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100+ Free SAIFM RPE Equity Market Practice Questions

Pass your SAIFM Registered Persons Examination — The Equity Market exam on the first try — instant access, no signup required.

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Key Facts: SAIFM RPE Equity Market Exam

50 questions

Official RPE module exam length

SAIFM — Registered Persons Examinations

70% pass mark

Competency mark with no negative marking

SAIFM — Registered Persons Examinations

1 hour

Time allowed for each RPE module exam

SAIFM — Registered Persons Examinations

R3 090

Fee per RPE module attempt incl. VAT from 1 August 2025

SAIFM — Costs

Sep 2022 edition

Current Equity Market learning-material edition listed by SAIFM

SAIFM — Registered Persons Examinations

T+3

Standard on-market JSE equities settlement cycle via Strate

JSE / Strate market practice (T+3 since July 2016)

6 months

Window to write after purchasing the exam

SAIFM — Registered Persons Examinations

100

Free original Equity Market practice questions provided here

OpenExamPrep

SAIFM RPE The Equity Market is a 50-question, 1-hour multiple-choice elective with a 70% pass mark, costing R3 090 (incl. VAT) per attempt from 1 August 2025. The September 2022 syllabus covers equities, SA exchanges, Strate, equity derivatives, private equity, fundamental/technical analysis, valuation and portfolio strategies. It is commonly required alongside the two compulsory RPE modules for JSE equity advice pathways. This bank provides 100 original practice questions with explanations.

Sample SAIFM RPE Equity Market Practice Questions

Try these sample questions to test your SAIFM RPE Equity Market exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1What does an ordinary share primarily represent?
A.An ownership interest in a company with residual claim on profits and assets
B.A fixed-interest claim ranking ahead of creditors
C.A short-term deposit with a bank
D.A guarantee of a fixed dividend every year
Explanation: Ordinary (common) equity represents ownership in a company. Holders have a residual claim on profits after creditors and preference shareholders, typically with voting rights.
2How do preference shares typically differ from ordinary shares?
A.They usually have a preferential claim to dividends and/or capital on winding-up, often with limited or no voting rights
B.They always carry superior voting rights to ordinary shares
C.They settle only through the money market
D.They cannot be listed on an exchange
Explanation: Preference shares generally rank ahead of ordinary shares for dividends and capital on liquidation, often with a fixed preferential dividend and limited or no voting rights.
3Which right do ordinary shareholders normally enjoy that preference shareholders often do not?
A.Voting rights at general meetings on ordinary resolutions
B.A contractual right to a fixed coupon
C.Priority repayment ahead of all creditors
D.Automatic conversion into government bonds
Explanation: Ordinary shareholders typically vote at shareholder meetings. Preference shareholders often have restricted voting rights except in special circumstances (for example arrears of preference dividends).
4What does limited liability mean for a shareholder of a limited company?
A.The shareholder can never lose more than the amount unpaid on their shares
B.The company cannot become insolvent
C.Directors have no duties to the company
D.Dividends are guaranteed by the state
Explanation: Limited liability means a shareholder's financial exposure is generally limited to the amount unpaid on their shares; creditors cannot normally claim the shareholder's personal assets beyond that.
5What is the difference between authorised share capital and issued share capital?
A.Authorised capital is the maximum the company may issue under its constitution; issued capital is the portion actually allotted to shareholders
B.Authorised capital is always equal to market capitalisation
C.Issued capital is only debt outstanding
D.Authorised capital is the daily trading volume
Explanation: Authorised (nominal) capital is the ceiling of shares the company may issue. Issued capital is the amount of shares actually allotted to shareholders.
6If a profitable company pays no dividend, where do residual profits typically accumulate for ordinary shareholders?
A.In retained earnings within equity, increasing the book value attributable to ordinary shareholders
B.As a liability to preference shareholders only
C.As cash automatically distributed by the CSD
D.As a reduction in authorised capital
Explanation: Undistributed profits are retained in equity (retained earnings). They increase the book equity attributable to ordinary shareholders even when no cash dividend is paid.
7What is the purpose of pre-emptive (rights of first refusal) rights for existing shareholders on a new issue?
A.To protect existing shareholders from dilution by giving them priority to subscribe for new shares pro rata
B.To guarantee a higher share price after the issue
C.To convert ordinary shares into preference shares
D.To force the company to repurchase all shares
Explanation: Pre-emptive rights allow existing shareholders to subscribe for new shares in proportion to their holdings, protecting them from ownership dilution when capital is raised.
8When a company buys back its own listed shares and holds them as treasury shares, what is a typical effect?
A.Shares in issue available to the public may fall, which can increase earnings per share if earnings are unchanged
B.Authorised capital automatically doubles
C.Creditors become equity holders
D.The shares convert into perpetual bonds
Explanation: A buyback reduces shares outstanding (or free float if held in treasury), which can raise EPS if net earnings are unchanged, all else equal.
9Compared with holding a senior corporate bond of the same issuer, holding the issuer's ordinary shares generally means:
A.Higher residual risk, discretionary dividends, and potential for greater long-term upside
B.Lower residual risk and a contractual coupon
C.Identical cash-flow priority on insolvency
D.A government guarantee of capital
Explanation: Equity is residual and riskier than senior debt: dividends are discretionary, and equity ranks after creditors on insolvency, but equity offers unlimited upside if the firm succeeds.
10In the primary equity market, what typically occurs?
A.New shares are issued by a company to raise capital (for example via an IPO or rights issue)
B.Existing shareholders trade shares among themselves on an exchange
C.Only bonds may be traded
D.Settlement never involves a CSD
Explanation: The primary market is where issuers raise capital by issuing new securities. An IPO or rights issue are classic primary-market transactions.

