MiFID II - Equities (EN)

This module is part of the MiFID II Certification.

Based on the ISO definition of equities specifying that an equity instrument is a financial instrument representing an ownership interest in an entity or pool of assets, the content of this module on equities focuses on:

• Main characteristics of equities (based on ISO 10962)
  • Types of equities - Common/ordinary shares, preferred/preference shares, common/ordinary convertible shares, preferred/preference convertible shares, limited partnership shares, depositary receipts on equities, structured instruments, others
  • Attributes of equities - Voting rights, ownership/transfer/sale restrictions, income, payment status, form (bearer/registered)
  • Pricing of equities - Exchange-traded equities, OTC equities, sources of prices, order-driven markets, quote- driven markets
  • Factors influencing the performance of an equity - Supply/demand, earnings, volatility, liquidity, inflation, impact of corporate actions on price, information about the issuer
  • Costs associated with transactions and services involving equities - Brokerage, exchange fees, transaction fees, custody fees
  • Structure of the market for equities
  • Types of markets (regulated, OTC, MTF, OTF, SI) - Equities traded on exchanges, equities traded OTC, equities on MTF, OTF, SI, crossing networks
  • Primary and secondary markets - Initial public offerings (“IPO”); Secondary market trading for equities on exchanges, MTF, OTF, SI, OTC, crossing networks, high frequency trading; depository receipts; private equity
  • Market players - Primary market: Underwriters, lead managers, syndicate members, listing agents, CSDs/ICSDs, exchanges; Secondary market: Brokers/dealers, regulated markets (e.g., exchanges), OTC, MTF, OTF, SI, paying agents, fiscal agents, CSDs/ICSDs, custodians, depositaries; private equity companies
• Financial instruments as investments
  • Market practice - Primary market - IPOs on exchanges, CSDs/ICSDs; Secondary market - On regulated markets (e.g., exchanges), OTC, MTF, OTF, SI, OTC; transaction chain of securities processing; short selling, lending/borrowing equities, CSDs/ICSDs, custody, corporate actions
  • Main risks - Market risk, currency risk, liquidity risk, operational risk
  • Tax aspects - Withholding tax, capital gains tax, transaction taxes, tax reclamation
  • Market forces that impact performance - Industry investor sentiment, inflation, currency rates
  • Understanding instrument’s performance - Market perspective, investor sentiment, volatility, liquidity
  • Documentation related to the instrument - Prospectus, annual reports, shareholder documentation, press coverage

Experienced professional specialists selected on the basis of their in-depth knowledge of markets and financial products under MiFID rules I and II, and ESMA criteria.