main title.
Please see Main title page for new to this edition information.

Instructor Supplements

Cengage Testing, powered by Cognero® Instant Access  (ISBN-10: 1285978757 | ISBN-13: 9781285978758)

Accessible from the instructor companion site, Cengage Learning Testing Powered by Cognero is a flexible, online system that allows you to author, edit, and manage test bank content from multiple Cengage Learning solutions; create multiple test versions in an instant; and deliver tests from your LMS, your classroom, or wherever you want. The Cognero Test Bank content is tagged according to Tier I (Business Program Interdisciplinary Learning Outcomes) and Tier II (Finance-specific) standards, topic, Bloom's Taxonomy, and difficulty level.

Instructor's Edition (with Stock Trak Coupon)  (ISBN-10: 1133962025 | ISBN-13: 9781133962021)
Website  (ISBN-10: 130540274X | ISBN-13: 9781305402744)

Put all the instruction tools you need at your fingertips. The website includes Microsoft® Word versions of the Instructor Manual and Test Bank, PowerPoint lecture slides, and access to the Cognero Test Bank. Additionally, students can find the Web chapters, appendices, or integrated problems posted as free materials on the Web site for this edition.