The third exam will cover The Economy, Industries, Stocks,
Securities Business, Averages, Indexes and Brokerage Firms.Business Cycle,
Coincident Indicators, Deficit,
Discount Rate, Fiscal Policy,
Gross Domestic Product, Lagging Indicators, Leading Indicators, Monetary
Policy.
Bottom-Up Approach (Stock Pickers), Top-Down Approach.
Monopolies, Oligopolies, Pure Competition, Imperfect Competition.
Beta, General Dividend Valuation Model, Dividend Growth Model,
Equity Risk Premium,
Earnings Valuation Model (P/E), Growth Companies,
Growth Stock,
Price-Earnings Ratio, Required Rate of Return, Risk-Free Rate,
Valuation.
In addition to the terms listed above, be familiar
with the following:
Dividends on Stocks and Stock Splits
Preferred Stocks and their characteristics
Count on calculations dealing with:
the Required Rate of Return, Price-Earnings Ratio, Dividend Yield. You
will NOT have to find the
price of a stock using the dividend discount model. The models are fair game
for questions.
Averages & Indexes: Dow Jones Industrial Average, Dow
Jones Transportation Average, Dow Jones Utility Average. Standard &
Poors 500.
Securities Business: Primary and Secondary Markets,
Investment Bankers, Best Effort Underwriting, Stand-by Underwriting,
Un-syndicated offering, Syndicate, Secondary Distributors.
Brokerage
Firms: Cash account vs Margin account, Full-Service Firm vs. Discount
Firm.
Trades: Long, Market Order, Limit Order, Stop Order.
Short sale, Short Interest, Days to Cover, Short Squeeze, Short Against the
Box.