Examining a Company’s Inventory Disclosures and Other Sources of Information
Financial statement analyses that fail to consider the impact of differences in methodologies adopted, disclosures made, and presentation formats are likely to result in faulty conclusions. An analyst has to have a critical mind and give consideration to the information…
Analyze and Compare the Financial Statements of Companies
A company’s choice of inventory valuation method can have a significant impact on the presentation of its financial statements. Financial items such as cost of sales, gross profit, net income, inventories, current assets, and total assets as well as the…
CFA® Level 1 Study Notes – Derivatives
Study Session 16 Reading 48 – Derivative Markets and Instruments – LOS 48a: define a derivative and distinguish between exchange-traded and over-the-counter derivatives – LOS 48b: contrast forward commitments with contingent claims – LOS 48c: define forward contracts, futures contracts,…
Learning Sessions – Ethical and Professional Standards
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…
CFA Level 1 Study Notes – Quantitative Methods
2023 Syllabus Study Session 1 R01 2023 – Time Value of Money -LOS a: interpret interest rates as required rates of return, discount rates, or opportunity costs -LOS b: explain an interest rate as the sum of a real risk-free…
The GIPS Standards
Features of GIPS, and Compliance The investment industry is increasingly global in nature. For both firms and clients, there is a benefit to adopting a standardized protocol for calculating and presenting performance data. By adopting GIPS, firms in countries with…
Types of Security Market Indices
Investors can choose from security market indices representing various asset classes, including equity, fixed-income, commodity, real estate, and hedge fund indices. While proper use of any index is dependent on understanding their construction and management, it is also important to…
Market Efficiency
Market efficiency describes the extent to which available information is quickly reflected in the market price. Market efficiency is highly important to active investment managers as their advantage depends on exploiting market inefficiencies and earning excess risk-adjusted returns. Investment officers…
Factors that Affect a Market’s Efficiency
Most, if not all, markets can be thought of as existing on a spectrum between perfect efficiency and complete inefficiency. This is because several factors contribute to or impede the efficiency of a market, including market participants, information availability and…
