Fundamentals of Investing, 15th edition

Published by Pearson (September 30, 2026) © 2027
  • Scott B. Smart
  • Chad J. Zutter

Title overview

For investment courses.

Decision-making guidance for personal investors

Fundamentals of Investing uses examples and hands-on applications to introduce the tools and techniques of personal investors and money managers. With a focus on individual securities and portfolios, the authors explore the risks and returns of various investment types and how to use this knowledge to achieve financial goals. With its flexible chapter structure, you can customize the material to suit your teaching objectives.

The 15th Edition covers new developments in the investment industry, from Crypto to U.S. inflation to AI’s influence on investment decisions. Fresh data and examples were integrated throughout, aligning the material with today’s financial realities.

Hallmark features of this title

Strategic organization

  • A Learning Goal system for each chapter gives students a roadmap linking content, questions and cases.
  • The pros and cons of investment decisions are presented throughout chapters to help investors meet their objectives.

Timely, relevant coverage

  • Current events, changing regulations and global factors reshaping financial markets and investments are accounted for across topics.
  • Chapter-opening stories present a real-world investment situation, which is linked to the chapter’s topics and often an end-of-chapter problem.

Purposeful pedagogy

  • Discussion questions, problem sets and case problems, keyed to Learning Goals, help students integrate and analyze key concepts from the chapter.
  • Problem-solving help includes key equations, Excel® model screenshots and calculator keystrokes.

New and updated features of this title

New and enhanced features

  • NEW: What’s the Alternative is a new feature introducing alternative investments such as hedge funds, collectibles, and private equity and credit.
  • REVISED: Many end-of-chapter problems using interest rates, stock prices and other values were revised to better reflect market conditions at the time of revision.
  • REVISED: New and updated Investor Facts boxes cover investment concepts in the real world, such as the emergence of SPAC IPOs and whether machines or humans are better at picking stocks.

Added real-world examples

  • REVISED: Most chapter openers are new or revised. Topics include the dominance of tech companies in the US stock market and factors that led analysts to issue upgrades or downgrades on specific stocks.
  • EXPANDED: More real-world data was added to examples, tables, figures and end-of-chapter problems. This data gives the text a more applied, practical feel while illustrating on-the-job skills.

Key features

Features of MyLab Finance for the 15th Edition

  • The Financial Calculator simplifies problem-solving for Time Value of Money, Cash Flow and Amortization. Calculator keystrokes noted throughout the text can be used to solve problems.
  • Auto-graded Excel® Projects use proven, field-tested technology to help students build key skills and to integrate Excel seamlessly into your course.
  • Question Help consists of homework and practice questions to give students unlimited opportunities to master concepts. Learning aids walk them through problems and offer assistance when needed.
  • The Study Plan gives students personalized recommendations, practice opportunities and learning aids to help them stay on track.
  • An Advisor’s Perspective consists of short video clips of professional investment advisors discussing the investments topics covered in each chapter, as well as the lessons they’ve learned from experience.
  • Three sample CFA exams replicate the types of questions that appear on the standard Level-I Exam.

Features of Pearson+ eTextbook for the 15th Edition

  • EXPANDED: New author videos introduce the main ideas of each chapter, highlight the application of key concepts and draw connections between chapters.
  • NEW: Videos of solutions to in-text examples build understanding and act as a guide for end-of-chapter problems and related assignments.
  • NEW: Animated graphics illustrate important principles, such as the value of international diversification and the process of estimating a beta.
  • UPDATED: Excel templates were added for many end-of-chapter problems. The templates help students reach a solution faster by inputting data for them or by logically organizing the facts presented in problems.

Table of contents

PART 1: PREPARING TO INVEST

  1. The Investment Environment
  2. Securities Markets and Transactions

PART 2: IMPORTANT CONCEPTUAL TOOLS

  1. Return and Risk
  2. Modern Portfolio Concepts

PART 3: INVESTING IN COMMON STOCKS

  1. Common Stocks
  2. Analyzing Common Stocks
  3. Stock Valuation
  4. Market Efficiency and Behavioral Finance

PART 4: INVESTING IN FIXED-INCOME SECURITIES

  1. Fixed-Income Securities
  2. Bond Valuation

PART 5: PORTFOLIO MANAGEMENT

  1. Mutual Funds and Exchange-Traded Funds
  2. Managing Your Own Portfolio

PART 6: DERIVATIVE SECURITIES

  1. Options: Calls and Puts
  2. Futures Markets and Securities

PART 7: BEYOND COMMON STOCKS AND BONDS

  1. Investing in Preferred Stocks
  2. Tax-Advantaged Investments
  3. Real Estate and Other Tangible Investments

Author bios

About our authors

Scott B. Smart is the E-II Finance Faculty Fellow and Chair of Finance Graduate Programs at the Kelley School of Business at Indiana University. Dr. Smart received his BBA from Baylor University and his MA and PhD from Stanford University. His research focuses primarily on applied corporate finance topics and has been published in journals such as the Journal of Finance, the Journal of Financial Economics, the Journal of Corporate Finance, Financial Management and others. His articles have been cited by business publications including The Wall Street Journal, The Economist and Business Week. Winner of more than a dozen teaching awards, Dr. Smart has been listed multiple times as a top business school teacher by Bloomberg Businessweek. He has held Visiting Professor positions at the University of Otago and Stanford University, and he worked as a Visiting Scholar for Intel Corporation, focusing on that company’s mergers and acquisitions activity during the “Dot-com” boom in the late 1990s. Dr. Smart’s investment experience includes serving as a trustee for a mutual fund, a member of Indiana University’s Investment Committee and Chair of the Board of the IU Credit Union. In his spare time, he enjoys outdoor pursuits such as hiking and fly fishing.

Chad J. Zutter is a Professor of Finance and the Finance Area Director at the Katz Graduate School of Business at the University of Pittsburgh. Dr. Zutter received his BBA from the University of Texas at Arlington and his PhD from Indiana University. His research has a practical, applied focus and has been the subject of feature stories in, among other prominent outlets, The Economist and CFO Magazine. His papers have been cited in arguments before the U.S. Supreme Court and in consultation with companies such as Google and Intel.

Dr. Zutter won the prestigious Jensen Prize for the best paper published in the Journal of Financial Economics and a best paper award from the Journal of Corporate Finance, where he is currently an Associate Editor. He has won teaching awards at the Kelley School of Business at Indiana University and the Katz Graduate School of Business at the University of Pittsburgh. Dr. Zutter also serves on the board of Lutheran SeniorLife, and prior to his career in academics, he was a submariner in the U.S. Navy. Dr. Zutter and his wife have four children and live in Pittsburgh, Pennsylvania. In his free time, he enjoys horseback riding and downhill skiing.

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