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has been a staple resource for first-year finance students at Massey Business School (MBS), providing a practical overview of contemporary finance from an Aotearoa New Zealand perspective. While many tools and techniques of financial decision-making remain stable over time, factors such as rules and regulations governing markets, businesses, and financial intermediaries like banks are subject to change. New markets and assets, including blockchain and cryptocurrencies, have gained popularity since the last edition, prompting the need for a revised version of the textbook with ������Դ Press to address these developments.

Editor of the fifth edition and Professor in Finance Hamish Anderson says the latest edition continues to provide essential financial knowledge applicable to both personal financial decisions and business contexts.

“Worldwide, school leavers tend to lack financial knowledge, and New Zealand is no different. This textbook aims to support students new to finance by providing an understanding of key areas such as financial decision-making tools and techniques, personal financial planning, markets and financial intermediaries, investments, corporate finance and risk management. What sets Fundamentals of Finance apart from most introductory finance textbooks is that many others only focus on one or two of these areas.”

A standout feature of the fifth edition is the inclusion of property markets and real estate.

“This is unique for first-year finance textbooks, which typically provide only a cursory overview of real estate, if at all. This is surprising, given that real estate is the largest asset class in the world and significantly impacts our lives. Owning or renting a home is often the most consequential financial decision individuals make,” Professor Anderson says.

Despite the enormous value of real estate, Professor Anderson says integrating property markets and real estate assets material throughout the textbook is innovative for finance textbooks.

“A new final chapter on property investment analysis serves as a capstone for the textbook and the finance course, helping students integrate and apply all their learning from throughout the course.”

Professor Anderson points out that for professionals and business practitioners seeking accessible and relevant insights into analysing business or property investment decisions, this textbook is an excellent resource, particularly for those in New Zealand, as it considers the country’s laws and regulations, including tax law.

The original authors, Andrea Bennett, Dr Jenny Parry and Dr Carolyn Wirth, were all former lecturers and senior tutors from MBS and have assigned their authorship rights, including any royalties from the fifth edition, to the School.

“Massey Business School is grateful for the authors’ generous gesture. All royalties are collected by the Massey Foundation and set aside to provide ongoing support for students through prizes and scholarships,” Professor Anderson says.

For Professor Anderson, who has taught at Te Kunenga ki Pūrehuroa ������Դ’s School of Economics and Finance for over 30 years, the most interesting aspect of the financial sector is its constant evolution.

“As humans are typically at the centre of financial decision-making, we bring all our human traits to those decisions. This can lead to what economists might consider irrational or sub-optimal choices. Understanding our shortcomings helps us make better decisions.”

For students beginning to explore finances as a field of study, Professor Anderson’s advice is to read widely.

“This includes, but is not limited to, business news. In fact, the National Business Review, New Zealand’s premier business media outlet, has recently made its articles free to all New Zealand students. Given that the NBR is solely subscription-based, with no advertising revenues, this is an amazing opportunity for students to stay informed about local and international business news.”

was published by ������Դ Press in September 2024 and is available on the . Click to look inside.