Chapter 2: Market Organization and Equity Structure

In this section

• 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.