Equity Investments

In this section

• Chapter 1: Introduction to Equity Investments
  Chapter 1: Introduction to Equity Investments (CFA Level 1): Practical explanations of core ideas, with key terms, formulas, and common exam pitfalls.
  • The Role of Equities in an Investment Portfolio
    The Role of Equities in an Investment Portfolio (CFA Level 1): Equities as a Cornerstone of Ownership, Capital Appreciation, and Dividends and Periodic Income. Key definitions, formulas, and exam tips.
  • Classifications and Features of Equity Securities
    Classifications and Features of Equity Securities (CFA Level 1): Common Shares, Multiple Classes of Common Shares, and Preferred Shares. Key definitions, formulas, and exam tips.
  • Public vs. Private Equity
    Public vs. Private Equity (CFA Level 1): Key Differences in Market Access, Public Equity, and Private Equity. Key definitions, formulas, and exam tips.
  • Risks and Returns of Equity Investments
    Risks and Returns of Equity Investments (CFA Level 1): Systematic vs. Unsystematic Risk, Measuring Equity Risk, and Volatility (Standard Deviation of Returns). Key definitions, formulas, and exam tips.
  • Equity as a Source of Capital for Companies
    Equity as a Source of Capital for Companies (CFA Level 1): Comparing Equity Financing to Debt Financing, Debt vs Equity: A Quick Look, and Dilution and Voting Rights. Key definitions, formulas, and exam tips.
  • Globalization of Equity Markets and Cross-Border Listings
    Globalization of Equity Markets and Cross-Border Listings (CFA Level 1): Key Drivers of Cross-Border Listings, Depositary Receipts: ADRs and GDRs, and How Depositary Receipts Work. Key definitions, formulas, and exam tips.
  • Influence of Macroeconomic Trends on Equity Issuance
    Influence of Macroeconomic Trends on Equity Issuance (CFA Level 1): Key Macroeconomic Indicators and Their Effects, Interest Rates, and GDP Growth. Key definitions, formulas, and exam tips.
  • Historical Perspectives on Equity Market Evolution
    Historical Perspectives on Equity Market Evolution (CFA Level 1): Origins of Early Stock Exchanges, Industrial Revolutions and Corporate Expansion, and Rise of Electronic Trading. Key definitions, formulas, and exam tips.
  • Tax Implications in Equity Investing
    Tax Implications in Equity Investing (CFA Level 1): Key Tax Considerations, Differences in Dividend and Capital Gains Taxation, and Holding Periods: Short-Term vs. Long-Term. Key definitions, formulas, and exam tips.
  • Emerging and Frontier Market Equities
    Emerging and Frontier Market Equities (CFA Level 1): Understanding Emerging and Frontier Markets, Why These Markets Matter, and Distinguishing Emerging and Frontier Markets. Key definitions, formulas, and exam tips.
  • Stages of Equity Financing (Seed, Growth, IPO)
    Stages of Equity Financing (Seed, Growth, IPO) (CFA Level 1): Which of the following best describes seed financing? and What is a primary goal of growth (venture). Key definitions, formulas, and exam tips.
  • Free Float and Liquidity Considerations
    Free Float and Liquidity Considerations (CFA Level 1): Defining Free Float and Relationship Between Float and Liquidity. Key definitions, formulas, and exam tips.
  • Capital Gains vs. Dividend Income
    Capital Gains vs. Dividend Income (CFA Level 1): Dividends: Signal of Corporate Health or Just a, Capital Gains: The Growth Perspective, and Ex-Dividend Date and Price Behavior. Key definitions, formulas, and exam tips.
• Chapter 2: Market Organization and Equity Structure
  Chapter 2: Market Organization and Equity Structure (CFA Level 1): Key concepts explained with clear definitions, formulas, and exam-focused examples.
  • Primary and Secondary Markets for Equity
    Primary and Secondary Markets for Equity (CFA Level 1): Primary Market, Key Players in the Primary Market, and IPOs and Follow-On Offerings. Key definitions, formulas, and exam tips.
