Investment Marketplace

KNOWLEDGE EXPECTED OF: QAFP® Professionals

Highest Knowledge Level: Understanding

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 participants in the financial market system, such as:
    • Individual investors
    • Institutional investors
    • Foreign investors
    • Financial corporations (public, private)
    • Non-financial corporations
    • Governments
  • Identify financial intermediaries in the financial market system, such as:
    • Investment dealers
    • Stock exchanges
    • Over-the-counter markets
    • Lending institutions
    • Insurance companies
    • Governments
  • Explain key trends currently affecting investment advice, such as:
    • Growth and use of robo-advisers
    • Fintech (financial technology) company offerings
    • Channels through which advice is available
    • Socially Responsible Investing (SRI) objectives
    • Environmental, Social and Governance (ESG) measurement
  • Identify financial markets that exist, such as:
    • Long-term capital market
      • Equity
      • Debt
    • Money market
    • Derivatives market
    • Foreign exchange market
  • Define types of markets in which investments may be traded, such as:
    • Primary market
    • Secondary market
    • Dealer / Over-the-counter
    • Auction
  • Identify which investments trade in each of the types of markets.
  • Define the terms related to the movement of the market for an investment.
    • Bull market
    • Bear market

KNOWLEDGE EXPECTED OF: CFP® Professionals

Highest Knowledge Level: Understanding

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 participants in the financial market system, such as:
    • Individual investors
    • Institutional investors
    • Foreign investors
    • Financial corporations (public, private)
    • Non-financial corporations
    • Governments
  • Identify financial intermediaries in the financial market system, such as:
    • Investment dealers
    • Stock exchanges
    • Over-the-counter markets
    • Lending institutions
    • Insurance companies
    • Governments
  • Explain key trends currently affecting investment advice, such as:
    • Growth and use of robo-advisers
    • Fintech (financial technology) company offerings
    • Channels through which advice is available
    • Socially Responsible Investing (SRI) objectives
    • Environmental, Social and Governance (ESG) measurement
  • Identify financial markets that exist, such as:
    • Long-term capital market
      • Equity
      • Debt
    • Money market
    • Derivatives market
    • Foreign exchange market
  • Define types of markets in which investments may be traded, such as:
    • Primary market
    • Secondary market
    • Dealer / Over-the-counter
    • Auction
  • Identify which investments trade in each of the types of markets.
  • Define the terms related to the movement of the market for an investment.
    • Bull market
    • Bear market