CBOK: Candidate Body of Knowledge - Outline of Topics + Some info about the CFA Institute & CFA Designation.

The CFA Program
The Chartered Financial Analyst (CFA) designation is a mark of distinction that is globally recognized by employers, investment professionals, and investors as the definitive standard by which to measure serious investment professionals.

The CFA Program reflects a broad Candidate Body of Knowledge™ (CBOK) developed and continuously updated by active practitioners in countries around the world to ensure that charterholders possess knowledge grounded in the real world of today’s global investment industry.

Learn more about the CFA charter, the CFA Program, and current charterholders (PDF).

Review the CFA Program enrollment and exam registration deadlines, view the CFA exam fee schedule, and get started.

How to become a charterholder

Value for Your Career
The CFA Program equips you with the practical and fundamental knowledge you need for a wide variety of career choices in the investment profession. Completing the program confirms your mastery of the rigorous CFA curriculum and your success in passing all three exam levels. How can the CFA Program benefit your career?

Value for Employers
Employers cite the extensive knowledge charterholders possess in investment topics outside their own specializations as one of the primary reasons for hiring them. Employers can post jobs and gain access to this highly qualified, exclusive group of investment professionals through our job board. Why hire a charterholder? 

From the link: http://www.cfainstitute.org/cfaprogram/courseofstudy/curriculum/Pages/cbok.aspx