  • Order Types, Trade Execution, and Settlement
    Order Types, Trade Execution, and Settlement (CFA Level 1): Understanding Common Order Types, Market Orders, and Limit Orders. Key definitions, formulas, and exam tips.
  • Margin Trading and Short Selling
    Margin Trading and Short Selling (CFA Level 1): Understanding Margin Trading, Initial Margin vs. Maintenance Margin, and Mechanics of a Margin Call. Key definitions, formulas, and exam tips.
  • Market Participants and Regulatory Frameworks
    Market Participants and Regulatory Frameworks (CFA Level 1): Market Participants, Retail Investors, and Institutional Investors. Key definitions, formulas, and exam tips.
  • High-Frequency Trading and Market Liquidity
    High-Frequency Trading and Market Liquidity (CFA Level 1): Key Components of High-Frequency Trading, Algorithmic Trading, and Latency Minimization. Key definitions, formulas, and exam tips.
  • Roles of Clearinghouses and Settlement Risk Management
    Roles of Clearinghouses and Settlement Risk Management (CFA Level 1): Central Counterparty Function, Margin Requirements and Collateral, and Settlement Risk Management Techniques. Key definitions, formulas, and exam tips.
  • Initial Public Offering (IPO) Pricing and Bookbuilding
    Initial Public Offering (IPO) Pricing and Bookbuilding (CFA Level 1): Test Your Knowledge: IPO Pricing and Bookbuilding and Which of the following best describes “bookbuilding” in. Key definitions, formulas, and exam tips.
  • Exchange-Traded Funds (ETFs) and Their Structure
    Exchange-Traded Funds (ETFs) and Their Structure (CFA Level 1): ETF Basics, ETF Creation and Redemption, and How the Mechanism Works. Key definitions, formulas, and exam tips.
  • Dark Pools and Alternative Trading Systems
    Dark Pools and Alternative Trading Systems (CFA Level 1): Core Concepts of Dark Pools, Benefits of Dark Pools, and Limitations and Risks. Key definitions, formulas, and exam tips.
  • Short Interest as a Sentiment Indicator
    Short Interest as a Sentiment Indicator (CFA Level 1): Understanding Short Interest, Why Investors Track Short Interest, and Real-World Anecdote—The Famous “Short Squeeze”. Key definitions, formulas, and exam tips.
  • Comparison of Direct Listings and Traditional Underwritten IPOs
    Comparison of Direct Listings and Traditional Underwritten IPOs (CFA Level 1): Traditional Underwritten IPO, Underwriter’s Role and Bookbuilding, and Pricing and Potential Underpricing. Key definitions, formulas, and exam tips.
• Chapter 3: Security Market Indexes
  Chapter 3: Security Market Indexes (CFA Level 1): Key concepts, definitions, and exam tips with practical examples. Use it to reinforce intuition and avoid common pitfalls.
  • Index Construction and Weighting Methods
    Index Construction and Weighting Methods (CFA Level 1): Role of Security Market Indexes in Portfolio, Steps in Index Construction, and Defining the Target Market or Segment. Key definitions, formulas, and exam tips.
  • Types of Equity Indexes
    Types of Equity Indexes (CFA Level 1): Broad Market Indexes, Key Characteristics, and Multi-Market Indexes. Exam-focused explanations with key terms and takeaways.
  • Rebalancing, Reconstitution, and Index Changes
    Rebalancing, Reconstitution, and Index Changes (CFA Level 1): Rebalancing Essentials, Frequency and Methodologies, and Reconstitution: Keeping the Index Fresh. Key definitions, formulas, and exam tips.
  • Applications of Indexes in Passive vs. Active Investing
    Applications of Indexes in Passive vs. Active Investing (CFA Level 1): Passive Investing, Benefits of Passive Funds, and Typical Structures. Key definitions, formulas, and exam tips.
