TAILIEUCHUNG - Hướng dẫn ôn thi CFA Level 1 2010 Phần 13

Tài liệu hướng dẫn ôn thi CFA Level 1 phần Securities Markets | The following is a review of the Analysis of Equity Investments principles designed to address the earning outcome statements set forth by CFA Institute . This topic is also covered in Organization and functioning of Securities Markets Study Session 13 EXAM FOCUS This review covers securities markets explains how and where securities are traded and introduces much of the terminology of securities trading. It s all testable material and you should pay special attention to the calculations dealing with margin accounts. The other important topic areas here include the difference between primary and secondary markets the mechanics of short sales the difference between a dealer market and an exchange market types of orders and the different arrangements with investment bankers that can be made when issuing new securities. LOS Describe the characteristics of a well-functioning securities market. A well-functioning securities market will offer the following characteristics Timely and accurate information on the price and volume of past transactions and on current supply and demand conditions. Liquidity the ability to buy or sell quickly at a known price which requires marketability the ability to sell the security quickly and price continuity prices don t change much from one transaction to the next in the absence of news because numerous buyers and sellers are willing to trade at prices above and below the current price . Internal efficiency refers to low transaction costs. Informational external efficiency which means that prices adjust rapidly to new information so the prevailing market price reflects all available information regarding the value of the asset. LOS Distinguish between primary and secondary capital markets and explain how secondary markets support primary markets. Primary capital markets refers to the sale of new issues of securities. Most issues are distributed with the aid of an underwriter. The underwriter provides three services to the .

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