1.7 Institutions in the markets  (page 19)  
1.8 The role of the government and the South African Reserve Bank  (page 21) 
1.9 Trading in the markets  (page 22)  
1.10 The effect of  interest rates on  instrument values  (page 24) 
1.11 Different types of rates in the market  (page 25) 
1.12 Factors influencing the financial markets  (page 26) 
1.13 Conclusion  (page 29)  

2 The Equity Market  (page 33) 
2.1 Introduction to equity and the JSE  (page 33) 
2.2 Types of securities on the JSE  (page 35) 
2.3 The structure and role of the JSE  (page 38) 
2.4 Trading of listed equity  (page 39)
2.5 The listing of a company's shares on the JSE  (page 46) 
2.6 Investment and share prices  (page 51)  
2.7 A few considerations for investing in shares  (page 55) 
2.8 Interpreting media information  (page 57) 
2.9 Some important ratio's used in analyses of shares  (page 59) 

3 The Money Market and Instruments  (page 66) 
3.1 Introduction  (page 66) 
3.2 Trading in the market  (page 67) 
3.3 Institutions in the market  (page 68)  
3.4 Instruments in the market  (page 69) 
3.5 Discount rates, interest rates and yields  (page 81) 
3.6 The money market and the financial world  (page 85) 
3.7 Conclusion  (page 88) 

4 The Capital Market and Instruments  (page 93) 
4.1 Introduction to the capital market  (page 93) 
4.2 Capital market securities  (page 94) 
4.3 Regulation of the market  (page 96) 
4.4 Issues of new securities  (page 97) 
4.5 Trading principles and systems  (page 99) 
4.6 Value determination of bonds  (page 103) 

5 The Foreign Exchange Market  (page 113) 
5.1 Introduction to the foreign exchange market  (page 113) 
5.2 The determination of the foreign exchange rate  (page 114)
5.3 Transaction exposure to a foreign currency  (page 117)
5.4 Hedging foreign exchange exposures  (page 118) 
5.5 Currency SWAP transactions  (page 122) 
5.6 The government and exchange control  (page 125) 

6 Derivatives: Futures  (page 131) 
6.1 Introduction  (page 131) 
6.2 Futures contracts vs. forward contracts  (page 132) 
6.3 The working and trading of futures contracts  (page 133) 
6.4 An example of the working of a commodity futures contract  (page 135) 
6.5 Settlement and delivery of a futures contract  (page 137) 
6.6 Security measures of a futures contract  (page 140) 
6.7 Comparison of futures and forward contracts on shares  (page 145) 
6.8 The gearing effect of futures  (page 147) 
6.9 The pricing of futures contracts  (page 148)
6.10 Futures spread trading  (page 152)
6.11 Futures arbitrage  (page 152) 
6.12 SAFEX future contract specifications  (page 153) 

7 Derivatives: Options and Warrants  (page 159) 
7.1 Introduction  (page 159) 
7.2 Working of option contracts  (page 160) 
7.3 Types of options  (page 160) 
7.4 Characteristics of an option  (page 161) 
7.5 Parties and risks of option transactions  (page 162) 
7.6 Options vs. warrants  (page 163)
7.7 Option income profiles  (page 164) 
7.8 Option pricing and value  (page 169) 
7.9 OTC and exchange trading of options and warrants  (page 175) 
7.10 Option strategies  (page 179)

8 Specialised Interest Rate Derivatives  (page 185) 
8.1 Introduction  (page 185) 
8.2 Forward rate agreements (FRA)  (Page 185) 
8.3 An Interest rate SWAP agreement  (page 187) 
8.4 Swaptions  (Page 191)
8.5 An interest rate cap agreement  (page 191) 
8.6 Interest rate floors  (page 193) 
8.7 Interest rate collars  (page 194) 

9 Unit Trusts  (page 199) 
9.1 Definition and working of a unit trust  (page 199) 
9.2 Types of local unit trust funds and their governing rules  (page 199) 
9.3 Unit trust linked products  (page 206)  
9.4 Funds of funds  (page 207) 
9.5 Wrap funds  (page 207) 
9.6 Multi-manager funds  (page 208) 
9.7 Pricing and fees  (page 209) 

10 Valuation of Financial Instruments  (page 217)  
10.1 General valuation rules  (page 217) 
10.2 Methods of valuation  (page 218) 
10.3 Examples of valuation  (page 221) 

11 Accounting for Financial Instruments and Derivatives  (page 232) 
11.1 Introduction  (page 232) 
11.2 Accounting for equities  (page 234) 
11.3 Accounting for discount instruments (money market and capital market  (page 235) 
11.4 Accounting for interest rate instruments  (page 237) 
11.5 Accounting for futures  (page 240) 
11.6 Accounting for options  (page 242) 
11.7 Accounting for interest rate SWAPS  (page 244) 
11.8 Accounting for interest rate floors, caps and collars  (page 246) 
11.9 Accounting for forward rate agreements  (page 247) 

12 Derivative Hedging Techniques  (page 252) 
12.1 Background  (page 252) 
12.2 Floating interest rate exposures  (page 253) 
12.3 Derivative instruments and methods of hedging  (page 253) 
12.4 Conclusion  (page 261) 

13 Risks and Controls in a Financial Market Environment  (page 266) 
13.1 Introduction  (page 266) 
13.2 Redefining risks  (page 266) 
13.3 Controlling the trading environment  (page 267) 

Terminology  (page 273)