About the SAIFM RPE Equity Market Exam

The Equity Market is an elective module of SAIFM's Registered Persons Examination (RPE). It covers equity instruments and markets, South African stock exchanges, Strate settlement, equity derivatives, private equity, fundamental and technical analysis, equity valuation and portfolio management strategies. The JSE prescribes this module for employees of authorised users who advise on or exercise discretion over equity securities (together with the compulsory RPE modules). The exam is 50 MCQs in 1 hour with a 70% pass mark, available at SAIFM venues or via remote online invigilation.

Assessment

50 multiple-choice questions in a computer-based summative assessment. No negative marking. Learning material is the SAIFM The Equity Market workbook (September 2022 edition).

Time Limit

1 hour (60 minutes).

Passing Score

70% competency (pass) mark.

Exam Fee

R3 090 (incl. VAT) per attempt effective 1 August 2025; rewrite costs the same. Optional printed learning material R480 (excl. courier). Confirm current prices on saifm.co.za/costs. (South African Institute of Financial Markets (SAIFM))

SAIFM RPE Equity Market Exam Content Outline

18%

Equity and equity markets

Characteristics of ordinary and preference shares, limited liability, capital concepts, primary and secondary markets, IPOs, rights issues, liquidity and price discovery.

11%

South African stock exchanges

JSE Main Board and AltX, A2X, Cape Town Stock Exchange, FSCA exchange licensing, electronic trading, dual listings and continuing disclosure obligations.

10%

Strate and settlement

Central securities depository functions, dematerialisation, CSD participants, T+3 equities settlement, delivery versus payment, on-market and off-market transfers, and corporate-action record dates.

18%

Equity derivatives and private equity

Equity futures and options, warrants, hedging and leverage; private equity structures, venture capital, leveraged buyouts and common exit routes.

43%

Analysis, valuation and portfolio strategies

Top-down and bottom-up fundamental analysis, financial statement ratios, DDM/DCF and multiples valuation, technical analysis tools, and active versus passive equity portfolio strategies.

How to Pass the SAIFM RPE Equity Market Exam

What You Need to Know

  • Passing score: 70% competency (pass) mark.
  • Assessment: 50 multiple-choice questions in a computer-based summative assessment. No negative marking. Learning material is the SAIFM The Equity Market workbook (September 2022 edition).
  • Time limit: 1 hour (60 minutes).
  • Exam fee: R3 090 (incl. VAT) per attempt effective 1 August 2025; rewrite costs the same. Optional printed learning material R480 (excl. courier). Confirm current prices on saifm.co.za/costs.

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

SAIFM RPE Equity Market Study Tips from Top Performers

1Study the official SAIFM Equity Market workbook end-to-end; complete the self-test questions before attempting timed practice papers.
2Know South Africa's exchange landscape: JSE (including AltX), A2X and the Cape Town Stock Exchange, and that exchange operation requires an FSCA licence.
3Master Strate basics: dematerialisation, CSDPs, T+3 on-market equities settlement and delivery versus payment.
4Practise distinguishing primary vs secondary markets, ordinary vs preference shares, and on-market vs off-market transfers.
5For valuation and analysis, be able to interpret PE, PB, ROE, dividend discount and DCF ideas at a conceptual level—not just memorise labels.
6Link equity derivatives (futures, options, warrants) to hedging and leverage use-cases you might see in advice or dealing roles.

Frequently Asked Questions

How many questions are on the SAIFM RPE Equity Market exam and what is the pass mark?

The official exam has 50 multiple-choice questions and a 70% competency (pass) mark, with no negative marking.

How long is the exam and what does it cost?

You have 1 hour to complete the paper. Each module attempt costs R3 090 including VAT (effective 1 August 2025); confirm the current fee on SAIFM's costs page because prices usually rise each 1 August.

Is The Equity Market a compulsory RPE module?

No. It is an elective. The compulsory modules are Regulation and Ethics of the South African Financial Markets and Introduction to the Financial Markets. Equity Market is commonly required for JSE equity advice or discretionary management pathways—confirm with your compliance officer.

Which syllabus edition should I study?

SAIFM lists The Equity Market learning material as the September 2022 edition on its RPE page. Always download the material linked to your purchased exam on the Virtual Exam Centre and check SAIFM notices for updates.

Are formula sheets provided for The Equity Market?

SAIFM lists formula sheets for Introduction to Financial Markets, Bond Market, Derivatives Market, Money Market and Agricultural Products—not for The Equity Market. Bring a non-programmable scientific calculator if your venue/rules allow.

Are these the official SAIFM exam questions?

No. These are original OpenExamPrep practice questions aligned to the published syllabus outline. Official summative questions are confidential.