  • Factor-Based Equity Indexes
    Factor-Based Equity Indexes (CFA Level 1): Understanding Factor-Based Equity Indexes, Core Concepts of Factor Investing, and Rationale for Factor-Based Indexing. Key definitions, formulas, and exam tips.
  • Impact of Cross-Listings on Global Equity Indexes
    Impact of Cross-Listings on Global Equity Indexes (CFA Level 1): Defining Cross-Listing, Impact on Global Equity Indexes, and Index Calculation Challenges. Key definitions, formulas, and exam tips.
  • Use of Thematic and Sector-Focused Indexes
    Use of Thematic and Sector-Focused Indexes (CFA Level 1): Defining Thematic and Sector-Focused Indexes, Thematic Indexes, and Sector-Focused Indexes. Key definitions, formulas, and exam tips.
  • Style and Factor Investing Approaches
    Style and Factor Investing Approaches (CFA Level 1): Growth vs. Value, Growth Investing, and Value Investing. Key definitions, formulas, and exam tips.
  • Advanced Weighting Schemes (Equal Risk Contribution, etc.)
    Advanced Weighting Schemes (Equal Risk Contribution, etc.) (CFA Level 1): Test Your Knowledge: Advanced Weighting Schemes and Which statement best describes the core objective of. Key definitions, formulas, and exam tips.
  • Liquidity Traps in Index Investing
    Liquidity Traps in Index Investing (CFA Level 1): Defining Liquidity Traps in Index Investing, Key Points to Remember, and How Liquidity Traps Arise. Key definitions, formulas, and exam tips.
• Chapter 4: Market Efficiency and Behavioral Insights
  Chapter 4: Market Efficiency and Behavioral Insights (CFA Level 1): Key concepts explained with clear definitions, formulas, and exam-focused examples.
  • Forms of Market Efficiency (Weak, Semi-Strong, Strong)
    Forms of Market Efficiency (Weak, Semi-Strong, Strong) (CFA Level 1): Three Forms of Market Efficiency, Weak-Form Efficiency, and Semi-Strong-Form Efficiency. Key definitions, formulas, and exam tips.
  • Market Anomalies and Empirical Evidence
    Market Anomalies and Empirical Evidence (CFA Level 1): Defining Market Anomalies, Types of Market Anomalies, and Calendar Anomalies. Key definitions, formulas, and exam tips.
  • Behavioral Finance Biases and Their Effects on Equity Markets
    Behavioral Finance Biases and Their Effects on Equity Markets (CFA Level 1): Common Biases in Behavioral Finance, Overconfidence, and Confirmation Bias. Key definitions, formulas, and exam tips.
  • Implications for Equity Valuation and Active Management
    Implications for Equity Valuation and Active Management (CFA Level 1): Valuation in an Efficient Market, Role of Behavioral Biases, and Active Management and Price Discovery. Key definitions, formulas, and exam tips.
  • Overconfidence, Loss Aversion, and Other Behavioral Traps
    Overconfidence, Loss Aversion, and Other Behavioral Traps (CFA Level 1): Overconfidence, How Overconfidence Forms, and Effects on Trading Frequency. Key definitions, formulas, and exam tips.
  • Impact of Digital and Social Media on Behavioral Biases
    Impact of Digital and Social Media on Behavioral Biases (CFA Level 1): Information Saturation, Echo Chambers and Confirmation Bias, and Social Influence and Herd Behavior. Key definitions, formulas, and exam tips.
  • Disposition Effect and Herding Behavior
    Disposition Effect and Herding Behavior (CFA Level 1): Disposition Effect, Defining the Disposition Effect, and Key Drivers. Key definitions, formulas, and exam tips.
  • The Gambler’s Fallacy and Recency Bias
    The Gambler’s Fallacy and Recency Bias (CFA Level 1): Understanding the Gambler’s Fallacy, When Mean Reversion Matters—And When It Doesn’t, and Recency Bias in Equity Markets. Key definitions, formulas, and exam tips.
