FOREWORD

I finished the second edition of my book on investing called Stocks, Bonds, Options, Futures ( SBOF ) in 2001. Here we are 12 years later. While the second edition was still selling well, it was also overdue for an update. Over the last 12 years, much has changed in the way stocks and bonds were priced, traded, analyzed, packaged, and marketed. Specialists on the New York Stock Exchange were replaced with designated market makers. The volume of trades executed on the dark pools soared. Derivatives on rainfall and wind had become hot products. Twenty-four-hour trading became a reality. The variety of exotic options exploded. Exchange-traded funds became the fastest growing financial product in history, etc.

I started out to write the third edition of SBOF , but it quickly became clear the industry had become too broad and too complex to comfortably fit in one text. Therefore, after discussing it with my publisher and readers, I made the decision to break the book into four manageable volumes:

The Investor’s Guidebook to Derivatives
The Investor’s Guidebook to Alternative Investments
The Investor’s Guidebook to Fixed Income Investments
The Investor’s Guidebook to Equities

My hope is that by expanding the book into four volumes, I’ll be able to make them more comprehensive, include more examples, and make the books more useful to my readers. While I made every effort to proof the text, there will undoubtedly be errors for which I assume full responsibility. It is my intent to update these volumes frequently, and therefore, I welcome my readers’ suggestions on which topics should be added, expanded, and omitted in future editions. Please email your questions, critiques, and comments to stu@invest-perform.com. I hope to answer every email I receive.

This book was prepared from sources believed to be reliable but which are not guaranteed. The research analyst who is primarily responsible for this research and whose name is listed on the front cover certifies that: (1) all of the views expressed in this research accurately reflect his personal views about any and all of the subject securities or issuers; and (2) no part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analyst. Opinions and estimates constitute my judgment as of this writing and are subject to change without notice. Past performance is not indicative of future results. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Securities, financial instruments, or strategies mentioned herein may not be suitable for all investors. The opinions and recommendations herein do not take into account individual client circumstances, objectives, or needs and are not intended as recommendations of particular securities, financial instruments, or strategies to particular clients. The reader must make independent decisions regarding any securities or financial instruments mentioned herein.