Equity Markets, Trading and Settlement
AGMs, primary and secondary markets, listing, indices, venues, order and quote systems, title and settlement.
How to prepare for CISI Introduction UK
Study to the syllabus version covering the exam date, learn instrument structures and calculations, then apply the introductory UK regulatory and advice boundaries without importing the deeper UK Financial Regulation unit.
Core concepts
Concept 1
Explain exchange, listing, issuance and secondary trading functions.
Exam cue: Separate capital raising from investor-to-investor trading.
Concept 2
Compare on-exchange, OTC, MTF, order-driven and quote-driven trading.
Exam cue: Identify who supplies orders, quotes, clearing and final settlement.
Concept 3
Distinguish registered, bearer, immobilised and dematerialised title and outline settlement.
Exam cue: Follow the trade from execution to transfer of cash and title.
Risk pitfalls and guardrails
Calling every trading venue a stock exchange.
Guardrail: Check roles, ownership, cash-flow direction, units, version dates, protection limits and whether the option claims advice, authorisation or certainty that the facts do not support.
Confusing clearing with final settlement.
Guardrail: Check roles, ownership, cash-flow direction, units, version dates, protection limits and whether the option claims advice, authorisation or certainty that the facts do not support.
Assuming a market index is an investable security by itself.
Guardrail: Check roles, ownership, cash-flow direction, units, version dates, protection limits and whether the option claims advice, authorisation or certainty that the facts do not support.
Memory anchors
Primary market
The market in which newly issued securities raise capital for an issuer.
Quote-driven market
A market where dealers publish bid and offer prices at which they trade.
Dematerialised security
A security represented electronically without a definitive paper certificate.
Checkpoint rule
Do the check-up only after you can summarize each concept in one sentence and identify one dangerous pitfall from memory.
Knowledge Check (after reading)
Short check-up to confirm understanding of this module.
Check-up Questions
What occurs in the primary equity market?
Why is an active secondary market valuable to an issuer even when sale proceeds go to existing holders?
Answer all questions to submit.
Next step personalized recommendations
Continue learning
Move forward only after this module is stable.
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