StickyKurtosis
Kurtosis refers to the measurement of the degree to which a given distribution is more or less ‘peaked’ relative to the normal distribution. The concept of kurtosis is very useful in decision-making. In this regard, we have 3 categories of…
Price and Total Return
Equity Return with No Dividends The total return from holding an equity investment comes from two sources: Cash dividends — discretionary payouts made to shareholders. Price changes — the increase or decrease in the market value of each share over…
Reading 36 – Market Organization and Structure – LOS 36a: explain the main functions of the financial system – LOS 36b: describe classifications of assets and markets – LOS 36c: describe the major types of securities, currencies, contracts, commodities, and…
Guidance for Standards
I. Professionalism Standard I: Professionalism establishes expectations for ethical and professional behavior. It requires members and candidates to act in a manner that protects the integrity of the investment profession, follows applicable requirements, maintains independence, communicates accurately, avoids misconduct, and…
Older Curriculums
Study Session 1 Reading 1 (56 in 2022) – Ethics and Trust in the Investment Profession Read our in-depth summary of Ethics and Trust in the Investment Profession – LOS 1a: explain ethics – LOS 1b: describe the role of a…
Financial Data Science, Big Data, Machine Learning, and AI in Investment Management
The Changing Face of Investment Analysis Investment decision-making has always relied on two broad categories of information: Over the past 30 years, digitization has transformed how qualitative data is captured and used. Emails, social media posts, earnings call transcripts, news…
Monopolistic Competition
Demand Analysis under Monopolistic Competition In monopolistic competition, firms have a downward-sloping demand curve, meaning lower prices lead to more demand and vice versa. At some prices, demand is very responsive to changes (elastic), and at lower prices, demand is…
Characteristics of Market Structures
Factors that Influence Market Structure. There are four types of economic market structures. Perfect Competition Perfect competition refers to a market with many buyers and sellers, similar products, and substitutes. A good example is agriculture, where all rice farmers sell…
Legal, Regulatory, and Tax Implications on Fixed-income Securities
Fixed-income securities depend on laws and regulations of the place of issuance, where bonds are traded, and the holders of bonds. Classification of Bonds by Jurisdiction Emerging and Frontier Markets Bonds from emerging and frontier markets can differ in characteristics…
Fixed-income Cash Flow Structures and Contingency Provisions
Fixed income instruments have different cash flow structures that provide investors and issuers with various options to meet their specific financial goals, manage risks, and tailor their investments to suit their particular circumstances. Standard, Fixed-Rate Bond (“Bullet Bond”) A standard…
Bond Indentures A bond indenture is a legal contract that outlines the obligations of the bond issuer and the rights of the bondholders. It’s often referred to as the bond indenture. This contract lays the groundwork for all subsequent transactions…
