The Investment Advisor Body of Knowledge + Test Bank

CHAPTER 9 Traditional Global Investments Equity and Fixed Income

Investment advisors and consultants must be familiar with the numerous structures and characteristics of various global equity investments. The first reading in this chapter reviews market organization and structure as well as the more common forms of equity investments both in the United States and abroad and how each is classified. The second reading discusses the risk-reward trade-off of equity investments both theoretically and historically. Valuation is also discussed. The third reading reviews the concept and history of equity styles boxes. The fourth reading explains financial statement analysis with a specific review of the most common metrics and ratios used in fundamental analysis. The last reading reviews common benchmarks and indices used in performance evaluation and analysis.

Part I Investments: Principles of Portfolio and Equity Analysis: Market Organization and Structure

Learning Objectives

• Describe classifications of assets and markets.
• Describe the major types of securities, currencies, contracts, commodities, and real assets that trade in organized markets, including their distinguishing characteristics and major subtypes.

Part II Investments: Principles of Portfolio and Equity Analysis: Overview of Equity Securities

Learning Objectives

• Discuss the importance and relative performance of equity securities in global financial markets.
• Discuss the characteristics of various types of equity ...