As this text goes to print, the global financial markets are in a state of crisis as the subprime credit crisis impacts upon financial institutions, instruments and markets. Within this context, it is important that this sixth edition should inspire new generations of business students and industry practitioners to understand, anticipate and challenge the complex and rapidly evolving structure of the financial system.

This book has achieved remarkable acceptance by academics and their students in a significant number of tertiary institutions, and by professionals within the financial services industry. My desire is to present a finance text for you that is authoritative and scholarly, while at the same time highlighting the dynamic, exciting and global nature of financial institutions, instruments and markets.

Over my many years in the industry I have been witness to considerable change. I remember when at the age of sixteen I was taken by my parents to our local bank and I was informed that this was where I was going to work for the rest of my life. Those were the days of pounds, shillings and pence. I did not have a biro with which to write, but rather had to record transactions using a nib pen dipped in ink. Daily, weekly, monthly and annual statements were added in my head. An exciting day occurred when the bank branch where I worked received a mechanical adding machine—its dimensions were 300 × 400 × 200 mm and it could only add, subtract, multiply and divide. I had to pull a large handle to input each entry into the machine. There has been unbelievable change to the insulated environment of those days. In particular, there has been significant deregulation of the financial markets, the development of electronic information and product delivery systems, new and sophisticated financial products, the integration of domestic financial systems into a global financial system and, from time to time, major financial and economic crises.

The lesson is that change will continue, and the financial system that you are comfortable with today will not stay that way. To remain relevant in business and finance you must continue to educate yourself and those for whom you may be responsible in the future. I must emphasise the absolute necessity for you to read the daily press and periodic financial journals to ensure that notations of current and proposed future changes to the operation, structure and participants in the financial system are added to your personal copy of this book. This is not a text that will be sold at the end of a particular unit of study, but rather is an important reference that will continue to be used for further studies and on into your professional career.

Christopher Viney