Equity Market Organization, Market Indices, and Market Efficiency
This study session explains important characteristics of the markets in which equities, fixed-income instruments, derivatives, and alternative investments trade. 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.
Reading 45 Market Organization and Structure
Reading 46 Security Market Indices
Reading 47 Market Efficiency
STUDY SESSION 14
Equity Analysis and Valuation
This study session focuses on the characteristics, analysis, and valuation of equity securities. The first reading discusses various types and features of equity securities and their roles in investment management. The second reading explains how to conduct industry and company analyses; the reading’s major focus is on understating a company’s competitive position. The first two readings constitute necessary background knowledge for the third reading, which introduces the subject of equity valuation.
Reading 48 Overview of Equity Securities
Reading 49 Introduction to Industry and Company Analysis
Reading 50 Equity Valuation: Concepts and Basic Tools