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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Explain Equity Markets and equity market instruments 
SAQA US ID UNIT STANDARD TITLE
243148  Explain Equity Markets and equity market instruments 
ORIGINATOR
SGB Insurance and Investment 
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 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

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 replaces: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
113905  Explain Equity Markets  Level 4  NQF Level 04   
113912  Use an electronic system to propose a financial solution  Level 4  NQF Level 04   

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for learners in a financial services environment who require a basic introduction to investments. It will add value to Trainee Financial Planners, Intermediaries, Product Developers, Administrators in Asset Management, Co-ordinators of Medical Schemes, Financial Call Centre Agents and Trustees and Principal Officers of medical schemes and retirement funds.

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.
  • Comparing a share to other asset classes. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are competent in Communication and Mathematical Literacy at Level 3. 

    UNIT STANDARD RANGE 
  • Issuers in the Equity Market include, but are not limited to, listed and unlisted, over the counter exchange traded, primary and secondary markets.
  • Investors in the Equity Market include, but are not limited to, individual investors and legal or natural persons and the retirement fund industry.
  • Facilitators are banks, stock brokers, investment managers, Securities Exchanges, Clearing Houses, Brokers, Central Clearing Depository Participants (CSDPs).
  • Different types of shares include, but are not limited to, preference shares, and ordinary shares. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain why the Equity Market exists. 

    ASSESSMENT CRITERIA
     

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

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

    ASSESSMENT CRITERION 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 different scenarios. 

    ASSESSMENT CRITERION 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. 

    ASSESSMENT CRITERION 4 
    The concepts of sectors and indices are explained in terms of how they relate to investment portfolios. 

    ASSESSMENT CRITERION 5 
    The concepts of benchmarks and indices are explained with reference to investment portfolios. 

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

    ASSESSMENT CRITERIA
     

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

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

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

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

    ASSESSMENT CRITERION 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 
    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 
    A debenture and a preference share are compared to typical instruments in other asset classes in terms of nature of return, issuer and risk. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Anyone assessing a candidate against this Unit Standard must be registered as an assessor with the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this Unit Standard must be accredited as a provider through the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines and the agreed ETQA procedures. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    N/A 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO COLLECTING 
    The learner is capable of collecting, organising 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 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    This unit standard replaces unit standard 113912, "Explain Equity Markets", Level 4, 2 credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  66613   Further Education and Training Certificate: Wealth Management  Level 4  NQF Level 04  Reregistered  2023-06-30  As per Learning Programmes recorded against this Qual 


    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.
     
    1. African Resources & Financial Training (Pty) Ltd 
    2. CKP Development Agency (Pty) Ltd 
    3. De Vries Management & Training Services cc 
    4. Faisit (Pty) Ltd 
    5. Investmentwise (Pty) Ltd 
    6. Ray Strodl Consulting (Pty) Ltd 
    7. RJM Educational Consulting (Pty) Ltd 
    8. Sanlam Life Insurance Ltd 
    9. The Graduate Institute of Financial Sciences (Pty) Ltd 
    10. Umfolozi FET College - Central Office 



    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.