SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Explain Equity Markets 
SAQA US ID UNIT STANDARD TITLE
113905  Explain Equity Markets 
ORIGINATOR
SGB Financial Services 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 4  NQF Level 04  2 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Registered" 		 2004-02-11  2007-02-11  SAQA 1852/04 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2008-02-11   2011-02-11  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard is replaced by: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
243148  Explain Equity Markets and equity market instruments  Level 4  NQF Level 04  2   

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for learners in a financial services environment. It will add value to healthcare benefits administrators, financial planners, intermediaries financial advisers, healthcare intermediaries, product developers, co-coordinators of medical schemes, financial call centre agents and trustees of medical schemes and retirement funds. It complies with the current legislated practices in giving financial advice.

The qualifying learner is capable of:
  • Explaining why the Equity Market exists.
  • Analysing the Equity Market environment.
  • Describing the role players in the Equity Market.
  • Explaining the basic Equity Market instruments. 
    		•

    LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    There is open access to this Unit Standard. Learners should be competent in Communication, Mathematical Literacy and Financial Literacy at Level 3. 

    UNIT STANDARD RANGE 
  • Issuers in the Equity Market include, but are not limited to, corporates.
  • Investors in the Equity Market include, but are not limited to, individual investors and legal or natural persons with money to invest.
  • Facilitators are banks, stockbrokers, investment managers, Securities Exchanges and registered persons in terms of the Stock Exchange Control Act, and Financial Markets Control Act.
  • Different types of shares include, but are not limited to, preference shares, ordinary shares, N shares, cumulative and non-cumulative shares.
  • Asset classes include equities, Capital Markets and property.
  • Other interest bearing instruments include, but are not limited to call deposit, notice deposit and linked interest rate deposits. 
    		•

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain why the Equity Market exists. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The concept of the Equity Market is explained with reference to the financing and investment needs of issuers and investors. 

    ASSESSMENT CRITERION 2 
    2. The long term nature of the Equity Market is explained with reference to nature of return, liquidity, risk, time horizons, inflation and volatility. 

    SPECIFIC OUTCOME 2 
    Analyse the Equity Market environment. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The economy as the environment in which Equity Markets operate is explained with examples. 

    ASSESSMENT CRITERION 2 
    2. Economic conditions are analysed in terms of the interdependence between inflation, interest rates, commodity prices, market sentiment, the regulatory, macro, micro, political, geographic and economic environments, growth versus recession and exchange rates for two different scenarios. 

    ASSESSMENT CRITERION 3 
    3. The way in which monetary and fiscal policy affects Equity Market instruments is explained and an indication is given of the effect on Equity Markets. 

    SPECIFIC OUTCOME 3 
    Describe the role players in the Equity Market. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The issuers in the Equity Market are identified and an indication is given of why they operate in Equity Markets. 

    ASSESSMENT CRITERION 2 
    2. The investors in the Equity Market are identified and an indication is given of why they operate in Equity Markets. 

    ASSESSMENT CRITERION 3 
    3. Facilitators in the Exchange Traded Equity Market are identified and an indication is given of the role of each. 

    SPECIFIC OUTCOME 4 
    Explain the basic Equity Market instruments. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The concept of a share is explained as the basic Equity Market instrument. 

    ASSESSMENT CRITERION 2 
    2. Two different types of shares are compared in terms of income, voting rights and insolvency of the issuer. 

    ASSESSMENT CRITERION 3 
    3. The basic concept of a debenture is explained and debentures are compared to shares in terms of the nature of the income and the issuers` obligations. 

    SPECIFIC OUTCOME 5 
    Compare a share to other asset classes. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. A share is compared to typical instruments in other asset classes in terms of risk, nature of return, term, liquidity and issuer. 

    ASSESSMENT CRITERION 2 
    2. A debenture is compared to typical instruments in other asset classes in terms of nature of return, issuer and risk. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    Accreditation for this Unit Standard shall be obtained from the relevant Education and Training Quality Assurance Body, through summative and formative assessment by a registered assessor.
  • Assessors must be registered as an Assessor with the relevant ETQA
  • Moderators must be registered as assessors with the relevant ETQA, or with an ETQA that has a Memorandum of Agreement with the relevant ETQA.
  • Training providers must be accredited by the relevant ETQA.

    Moderation should include both internal and external moderation where applicable. 
    		•

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO ORGANISING 
    The learner is capable of organising and critically evaluating information in comparing different types of Equity Market instruments. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is capable of collecting and critically evaluating information in comparing different types of Equity Market instruments. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is capable of communicating effectively in describing the Equity Market environment, role players and Equity Market instruments. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    UNIT STANDARD NOTES 
    This unit standard will be replaced by unit standard 243148, which is "Explain Equity Markets and equity market instruments", Level 4, 2 credits, as soon as 243148 is registered. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  48493   National Certificate: Financial Services: Wealth Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered"     		 2007-02-11  Was INSETA until Last Date for Achievement 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    NONE 


    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.