  • Anchoring and Confirmation Bias
    Anchoring and Confirmation Bias (CFA Level 1): Concept of Anchoring, Quick Anecdote, and Confirmation Bias. Exam-focused explanations with key terms and takeaways.
• Chapter 5: Overview of Equity Securities
  Chapter 5: Overview of Equity Securities (CFA Level 1): Key concepts, definitions, and exam tips with practical examples. Use it to reinforce intuition and avoid common pitfalls.
  • Common vs. Preferred Shares
    Common vs. Preferred Shares (CFA Level 1): Core Features of Common (Ordinary) Shares, Core Features of Preferred Shares, and Comparison of Common and Preferred Shares. Key definitions, formulas, and exam tips.
  • Voting Rights and Share Classes
    Voting Rights and Share Classes (CFA Level 1): Understanding Voting Rights, Multiple Share Classes, and Case in Point. Key definitions, formulas, and exam tips.
  • Dividends and Distribution Policies
    Dividends and Distribution Policies (CFA Level 1): Understanding Dividends and Corporate Earnings, Types of Dividends and Distribution Methods, and Cash Dividends. Key definitions, formulas, and exam tips.
  • Depositary Receipts and Global Equity Access
    Depositary Receipts and Global Equity Access (CFA Level 1): Defining Depositary Receipts, How DRs Facilitate Global Equity Access, and Structure and Participants. Key definitions, formulas, and exam tips.
  • Convertible Preference Shares and Hybrid Securities
    Convertible Preference Shares and Hybrid Securities (CFA Level 1): Key Features of Convertible Preference Shares, Conversion Mechanics, and Mandatory vs. Voluntary Conversion. Key definitions, formulas, and exam tips.
  • Share Warrants and Rights Issues
    Share Warrants and Rights Issues (CFA Level 1): What Are Warrants?, What Are Rights Issues?, and Key Differences Between Warrants and Rights. Key definitions, formulas, and exam tips.
  • Dividend Reinvestment Plans (DRIPs) and Scrip Dividends
    Dividend Reinvestment Plans (DRIPs) and Scrip Dividends (CFA Level 1): Dividend Reinvestment Plans (DRIPs), Key Concepts and Features, and Why Companies Offer DRIPs. Key definitions, formulas, and exam tips.
  • Employee Stock Option Plans (ESOPs) and Share-Based Corporate Incentives
    Employee Stock Option Plans (ESOPs) and Share-Based Corporate Incentives (CFA Level 1): Purpose and Key Components of ESOPs, Vesting Schedules, and Exercise Price. Key definitions, formulas, and exam tips.
  • Dual-Class Share Structures
    Dual-Class Share Structures (CFA Level 1): Rationale and Potential Benefits, Potential Drawbacks and Governance Concerns, and Regulatory Landscape and Global Perspectives. Key definitions, formulas, and exam tips.
  • Share Repurchase Methods (Open Market, Tender Offer, Dutch Auction)
    Share Repurchase Methods (Open Market, Tender Offer, Dutch Auction) (CFA Level 1): Key Concepts in Share Repurchases, Open Market Repurchases, and Process and Features. Key definitions, formulas, and exam tips.
  • Governance and Regulatory Considerations in Share Repurchases
    Governance and Regulatory Considerations in Share Repurchases (CFA Level 1): Transparency in Share Repurchases, Board Approvals and Shareholder Rights, and Regulatory Limits and Requirements. Key definitions, formulas, and exam tips.
• Chapter 6: Company Analysis—Past and Present
  Chapter 6: Company Analysis—Past and Present (CFA Level 1): Key concepts, definitions, and exam tips with practical examples. Use it to reinforce intuition and avoid common pitfalls.
  • Elements of a Company Research Report
    Elements of a Company Research Report (CFA Level 1): Executive Summary, Crafting a Crisp Investment Thesis, and Market Position and Competition. Key definitions, formulas, and exam tips.
  • Evaluating Revenue Drivers, Profitability, and Growth Trends
    Evaluating Revenue Drivers, Profitability, and Growth Trends (CFA Level 1): Understanding Key Revenue Drivers, Volume Growth and Market Demand, and Diagram: Factors Influencing Volume Growth. Key definitions, formulas, and exam tips.
