List of Glossary Terms

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Numeric


FACE OF THE ACCOUNTS
The actual income statement and balance sheet - as opposed to the notes to those accounts. Certain information is always shown on the face of the accounts - like fixed assets or turnover - while... read more
 
FACE VALUE
The dollar value of a U.S. Treasury Bill at maturity. T-Bills are issued at a discount to face value and gradually increase in value until reaching the full face value on the maturity date.
 
FACTORS OF PRODUCTION
An economics concept which refers to the four broad categories of scarce resources used in the economy. Those resources are land, labour, capital and entrepreneurial ability. All products and... read more
 
FADE
Selling a rising price or buying a falling price. A trader fading an up opening would be short, for example.
 
FAILED TRADE
A securities trade in equities, bonds or other securities where either the seller fails to supply the security of the buyer fails to supply the cash within the required time-frame. The JSE has... read more
 
FAILURE
 
FAILURE SWINGS
The inability of price to reaffirm a new high in an uptrend or a new low in a downtrend.
 
FAIR VALUES
The theoretical prices generated by an option pricing model (i.e. the Black-Scholes option pricing model).
 
FAIRVEST PROPERTY HOLDINGS LTD
10 - 06 - 2020
Fairvest (FVT) is a real estate investment trust which specialises in investing in smaller rural and non-urban shopping centers which are focused on lower living standard... read more
 
FAIS
This Act (37 of 2002) tries to protect the public from financial advisors and those who sell financial/investment products. It substantially increases the accountability and disclosure of financial... read more
 
FALLING THREE METHODS
A candlestick formation which occurs in an established bear trend and which is used to predict the continuation of that trend. This formation begins with a long red candle within a downtrend.... read more
 
FAMOUS BRANDS LTD
29 - 05 - 2020
Famous Brands (FBR) is Africa's largest branded fast-food retail franchisor with 27 brands and more than 2900 restaurants. The company owns well-known South African brands... read more
 
FANG
The four new high-tech companies which are dominating the New York Stock Exchange. They are Facebook, Amazon, Netflix and Google. All four companies are growing quickly and are deeply invested... read more
 
FAST MARKET
A declaration that market conditions in the futures pit are so disorderly temporarily to the extent that floor brokers are not held responsible for the execution of orders.
 
FAST MOVING CONSUMER GOODS
This is a category of retailers which sell products that have a relatively short sales cycle - like groceries, clothing and small appliances. Typical examples would be Pick 'n Pay, Woolies, Shoprite,... read more
 
FBR
29 - 05 - 2020
Famous Brands (FBR) is Africa's largest branded fast-food retail franchisor with 27 brands and more than 2900 restaurants. The company owns well-known South African brands... read more
 
FDI
All investment into South Africa by foreigners. FDI is a very important factor in the South African economy. We have some tremendous successes and some dismal failures. The successes include... read more
 
FDP
01 - 07 - 2020
Freedom Property Fund (FDP) is a property share that listed on the JSE on 12th June 2014 with a portfolio of R1,5bn worth of properties. Freedom Property Fund (FDP) is a property... read more
 
FEDERAL DEPOSIT INSURANCE CORPORATION
A self-sustaining, independent executive agency established to insure deposits of all US banks entitled to federal deposit insurance, as stated by the Federal Reserve Act.
 
FEDERAL OPEN MARKET COMMITTEE
The policy making committee of the Federal Reserve Bank. They meet on a regular basis, every other Monday to make decisions on US economic policy. These meetings are open to the public. Specifically... read more
 
FEDERAL RESERVE BANK
The governing central bank of the US. There are twelve regional federal reserve banks in America, located in Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St Louis, Minneapolis,... read more
 
FFA
09 - 06 - 2020
Fortress (FFA and FFB) is a real estate investment trust (REIT) with properties held in its own name and shareholdings in other REITs. Principally, it owns shares in Nepi... read more
 
