12. Securities Pricing and Valuation

In this section

• 12.1 Time Value of Money
  • Time Value of Money: Present Value and Future Value Calculations
    Master the concepts of Present Value and Future Value calculations for the Series 6 Exam. Learn how to apply these concepts to investment company and variable contracts products.
  • Discounted Cash Flow Analysis in Securities Valuation
    Master the Discounted Cash Flow Analysis technique for valuing investments based on expected future cash flows, crucial for the Series 6 Exam. Understand the process, formula, and applications in securities pricing.
• 12.2 Yield Calculations
  • Current Yield in Bond Investments: Understanding and Calculating
    Master the concept of Current Yield in bond investments with detailed explanations and examples. Learn how to calculate Current Yield and understand its significance in evaluating bonds' income-generating potential.
  • Yield to Maturity (YTM) - Understanding Bond Returns
    Master the concept of Yield to Maturity (YTM) for the Series 6 Exam with our comprehensive guide. Learn how to calculate YTM, understand its significance in bond valuation, and explore its relationship with market interest rates.
• 12.3 Pricing of Investment Company Securities
  • Mutual Fund Pricing: Understanding NAV and Its Impact on Investments
    Learn about mutual fund pricing, focusing on the calculation and significance of Net Asset Value (NAV), and how it affects investor decisions and returns.
  • Pricing of ETFs and Closed-End Funds
    Explore the intricacies of pricing Exchange-Traded Funds (ETFs) and Closed-End Funds, understanding how market dynamics influence their valuation in the securities industry.
• 12.4 Variable Annuity Valuation
  • Understanding Accumulation Units in Variable Annuities
    Explore the role of accumulation units in variable annuities, how they are purchased, and their impact on contract value during the accumulation phase. Learn through examples and detailed explanations.
  • Annuity Units in Variable Annuities: Understanding Payouts and Market Influence
    Explore the intricacies of annuity units in variable annuities, including their calculation, impact on retirement income, and market-driven fluctuations. This guide provides a comprehensive understanding essential for the Series 6 Exam.
• 12.5 Cost Basis and Tax Implications
  • Cost Basis Calculation Methods for Securities and Investments
    Explore comprehensive cost basis calculation methods for securities and investments, crucial for understanding capital gains and losses for tax purposes. Learn about FIFO, Specific Identification, and Average Cost methods, with practical examples and IRS guidelines.
  • Tax Lot Accounting for Securities: A Comprehensive Guide
    Explore the intricacies of tax lot accounting in securities investment, including methods like FIFO, LIFO, HIFO, and Specific Lot Identification, and learn how strategic tax lot selection can optimize your tax liabilities.