Equity Issuance, Trading and Corporate Actions
Apply equity rights, issuance, market execution, corporate actions, warrants and CFDs.
How to prepare for the Investment Advice Diploma
Build UK regulation, integrity, investment, risk and tax first; then apply those foundations to the one technical option aligned with your role. The original multiple-choice practice tests knowledge, calculations and advisory judgement without reproducing recalled or secure CISI questions.
Core concepts
Concept 1
Distinguish ordinary and preference share rights.
Exam cue: Identify ownership rights.
Concept 2
Explain primary issuance and secondary trading.
Exam cue: Separate issuance from trading.
Concept 3
Process dividends, rights, splits, takeovers and other corporate actions.
Exam cue: Calculate the holder's election and adjusted position.
Risk pitfalls and guardrails
Confusing authorised and issued capital.
Guardrail: Do not combine the five displayed units into one exam, infer permission from qualification, use stale annual figures or ignore the selected technical route.
Ignoring ex-date and record-date effects.
Guardrail: Do not combine the five displayed units into one exam, infer permission from qualification, use stale annual figures or ignore the selected technical route.
Treating a CFD holder as the shareholder.
Guardrail: Do not combine the five displayed units into one exam, infer permission from qualification, use stale annual figures or ignore the selected technical route.
Memory anchors
Ordinary share
An equity interest carrying residual economic rights and usually voting rights.
Rights issue
An offer of new shares to existing holders in proportion to their holdings.
CFD
A leveraged derivative settling the price difference without transferring ownership of the underlying share.
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 is the main residual claim of an ordinary shareholder?
What is limited liability for a shareholder?
Answer all questions to submit.
Next step personalized recommendations
Continue learning
Move forward only after this module is stable.
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