Chapter 6: Equity Investments

In this section

• Market Organization and Structure
  Discover how financial markets function, the roles of key participants, and the various structures that support the efficient trading of assets and allocation of capital.
• Security Market Indexes
  Gain a comprehensive understanding of how security market indexes are constructed, maintained, and used, with insights into different weighting methodologies, index rebalancing, and reconstitution for performance benchmarking and investment decisions.
• Market Efficiency
  Discover how market prices reflect available information, explore forms of efficiency, and understand anomalies and behavioral biases in financial markets.
• Overview of Equity Securities
  Explore the essential characteristics of equity ownership, including common vs. preferred shares, public vs. private equity, global depositary receipts, and the key roles equity plays in corporate financing and investor returns.
• Company Analysis: Past and Present
  Learn how to analyze companies by examining their historical evolution and current positioning. Explore financial statements, business models, ESG factors, and more to gain a holistic view of an organization's past performance and future potential.
• Industry and Competitive Analysis
  Explore the purpose, frameworks, and methodologies for analyzing industries and competitive forces, including classification methods, Porter’s Five Forces, PESTLE analysis, and competitive strategies.
• Company Analysis: Forecasting
  Explore both top-down and bottom-up forecasting approaches, revenue projections, operating expense estimates, capital structure considerations, and scenario analyses to build robust company forecasts.
• Equity Valuation: Concepts and Basic Tools
  Explore how to evaluate a stock’s intrinsic value using present value models, market multiples, and asset-based approaches. Understand dividend mechanics, assumptions behind valuation methods, and practical insights for applying these tools in real-world scenarios.