Fundamentals of Investments is a concise, well thought-out and well written introduction to investments. It is devoted to understanding the complex capital market and the financial instruments that exist in the market. Recent years have witnessed a revolution in the field of finance and investment in the capital market, with the market becoming truly global. This book has been organized and written around the new developments and challenges facing the capital market, and addresses a very difficult subject in a logical manner. Part I of Fundamentals of Investments is devoted to the market environment and to a description of the various securities and how they are traded. Part II covers risk and return in the capital market with an emphasis on the gain or risk reduction due to diversification. Part III is devoted to bonds and stocks with an emphasis on valuation and management of these assets. Part IV covers derivatives, focusing on forwards, futures, and options. In Part V the analysis of risk-reduction due to diversification is expanded upon. Part VI is devoted to market efficiency, mutual funds performance and technical analysis, which explicitly assume that the market is inefficient.