Readers reviews of The Vest Pocket Guide to Stock Brokerage Math
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This is a handy workbook for all types of financial calculations. They are all designed
to be completed on any simple calculator and can also be quickly transferred into Excel
formulas. Unfortunately the book doesn't show you the Excel coding.
Calculations covered include dividend yield, margin accounts, options pricing, accrued
interest and rights offerings. Fundamental ratios are US based such as current ratio,
margin of profit, payout ratio etc. Traders working with US balance sheets will find these
calculation tools very useful.
The book is particularly useful in explaining bond and bill calculations, both
corporate and treasury. Australian traders will find many useful shortcuts. Australian
traders active in US markets will find this book a lifesaver.
The calculations unintentionally expose an interesting rort in US Markets by providing
the decimal equivalents to tick pricing at 1/16, 1/8, 1/4 etc. This imprecision has the
potential to cream more off the top of a trade than brokerage or slippage. A stock selling
at $45.50 is quoted as 45 1/2 with the next price at 45 5/8, then 45 3/4. These are price
gaps of $0.125 which makes precision trading difficult.
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