This course covers the material from the equities section of the CFA exam including different types of markets and equity securities as well as securities analysis. At its core, investing is all about trying to find an asset that will be worth more in the future than it is today, and this course is focused on the aspects of the CFA exam that address this issue. In addition, we’ll cover equity indexes which are becoming an increasingly important benchmark for investors, and market efficiency which is a bedrock of fair pricing in investments. We will also go over classifying investment options since that is a big part of what investment advisors do. To pass the CFA exam, you need to have good test taking strategies.

Learning Objectives
  • Identify and describe the major types of securities, currencies, contracts, commodities, and real assets that trade in organized markets, including their distinguishing characteristics and major subtypes.
  • Explore the efficient market hypothesis and contrast weak-form, semi-strong-form, and strong-form market efficiency.
  • Explore what an equity market index is, and calculate and interpret the value, price return, and total return of an index.
  • Discover characteristics of types of equity securities.
  • Recognize and 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.
  • Identify and evaluate whether a security, given its current market price and a value estimate, is overvalued, fairly valued, or undervalued by the market.
  • Identify and understand high level strategies for dealing with equity market questions on the CFA.
Last updated/reviewed: August 4, 2023

Included In Certifications

This course is included in the following Certification Programs:

11 CoursesCFA Level 1 Preparation Certification Program

  1. CFA Level 1 Prep: Introduction to the CFA Exam
  2. CFA Level 1 Prep: 1 - Ethics and Professional Standards
  3. CFA Level 1 Prep: 2 - Quantitative Methods
  4. CFA Level 1 Prep: 3 - Economics
  5. CFA Level 1 Prep: 4 - Financial Reporting and Analysis
  6. CFA Level 1 Prep: 5 - Corporate Finance
  7. CFA Level 1 Prep: 6 - Equities Markets
  8. CFA Level 1 Prep: 7 - Fixed Income
  9. CFA Level 1 Prep: 8 - Derivatives
  10. CFA Level 1 Prep: 9 - Alternative Investments
  11. CFA Level 1 Prep: 10 - Portfolio Management
3 Reviews (21 ratings)

Reviews

5
Anonymous Author
I learned from this course about the stock market, equity uses, index and ETF, efficient market hypothesis, the difference among various stocks (common, preferred, authorized, issued, outstanding, treasury), preemptive and voting rights, and stock valuation. A lot of information.
5
Anonymous Author
The question in the final exam, "Which form of the Efficient market hypothesis suggests that even insider information is priced into stocks:" - the answer should be the Strong form. Instead, upon grading, it chooses the "Equity form" as the correct answer.
5
Member's Profile
Great information. I felt good after the review questions but the final was tough!
Prerequisites
Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course. However being part of a series, you may consider taking all related courses in sequence: https://www.illumeo.com/curriculum/cfa-level-1-preparation

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
  Course Overview CPE
Course Syllabus
INTRODUCTION AND OVERVIEW
  Types of Capital Markets6:14
  Understanding An Investment Index6:36
  Efficient Markets6:41
  All About Equities14:10
  Stock Valuation11:39
  Equity Test Taking Strategies3:06
CONTINUOUS PLAY
  CFA Level 1 Prep: 6 - Equities Markets48:26
SUPPORTING MATERIAL
  Slides: CFA Level 1 Prep: 6 - Equities MarketsPDF
  CFA Level 1 Prep: 6 - Equities Markets Glossary/ IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam