FE-1 Equity study guide
FE-1 Equity · Work through your exam, one topic at a time.
FE-1 Equity is a specialist certification for people who analyse, value, and write about publicly traded companies. It suits equity research associates, investment banking and corporate finance analysts, asset management staff, and finance students moving from general accounting knowledge into company-level valuation work. The FE-1 Equity study guide has 7 sections and about 2,218 words.
01Equity Markets and Instruments
Equity Markets and Instruments tests how shares trade, how orders are executed, and how instrument features change an investor’s economic exposure. Expect questions on primary versus secondary markets, exchange versus dealer/OTC trading, settlement, corporate actions, and the distinction between common stock, preferred stock, depositary receipts, and fund wrappers.
316 words, about 2 min02Equity Valuation Fundamentals
Equity Valuation Fundamentals tests the discipline of estimating what a share is worth before comparing it with price. It covers intrinsic value, required return, forecast horizons, risk premiums, and the difference between absolute and relative approaches.
332 words, about 2 min03Financial Statement Analysis for Equities
Financial Statement Analysis for Equities tests whether reported results reflect sustainable economics. The exam emphasizes earnings quality, cash conversion, ratio analysis, and adjustments that make companies comparable.
296 words, about 1 min04Discounted Cash Flow and Dividend Discount Models
Discounted Cash Flow and Dividend Discount Models tests the mechanics and assumptions of present-value valuation. Candidates must build clean forecasts, choose a discount rate consistent with the cash flow, and defend terminal value.
327 words, about 2 min05Relative Valuation and Multiples
Relative Valuation and Multiples tests whether a stock is cheap or expensive versus peers, transactions, or its own history. The exam focuses on multiple selection, numerator-denominator consistency, and adjustments.
306 words, about 2 min06Equity Research and Recommendation Writing
Equity Research and Recommendation Writing tests whether an analyst can turn valuation into a clear, evidence-based view. The exam looks for a falsifiable thesis, a target price, catalysts, risks, and a recommendation consistent with expected return.
323 words, about 2 min07Portfolio Management and Risk
Portfolio Management and Risk tests how equity exposures combine and how performance is judged against a benchmark. It covers diversification, beta, active risk, tracking error, factor exposures, and downside measures.
318 words, about 2 min