  • Assessing Operating Efficiency and Working Capital
    Assessing Operating Efficiency and Working Capital (CFA Level 1): Understanding Operating Efficiency, Cash Conversion Cycle (CCC), and Why It Matters for Equity Investors. Key definitions, formulas, and exam tips.
  • Role of Corporate Governance in Equity Analysis
    Role of Corporate Governance in Equity Analysis (CFA Level 1): Key Components of Governance Structures, Board Composition and Director Independence, and Committee Structure and Oversight. Key definitions, formulas, and exam tips.
  • Impact of Mergers and Acquisitions on Equity Analysis
    Impact of Mergers and Acquisitions on Equity Analysis (CFA Level 1): Strategic Rationale Behind M&A, Accretive vs. Dilutive Deals, and Financing Structure and Leverage. Key definitions, formulas, and exam tips.
  • Differences in Segment Reporting and Implications for Analysis
    Differences in Segment Reporting and Implications for Analysis (CFA Level 1): Importance of Segment Reporting, Key Financial Elements in Segment Disclosures, and Identifying Cross-Subsidization. Key definitions, formulas, and exam tips.
  • Assessing Management Quality and Strategy Execution
    Assessing Management Quality and Strategy Execution (CFA Level 1): Importance of Management Quality, Background Checks on Senior Leadership, and Personal Tidbit: The Not-So-Transparent CFO. Key definitions, formulas, and exam tips.
  • Activist Shareholders and Proxy Contests
    Activist Shareholders and Proxy Contests (CFA Level 1): Who Are Activist Shareholders?, Key Motivations for Activism, and Proxy Contests: The Battle for Votes. Key definitions, formulas, and exam tips.
  • Corporate Life Cycle Analysis
    Corporate Life Cycle Analysis (CFA Level 1): Key Phases of the Corporate Life Cycle, Growth Phase, and Maturity Phase. Key definitions, formulas, and exam tips.
  • Analyzing Corporate Culture Alignment with Strategic Goals
    Analyzing Corporate Culture Alignment with Strategic Goals (CFA Level 1): Defining Corporate Culture, Connecting Culture to Strategy, and Practical Indicators: Gauging the “Real” Culture. Key definitions, formulas, and exam tips.
• Chapter 8: Company Analysis—Forecasting
  Chapter 8: Company Analysis—Forecasting (CFA Level 1): Key concepts, definitions, and exam tips with practical examples. Use it to reinforce intuition and avoid common pitfalls.
  • Industry Classification Systems
    Industry Classification Systems (CFA Level 1): Rationale Behind Classification, Major Classification Systems, and Global Industry Classification Standard (GICS). Key definitions, formulas, and exam tips.
  • Porter’s Five Forces and Competitive Dynamics
    Porter’s Five Forces and Competitive Dynamics (CFA Level 1): Threat of New Entrants, Threat of Substitute Products or Services, and Bargaining Power of Buyers. Key definitions, formulas, and exam tips.
  • Evaluating Industry Life Cycles and Market Share Trends
    Evaluating Industry Life Cycles and Market Share Trends (CFA Level 1): Understanding the Industry Life Cycle, Growth Stage, and Shakeout Stage. Key definitions, formulas, and exam tips.
  • PESTLE Framework for External Analysis
    PESTLE Framework for External Analysis (CFA Level 1): Among the Political factors in a PESTLE analysis and When analyzing Economic factors, which indicator directly influences. Key definitions, formulas, and exam tips.
  • Cross-Industry Analysis and Intermarket Linkages
    Cross-Industry Analysis and Intermarket Linkages (CFA Level 1): Understanding Cross-Industry Interactions, Upstream and Downstream Dependencies, and Global Supply Chains and Intermarket Shock Transmission. Key definitions, formulas, and exam tips.