FFB
21 - 04 - 2020
Fortress (FFA and FFB) is a real estate investment trust (REIT) with properties held in its own name and shareholdings in other REITs. Principally, it owns shares in Nepi... read more
 
FGL
30 - 06 - 2020
Finbond (FGL) is a micro-lending and insurance operation which operates in South Africa and America. This company wants to expand in the US to the point where 70% to 80% of... read more
 
FIA
The US national trade association for Futures Commission Merchants. The FIA is the only association representative of all organisations that have an interest in the futures market in the US.... read more
 
FIAT CURRENCY
All currencies were originally commodity currencies - which means that they had the value inherent in the commodity which they were made of. Thus, a gold coin was worth the value of its gold... read more
 
FIBONACCI RATIO
The ratio between any two successive numbers in the Fibonacci sequence, known as phi (f). The ratio of any number to the next higher number is approximately 0.618 (known as the Golden Mean or... read more
 
FIBONACCI SEQUENCE
The sequence of numbers (0, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233...), discovered by the Italian mathematician Leonardo de Pisa in the 13th century and the mathematical basis of the Elliott... read more
 
FIFO
The "first in first out" method of valuing stocks. The assumption is made that the oldest stock is sold first when valuating what remains at the end of the accounting period.
 
FILL
An executed order; sometimes the term refers to the price at which an order is executed.
 
FILL OR KILL
(FK) means the full order must be executed immediately or otherwise cancelled.
 
FILL ORDER
An order that must be filled immediately (or cancelled).
 
FILTER
A device or program that separates data, signal or information in accordance with specified criteria. So a charting program typically contains a filter of some sort which allows the user to search... read more
 
FILTER POINT
The time at which a portfolio insurance program makes an adjusting trade.
 
FINAL DIVIDEND
The dividend paid when the directors know what the final profit for the year will be. Added to the interim dividend, this gives the total dividend for the year.
 
FINANCIAL ADVISORY AND INTERMEDIARY SERVICES ACT
This Act (37 of 2002) tries to protect the public from financial advisors and those who sell financial/investment products. It substantially increases the accountability and disclosure of financial... read more
 
FINANCIAL DIRECTOR
One of the directors of a company who is responsible for the company's finances. The Companies Act makes no distinction between the various directors of a company - they all have the same responsibilities... read more
 
FINANCIAL INDEPENDENCE
Obviously, every private investor's goal is to reach a point of financial independence, where they no longer have to "work for a living", but can live off the return from their investments. The... read more
 
FINANCIAL INSTITUTION
A financial institution is one which makes its profits by dealing with other people's money. Perhaps the best example is a commercial bank, but there are many other types - like insurance companies... read more
 
FINANCIAL MARKETS ACT
This Act which came into force in the middle of 2014 brings our legislation into line with international norms. Its objective is to tighten up control over the financial markets and it aligns... read more
 
FINANCIAL SECTOR CONDUCT AUTHORITY
Previously known as the Financial Services Board (FSB). The Financial Sector Conduct Authority (FSCA), newly named with the advent of the Twin Peaks mechanism, introduced on 1st April 2018, is... read more
 
FINANCIAL SECTOR REGULATION ACT 2017
Brought into effect on 22 August 2017, the Financial Sector Regulation Act No.9 of 2017 introduces the Twin Peak model, which is a new regulatory environment for the banking and financial... read more
 
FINANCIAL SERVICES BOARD
Previously known as the Financial Services Board (FSB). The Financial Sector Conduct Authority (FSCA), newly named with the advent of the Twin Peaks mechanism, introduced on 1st April 2018, is... read more
 
FINANCIAL SERVICES CHARTER

The major sectors of the South African economy are governed by sets of rules known as charters which establish... read more

 
FINANCIAL SERVICES PROVIDER
The Financial Advisory and Intermediary Act provides for the registration of persons (natural or corporate) to give investment advice to investors. The Act requires that such persons are people... read more
 
FINANCIAL TIMES INDUSTRIAL INDEX
A share price index calculated hourly during business hours from an unweighted average of thirty leading blue chips listed on the London Stock Exchange. Until recently this index was the best... read more
 
