Types of annuities with Formulas and Examples

An annuity is a regular series of payments. An individual submits funds to a financial institution and in turn receives a regular series of payments. They are a direct result of the time value of money. Most annuities will require…

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Interest rate risk explained with relevant examples

Interest is basically a reward paid by a borrower, for the use of an asset, usually capital, belonging to a lender. It’s the compensation paid for the loss of use of the asset. We could also describe it as the…

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Time value of money explained with relevant examples

Time value of money is a concept that refers to the greater benefit of receiving a given amount of money at present rather than in the future, due to its earning potential. Money could be invested in a bank account…

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Learning Sessions – Alternative Investments

Study Session 18 Reading 58 – Introduction to Alternative Investments – LOS 58a: compare alternative investments with traditional investments – LOS 58b: describe categories of alternative investments – LOS 58c: describe potential benefits of alternative investments in the context of portfolio…

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Learning Sessions – Derivatives

Study Session 17 Reading 56 – Derivative Markets and Instruments – LOS 56a: define a derivative and distinguish between exchange-traded and over-the-counter derivatives – LOS 56b: contrast forward commitments with contingent claims – LOS 56c: define forward contracts, futures contracts, options…

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Learning Sessions – Fixed Income

Study Session 15 Reading 50 – Fixed-Income Securities: Defining Elements – LOS 50a: describe basic features of a fixed-income security – LOS 50b: describe content of a bond indenture – LOS 50c: compare affirmative and negative covenants and identify examples of…

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Learning Sessions – Equity

Study Session 13 Reading 44 – Market Organization and Structure – LOS 44a: explain the main functions of the financial system – LOS 44b: describe classifications of assets and markets – LOS 44c: describe the major types of securities, currencies, contracts,…

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Learning Sessions – Portfolio Management

Study Session 12 Reading 38 – Portfolio Management: An Overview – LOS 38a: describe the portfolio approach to investing– LOS 38b: describe types of investors and distinctive characteristics and needs of each– LOS 38c: describe defined contribution and defined benefit pension…

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Learning Sessions – Corporate Finance

Study Session 10 Reading 33 – Corporate Governance and ESG: An Introduction – LOS 33a: describe corporate governance – LOS 33b: describe a company’s stakeholder groups and compare interests of stakeholder groups – LOS 33c: describe principal–agent and other relationships in…

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Learning Sessions – Financial Reporting and Analysis

Study Session 6 Reading 21 – Financial Statement Analysis: An Introduction –LOS 21a: describe the roles of financial reporting and financial statement analysis –LOS 21b: describe the roles of the statement of financial position, statement of comprehensive income, statement of changes…

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