How_Money_Works_-_The_Facts_Visually_Explained

Corporate accounting 26

Net income 28

Expensing vs capitalizing 30

Depreciation, amortization, depletion 32

Smoothing earnings 34

Cash flow 36

Gearing ratio and risk 40

How companies use debt 42

Financial reporting 44

Financial instruments 46

Shares 48

Bonds 50

Derivatives 52

Financial markets 54

The money market 56

Foreign exchange and trading 58

Primary and secondary markets 60

Predicting market changes 62

Arbitrage 64

Manipulating the stock market 66

Day trading 68

Financial institutions 70

Commercial and mortgage banks 72

Investment banks 74

Brokerages 76

Insurance risk and regulation 78

Investment companies 80

Nonbank financial institutions 82

PROFIT-MAKING AND FINANCIAL

Contents INSTITUTIONS^24

MONEY BASICS 10

The evolution of money 12

Barter, IOUs, and money 14

Artifacts of money 16

Emergence of modern

economics 20

Economic theories and money 22

Introduction 8

First American Edition, 2017

Published in the United States by DK Publishing

345 Hudson Street, New York, New York 10014

Copyright © 2017 Dorling Kindersley Limited

DK, a Division of Penguin Random House LLC

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SEE ALL THERE IS TO KNOW

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Published in Great Britain by Dorling Kindersley Limited.

A catalog record for this book is available from the Library

of Congress.

ISBN: 978-1-4654-4427-

Printed in China

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