Financial Markets (Advanced) Module
The Financial Markets (Advanced) Module has been prepared with a view to providing candidates with comprehensive and in-depth knowledge about the financial markets. Additionally, it also gets candidates acquainted with a key understanding of various products, players, and functioning of financial markets.
Target Audience
- Students
- Teachers
- Investors
- Finance Professionals
- Employees of Trading Members/ sub-brokers
- Anybody having interest in this subject
Exam Details
Before you jump in to pursue the Financial Markets (Advanced) Module exam you must have a complete understanding of the exam format. It is always important to be thorough with your research about the exam. This is a big-time and monetary investment, so you need to be sure it’s the right certification for you.
The Financial Markets (Advanced) Module exam consists of 60 questions which have to be taken in a duration of 120 minutes. The exam consists of Multiple Choice and Multi-Response Questions and the minimum passing score is 60%, however, there is 0.25% negative marking for incorrect answers. The exam is only available in the English language and its validity period is 5 years. The cost Fundamental Analysis Module (Intermediate) is Rs 2006.
Eligibility Criterion
There is no eligibility criteria for this exam.
| Exam Name | Financial Markets (Advanced) Module |
| Exam Duration | 120 |
| Exam Format | Multiple Choice and Multi-Response Questions |
| Exam Type | Advanced |
| No. of questions | 60 |
| Pass score | 60% and above |
| Exam Fee | Rs 2006 |
| Exam Language | English |
| Validity | 5 Years |
Scheduling the exam
Now, that we have understood the exam details, lets understand how to schedule the exam.
Registration process
- Candidates can register online by accessing the link ‘Online Registration’ available under Education>Certifications>Online Register / Enroll.
- Once registered, you will get a unique NCFM registration number along with a user id and password. Confirmation will be sent to the email id and mobile number entered during registration.
- Using the same, you can access your online NCFM account to make payment / enroll for test/update address/check study material status/view certificates, etc.
- However, you are required to ensure that their latest address is updated in their online NCFM profile. To update the address candidates need to access the link ‘Edit Profile’ available in their NCFM online login.
- Please note that the NCFM registration number is unique and a candidate has to use the same NCFM registration number while enrolling for any module.
Online Payment Procedure
- Candidates can make payment online by accessing their online NCFM login through the login page available under Education>Certifications>Online Register / Enroll.
- Candidates need to enroll for the NCFM test within 90 days from the date of receipt of payment failing which he/she is required to enroll himself/herself again by paying the fees afresh at the prevailing fee structure.
- Fees once paid shall not be refunded.
- In case of any payment-related queries, please write to email ID: [email protected].
- Moreover, NSE Academy has introduced its payment gateway page for online payments. This new payment gateway is implemented on 17 Jan 2017:
- Visa/Master Credit Card
- 50+ Banks for Net banking
- 10+ Wallets & Cash card
- IMPS
- EMI option for Credit Card of selected Banks
Financial Markets (Advanced) Module FAQs
Get all your Doubts and Queries resolved with Financial Markets (Advanced) Module FAQs
Financial Markets (Advanced) Module Course Outline
The Financial Markets (Advanced) Module Course outline is as follows:
1.Financial Markets, Products & Institutions
A. Financial Markets
B. Financial Products and Market Entities
C. Market Infrastructure Institutions
D. Conflicts of Interest
2.Quantitative Background to Debt
A. The Nature of Debt
B. The Price of a Debt Security
Perpetual Debt
Discount Instrument
Coupon Instrument
C. Price-Yield Relationship of a Debt Security
D. Modified Duration of a Debt Security
3. Debt – Investment Drivers & Approaches
A. Interest Risk
Forward Rates
Yield Curve Estimation
Shape of Yield Curve
Debt Portfolio Structures
B. Credit Risk & Yield Spreads
Assessment of Sovereign Debt Servicing Ability
Assessment of Private Debt Servicing Ability
Credit Rating
Structured Obligations
Yield Spread & Changes in Credit Risk
4. Financial Statements: Analysis & Projections for Equity
A. Financial Statement Analysis
Revenue, Cost & Margin Structure
Capital Efficiency
Dividend Yield
Price – Earnings Ratio
B. Financial Projections
5. Equity – Valuation & Investment Decisions (Part 1)
A. Required Rate of Return on Equity
B. Weighted Average Cost of Capital (WACC)
C. Fundamental Valuation Approaches
Dividend Discounting
Free Cash Flow
Enterprise Value
Earnings Multiple
Price to Book Value Multiple
D. Margin of Safety
6. Equity – Valuation & Investment Decisions (Part 2)
A. Economy & Industry Analysis
Economy Analysis
Industry Analysis
B. Top-Down or Bottom-up?
C. Technical Analysis
7. Derivatives
A. Background
B. Interest Rate Futures
C. Credit Default Swaps (CDS)
D. Currency Futures
E. Currency Options
F. Equity Futures & Options
8. Alternate Assets & Structured Products
A. Alternate Assets
Gold
Real Estate
B. Structured Products
Portfolio Insurance
Risks
SEBI Regulations
9. International Markets
A. Depository Receipts
B. International Stock Indices
S&P 500 Index (SPX)
Dow Jones Industrial Average (INDU)
NASDAQ Composite Index (CCMP)
EURO STOXX 50 Price Eur (SX5E)
FTSE 100 (UKX)
Deutsche Borse AG German Stock Index DAX (DAX)
Nikkei 225 (NKY)
Tokyo Stock Exchange Tokyo Price Index TOPIX (TPX)
Hong Kong Hang Seng Index (HSI)
C. Feeder Funds
D. Trading in Global Markets through NSE
Futures & Options
Exchange-Traded Funds (ETFs)
10. New Paradigms in Regulation of Financial Markets
A. Market Infrastructure Institutions
B. Alternate Investment Funds
C. Standardisation of Rating Symbols and Definitions
D. Investment Advisers
E. Commission on Public Issues of Debt
F. Merchant Bankers’ Track Record
G. Algorithmic Trading
H. Outsourcing by Intermediaries
I. Qualified Foreign Investors (QFIs)
J. KYC Registration Agency (KRA)
Financial Markets (Advanced) Module Preparatory Guide
There are numerous preparatory resources for the exam. All you need to focus on is selecting the best resources according to your ease and level of understanding. This selection of resources will determine how well will you qualify for your exam. Let us have a look at a handful of the resources.
Step-1 Review the Exam Objectives
Reviewing the exam objective is an important step and should not be missed at any cost. It makes sure that everything is covered up and nothing is left. Moreover, the question paper is set around these obectives, hence, it not only gives you an idea about what type of questions to expect but boosts your confidence and self esteem as well.
The Financial Markets (Advanced) Module covers 8 topics as follows:
- Financial Markets, Products & Institutions
- Quantitative Background to Debt
- Debt – Investment Drivers & Approaches
- Financial Statements: Analysis & Projections for Equity
- Equity – Valuation & Investment Decisions (Part 1)
- Equity – Valuation & Investment Decisions (Part 2)
- Derivatives
- Alternate Assets & Structured Products
- International Markets
- New Paradigms in Regulation of Financial Markets
Step-2 Discover your Learning Resources
Fundamental Analysis Module (Intermediate) Study Guide
The Financial Markets (Advanced) Module Study Guide will provide you complete clarity about the exam questions and how to approach them while preparing you from the scratch.
Reference Books
Books are the best-valued resources for study. You can choose any book that suits your way of preparation. Make sure the content is understandable and the book offers you a lot of practice questions and has previous test papers. You can choose multiple books and can buy them or can refer to libraries.
Step-3 Join Online Communities
Joining an Online Community is certainly an ideal way to know your actual stand in the competition. Here, you can interact with your competitors, and keep yourself focused. The prospects of getting resolutions to an issue increase steeply when a greater number of people are involved. Also, multiple viewpoints make the stuff more dynamic and increase expand your domain. Moreover, these groups will help you stay up to date with the exam and will also boost your confidence.
Step-4 Practice tests
Once you are done with your preparation phase, your performance phase begins. This phase is also referred to as the self-evaluation phase as it helps you find out your core strengths and weak spots. Remember you can only start performing Financial Markets (Advanced) Module practice tests once you are done with your whole syllabus. Moreover, Practice tests are designed in such a manner that it helps the candidates to encounter the real exam environment around them. Take the Financial Markets (Advanced) Module Free Practice Test Now!