Financial Times Stock Exchange
Financial Times Stock Exchange.� This is a company which specializes in calculating indexes on the London Stock Exchange (LSE). It has produced a group of indices which are developed and... read more
 
FINANCIAL YEAR
The period of time over which the financial affairs of a company are being accounted for in the financial statements. The matching principle ensures that the incomes for the accounting period... read more
 
FINANCIAL YEAR-END
In terms of section 27 of the Companies Act (71 of 2008), every company is required to have a financial year-end which is the end of its accounting period. By paying a fee and lodging the prescribed... read more
 
FINBOND PROPERTY FINANCIAL LIMITED
30 - 06 - 2020
Finbond (FGL) is a micro-lending and insurance operation which operates in South Africa and America. This company wants to expand in the US to the point where 70% to 80% of... read more
 
FIRST NOTICE DAY
The first day on which notice of intent to deliver a commodity in fulfilment of an expiring futures contract can be given to the clearinghouse by a seller and assigned by the clearinghouse to... read more
 
FIRST WORLD ECONOMY
These are the larger and better established economies that have substantial capital bases and a long track record of effective management. Their currencies are generally far more stable than... read more
 
FIRST-IN-FIRST-OUT
This is a method of valuing stock which assumes that the oldest stock in the warehouse is used before the more recently purchased stock. Since the price of stock purchased will usually go up... read more
 
FIRSTRAND LIMITED
08 - 06 - 2020
FirstRand (FSR) has five divisions - First National Bank (FNB), Rand Merchant Bank (RMH), Wesbank, Ashburton (in the UK) and Aldermore. It operates in 10 African countries,... read more
 
FISCAL CONSOLIDATION
Concrete policies undertaken by government to stem debt accumulation and reduce the fiscal deficit. This can be achieved by an increase in revenue, or taxation, and a reduction in government... read more
 
FISCAL DRAG
Bracket creep, also called "fiscal drag" occurs because, with inflation, tax payers are pushed into higher tax brackets each year. In normal circumstances the Minister of Finance will compensate... read more
 
FISCAL POLICY
Every government spends money and levies taxes to finance its expenditure. Every government must therefore regularly decide how much to spend, what to spend it on and how to finance its expenditure.... read more
 
FISCAL STIMULATION
The government of a country can stimulate its economy in two primary ways - through monetary policy (mostly by reducing the repo rate) of fiscal policy. Fiscal stimulation means decreasing taxes... read more
 
FISCUS
This is another term for the national treasury which controls the finances of the country. The national treasury is part of the Ministry of Finance and it is instrumental in producing the budget... read more
 
FITCH
One of the three internationally recognised rating agencies (along with Standard and Poors and Moodys). Ratings agencies rate governments, companies and para-statals - anyone who issues and sells... read more
 
FIXED ASSET
An asset which is expected to last and be useful for a number of years, and which is held for use in the production or supply of goods or services, for rental to others or for administrative... read more
 
FIXED COSTS
These are costs which a company has to pay whether or not they sell anything. So expenses like rent, telephone, salaries and so on. This is as opposed to "variable costs" which go up and down... read more
 
FIXED INCOME
These are investments which give a set return, such as preference shares, bonds, debentures and savings accounts.
 
FLAG
This is a fairly rare charting formation which can occur either in a upward or a downward trend where the market enters a period of uncertainty and moves sideways for a period before the trend... read more
 
FLAG FORMATION
A charting formation where the price chart forms a pattern which looks something like a triangle. The difference between a pennant and a triangle is the length of time that the formation occurs... read more
 
FLASH FILL
Order filled immediately by hand signal on an "open outcry" trading floor.
 
FLEDGLING
Consisting of ordinary shares which comply with all listing requirements, but are too small to be included in the All Share Index and which are not tested for liquidity. There are five JSE indices... read more
 
FLIGHT TO QUALITY
The movements of capital in the international investment world are dominated by the perceptions of large investors about the level of risk or the lack of it in the world economy. Thus, when the... read more
 
FLOAT
The number of shares currently available for trading.
 
