Equity Investments made easy-CFA L1

Explains important characteristics of the markets in which equities,fixed-income instruments, derivatives trade
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Instructed by Tanuja Yadav Test Prep / Other
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  • Lectures 14
  • Length 2 hours
  • Skill Level Intermediate Level
  • Languages English
  • Includes Lifetime access
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    Available on iOS and Android
    Certificate of Completion
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About This Course

Published 9/2015 English

Course Description

This course explains important characteristics of the markets in which equities, fixed-income instruments, derivatives, and alternative investments trade. It also focuses on the characteristics, analysis, and valuation of equity securities.

The reading on market organization and structure describes market classifications, types of assets and market participants, and how assets are traded.

The reading on security market indices explains how indices are constructed, managed, and used in investments.

The reading on market efficiency discusses the degree to which market prices reflect information. It also explains implications of different degrees of market efficiency for security analysis and portfolio management.

The reading on 'Overview of Equity Securities' discusses various types and features of equity securities and their roles in investment management.

The reading on 'Introduction to Industry and Company Analysis' explains how to conduct industry and company analyses; the reading's major focus is on understating a company's competitive position.

The previous two readings constitute necessary background knowledge for the reading on 'Equity Valuation: Concepts and Basic Tools', which introduces the subject of equity valuation.

What are the requirements?

  • No specific knowledge or supplemental required, though it will help if they have the official CFA L1 courseware available with them

What am I going to get from this course?

  • Get an understanding of Equity Investment for CFA L1
  • Complete the preparation of 10% of CFA L1 course with ease

What is the target audience?

  • Candidates enrolled to take the CFA L1 exam
  • Students aspiring to appear for CFA L1

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.

Curriculum

Section 1: Market Organization
01:30

The reading on market organization and structure describes market classifications, types of assets and market participants, and how assets are traded.

12:25

The student should be able to:

  • explain the main functions of the financial system;
  • describe classifications of assets and markets;
11:31

Ar the end of this lecture, the student will be able to describe the major types of securities, currencies, contracts, commodities, and real assets that trade in organized markets, including their distinguishing characteristics and major subtypes.

10:15

At the end of this lecture, students will be able to describe types of financial intermediaries and services that they provide;

12:17

At the end of this lecture, the student will be able to:

  • compare positions an investor can take in an asset;
  • calculate and interpret the leverage ratio, the rate of return on a margin transaction, and the security price at which the investor would receive a margin call;
  • compare execution, validity, and clearing instructions;
  • compare market orders with limit orders;
14:51

At the end of this lecture, the student will be able to:

  • define primary and secondary markets and explain how secondary markets support primary markets;
  • describe how securities, contracts, and currencies are traded in quote-driven, order-driven, and brokered markets;
  • describe characteristics of a well-functioning financial system;
  • describe objectives of market regulation.
Section 2: SECURITY MARKET INDICES
10:33

After listening to this lecture, the student would be able to:

  • describe a security market index;
  • calculate and interpret the value, price return, and total return of an index;
  • describe the choices and issues in index construction and management;
  • compare the different weighting methods used in index construction;
  • calculate and analyze the value and return of an index given its weighting method;
11:46

After listening to this lecture, the student would be able to:

  • describe re balancing and reconstitution of an index;
  • describe uses of security market indices;
  • describe types of equity indices;
  • describe types of fixed-income indices;
  • describe indices representing alternative investments;
  • compare types of security market indices.
Section 3: MARKET EFFICIENCY
08:23

After listening to this lecture, the student would be able to:

  • describe market efficiency and related concepts, including their importance to investment practitioners;
  • distinguish between market value and intrinsic value;
  • explain factors that affect a market's efficiency;
  • contrast weak-form, semi-strong-form, and strong-form market efficiency;
  • explain the implications of each form of market efficiency for fundamental analysis, technical analysis, and the choice between active and passive portfolio management;
Section 4: OVERVIEW OF EQUITY SECURITIES
01:30

This study session focuses on the characteristics, analysis, and valuation of equity securities.

17:05

At the end of this lecture, the student would be able to:

  • describe characteristics of types of equity securities;
  • describe differences in voting rights and other ownership characteristics among different equity classes;
  • distinguish between public and private equity securities;
  • describe methods for investing in non-domestic equity securities;
  • compare the risk and return characteristics of different types of equity securities;
  • explain the role of equity securities in the financing of a company's assets;
  • distinguish between the market value and book value of equity securities;
  • compare a company's cost of equity, its (accounting) return on equity, and investors' required rates of return.
Section 5: INTRODUCTION TO INDUSTRY AND COMPANY ANALYSIS
15:31

At the end of this lecture, the student would be able to:

  • explain uses of industry analysis and the relation of industry analysis to company analysis;
  • compare methods by which companies can be grouped, current industry classification systems, and classify a company, given a description of its activities and the classification system;
  • explain the factors that affect the sensitivity of a company to the business cycle and the uses and limitations of industry and company descriptors such as “growth,” “defensive,” and “cyclical”;
  • explain how a company's industry classification can be used to identify a potential “peer group” for equity valuation;
  • describe the elements that need to be covered in a thorough industry analysis;
  • describe the principles of strategic analysis of an industry;
  • explain the effects of barriers to entry, industry concentration, industry capacity, and market share stability on pricing power and price competition;
  • describe industry life cycle models, classify an industry as to life cycle stage, and describe limitations of the life-cycle concept in forecasting industry performance;
  • compare characteristics of representative industries from the various economic sectors;
  • describe macroeconomic, technological, demographic, governmental, and social influences on industry growth, profitability, and risk;
  • describe the elements that should be covered in a thorough company analysis.
Section 6: Equity Valuation: Concepts and Basic Tools
06:11

At the end of this lecture, the student should be able to:

  • evaluate whether a security, given its current market price and a value estimate, is overvalued, fairly valued, or undervalued by the market;
  • describe major categories of equity valuation models;
  • explain the rationale for using present value models to value equity and describe the dividend discount and free-cash-flow-to-equity models;
10 questions

Try and answer these questions with 90% accuracy in less than 15 minutes

Bonus Lecture: Coupon codes and Access to free courses
00:40

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Instructor Biography

Tanuja Yadav, Chartered Financial Analyst

A CFA charter holder, I have extensive experience in the field of F&A outsourcing and have worked on various projects within the F&A Arena. I have 11 years of experience in F&A delivery, handling end to end finance and accounting processes, F&A practice and process improvement. I am also a visiting faculty with International College of Financial Planning, New Delhi where I have taken classes for CFA L 2 and 3. I have my own channel on Youtube on Finance and Investments.

Specialties: Finance, Fixed Income, Treasury, Accounts Payable, Accounts Receivables, Reconciliation, Fixed Asset and Project accounting, Solution development, F&A Training, SOX testing, Fraud risk assessment and Process streamlining.

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