CFA Program Equity Coaching: The motto of discussing this risk & return concept here is that we want you to understand this important portfolio concept right in the beginning of your Level I because it concept will be used throughout our CFA Program studies.
Leverage trade and Margin requirement: this is simply and must to be know concept for any one who wants to 0r trade in equity. His concept says that you can borrow funds from your broker to purchase stocks in our trading account. To perform this activity you as investor has to bring only a minimum fraction of purchase price of stock, which is known as initial margin and has to maintain a minimum fund in our account, which is like a safety margin for the lender in case the stock prices decline for any reason, known as maintenance margin.
You as a candidate in the Level I exam must expect at least 2 question based on this concept.
Important readings for exam!
Market Organization and Structure
Security Market Indices
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