I. Ethical and Professional Standards

A. Professional Standards of Practice

B. Ethical Practices

II. Quantitative Methods

A. Time Value of Money

B. Probability

C. Probability Distributions and Descriptive Statistics

D. Sampling and Estimation

E. Hypothesis Testing

F. Correlation Analysis and Regression

G. Time Series Analysis

H. Simulation Analysis

I. Technical Analysis

III. Economics

A. Market Forces of Supply and Demand

B. The Firm and Industry Organization

C. Measuring National Income and Growth

D. Business Cycles

E. The Monetary System

F. Inflation

G. International Trade and Capital Flows

H. Currency Exchange Rates

I. Monetary and Fiscal Policy

J. Economic Growth and Development

K. Effects of Government Regulation

L. Impact of Economic Factors on Investment Markets

IV. Financial Reporting and Analysis

A. Financial Reporting System (IFRS and GAAP)

B. Principal Financial Statements

C. Financial Reporting Quality

D. Analysis of Inventories

E. Analysis of Long-Lived Assets

F. Analysis of Taxes

G. Analysis of Debt

H. Analysis of Off-Balance-Sheet Assets and Liabilities

I. Analysis of Pensions, Stock Compensation, and Other Employee Benefits

J. Analysis of Inter-Corporate Investments

K. Analysis of Business Combinations

L. Analysis of Global Operations

M. Ratio and Financial Analysis

V. Corporate Finance

A. Corporate Governance

B. Dividend Policy

C. Capital Investment Decisions

D. Business and Financial Risk

E. Long-Term Financial Policy

F. Short-Term Financial Policy

G. Mergers and Acquisitions and Corporate Restructuring

VI. Equity Investments

A. Types of Equity Securities and Their Characteristics

B. Equity Markets: Characteristics, Institutions, and Benchmarks

C. Fundamental Analysis (Sector, Industry, Company) and the Valuation of Individual Equity Securities

D. Equity Market Valuation and Return Analysis

E. Special Applications of Fundamental Analysis (Residual Earnings)

F. Equity of Hybrid Investment Vehicles

VII. Fixed Income

A. Types of Fixed-Income Securities and Their Characteristics

B. Fixed-Income Markets: Characteristics, Institutions, and Benchmarks

C. Fixed-Income Valuation (Sector, Industry, Company) and Return Analysis

D. Term Structure Determination and Yield Spreads

E. Analysis of Interest Rate Risk

F. Analysis of Credit Risk

G. Valuing Bonds with Embedded Options

H. Structured Products

VIII. Derivatives

A. Types of Derivative Instruments and Their Characteristics

B. Forward Markets and Instruments

C. Futures Markets and Instruments

D. Options Markets and Instruments

E. Swaps Markets and Instruments

F. Credit Derivatives Markets and Instruments

IX. Alternative Investments

A. Types of Alternative Investments and Their Characteristics

B. Real Estate

C. Private Equity/Venture Capital

D. Hedge Funds

E. Closely Held Companies and Inactively Traded Securities

F. Distressed Securities/Bankruptcies

G. Commodities

H. Tangible Assets with Low Liquidity

X. Portfolio Management and Wealth Planning

A. Portfolio Concepts

B. Management of Individual/Family Investor Portfolios

C. Management of Institutional Investor Portfolios

D. Pension Plans and Employee Benefit Funds

E. Investment Manager Selection

F. Other Institutional Investors

G. Mutual Funds, Pooled Funds, and ETFs

H. Economic Analysis and Setting Capital Market Expectations

I. Tax Efficiency

J. Asset Allocation (including Currency Overlay)

K. Portfolio Construction and Revision

L. Equity Portfolio Management Strategies

M. Fixed-Income Portfolio Management Strategies

N. Alternative Investments Management Strategies

O. Risk Management

P. Execution of Portfolio Decisions (Trading)

Q. Performance Evaluation

R. Presentation of Performance Results

The Ascent of Money: A Financial History of The World by Niall Ferguson ---> Bread, cash, dosh, dough, loot, lucre, moolah, readies, the wherewithal: Call it what you like, Money DOES matter.

10 Secrets of the "Capitalist Class" or the "Super-Rich Class" or the top 1% (Those who make more than $ 1/2 Million a year, or as some say, more than $350K a year)

From the link: http://beginnersinvest.about.com/od/wealthmanagement1/ss/capitalist-class.htm

(Read the full article from the link above to get a complete idea. This is just an extract).

The capitalist class represents the top 0.9% of income. Sometimes called the super-rich, members of the capitalist class often have incomes of at least $350,000 to $500,000 per year, which would require several million dollars in assets to generate. Since we know that more than 90% of wealth in the United States is not inherited, how did the men and women who make up the capitalist class get to where they are? What can we learn from them?

Before starting, remember: "A High Income Isn't Enough to Truly Join the Capitalist Class. It is perpetual high income / returns from investments that can make one truly Super-Rich".

1. They Work on Projects that Pay Dividends for 25+ Years, Not a Single Paycheck
2. They Diversify Income Sources as Well as Assets
3. The Capitalist Class Prefers Passive Income Over Active Income
4. The Capitalist Class Understands the Nature of Money
5. The Capitalist Class Makes Its Own Luck
6. The Capitalist Class Doesn't Care What the Market Does
7. The Capitalist Class Understands Taxes - Very Well
8. The Capitalist Class Thinks of Business as a Game
9. The Capitalist Class Realizes Money is a Fungible Commodity
10. Profile of the Capitalist Class below - "Stability".

Profile:
The best word to describe members of the capitalist class would be stability. They have been married to the same spouse, lived in the same house, and been in the same business for decades. They've diligently invested and built their assets over time. So, who is the average member of the capitalist class? According to government and private research data, the capitalist class:

• More than 90% of capitalist class households consist of a Caucasian married couple where both spouses work and have children.
• More than 90% did not inherit their money - they are entirely self-made.
• Most own their own business and have lived in the same town for more than a decade. These businesses are unglamorous and include things such as HVAC, commercial plumbing, self-employed lawyers, accountants, and real estate investors.
• More than 90% own their own home and have lived in it for years. Fewer than 7% rent or lease.
• More than 90% graduated from college, but grades had no correlation with their financial success. In other words, students with a C- average were just as successful as those with an A average.

Check out the lives of the Super-Rich in the video below. And dream on! No one is stopping anyone from entering this class. Everyone is welcome, bro / sista :) I sure see myself being a part of the Rich-Class someday. No, it ain't day dreaming. It is hard work, smart work and ambition. But I am gonna be a benevolent Super Rich guy, doing good for the society. And always use fair means. Enjoy the video!

Random Video: "LEAP YEAR MARRIAGE PROPOSAL FAIL". Probably fake. But an interesting way to do some viral video marketing / self promotion by the girl. She will be sought after soon, thanks to gaining mass attention :)

Chasing Madoff ---> A movie about Bernie Madoff's Ponzi scheme - the largest in History! And how an investogator pursued the case for 10 years while the authorities looked the other direction / failed to detect the crime. This should have been a not too difficult case for Forensic Accounting & Forensic Finance experts to figure out!

