Topic 6 of 10 • CFA Level 1

Equity Investments

Equity securities, markets, and valuation

8
Subtopics
65
Learning Outcomes
11-14%
Exam Weight

Topic Overview

Equity Investments is one of the 10 major topic areas in the CFA Level 1 curriculum, representing approximately 11-14% of the exam. This topic area covers 8 key subtopics that form the foundation of equity investments knowledge required for investment professionals.

Understanding equity investments is essential for CFA candidates as it provides the fundamental concepts needed to analyze financial markets and make informed investment decisions. This topic area includes 65 specific learning outcomes that candidates must master for the exam.

Subtopics in Equity Investments

1

Market Organization and Structure

12 learning outcomes

2

Security Market Indexes

10 learning outcomes

3

Market Efficiency

7 learning outcomes

4

Overview of Equity Securities

8 learning outcomes

5

Company Analysis: Past and Present

5 learning outcomes

6

Industry and Competitive Analysis

5 learning outcomes

7

Company Analysis: Forecasting

5 learning outcomes

8

Equity Valuation: Concepts and Basic Tools

13 learning outcomes

Study Tips for Equity Investments

Recommended Approach

  • • Start with understanding key concepts before memorizing formulas
  • • Practice calculations with real-world examples
  • • Review learning outcomes to ensure complete coverage
  • • Take topic-specific practice quizzes regularly

Key Focus Areas

  • • Understand how this topic connects to other CFA areas
  • • Focus on high-weight subtopics for maximum impact
  • • Review past exam questions for this topic
  • • Create summary notes for quick revision

Ready to Master Equity Investments?

Practice with our comprehensive question bank featuring questions on all 8 subtopics and 65 learning outcomes.