Equities / Stock

On completion, the candidate should:

• know the features and benefits of ordinary and preference shares/common stock and preferred stock:
  • dividend
  • capital gain
  • pre-emptive rights
  • right to vote
• be able to calculate the share dividend yield
• understand the risks associated with owning shares/stock:
  • price risk
  • liquidity risk
  • issuer risk
  • foreign exchange risk
• know the definition of a corporate action and the difference between mandatory, voluntary and mandatory with options
• know the different methods of quoting securities ratios
• understand the following terms:
  • bonus/scrip/capitalisation issues
  • rights issues/open offer
  • stock splits/reverse stock splits
  • dividend payments
  • takeover/merger
• know the purpose and format of annual company meetings
• know the differences between the primary market and the secondary market
• understand the characteristics of depositary receipts:
  • American depositary receipt
  • global depositary receipt
  • dividend payments
  • how created/pre-release facility
  • rights
• know the role of stock markets
• know the types and uses of the main global stock exchange indices
• know how shares are traded:
  • on-exchange/over-the-counter
  • multilateral trading facilities
  • order-driven/quote-driven
• understand how settlement takes place:
  • process
  • settlement cycles