I-Banking payscales / Investment Banking Salaries

From the link: http://www.careers-in-finance.com/ibsal.htm

Going into 2011, starting salaries for investment banking positions with a bachelors degree (assistant or junior analyst position) should range from $100,000 to $130,000 after bonus. Starting salaries with an MBA degree (associate position) range after bonus from $90,000 to $180,000. These salaries vary with firms and with the region of the country you are in. Bonuses typically would be 10-50% of salary to start and can move to one to three times salary later.

Lately, salaries have increasingly included an equity component which may not be liquid for up to three years, although as an analyst you would typically be sheltered from this. This is good for the banks because it makes it much harder for people to move around.
As we write this in December 2010, banking salaries and bonuses are on the rise as several large banks are reporting record profits. The public perception that high banker salaries may have worsened the financial crisis of 2008 / 2009 is not forgotten, but with high profits many investment banks will be forced to pay good bonus compensation to retain talent, despite the PR risk of doing so. 

Salaries are Bounding Back. All-in compensation took a substantial hit in 2008 with many firms paying low to zero bonuses (the dreaded "goose egg"). Starting offers in 2010 and many year end bonus numbers for 2009 were up substantially, although typically down from their peak in 2007 (overall, down 10 to 30% from peak, depending on the firm and position). Bonuses being paid at the beginning of 2011 likewise look to be up, but in general still not quite at their pre-recession peak. Bulge firm salaries typically run 20% to 40% over boutiques and regional firms (although there are prominent exceptions to the rule). Forecast salary ranges in the 2010 to 2012 period are as follows:

Salaries in Investment Banking (with bonus)
Job Level	Salary Range	Typical All-in Comp	Prerequisite (degree/yrs experience)
First Year Analyst	$90K - 150K	$125K	Bachelor's
Third Year Analyst	$120K - 350K	$165K	Bachelor's
First Year Associate	$150K - 250K	$180K	MBA
Third Year Associate	$300 - 500K	$350K	MBA
Vice President	$350K - 1MM	$700K	3-6 years
Director / Principal	$400K - 1.5MM	$900K	5-10 years
Managing Director / Partner	$500K - 20 MM	$1.5 MM	7-10 years
Department head	$800K - 70MM	$3.5MM	10+ years

Note: This table is based upon conversations with banking insiders about yearly bonuses expected to be paid between December 2010 and February 2011. MM denotes millions. K denotes thousands of US dollars.

Examples of Specific Salaries in 2008/2009
We are hearing a lot more diversity in compensation levels than usual. This is less true at the analyst level where firms try to harmonize compensation with "The Street". Firms will raise starting offers, more or less, in lock step at this level. However, the situation differs at more senior levels - even mid Associate.
A related salary trend involves compensation across areas. Obviously, with the new financial reforms, certain areas like prop trading, institutional equity sales and securitization are under pressure. In contrast, other banking areas like restructuring, health care M&A/financing and debt capital markets are in growth mode and there is substantial upward pressure on salaries amidst renewed hiring.
Compare Salary to Other Business Careers: [College Graduates | MBAs ]
View list of top business recruiters of MBAs and college graduates

Also Check Out:

• Glassdoor.com - a good source for salary data.
• After the Cataclysm: Finding an Investment Banking Job in 2010
• Articles on Banking Bonuses
• 2010 Bonus Talk
• Obituary: The Bonus
• Wall Street Oasis Recent salary talk.
• Dealbook at NY Times - covers bonuses
• Trading Salaries in 2007 (Info is not current, but still useful as it provides detail by area of sales and trading)
• BLS Bonus Report (Again, info is pre-recession, but based on official government statistics with detail for some specific locations)
• Wall Street Comps Salary Survey

Investment Banking Salary Tales:

Den of Thieves

By James Stewart

The Wolf of Wall Street

By Jordan Belfort

Rigged: The True Story of an Ivy League Kid Who Changed the World of Oil, from Wall Street to Dubai

By Ben Mezrich

The Insiders: A Portfolio of Stories from High Finance

Investment banking tales.

Ugly Americans

By Ben Mezrich

At Bonus Time, No One Can Hear You Scream

This is a short novel, written sort of in the style of a diary. It starts out at "B minus 58" - 58 days until bonus communication. It is about the paranoid unhinging of a London investment banker as he counts down the days until he learns his bonus numbers. If you're in the capital markets business you know what I'm talking about.

No Tears: Tales from the Square Mile

More stories from the London i-banking world.

Invest Toronto Promo - Why Toronto, Canada is a great place to invest. Added Bonus ---> Invest Barrie video clip :)