Market Structure and Risks

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.

Course Objectives

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

Prerequisites: None

Program Level: Foundational

Advance Preparation: None

Computer and Financial Calculators: Computer

Recommended CPE Credits: 7