Finance

Having concluded in the previous chapter that behavioural factors, to a large extent, can help us account for cross-sectional anomalies and aggregate stock market puzzles time has come to look into some of the most famous financial bubbles.

Historical Rates of Return Background and Market Institutions

The subject of investments is so interesting that I first want to give you a quick tour, instead of laying all the foundations first and showing you the evidence later. I will give you a glimpse of the world of historical returns on the three main asset classes of stocks, bonds, and 'cash," so that you can visualize the main patterns that matter—patterns of risk, reward, and co variation.

This chapter also describes a number of important institutions that allow investors to trade equities.

Investing in the stock market can be financially rewarding. It can also be risky. A basic understanding of stocks is vital if an individual hopes to successfully navigate the complexities of investing.

Economic essence and functions of insurance.

Insurance is a complex of economic relations associated with forming the insurance fund at the expense of the insurers with the purpose of covering the loses caused by some unfavourable events, stipulated in the contract.

Forms of insurance activity.

Nowadays there are the insurance companies of the following legal forms:

Joint-stock insurance companies are companies that are formed to carry out insurance operations, which nominal capital is formed by issuing or selling shares. They usually function on the same legal basis as other joint-stock companies and can carry out any kinds of insurance on license basis.