The comprehensively updated sixth edition of a leading textbook that examines the wide range of instruments available in financial markets, with new material on central banks, capital market technology, and financing markets for small businesses. Capital markets are an integral part of the financial system, and their evolution reflects a larger story of global financial change characterized by shifts in regulations, investor behavior, and technological advancements. Now in a comprehensively updated new edition, this widely used textbook examines the wide range of instruments for financing, investing, and controlling risk in today's financial markets. The book begins with an introduction to financial markets, followed by a detailed examination of risk, including financial risk identification, quantification, and management. It then covers market participants, including a new chapter on central banks; fundraising markets, with a new chapter on financing markets for small businesses; risk and return theories; equity, debt, and derivatives markets; and capital market technologies, in a dedicated new section. Sixth edition highlights: * Includes new chapters on central banks, capital market technologies, and financing markets for small businesses * Incorporates analysis of the role of technological innovation throughout * Offers broad coverage of all types of financial instruments, including cash and derivative instruments, as well as the risk management dilemmas confronted by major institutional investors * Features rich pedagogy and resources, including end-of-chapter discussion questions and integrated online appendices.