Author: Satyajit Das

Publisher: Pearson Education Limited (Prentice Hall/Financial Times)

ISBN-10: 0-273-70474-5

ISBN-13: 978-0-273-70474-4

Traders, Guns & Money is 334 pages in length.  The softbound book version was reviewed.  This 9 chapter book includes a Preface, Prologue, a List of Figures and Tables, Notes (i.e., footnotes), and an Epilogue.

This book is written for the fairly sophisticated investor/reader.  The slant and writing style reminds me of a Tom Clancy novel.  Phrases like “…derivatives as WMDs…” (weapons of mass destruction; prologue on p. 12), and “They (the Indonesians) should have worn their hazardous materials suits when handling their trades” (p. 18) are typical.

The author characterizes financial derivatives as “(a) gigantic system of betting on changes in prices…” (p. 27).  For those seeking greater structure – academics and financial professionals – the book contains many wonderful exhibits, illustrating fund flows and the details of complex transactions (pp. 35, 36, 37, 46, etc.).  As for the motivation for derivatives, Das explains that “the game was exploiting the limited knowledge about derivatives…” and continues to explain, “…(p)rofit margins were high” (p. 40).

I enjoyed reading this book, and will keep it in my permanent library.  As a Certified Public Accountant, I would recommend that other financial professionals consider reading this book.  I recall very clearly the difficulties that the Financial Accounting Standards Board and the Securities Exchange Commission had (and continues to have) with these relatively new and very creative financial instruments.  As an accounting professor, I would also recommend this book to undergraduate students (or those with higher levels of education) in accounting, finance, economics, marketing, and even general business.

Satyajit Das has written a very interesting, insider’s perspective on the subject of derivatives.  Though the slant is clearly negative, I found the writing style and the content and author’s knowledge of the subject to be very entertaining and insightful.

The above review was contributed by: Anthony (A.J.) Cataldo II.    Dr. Cataldo holds a PhD from Virginia Polytechnic Institute and State University , MAc ( University of Arizona)  unofficial minor in Marketing , BSBA  (University of Arizona). He is a Certified Management Accountant and a Certified Public Accountant:  Click Here to view Anthony's Reviews