a. explain the main functions of the financial system;

b. describe classifications of assets and markets;

c. describe the major types of securities, currencies, contracts, commodities, and real assets that trade in organized markets, including their distinguishing characteristics and major subtypes;

d. describe types of financial intermediaries and services that they provide;

e. compare positions an investor can take in an asset;

f. calculate and interpret the leverage ratio, the rate of return on a margin transaction, and the security price at which the investor would receive a margin call;

g. compare execution, validity, and clearing instructions;

h. compare market orders with limit orders;

i. define primary and secondary markets and explain how secondary markets support primary markets;

j. describe how securities, contracts, and currencies are traded in quote-driven, order-driven and brokered markets;

k. describe characteristics of a well-functioning financial system;

l. describe objectives of market regulation.