FLOOR BROKER
An individual who executes orders on the trading floor of an "open outcry" exchange for any other person. They are independent members of the various futures exchanges who typically handle customer... read more
 
FLOOR TRADER
An individual who is a member of an exchange and trades for his own account on the floor of the exchange.
 
FLOW OF FUNDS STATEMENT
Today, this statement is more commonly called a "Flow of Funds Statement" but is also known as the "Cash Flow Statement". It aims to show where the cash in the business came from and how it was... read more
 
FLYERS
Speculative or high-risk trades.
 
FMCG
This is a category of retailers which sell products that have a relatively short sales cycle - like groceries, clothing and small appliances. Typical examples would be Pick 'n Pay, Woolies, Shoprite,... read more
 
FORCE MAJEURE
A completely unpredictable event or "black swan" (see The Black Swan" by Nasssim Talbert) event, usually but not always occurring as a result of some natural phenomenon such as a hurricane, flood... read more
 
FORECAST ORIGIN
The most recent historical period for which data is used to build a forecasting model. The next time period is the first forecast period.
 
FOREIGN DIRECT INVESTMENT
All investment into South Africa by foreigners. FDI is a very important factor in the South African economy. We have some tremendous successes and some dismal failures. The successes include... read more
 
FOREIGN EXCHANGE
The foreign exchange market. This is the cash or "spot" market for foreign currencies. Trade does not occur on centralized contract markets but rather, over-the-counter in an international network... read more
 
FOREIGN INWARD LISTING
A foreign company, listed on the JSE and classified by the South African Reserve Bank (SARB) as foreign for index purposes. These companies can be included in the indices, but at a reduced weight.... read more
 
FOREIGN RESERVES
A reserve of precious metals and foreign currencies kept by the Reserve Bank.
 
FOREX
The foreign exchange market. This is the cash or "spot" market for foreign currencies. Trade does not occur on centralized contract markets but rather, over-the-counter in an international network... read more
 
FORMATION
The discipline of "technical analysis" or "charting", as it is sometimes called, consists of studying chart patterns with a view to establishing patterns that can be used to improve prediction... read more
 
FORMATION ANALYSIS
The study of technical analysis can be divided into three primary areas - Formation Analysis, Line charts and Wave and Cycle Theories. Formation analysis is the study of the various patterns... read more
 
FORTRESS-A REIT LTD
09 - 06 - 2020
Fortress (FFA and FFB) is a real estate investment trust (REIT) with properties held in its own name and shareholdings in other REITs. Principally, it owns shares in Nepi... read more
 
FORTRESS-B REIT LTD
21 - 04 - 2020
Fortress (FFA and FFB) is a real estate investment trust (REIT) with properties held in its own name and shareholdings in other REITs. Principally, it owns shares in Nepi... read more
 
FORWARD (CASH) CONTRACT
A contract which requires a seller to agree to deliver a specified cash commodity to a buyer sometime in the future. All terms of the contract are customised, in contrast to futures contracts... read more
 
FORWARD BOOK
An account in the derivatives market that the Reserve Bank maintains to execute transactions in the currency market. There is always a temptation for the Reserve Bank to try to protect the rand... read more
 
FRAMING OR FRAME DEPENDENCE
Behavioural finance. The tendency to evaluate current decisions within the framework in which they have been presented. Making decisions based on perceptions of risk/return rather than pure risk... read more
 
FREE CASH FLOW
The cash generated by a company from its sales (revenue) less its operating expenses and any capital expenditure that it may have to make. Free cash flow is used to determine the company's cash... read more
 
FREE DEALING
A term used to describe listed shares which trade in large volumes regularly and can be bought or sold freely on the Securities Exchange. You should be careful of shares which are "tightly held"... read more
 
