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avenger123 · 2013-04-25 · Original thread
A good corporate finance book is going to give you the foundation of all this. If you read a corporate finance book and then start going through the book list, it will make a lot more sense. A lot of the books in his book list assume a foundation in graduate level understanding of finance.

One I would recommend is:

http://www.amazon.com/Corporate-Finance-3rd-Pearson/dp/01329...

This will go into some level of detail into all areas.

Once you are comfortable with this material, you can branch into more deeper study in each area.

A lot of trading systems attempt to exploit arbitrage opportunities (however time limited) in the market place. A book like the above will give you a deeper understanding of the stock market and the different financial instruments that are used in the market.

It will also provide real insight into how companies manage their capital budgeting (I have $100 million dollars, how do I decide what to spend this money on this year). Not every company will follow the same approach, but the fundamental concept of net present value is very common.

Once you have a good understanding of the basics then you can delve further into derivatives. It would be hard to get into derivatives without a solid background in what a MBA/graduate level corporate finance book gives you.

As an aside, anyone in IT that wants to expand their business know-how would gain quite a bit by reading a corporate finance book. If you want to know what the executive team spends their time on, the knowledge around capital budgeting and understanding how projects are assessed (ie. using WACC and NPV) is very valuable.

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