Competency Title:

Capital Market Fundamentals

Competency Type:

Foundational

Competency Description

This competency refers to the ability to apply the knowledge of capital market principles in performing related capital market activities. The scope includes understanding of economics, financial and capital market instruments and related theories.

Level 1 - Awareness

Level 1

• Recognise the role and importance of the capital market to the economy.
• Recognise the various financial and capital market instruments available in the market.
• Identify the various financial and capital market theories.
Level 2 - Knowledge

Level 2

• Outline the capital market principles and their applications.
• Differentiate between the various financial and capital market instruments.
• Classify the different applications of financial and capital market theories.
Level 3 - Skill

Level 3

• Explain the impact of the capital market to the development of an economy.
• Propose relevant financial or capital market instruments to serve specific objectives.
• Apply appropriate financial and capital market theories to perform related activities.
Level 4 - Mastery

Level 4

• Analyse the impact of economy conditions on the capital market performance.
• Guide others in the selection of suitable instruments when making recommendations.
• Create financial models based on selected theories.
Level 5 - Expert

Level 5

• Formulate capital market strategy to capitalise on the prevailing condition of the economy.
• Appraise suitability of selected instruments to serve specific investment strategy.
• Evaluate the appropriateness of variables used in financial models.