Like it or not, lawyers need to worry about their clients’ money. They do not have to be accountants or financial analysts, but they must know how to listen to accountants and financial analysts, and to know how to understand what they hear. This text provides a proven, workable approach for students to learn financial concepts. The author, building on ten years’ experience of teaching finance to law students, shows students how to figure asset values, how to tell whether a business is making money, and how to know whether an investment manager is doing a good job. He introduces the student to a revolutionary new approach to financial analysis – the world of option pricing. As a bonus, Guide to Finance for Lawyers offers a chapter on “The Least Accounting You Can Get Away With” – and discusses why accounting does not begin to tell the whole story.
Law students will find it indispensable as background for courses ranging from corporations to family law. Lawyers will find that it fills the gap for the course they wish they took in law school.
Table of Contents includes:
 Valuation over Multiple Periods;
Annuities;
Regulation and Disclosure;
The Least Accounting You Can Get Away With;
Valuation of Specific Investments;
Valuing Money (Herein of Inflation);
Rents, Profits and Competition;
Efficient Capital Markets
An Exploration of Market Efficiency: Dividends;
Arbitrage (Herein of Short-Selling);
Monopoly Pricing;
Diversification;
Measuring Risk;
What Alice the Bag Lady Knew: The Index Fund;
Leverage;
How Skeeter Almost Got It Right: Leverage and Return;
Leverage and Taxes;
Leverage and Asymmetric Risk;
More on Put-Call Parity;
Option Theory Applied: The Option to Abandon;
The Black-Scholes Option Pricing Model.
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