  • Quantitative Tools for Industry and Competitive Analysis
    Quantitative Tools for Industry and Competitive Analysis (CFA Level 1): Ratio Analysis, Common Usage, and Best Practices and Pitfalls. Key definitions, formulas, and exam tips.
  • Use of Industry-Specific KPIs for Competitive Assessment
    Use of Industry-Specific KPIs for Competitive Assessment (CFA Level 1): Why Industry-Specific KPIs Matter, Common Industry KPIs, and Retail Industry. Key definitions, formulas, and exam tips.
  • Concentration Ratios and the Herfindahl–Hirschman Index (HHI)
    Concentration Ratios and the Herfindahl–Hirschman Index (HHI) (CFA Level 1): Understanding Concentration Ratios, Herfindahl–Hirschman Index (HHI), and HHI Thresholds in Merger Review. Key definitions, formulas, and exam tips.
  • Network Effects and Competitive Moats
    Network Effects and Competitive Moats (CFA Level 1): Understanding Network Effects, Direct vs. Indirect Network Effects, and Positive Feedback Loops and “Winner Takes Most”. Key definitions, formulas, and exam tips.
  • Sector Rotation Strategies (Business Cycle, Style Rotation)
    Sector Rotation Strategies (Business Cycle, Style Rotation) (CFA Level 1): Identifying Economic Turns with Leading Indicators and Style Rotation: Growth vs. Value. Key definitions, formulas, and exam tips.
• 8: Company Analysis—Forecasting
  8: Company Analysis—Forecasting (CFA Level 1): Key concepts, definitions, and exam tips with practical examples. Use it to reinforce intuition and avoid common pitfalls.
  • Principles and Approaches to Sales Forecasting
    Principles and Approaches to Sales Forecasting (CFA Level 1): Importance of Sales Forecasting, Key Principles of Sales Forecasting, and Approaches to Sales Forecasting. Key definitions, formulas, and exam tips.
  • Estimating Expenses, Margins, and Capital Expenditures
    Estimating Expenses, Margins, and Capital Expenditures (CFA Level 1): Classifying Expenses: Variable vs. Fixed, Historical Cost Patterns and Cost Drivers, and Margins: Gross, Operating, and Net. Key definitions, formulas, and exam tips.
  • Top-Down vs. Bottom-Up Forecasting Methodologies
    Top-Down vs. Bottom-Up Forecasting Methodologies (CFA Level 1): What Is Top-Down Forecasting?, Advantages of Top-Down Forecasting, and Limitations of Top-Down Forecasting. Key definitions, formulas, and exam tips.
  • Scenario Analysis and Stress Testing
    Scenario Analysis and Stress Testing (CFA Level 1): Key Concepts in Scenario Analysis, Scenario Analysis vs. Sensitivity Analysis, and Steps in Scenario Analysis. Key definitions, formulas, and exam tips.
  • Sensitivity Analysis under Different Macroeconomic Scenarios
    Sensitivity Analysis under Different Macroeconomic Scenarios (CFA Level 1): Differences Between Sensitivity and Scenario Analysis and Why Sensitivity Analysis Matters for Forecasting. Key definitions, formulas, and exam tips.
  • Forecasting Equity Dilution and Share Repurchases
    Forecasting Equity Dilution and Share Repurchases (CFA Level 1): Key Concepts, What Is Equity Dilution?, and Share Repurchases as a Counterbalance. Key definitions, formulas, and exam tips.
  • Forecasting Cyclical vs. Non-Cyclical Firms
    Forecasting Cyclical vs. Non-Cyclical Firms (CFA Level 1): Distinguishing Cyclical and Non-Cyclical Firms, Economic Indicators and Industry Sensitivities, and Leading Indicators for Cyclical Firms. Key definitions, formulas, and exam tips.
  • Using Monte Carlo Simulations in Forecasting
    Using Monte Carlo Simulations in Forecasting (CFA Level 1): Understanding the Concept of Monte Carlo Simulation, Selecting Probability Distributions, and Incorporating Correlation Among Variables. Key definitions, formulas, and exam tips.
