Capital Markets

Finance Education Series · Volume II

Capital
Markets

Finance’s Next Level — From Reading the System to Running the Numbers · Version 3.11 · Complete · October 2026

The direct sequel to Global Economy. Where Volume I built the map of the system, Volume II hands over the instruments — the technical craft of valuation, deal-structuring, risk, governance, and market mechanics that separate understanding finance from practicing it. 65 articles. Click any part below to jump straight there.

Part 0: Bridge & Orientation Part 1: Corporate Finance & Valuation Part 2: M&A, PE & LBOs Part 3: Fixed Income Part 4: Derivatives Part 5: Portfolio Theory Part 6: Forensic Accounting Part 7: Governance & Search Part 8: Alternatives Part 9: Regulation Part 10: Financial History Part 11: Fintech & Crypto Part 12: The Full Stitch II Appendix: Glossary, Sources & Figures

1. Capital Markets Guide: Welcome and How to Use This Free Volume

Part 0 Bridge & Orientation

2. Capital Markets Roadmap: The Escalation Map and Quant Toolkit

Part 1 Corporate Finance & Valuation

3. Time Value of Money: Formula, Present Value and Valuation 4. Discounted Cash Flow (DCF): Formula, Steps and Example 5. WACC Formula and CAPM: How to Calculate Cost of Capital 6. Comparable Company Analysis (Comps) and Modigliani-Miller 7. Precedent Transaction Analysis and Sum-of-the-Parts Valuation 8. Capital Budgeting: NPV, IRR and Payback Explained 9. Equity Research Report and One-Page Investment Memo Guide

Part 2 M&A, PE & LBOs

10. How an Acquisition Works: Bids, Diligence and Closing 11. Stock Deal vs Asset Deal and Strategic vs Financial Buyers 12. Accretion/Dilution Analysis and M&A Synergies Explained 13. LBO Model: Sources and Uses Explained Step by Step 14. LBO Returns: Debt Paydown, IRR and MOIC Explained 15. Private Equity Fund Structure: LPs, GPs, Carry and Lifecycle 16. Hostile Takeovers and Defense Mechanisms Explained

Part 3 Fixed Income

17. Bond Duration and Bond Pricing: Macaulay vs Modified 18. Bond Convexity and the Yield Curve: Spot and Forward Rates 19. Inverted Yield Curve and Credit Spreads Explained 20. How Bonds Are Traded and How the Repo Market Works

Part 4 Derivatives

21. Futures vs Forwards vs Options: Differences Explained 22. Black-Scholes Model and the Option Greeks Explained 23. What Are Interest Rate Swaps? Currency Swaps Explained Too 24. Credit Default Swaps (CDS) Explained: Hedging vs Speculation

Part 5 Portfolio Theory

25. Modern Portfolio Theory and the Efficient Frontier Explained 26. Sharpe Ratio Formula: Risk-Adjusted Return and the CML 27. Value at Risk (VaR): How It Works and Its Limitations 28. Monte Carlo Simulation and Factor Investing (Fama-French)

Part 6 Forensic Accounting

29. GAAP vs IFRS and Revenue Recognition: Key Differences 30. Off-Balance-Sheet Financing, Consolidation and Goodwill 31. Deferred Tax, Inventory Methods and Depreciation Explained 32. Forensic Accounting: Red-Flag Ratios and Famous Fraud Cases

Part 7 Governance & Search

33. CEO Succession Planning: Emergency vs Planned Succession 34. Executive Compensation Design and the Executive Search Process 35. Say-on-Pay, Compensation Committees and CFO Hiring 36. Activist Investors and Proxy Fights Explained

Part 8 Alternatives

37. Alternative Investments and Long/Short Equity Explained 38. Hedge Fund Strategies: Macro, Event-Driven and Quant 39. Private Credit and Real Assets as an Asset Class Explained 40. Family Offices and Sovereign Wealth Funds Explained

Part 9 Regulation

41. AML and KYC in Practice, and Insider Trading Law 42. Dodd-Frank vs MiFID II Compared, and How Sanctions Work 43. Three Lines of Defense Model and Regulatory Arbitrage 44. Client Asset Protection (CASS) and Professional Ethics in Finance

Part 10 Financial History

45. Tulip Mania and the South Sea Bubble: Early Financial Bubbles 46. Asian Financial Crisis of 1997 and the LTCM Collapse of 1998 47. Dot-Com Crash (2000) and Japan's Lost Decades Explained 48. Stock Market Crashes Throughout History: 1929, 1987 and More 49. Archegos, Credit Suisse and Other Modern Credit Failures 50. Financial Crises: Why They Repeat, the Pattern Across Every Case

Part 11 Fintech & Crypto

51. How Blockchain Works: Bitcoin and Proof of Work Explained 52. Smart Contracts and Stablecoins: How Collateral Models Work 53. CBDCs and DeFi Explained: Real Innovations vs Real Risks 54. Cryptocurrency History: Money, Bitcoin and Real Fintech (UPI, ONDC)

Part 12 The Full Stitch II

55. LBO Case Study: Modeling a Buyout Under Rising Interest Rates 56. Finance Case Studies: Accounting Scandal Valuation and FX Hedge 57. Finance Practitioner Quiz: Valuation, Deals, Bonds and Derivatives 58. Capital Markets Toolkit: Closing Volume II

Appendix Glossary, Sources & Figures

59. Capital Markets Glossary # to D: Plain-English Definitions 60. Capital Markets Glossary E to N: Plain-English Definitions 61. Capital Markets Glossary O to S: Plain-English Definitions 62. Capital Markets Glossary T to Z: Plain-English Definitions 63. Capital Markets Sources and Further Reading, Part 1 of 2 64. Capital Markets Sources and Further Reading, Part 2 of 2 65. Capital Markets Figures That Change: Volatile-Figures Register