SECURITIES AND INVESTMENTS

Securities & Investments provides members with the opportunity to demonstrate knowledge around competencies in securities and investments. This competitive event consists of an objective test. It aims to inspire members to learn about an individual’s knowledge of investing.

Event Overview

Division: High School
Event Type: Individual
Event Category: Objective Test, 100-multiple choice questions (breakdown of question by competencies below)
Objective Test Time: 50 minutes
Career Cluster Framework Connection: Financial Services
NACE Competency Alignment: Career & Self-Development, Communication, Critical Thinking

Items Competitor Must Provide: Sharpened pencil, Photo Identification, Conference-provided nametag, Attire that meets the Florida FBLA Dress Code

 Objective Test Competencies

·         Investment Fundamentals
·         Investments Wrappers, Taxation, and Trusts
·         Investment Product and Funds
·         Stock Market
·         Stocks Versus Other Investments
·         Mutual Funds
·         Basics of Bonds
·         Derivatives
·         Financial Services Regulation
Test questions are based on the knowledge areas and objectives outlined for this event. Detailed objectives can be found in the study guide included in these guidelines.

District

Check with your District leadership for District-specific competition information.

State

Eligibility

·         FBLA membership dues are paid by 11:59 pm Eastern Time on December 1 (or earlier date specified by District Director) of the current program year.
·         Members may compete in an event at the State Leadership Conference (SLC) more than once if they have not previously placed in the top 10 of that event at the National Leadership Conference (NLC). If a member places in the top 10 of an event at the NLC, they are no longer eligible to compete in that event.
·         Members must be registered for the SLC and pay the state conference registration fee in order to participate in competitive events.
·         Members must stay within the official FBLA housing block of the official FBLA hotel to be eligible to compete.
·         Each district may be represented by participant(s) based on the Florida FBLA scaled quota system found on the Florida FBLA website.
·         Each member can only compete in one individual/team event and one chapter event (Community Service Project, Local Chapter Annual Business Report).
·         Identification: Competitors must present valid photo identification (physical) that matches the name on their conference name badge. Acceptable forms include a driver’s license, passport, state-issued ID, or school ID.
·         If competitors are late for an objective test, they may be either disqualified or permitted to begin late with no extension of the time as scheduled.
·         Participants must adhere to the Florida FBLA dress code established by the Florida Board of Directors or they will not be permitted to participate in the competitive event.

Recognition

·         The number of competitors will determine the number of winners. The maximum number of winners for each competitive event is 5.

Event Administration

·         This event is an objective test administered at the SLC.
·         No reference or study materials may be brought to the testing site.
·         No calculators may be brought into the testing site.

Scoring

·         Ties are broken by comparing the correct number of answers to the last 10 questions on the test. If a tie remains, answers to the last 20 questions on the test will be reviewed to determine the winner. If a tie remains, the competitor who completed the test in a shorter amount of time will place higher.
·         Results announced at the State Leadership Conference are considered official and will not be changed after the conclusion of the State Leadership Conference.

Americans with Disabilities Act (ADA)

·         FBLA complies with the Americans with Disabilities Act (ADA) by providing reasonable accommodations for competitors. Accommodation requests must be submitted through the conference registration system by the official registration deadline. All requests will be reviewed, and additional documentation may be required to determine eligibility and appropriate support.

Penalty Points

·         Competitors may be disqualified if they violate the Competitive Event Guidelines or the Honor Code.

Electronic Devices

·         Unless approved as part of a documented accommodation, all cell phones, watches, electronic devices, and headphones must be turned off and stored away before the competition begins. Visible devices during the event will be considered a violation of the FBLA Honor Code.

National

If you are competing on the National level, be sure to see the National guidelines at https://www.fbla.org/divisions/fbla/fbla-competitive-events/

Study Guide: Competencies and Tasks

A.   Investment Fundamentals

1.       Define terminology common to securities & investments.

2.       Demonstrate knowledge of savings.

3.       Identify stages of investing and the relationship between risk and return.

4.       Identify sources of financial information to make investment decisions.

B.  Investment Wrappers, Taxation, and Trusts

1.         Describe individual savings accounts.

2.         Demonstrate knowledge of Pensions.

3.         Demonstrate knowledge of taxation.

4.         Describe and Identify Investment bonds.

C. Investment Product & Funds

1.       Identify and explain the different types of loans.

2.       Explain the purposes of mortgages.

3.       Demonstrate the knowledge and purpose of life assurance.

4.       Describe and explain unit trusts.

5.       Describe opened ended investment companies.

6.       Identify the characteristics of pricing, dealing, and settlement.

7.       Identify and explain what Investment trusts are.

8.       Demonstrate knowledge of how hedge funds work.

D.  Stock Market

1.            Explain how stock market benefits investors and companies.

2.            Analyze stock tables for investment related information.

3.            Describe options for handling accumulated money/earnings.

4.            Understand the types of investments.

5.            Compare and differentiate between Primary vs secondary markets.

6.            Distinguish between Bull, bear, and pig markets.

E.  Stock versus Other Investments

1.         Demonstrate knowledge of compounding.

2.         Explain the purpose of company.

3.         Describe ethical behavior in support center.

4.         Understand the process of gathering relevant information.

5.         Evaluate financial statements.

6.         Define terminology common to stock markets and other investments.

F.  Mutual Funds

1.       Understanding and explaining total return.

2.       Describe mutual funds and its involvement with taxes.

3.       Identify the process of purchasing mutual funds.

4.       Explain benefits with investment in mutual funds.

5.       Understand fund costs.

G.  Basics of Bonds

1.       Demonstrate the knowledge of bond duration.

2.       Describe the process of buying bonds.

3.       Describe the process of issuing bonds.

4.       Identify the roles of collateral.

5.       Compare secured and unsecured bonds.

6.       Introduction to government bonds.

7.       Identify U.S. government agency bonds and savings bonds.

H.  Derivatives

1.       Demonstrate the knowledge of Futures.

2.       Demonstrate the knowledge of Options.

3.       Demonstrate the knowledge of SWAPS.

4.       Describe the different uses of Derivatives.

I.  Financial Services Regulation

1.       Explain Financial Services & Markets Act.

2.       Identify Financial Crime.

3.       Explain insider dealing and market abuse.

4.       Describe the Data Protection Act 1998.

5.       Identify types of Breaches, complaints, and compensation.