  • Percent-of-Sales Forecasting Approach
    Percent-of-Sales Forecasting Approach (CFA Level 1): Foundational Principles of the Percent-of-Sales Method, Key Components of the Approach, and Step-by-Step Implementation. Key definitions, formulas, and exam tips.
  • Data Collection, Integrity, and Common Pitfalls
    Data Collection, Integrity, and Common Pitfalls (CFA Level 1): Importance of Data in Forecasting, Data Collection, and Identifying Key Sources. Key definitions, formulas, and exam tips.
• Chapter 9: Equity Valuation—Concepts and Basic Tools
  Chapter 9: Equity Valuation—Concepts and Basic Tools (CFA Level 1): Key concepts explained with clear definitions, formulas, and exam-focused examples.
  • Dividend Discount Models (Single-Stage, Multistage)
    Dividend Discount Models (Single-Stage, Multistage) (CFA Level 1): Single-Stage (Gordon Growth) Model, Core Concept, and Key Assumptions. Key definitions, formulas, and exam tips.
  • Free Cash Flow to Equity (FCFE) Models
    Free Cash Flow to Equity (FCFE) Models (CFA Level 1): FCFE Formula, Single-Stage FCFE Valuation, and Multi-Stage FCFE Models. Key definitions, formulas, and exam tips.
  • Price Multiples (P/E, P/B, P/S, EV/EBITDA) and Relative Valuation
    Price Multiples (P/E, P/B, P/S, EV/EBITDA) and Relative Valuation (CFA Level 1): Understanding the Basics of Price Multiples, Key Price Multiples, and Price-to-Earnings (P/E) Ratio. Key definitions, formulas, and exam tips.
  • Asset-Based Valuation Approaches
    Asset-Based Valuation Approaches (CFA Level 1): Key Steps in Asset-Based Valuation, Adjusting to Fair Market Values, and Handling Liabilities. Key definitions, formulas, and exam tips.
  • Strengths and Limitations of Valuation Techniques
    Strengths and Limitations of Valuation Techniques (CFA Level 1): Dividend Discount Models (DDM), Strengths, and Limitations. Key definitions, formulas, and exam tips.
  • Residual Income Models and Adjustments for Non-Recurring Items
    Residual Income Models and Adjustments for Non-Recurring Items (CFA Level 1): Fundamental Concept of Residual Income, Relationship to Shareholder Value Creation, and Clean Surplus Relationship. Key definitions, formulas, and exam tips.
  • Valuing Startups and Early-Stage Companies
    Valuing Startups and Early-Stage Companies (CFA Level 1): Understanding the Challenges in Valuing Startups, Common Valuation Methods, and Venture Capital Method. Key definitions, formulas, and exam tips.
  • Multi-Stage FCFE Models with Changing Growth Patterns
    Multi-Stage FCFE Models with Changing Growth Patterns (CFA Level 1): Rationale Behind Multi-Stage FCFE Models, Key Components of a Multi-Stage FCFE Model, and Free Cash Flow to Equity (FCFE). Key definitions, formulas, and exam tips.
  • Terminal Value Estimation Methods
    Terminal Value Estimation Methods (CFA Level 1): Importance of Terminal Value in Equity Valuation, Methods for Estimating Terminal Value, and Gordon Growth Model (Perpetual Growth Method). Key definitions, formulas, and exam tips.
  • Reverse-Engineering Market Expectations
    Reverse-Engineering Market Expectations (CFA Level 1): Rationale Behind Reverse-Engineering, Common Applications, and Valuation Models Suited for Reverse-Engineering. Key definitions, formulas, and exam tips.
  • Required Return on Equity (Cost of Equity)
    Required Return on Equity (Cost of Equity) (CFA Level 1): Understanding the Basics, Core Components of the Cost of Equity, and Risk-Free Rate. Key definitions, formulas, and exam tips.
