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: 

Describe different types of equity based investments 
SAQA US ID UNIT STANDARD TITLE
12170  Describe different types of equity based investments 
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  3 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Reregistered" 		 2004-12-02  2007-12-02  SAQA 1657/04 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2008-12-02   2011-12-02  

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 does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This unit standard is intended for learners who give financial advice or learners who work for a Collective Investment Scheme Manager that administers collective investment schemes.

The qualifying learner is capable of:
  • Understanding the equity market.
  • Describing shares as an investment.
  • Describing debentures and warrants as an investment option.
  • Describing derivatives as an investment. 
    		•

    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 NQF Level 3. 

    UNIT STANDARD RANGE 
    The typical scope of this unit standard is:
  • Equity based investments include, but are not limited to, ordinary shares, N shares, preference shares and listed debentures.
  • Instruments traded on equity markets include, but are not limited to shares, warrants and listed debentures.
  • Derivative based instruments include, but are not limited to warrants, futures and options. 
    		•

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Demonstrate knowledge and understanding of the equity market. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. Examples of bull and bear markets are illustrated graphically. 

    ASSESSMENT CRITERION 2 
    2. The characteristics of a bull market are indicated with reference to the effect of a bull market on investment. 

    ASSESSMENT CRITERION 3 
    3. The characteristics of a bear market are indicated with reference to the effect of a bear market on investment. 

    ASSESSMENT CRITERION 4 
    4. The main local and overseas exchanges are named and performance on the Johannesburg Securities Exchange (JSE) is compared to one other exchange daily over a period of a week. 

    ASSESSMENT CRITERION 5 
    5. The interaction between the markets and their performance is explained with reference to market activities over a period of a week. 

    ASSESSMENT CRITERION 6 
    6. Investment instruments that are traded on a market are listed for the JSE. 

    SPECIFIC OUTCOME 2 
    Describe shares as an investment. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The concept of a share is explained with examples from the media. 

    ASSESSMENT CRITERION 2 
    2. The different types of shares are identified and the rights of shareholders of each type are indicated in a table. 

    ASSESSMENT CRITERION 3 
    3. The process followed in purchasing shares is illustrated diagramatically. 

    ASSESSMENT CRITERION 4 
    4. The requirements for buying shares on the JSE are investigated from the JSE website. 

    ASSESSMENT CRITERION 5 
    5. The newspaper is used to look up daily prices for buying and selling 5 shares and 5 unit trusts. 

    ASSESSMENT CRITERION 6 
    6. Reasons are given to explain why unit trusts are reported differently. 

    SPECIFIC OUTCOME 3 
    Describe debentures and warrants as an investment option. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The characteristics of debentures are explained with an example of a debenture from the media. 

    ASSESSMENT CRITERION 2 
    2. The characteristics of warrants are explained with an example of a debenture from the media. 

    SPECIFIC OUTCOME 4 
    Describe derivatives as an investment. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The concept of a derivative is explained and examples are given of how a derivative can be an investment. 

    ASSESSMENT CRITERION 2 
    2. The concept of a future is explained as an investment option. 

    ASSESSMENT CRITERION 3 
    3. The concept of an option is explained as an investment type. 

    SPECIFIC OUTCOME 5 
    Demonstrate knowledge and understanding of the equity market. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The concept of an equity market is explained with examples. 

    ASSESSMENT CRITERION 2 
    2. Examples of bull and bear markets are illustrated graphically. 

    ASSESSMENT CRITERION 3 
    3. The characteristics of a bull market are indicated with reference to the effect of a bull market on investment. 

    ASSESSMENT CRITERION 4 
    4. The characteristics of a bear market are indicated with reference to the effect of a bear market on investment. 

    ASSESSMENT CRITERION 5 
    5. The main local and overseas exchanges are named and performance on the JSE Securities Exchange is compared to one other exchange daily over a period of a week. 

    ASSESSMENT CRITERION 6 
    6. Instruments that are traded on equity markets are listed with examples of those marketed on the JSE Securities Exchange. 

    SPECIFIC OUTCOME 6 
    Describe shares as an investment. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The concept of a share is explained with examples from the media. 

    ASSESSMENT CRITERION 2 
    2. The different types of shares are identified and the rights of shareholders of each type are indicated in a table. 

    ASSESSMENT CRITERION 3 
    3. The process followed in purchasing shares is illustrated diagrammatically. 

    ASSESSMENT CRITERION 4 
    4. The requirements for buying shares on the JSE Securities Exchange are investigated from the JSE Securities Exchange website. 

    ASSESSMENT CRITERION 5 
    5. The newspaper is used to look up daily prices for buying and selling 5 shares. 

    SPECIFIC OUTCOME 7 
    Describe debentures and warrants as an investment option. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The characteristics of listed debentures are explained with an example of a listed debenture from the media. 

    ASSESSMENT CRITERION 2 
    2. The characteristics of warrants are explained with an example of a warrant from the media. 

    SPECIFIC OUTCOME 8 
    Describe derivatives as an investment. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The concept of a derivative is explained and examples are given of how a derivative can be an investment. 

    ASSESSMENT CRITERION 2 
    2. The concept of a future is explained as an instrument. 

    ASSESSMENT CRITERION 3 
    3. The concept of an option is explained as an instrument. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    This unit standard will be internally assessed by the provider and moderated by a moderator registered by INSQA or a relevant accredited ETQA. The mechanisms and requirements for moderation are contained in the document obtainable from INSQA, INSQA framework for assessment and moderation. 

    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 
    Learners can collect, organise and evaluate information when accessing information about equity investments from the media. 

    UNIT STANDARD CCFO COMMUNICATING 
    Learners can communicate effectively using mathematical language and visual skills in representing information graphically and explaining concepts. 

    UNIT STANDARD CCFO SCIENCE 
    Learners can use science and technology effectively in accessing information from electronic media. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Learners are able to demonstrate an understanding of the world as a set of related systems when explaining the interaction between markets and their performance. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    UNIT STANDARD NOTES 
    N/A 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  20638   National Certificate: Collective Investment Schemes  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered"     		 2004-12-05  INSETA 
    Elective  20773   National Certificate: Long Term Insurance  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered"     		 2004-12-05  INSETA 


    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.