• The new Chapter 7-"Valuation and Active lnvesting"- has been added to Part One of the
book.
• Chapters 5 and 6 on valuation have been written more succinctly with some of the material
moved to the new Chapter 7.
• Material in all chapters has been updated to incorporate new accounting standards.
• Comparisons between U.S. GAAP accounting and international (IFRS) accounting are
made where relevant.
• Examples, illustrations, and graphical material have been updated, now current as of2010.
• New cases have been added to a number of chapters and the cases in earlier editions have
been updated to 2010.
• New end-of-chapter exercises have been added.
• Chapter 15 (previously Chapter 14) on simple forecasting and valuation has been
extensively revised and simplified.
• Chapter 19 on risk and return in equity investing returns to the theme of active investing.