CFA Institute is the global association of investment professionals that sets the standard for professional excellence and credentials. The organization is a champion for ethical behavior in investment markets and a respected source of knowledge in the global financial community. The end goal: to create an environment where investors' interests come first, markets function at their best, and economies grow. CFA Institute has more than 155,000 members in 165 countries and territories, including 150,000 CFA(R) charterholders, and 148 member societies. For more information, visit www.cfainstitute.org.
Inhaltsangabe
Preface xi
Acknowledgments xiii
About the CFA Institute Investment Series xv
Chapter 1 Overview of Equity Securities 1
Learning Outcomes 1
1. Introduction 1
2. Equity Securities in Global Financial Markets 2
3. Types and Characteristics of Equity Securities 6
3.1. Common Shares 7
3.2. Preference Shares 10
4. Private versus Public Equity Securities 12
5. Investing in Non-Domestic Equity Securities 15
5.1. Direct Investing 17
5.2. Depository Receipts 17
6. Risk and Return Characteristics of Equity Securities 20
6.1. Return Characteristics of Equity Securities 20
5.2. Risk of Equity Securities 22
7. Equity Securities and Company Value 23
7.1. Accounting Return on Equity 23
7.2. The Cost of Equity and Investors' Required Rates of Return 28
Summary 29
References 31
Practice Problems 31
Chapter 2 Market Efficiency 35
Learning Outcomes 35
1. Introduction 35
2. The Concept of Market Efficiency 37
2.1. The Description of Efficient Markets 37
2.2. Market Value versus Intrinsic Value 39
2.4. Transaction Costs and Information-Acquisition Costs 43
3. Forms of Market Efficiency 44
3.1. Weak Form 44
3.2. Semi-Strong Form 45
3.3. Strong Form 48
3.4. Implications of the Efficient Market Hypothesis 48
4. Market Pricing Anomalies 50
4.1. Time-Series Anomalies 51
4.2. Cross-Sectional Anomalies 53
4.3. Other Anomalies 54
4.4. Implications for Investment Strategies 56
5. Behavioral Finance 57
5.1. Loss Aversion 57
5.2. Herding 58
5.3. Overconfidence 58
5.4. Information Cascades 58
5.5. Other Behavioral Biases 59
5.6. Behavioral Finance and Investors 60
5.7. Behavioral Finance and Efficient Markets 60
Summary 60
References 61
Practice Problems 63
Chapter 3 Overview of Equity Portfolio Management 67
Learning Outcomes 67
1. Introduction 67
2. The Roles of Equities in a Portfolio 68
2.1. Capital Appreciation 68
2.2. Dividend Income 69
2.3. Diversification with Other Asset Classes 70
2.4. Hedge Against Inflation 71
2.5. Client Considerations for Equities in a Portfolio 71
3. Equity Investment Universe 73
3.1. Segmentation by Size and Style 73
3.2. Segmentation by Geography 75
3.3. Segmentation by Economic Activity 77
3.4. Segmentation of Equity Indexes and Benchmarks 78
4. Income and Costs in an Equity Portfolio 79
4.1. Dividend Income 79
4.2. Securities Lending Income 80
4.3. Ancillary Investment Strategies 80
4.4. Management Fees 81
4.5. Performance Fees 81
4.6. Administration Fees 82
4.7. Marketing and Distribution Costs 82
4.8. Trading Costs 83
4.9. Investment Approaches and Effects on Costs 83
5. Shareholder Engagement 84
5.1. Benefits of Shareholder Engagement 84
5.2. Disadvantages of Shareholder Engagement 85
5.3. The Role of an Equity Manager in Shareholder Engagement 85
6. Equity Investment across the Passive-Active Spectrum 87
