Investment Buying and Selling Techniques
KNOWLEDGE EXPECTED OF: QAFP® Professionals
Highest Knowledge Level: Application
Knowledge Levels and Associated Verbs
Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
|
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
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Application
Ability to put information to use / to use knowledge for relevant, practical purposes
|
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
|
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Define
To state exactly the meaning of
|
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
|
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
|
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
|
Compare
To note the similarities and differences between two or more things
|
Estimate
To determine an approximate value for
|
Calculate
To find the value using mathematics
|
Convert
To change from one form or purpose to another
|
Evaluate
To reach a conclusion or make a through careful study
|
Interpret
To give the meaning of / to construe or understand / to translate orally
|
Hold cursor over or click on each term to read its definition.
- Identify investment buying and selling techniques, such as:
- Market timing
- Dollar cost averaging
- Value averaging
- Dividend reinvestment plans (DRIP)
- Systematic withdrawal plans
- Explain investment buying and selling techniques.
- Compare dollar cost averaging to investing a lump sum, specifically:
- Total return
- Short-term volatility
- Explain the effect of reinvested distributions (from a dividend reinvestment program) on adjusted cost base.
- Explain risks associated with market timing, such as:
- Potential lower returns
- Potential missed opportunities
- Potential loss of capital gains inclusion rate
KNOWLEDGE EXPECTED OF: CFP® Professionals
Highest Knowledge Level: Application
Knowledge Levels and Associated Verbs
Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
|
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
|
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
|
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
|
||||||
---|---|---|---|---|---|---|---|---|---|
Define
To state exactly the meaning of
|
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
|
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
|
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
|
Compare
To note the similarities and differences between two or more things
|
Estimate
To determine an approximate value for
|
Calculate
To find the value using mathematics
|
Convert
To change from one form or purpose to another
|
Evaluate
To reach a conclusion or make a through careful study
|
Interpret
To give the meaning of / to construe or understand / to translate orally
|
Hold cursor over or click on each term to read its definition.
- Identify investment buying and selling techniques, such as:
- Market timing
- Dollar cost averaging
- Value averaging
- Dividend reinvestment plans (DRIP)
- Systematic withdrawal plans
- Explain investment buying and selling techniques.
- Compare dollar cost averaging to investing a lump sum, specifically:
- Total return
- Short-term volatility
- Explain the effect of reinvested distributions (from a dividend reinvestment program) on adjusted cost base.
- Explain risks associated with market timing, such as:
- Potential lower returns
- Potential missed opportunities
- Potential loss of capital gains inclusion rate