Introduction

Abstract

Foreign investment in emerging stock markets is at record levels. Many emerging markets are yielding fantastic returns (see the data given further). Stocks in many markets are trading at stretched valuations. At no point in time before has security analysis and stock selection been more challenging. Professional analysts and fund managers are required to be abreast of the latest research coming out of universities to construct models and trading strategies. This book provides a comprehensive review of key theories, models, and framework. In this chapter, we provide an overview of the role played by financial markets and the process of security analysis (Table 1.1). © 2009 Springer-Verlag Berlin Heidelberg.