Chapter 3: Equity Securities

In this section

• 3.1 Characteristics of Equity Securities
  • Understanding Common Shares: Ownership, Rights, and Investment Potential
    Explore the fundamental features, rights, and investment potential of common shares in corporate financing and ownership.
  • Preferred Shares: Understanding Their Role in Investment and Corporate Finance
    Explore the features, types, and strategic advantages of preferred shares in corporate finance and investment portfolios.
  • Understanding Rights and Warrants in Equity Securities
    Explore the intricacies of rights and warrants in equity securities, their issuance, exercise, and impact on shareholders.
  • Understanding Classes of Shares: A Comprehensive Guide
    Explore the intricacies of different classes of shares, their characteristics, and implications for investors in the Canadian Securities Course.
  • Shareholder Rights: Understanding and Exercising Your Influence
    Explore the fundamental rights of shareholders, how they are protected under corporate law, and the mechanisms through which shareholders can influence corporate governance.
• 3.2 Equity Markets and Trading
  • Stock Exchanges in Canada: An In-depth Exploration of Canadian Financial Markets
    Explore the major stock exchanges in Canada, including the TSX, TSXV, and CSE. Understand their roles, listing requirements, trading processes, and recent developments.
  • Trading Costs and Fees: Understanding and Minimizing Costs in Canadian Securities Trading
    Explore the intricacies of trading costs and fees in the Canadian securities market, including explicit and implicit costs, their impact on investment returns, and strategies to minimize expenses.
  • Over-the-Counter Markets: Understanding OTC Trading in Canada
    Explore the intricacies of Over-the-Counter (OTC) Markets in Canada, including their operation, securities traded, risks, benefits, and regulatory considerations.
  • Trading Mechanisms and Orders: Understanding Equity Market Operations
    Explore the intricacies of trading mechanisms and orders in equity markets, including market, limit, and stop orders, and how they impact trade execution and investor strategies.
  • Market Makers and Liquidity in Equity Markets
    Explore the essential role of market makers in equity markets, their contribution to liquidity, and the regulatory environment governing their operations.
• 3.3 Equity Valuation Methods
  • Dividend Discount Models: Understanding, Calculations, and Applications
    Explore the Dividend Discount Model (DDM) in-depth, including its principles, calculations, assumptions, and applications in valuing stocks.
  • Understanding the Price-Earnings (P/E) Ratio: A Comprehensive Guide
    Explore the intricacies of the Price-Earnings Ratio, its calculation, interpretation, and application in investment valuation.
  • Free Cash Flow Models: A Comprehensive Guide to Valuation
    Explore the intricacies of Free Cash Flow Models in equity valuation, focusing on Free Cash Flow to Equity (FCFE), forecasting techniques, and the application of the Discounted Cash Flow (DCF) method.
  • Relative Valuation Techniques: Mastering the Art of Comparison in Finance
    Explore the intricacies of relative valuation techniques, including P/E, P/B, and EV/EBITDA ratios, and learn how to effectively compare companies in the financial market.
  • Residual Income Models: Understanding Equity Valuation
    Explore the concept of residual income in equity valuation, learn how the Residual Income Model calculates intrinsic value, and understand its importance over accounting profit.
• 3.4 Corporate Actions
  • Mergers and Acquisitions: A Comprehensive Guide
    Explore the intricacies of mergers and acquisitions, their types, strategic motives, impacts on shareholders, and associated challenges.
  • Dividends and Dividend Policies: Understanding Types, Policies, and Impacts
    Explore the intricacies of dividends and dividend policies, their impact on shareholder value, and the factors influencing corporate decisions in the Canadian Securities landscape.
  • Understanding Stock Splits and Reverse Splits: A Comprehensive Guide
    Explore the mechanics, reasons, and impacts of stock splits and reverse splits in the Canadian securities market.
  • Understanding Share Repurchases: Strategies, Impacts, and Investor Considerations
    Explore the intricacies of share repurchases, their strategic motives, financial impacts, and what investors should consider when evaluating these corporate actions.
  • Corporate Restructuring: Strategies, Impacts, and Outcomes
    Explore the intricacies of corporate restructuring, its forms, impacts on stakeholders, and strategic objectives, with real-world examples.
• 3.5 Equity Investment Strategies
  • Growth Investing: Principles, Strategies, and Risks
    Explore the principles of growth investing, learn how to identify potential growth stocks, understand the risks and rewards, and discover strategies for constructing a growth-oriented portfolio.
  • Value Investing: Unveiling the Secrets of Long-Term Financial Success
    Explore the philosophy, strategies, and methodologies of value investing, a cornerstone of long-term financial success in the Canadian securities market.
  • Income Investing: Strategies for Building a Sustainable Income Portfolio
    Explore the objectives, strategies, and considerations of income investing, focusing on high-dividend stocks and sustainable income generation.
  • Momentum Investing: Mastering the Art of Riding Market Waves
    Explore the intricacies of momentum investing, a strategy that capitalizes on market trends and investor psychology to maximize returns.
  • Market Timing Strategies in Equity Investing: Techniques, Challenges, and Insights
    Explore the intricacies of market timing strategies in equity investing, including methods, challenges, and the role of economic indicators.