knowledge topics
Investment Marketplace
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- 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
- Fin-tech (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
- Long-term capital 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
Glossary of Verbs (mouse over to see definition)
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Define
To state exactly the meaning of
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Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
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Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
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Compare
To note the similarities and differences between two or more things
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Estimate
To determine an approximate value for
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Calculate
To find the value using mathematics
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Convert
To change from one form or purpose to another
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Evaluate
To reach a conclusion or make a judgement through careful study
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Interpret
To give the meaning of / to construe or understand / to translate orally
Read more about the Taxonomy used in the FP-BoK