  • CAPM and Multifactor Models
    CAPM and Multifactor Models (CFA Level 1): CAPM at a Glance, Key Assumptions of CAPM, and Beyond the Single Factor. Key definitions, formulas, and exam tips.
  • Equity Risk Premium Approaches (Historical, Forward-Looking)
    Equity Risk Premium Approaches (Historical, Forward-Looking) (CFA Level 1): Setting the Stage: Why the Equity Risk Premium and Historical Approach: Understanding the Past. Key definitions, formulas, and exam tips.
  • Bond Yield Plus Risk Premium Approach
    Bond Yield Plus Risk Premium Approach (CFA Level 1): Conceptual Foundation, Detailed Mechanics, and Observing the Bond Yield. Key definitions, formulas, and exam tips.
  • Equity Risk Indicators (Volatility, Value at Risk, Beta Computation)
    Equity Risk Indicators (Volatility, Value at Risk, Beta Computation) (CFA Level 1): Volatility: Capturing Total Risk, Defining Volatility, and Why It Matters. Key definitions, formulas, and exam tips.
  • H-Model for Dividend Growth
    H-Model for Dividend Growth (CFA Level 1): Key Concepts and Underpinnings, H-Model Formula, and Intuitive Understanding. Key definitions, formulas, and exam tips.
  • PEG Ratios and Adjusted P/E Multiples
    PEG Ratios and Adjusted P/E Multiples (CFA Level 1): Understanding the PEG Ratio, Why Growth Matters, and Interpreting the PEG Ratio. Key definitions, formulas, and exam tips.
• Chapter 10: ESG Considerations in Equity Investments
  Chapter 10: ESG Considerations in Equity Investments (CFA Level 1): Key concepts explained with clear definitions, formulas, and exam-focused examples.
  • ESG Factors and Their Impact on Equity Risk and Return
    ESG Factors and Their Impact on Equity Risk and Return (CFA Level 1): Why ESG Matters, Breaking Down ESG Factors, and Environmental Considerations. Key definitions, formulas, and exam tips.
  • Integrating ESG Data into Company and Industry Analyses
    Integrating ESG Data into Company and Industry Analyses (CFA Level 1): Why ESG Matters in Equity Research, Common ESG Data Sources, and Identifying Material ESG Factors. Key definitions, formulas, and exam tips.
  • Ethical and Governance Issues Relevant to Equity Selection
    Ethical and Governance Issues Relevant to Equity Selection (CFA Level 1): Significance of Governance and Ethics in Equity Selection and Board Composition and Structure. Key definitions, formulas, and exam tips.
  • Global Trends and Regulatory Developments in ESG Investing
    Global Trends and Regulatory Developments in ESG Investing (CFA Level 1): European Union (EU), United States, and Asia-Pacific. Key definitions, formulas, and exam tips.
  • Best Practices in ESG Integration
    Best Practices in ESG Integration (CFA Level 1): Collaboration Across Teams, Materiality Mapping, and Engagement Strategies. Key definitions, formulas, and exam tips.
  • Integration of Climate Risk Metrics into Equity Selection
    Integration of Climate Risk Metrics into Equity Selection (CFA Level 1): Understanding Climate Risk in Equity Analysis, Key Climate Metrics, and Integrating Climate Metrics into Equity Valuation. Key definitions, formulas, and exam tips.
  • Challenges in ESG Data Standardization
    Challenges in ESG Data Standardization (CFA Level 1): Patchwork of ESG Data Sources, Divergent ESG Ratings and Methodologies, and Self-Reporting Pitfalls. Key definitions, formulas, and exam tips.
  • Greenwashing and Its Detection
    Greenwashing and Its Detection (CFA Level 1): Different Shades of Greenwashing, Core Drivers of Greenwashing, and Risks to Investors. Key definitions, formulas, and exam tips.
  • Proxy Voting Policies in an ESG Context
    Proxy Voting Policies in an ESG Context (CFA Level 1): Background on Proxy Voting in ESG, Common ESG Voting Topics, and Influence of Proxy Advisory Firms. Key definitions, formulas, and exam tips.