This course covers basics of evaluating market structure and identifying areas of concern and red flags. The course defines, describes, and demonstrates tests to evaluate bid-ask spreads in stocks and ETFs, volatility and event risk around firm events, market volatility, and the effects of regulatory and industry tools like circuit breakers and up/down limits.
By the end of the course, the participants will be able to:
- Discuss the various metrics of equity market structure
- Assess the market performance and individual stock/ETF performance for liquidity, market-depth, etc.
- Explain how to test for unusual behavior in a security before and after an event
- Evaluate unusual trading patterns such as market volatility or abnormal stock/options trades using data
Program Level: Foundational
Advance Preparation: None
Computer and Financial Calculators: Computer
Recommended CPE Credits: 7