For a thorough understanding of the financial activity that is so widely and prominently reported in the media, it is vital that students are able to grasp the theory and principles of the subject. With its clear and accessible exposition, this text will help students make sense of the workings of financial markets and institutions. Theory is covered only where absolutely necessary and a practical, applied approach is taken throughout, to help students understand events as they happen in the real world.Building on the success of the previous two editions, the third edition of Financial Markets and Institutions has been thoroughly updated to reflect the changes that have occurred in the financial system in recent years.Key features: Provides comprehensive coverage of the workings of financial marketsContains sufficient theory to enable students to make sense of current eventsFocuses on UK and European financial activity, context and constraintsOffers a wealth of statistical information to illustrate and support the textPresents up-to-date coverage of the role of central banks and the regulation of financial systemsExtensive pedagogy includes: boxes, illustrations, keywords/concepts.