describe the six components of the Code
of Ethics and the seven Standards of
explain the ethical responsibilities
LOS Level I – 2012
describe the structure of the CFA Institute Professional Conduct Program and the process for the enforcement of the Code and Standards state the six components of the Code...
been added in the Equity Section.
One new Reading, “A Primer on Commodity Investing”, has been added to the
Alternative Investments Section
One FixedIncome Reading, “General Principles of Credit Analysis”, has been
deleted. A new Reading, “Credit Analysis Models”, has been introduced.
At the end of this session you should be able to:
* Describe what the capital markets are, who uses them and why they are important
* State the characteristics of the instruments traded in the equity markets
* Describe the arrangements for trading these instruments
* Discuss some...
CHAPTER 3 Security Types
You invest $5,000 in Yahoo! commonstock and just months later sell the shares for $7,500, realizing a 50 percent return. Not bad! At the same time, your neighbor invests $5,000 in Yahoo! stock options, which become worth $25,000 at expiration — a 400 percent return. Yahoo!...
1.4 Modes of Investment
Security form of Investment
Non-Security form of investment
1.5 Characteristics of Investment
1.6 Investment & Speculation
Investment & Gambling
1.7 Investment process
1.8 Common Errors in Investment...
between Primary and secondary market
12. Capital asset pricing model
13. What is beta coefficient?
14. What is MM model for capital structure?
15. Describe Gordon and Brown model for dividend policy
16. List few differences between future and forward contract
17. What are call and put options?
the key differences between commonstock, preferred stock, and corporate bonds?
The key differences are that commonstock has voting power, residual claim, and limited liability. Preferred stock on the other hand, behaves like a hybrid stock because it has preferred and common dividends, but also it behaves...
Study Session 1
Reading 1: Code of Ethics and Standards of Professional Conduct The candidate should be able to:
a. describe the structure of the CFA Institute Professional Conduct Program and the process for the enforcement of the Code and Standards; b. state the six components...
- By Graham and Qadd’s Security Analysis “Investment Management is the process of managing money, including investments, budgeting, banking and taxes, also called as money management.”
We shall discuss about the following factors: • Firstly: Meaning, concept, characteristics, need and importance, avenues...
Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciations realized are...
I. Investments and the Investment Process
A) Types of Investments
1. Securities or Property
2. Direct or Indirect
3. Debt, Equity, or Derivative Securities
4. Low or High Risk
5. Short or Long Term
6. Domestic or Foreign
B) The Structure of the Investment Process
pre-defined dollar amount (text says “fixed”, but I prefer pre-defined)
* Fixedincome instruments
* debt (and preferred stock) that pay a fixed dollar amount
* Floating rate instruments
* The principal amount is fixed, but not the periodic payments – which...
Chapter 1: Role of Mutual Fund Sales Representative
1. Describe the evolution of the mutual fund industry and the impact mutual funds have had on the financial services marketplace.
* Mutual funds have been in existence...
with characteristics of the financial market, and debt and equity instruments. Finally, long-term finance alternatives such as stocks, bonds, and leases are discussed.
Capital asset pricing model vs. discounted cash flow method
Two methods can be used to calculate the required return on common stock...
analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time. In contrast putting money into something with an expectation of gain without thorough analysis, without security of principal, and without security of return is speculation or gambling...
that the securities will be sold or that the company will get the cash it needs, only that it will put forth its “best efforts” to sell the issue. On an underwritten issue, in contrast, the company does get a guarantee: the bank agrees to buy the entire issue and then resell the stock to its customers...
the current commitment of money or other resources in the expectation of reaping future benefits. For example, an individual might purchase shares of stock anticipating that the future proceeds from the shares will justify both the time that her money is tied up as well as the risk of the investment. The...
Novice to Mutual Funds (slide 2) Why Investors Purchase Mutual Funds - Learning Objective #1 (slides 3-7) The Reasons Investors Choose Mutual Funds Characteristics of Mutual Funds and Competing Investments Mutual Funds With and Without Loads Management Fees and Other Charges Classification of Mutual Funds...