FREE FLOAT
The proportion of a company's shares which are held by the public at large. This excludes shares which are part of a lock-in or which are destined for the company's employee share option scheme.... read more
 
FREE FLOAT MARKET CAPITALISATION
The free float of a company's shares multiplied by their current market price. Also known as the free float market cap., or the investable market capitalisation. This is used in the construction... read more
 
FREEDOM PROPERTY FUND LIMITED
01 - 07 - 2020
Freedom Property Fund (FDP) is a property share that listed on the JSE on 12th June 2014 with a portfolio of R1,5bn worth of properties. Freedom Property Fund (FDP) is a property... read more
 
FRONT MONTH
The first expiration month in a series of expiration months. Futures contracts typically expire at the end of March, June, September and December.
 
FRONT-LOADED
Commission and fees taken out of investment capital by an asset manager before the balance of the money is put to work.
 
FRONT-RUNNING
The practice of trading ahead of large orders to take advantage of favourable price movements. Brokers are prohibited from this practice.
 
FRYING PAN BOTTOM
This is the name that technicians give to the bottom formation of a share price where it drifts out slowly from a strong downward trend and then begins to tentatively move upwards into a new... read more
 
FRYING PAN TOP
A cycle top on a chart which drifts out and down in a gradual loss of momentum. This is as opposed to a "V" top which is very sharp and sudden. Also called an Umbrella Top, a Frying Pan Top,... read more
 
FSP
The Financial Advisory and Intermediary Act provides for the registration of persons (natural or corporate) to give investment advice to investors. The Act requires that such persons are people... read more
 
FSR
08 - 06 - 2020
FirstRand (FSR) has five divisions - First National Bank (FNB), Rand Merchant Bank (RMH), Wesbank, Ashburton (in the UK) and Aldermore. It operates in 10 African countries,... read more
 
FTSE
Financial Times Stock Exchange.� This is a company which specializes in calculating indexes on the London Stock Exchange (LSE). It has produced a group of indices which are developed and... read more
 
FTSE/JSE INDICES
Financial Times Stock Exchange.� This is a company which specializes in calculating indexes on the London Stock Exchange (LSE). It has produced a group of indices which are developed and... read more
 
FUND MANAGER
The JSE is dominated by institutional investors which account for as much as 90% of all trades. These institutions are pension funds, insurance companies and unit trusts. The funds which they... read more
 
FUNDAMENTAL ANALYSIS
The study of all factors which will impact the profitability of a company. Typically, the fundamental analyst is asking the question, "How good will this company be as a generator of dividends... read more
 
FUNDAMENTAL RISK
This is the risk which is inherent in a particular company. It can be assessed by considering the company's financials or visiting it. The more you know about a company and the people who run... read more
 
FUNDAMENTALIST
A person who uses fundamental analysis, (rather than technical analysis) to select shares and time their transactions in the stock market. Fundamentalists are concerned with establishing the... read more
 
FUNDAMENTALS
All those factors which will tend to influence the future profits of a company. The most important of these is its past profitability - which is best discovered by a careful examination of the... read more
 
FUNGIBLE INSTRUMENT
Fungible instruments are securities which can be easily traded because they are homogenous (i.e. all the same). Organised exchanges deal in and guarantee trades in fungible instruments. Instruments... read more
 
FUTURE VOLATILITY
A prediction of what volatility may be like in the future. The volatility of a share's price is determined by the degree to which it departs from its average. Obviously a straight line is the... read more
 
FUTURES CONTRACT
A legally binding, standardised agreement to buy or sell a commodity or financial instrument at a future date. Futures contracts are standardised according to the quality, quantity and delivery... read more
 
FUTURES INDUSTRY ASSOCIATION
The US national trade association for Futures Commission Merchants. The FIA is the only association representative of all organisations that have an interest in the futures market in the US.... read more
 
FVT
10 - 06 - 2020
Fairvest (FVT) is a real estate investment trust which specialises in investing in smaller rural and non-urban shopping centers which are focused on lower living standard... read more