Nerds on Wall Street : math, machines, and wired markets /

Leinweber (Univ. of California, Berkeley) provides a concise history of the applications of technology to securities markets. He suggests that the huge amount of available data, the ability of computers to process and mine that data, and the ability of "nerds" to access and process the information are the prime reasons for changes on Wall Street. Leinweber weaves personal experiences with the professional and academic literature to illustrate how wired markets and computer applications have changed the role of the financial specialist, securities trading, and the analysis of firms and markets. For readers unfamiliar with the beginnings of a particular technology (e.g., artificial intelligence or the Internet), the author traces the innovation through its impact on Wall Street. The presentation covers efficient markets, the search for superior performance ("alpha"), hedge funds, and complex derivatives. Leinweber gives a balanced perspective by illustrating applications that make no logical sense or do not work. Part 4, "Nerds Gone Wild," is devoted to the misuse of technology that led to the financial crises of 2008, and one chapter provides a "coherent systems approach" to alleviate the problems. Summing Up: Recommended. Upper-division undergraduate students, professionals, and informed personal investors. H. Mayo The College of New Jersey