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CFA Glossary of Terms and Formulas

Use this glossary to search CFA terms, formulas, and finance concepts while you study. Browse alphabetically, search for a specific term, or review short definitions across the CFA Program.

This page is built for candidates preparing for CFA Level I, Level II, or Level III.

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Describes a time series when its expected value and variance are constant and finite in all periods and when its covariance with itself for a fixed number of periods in the past or future is constant and finite in all periods.

Covenants

Level I

The terms and conditions of lending agreements that the issuer must comply with; they specify the actions that an issuer is obligated to perform (affirmative covenant) or prohibited from performing (negative covenant).

Debt obligation secured by a segregated pool of assets called the cover pool. The issuer must maintain the value of the cover pool. In the event of default, bondholders have recourse against both the issuer and the cover pool.

An option strategy in which an investor who already owns the underlying asset sells a call option giving someone else the right to buy the asset at the exercise price.

COMMON QUESTIONS

FAQs About KeyPoint Learning's CFA Glossary

A CFA glossary is a reference list of terms, formulas, and finance concepts that appear across the CFA Program. It helps candidates review key ideas while studying for Level I, Level II, or Level III.

CFA Glossary

This glossary is designed to support candidates across the CFA Program. Where level information is available, terms can be labeled by CFA Level I, Level II, or Level III.

CFA Glossary

Yes, formula-related terms may be included in the glossary. For a more focused formula review, use the CFA Formula Sheet resource.

CFA Glossary

No. It is better to understand important terms in context than to memorize every definition by itself. Focus on how each concept works, where it appears in the curriculum, and how it may be tested.

CFA Glossary

You can explore KeyPoint Learning’s CFA resources for study planning, calculator guidance, formulas, GIPS Standards, and CFA Program information.

CFA Glossary
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