Equities - Part 1 (2021)



This eCourse consists of two modules. Module 1 focuses on the changes and development in equity markets in recent years. Most trading still takes place on stock exchanges, with the bulk of business concentrated in a small number of countries. However, there has been consolidation among traditional exchanges, while the market has also seen fragmentation with the emergence of new trading venues. Alongside these developments, equity trading has been completely transformed by high-frequency trading firms. This module also provides an overview of basic equity market concepts and how equities are traded.

Module 2 describes the equity issuance (primary) market in its different forms. This incorporates the public sale of existing private shareholdings, private transfers between investors, and the creation of new equity. The module also covers highly visible initial offerings (IPOs and privatisations), private transactions, and various forms of subsequent issuance such as rights offerings.


On completion of this course, you will be able to:
- Define the equity markets and their role in raising risk capital for issuers
- Recognise the importance of dividends in providing a return for equity investors
- List the key features of common stock, such as voting rights and share classes
- Recognise the main features of preferred stock and its key subtypes
- Identify the role of stock markets and alternative trading venues such as dark pools
- Recognise the importance of algorithmic trading and high frequency trading
- List the differ types of equity market order, including market orders, stop orders, limit orders, and stop-limit orders
- Recognise why companies decide to go public
- Recall how companies decide how much stock to list and where to list it
- Identify the key participants in an IPO
- Recognise the underwriting, pricing and distribution processes in an IPO
- List the various stages in an IPO timeline
- Recall the various alternatives to a traditional IPO
- Compare the various alternatives to a traditional IPO
- Determine how companies that have already issued stock can make follow-on or secondary offerings to new investors or existing shareholders


Module 1: Equity Markets - An Introduction
Topic 1: Equity Markets
Topic 2: Dividends
Topic 3: Common Stock
Topic 4: Preferred Stock & Other Equity Types
Topic 5: Stock Exchanges
Topic 6: Algorithmic Trading & HFT
Topic 7: Orders
Topic 8: Equity Metrics & Ratios

Module 2: Equity Markets - Issuing
Topic 1: Going Public
Topic 2: Listing Volumes & Locations
Topic 3: IPO Participants
Topic 4: Underwriting, Pricing, & Distribution
Topic 5: IPO Timeline & Performance
Topic 6: Alternatives to IPOs
Topic 7: Subsequent Offerings
Topic 3: Subsequent Offerings


Relevant Subject
Type 1 - Dealing in securities
Type 4 - Advising on securities
Type 6 - Advising on corporate finance
SFC:2.00, PWMA:2.00
All Member: HK$570
Staff of Corporate Member: HK$570
Non-Member: HK$840