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


IDQ
16 - 04 - 2020
Indequity (IDQ) is a short-term insurance company which writes personal line business insurance on behalf of larger insurance companies. The company targets the professional... read more
 
IDZ
These are special business zones which enjoy tax and other benefits to encourage rapid industrialisation. They are often located in areas where business is depressed in order to encourage growth... read more
 
ILE
12 - 12 - 2019
Imbalie (ILE) is a beauty franchisor which operates through 150 salons and retailers. It sells its own health and beauty brands. It has 3 types of franchises - Placecol, Dream... read more
 
ILLEGAL MINERS
These are informal miners who attempt to extract ore from a disused mine - usually at great risk to themselves. Known as "Zama-zama" (which means "people who try"), these miners have inadequate... read more
 
ILLEGAL STRIKE
A labour strike which takes place outside the ambit of the Labour Relations Act. Such wildcat strikes entitle the employer to fire those who are involved. In South Africa, however, such strikes... read more
 
ILLIQUID
Illiquid shares are those which trade less than R200 000 worth of shares every day on average. Such shares can be traded by private investors, but the big institutions (like pension funds, unit... read more
 
ILU
11 - 06 - 2020
Indluplace (ILU) is a real estate investment trust (REIT) which specialises in residential property and which is 66,24% owned by Arrowhead Properties. It owns residential... read more
 
IMBALIE BEAUTY LIMITED
12 - 12 - 2019
Imbalie (ILE) is a beauty franchisor which operates through 150 salons and retailers. It sells its own health and beauty brands. It has 3 types of franchises - Placecol, Dream... read more
 
IMF
An organisation with over 185 member countries that aims to maintain international currency stability and maximise economic growth. The IMF regularly reports on world growth and economic developments.... read more
 
IMP
19 - 05 - 2020
Impala Platinum Holdings (IMP), or Implats, is the world's third largest platinum group metals (PGM) producer. It has been suffering over the past 7 years from aggressive... read more
 
IMPAIRED ASSETS
Assets whose book value has been reduced by the board in order to reflect their true market value more accurately. Impairments result in a reduction in the profit of the company in the period... read more
 
IMPALA PLATINUM HOLDINGS LTD
19 - 05 - 2020
Impala Platinum Holdings (IMP), or Implats, is the world's third largest platinum group metals (PGM) producer. It has been suffering over the past 7 years from aggressive... read more
 
IMPERIAL HOLDINGS LTD
06 - 06 - 2020
Imperial (IPL) was a massive logistics and motor business. It operated in 32 European and African countries and employed 27 000 people. The company split off and separately... read more
 
IMPLIED ALPHA
The excess return expected from a stock to justify its current weighting in the portfolio.
 
IMPLIED VOLATILITY
The volatility computed using the actual market prices of an option contract and one of a number of pricing models. For example, if the market price of an option rises without a change in the... read more
 
IMPORT COVER RATIO
A ratio which assesses the level of the country's reserves in terms of how many months worth of imports they could cover. A healthy import cover ratio would be around 15 to 20 and South Africa... read more
 
IMPULSE WAVE
A wave or cycle of waves that carries the current trend further in the same direction.
 
IMUNITI HOLDINGS LTD
02 - 01 - 2020
Imuniti Holdings (NUT), or Nutrition, is a manufacturer and marketer of dried foods and water purification which it supplies to the lower LSM and mass feeding markets. It... read more
 
IN PLAY
A stock that is the focus of a public bidding contest, as in a takeover or bear raid.
 
IN-THE-MONEY
An investment term used to describe a situation in which a particular security can be sold for a profit. This is calculated by taking into consideration the purchase price of the security, the... read more
 
IN-THE-MONEY OPTION
An option that has intrinsic value. A call option is in-the-money if its strike price is below the current price of the underlying futures contract. A put option is in-the-money if its strike... read more
 
INCLUSION RATE
In Capital Gains Tax (CGT), the percentage of a capital gain which is included in taxable income. For companies and trusts this is 66% while for individuals it is 40%. Thus, if you are in the... read more
 
INCOME
In accounting terms, this refers to all revenues received by a company, both as a result of its sales and other sources such as interest, dividends or rent. This figure is often called "turnover"... read more
 
INCOME DIVIDENDS
Payments to mutual fund shareholders consisting of dividends, interest and short-term capital gains earned on the fund's portfolio securities after deduction of operating expenses.
 
INCOME STATEMENT
A requirement of the Companies Act and Generally Accepted Accounting Practice (GAAP), the income statement must disclose the turnover of the company during the accounting period and certain,... read more
 
INCOME TAX ACT
The Income Tax Act 58 of 1962 has had numerous amendments. Its basic purpose is to consolidate the law relating to the taxation of incomes and donations, to provide for the recovery of taxes... read more
 
INCORPORATOR
Under the old Companies Act, the people who started a company were known as the subscribers, because they "subscribed" to the memorandum and articles of association. The new Companies Act which... read more
 
INDEPENDENT ACCOUNTING PROFESSIONAL
A type of accountant who is not necessarily a chartered accountant, but who is sufficiently qualified to undertake an independent review on behalf of a smaller company. In order to reduce costs... read more
 
INDEPENDENT REVIEW
An independent review is a lower level check of a company's financial statements which can be conducted by an independent accounting professional. This type of check is open only to smaller companies... read more
 
INDEQUITY GROUP LIMITED
16 - 04 - 2020
Indequity (IDQ) is a short-term insurance company which writes personal line business insurance on behalf of larger insurance companies. The company targets the professional... read more
 
INDEX
A weighted or unweighted average of the prices or market cap of a group of shares. There are many types of indices for sectors, sub-sectors and entire markets. There are also a number of ways... read more
 
INDEX FUND

An index fund is a unit trust (collective investment scheme) which tracks a specific index - usually on the JSE.... read more

 
INDEX POINTS
A measurement term for market indices. An index is an aggregate of the listed companies on an exchange, for example, the JSE Top 40 is an average of the top 40 companies trading on the JSE by... read more
 
INDICE
A weighted or unweighted average of the prices or market cap of a group of shares. There are many types of indices for sectors, sub-sectors and entire markets. There are also a number of ways... read more
 
INDLUPLACE PROPERTIES LIMITED
11 - 06 - 2020
Indluplace (ILU) is a real estate investment trust (REIT) which specialises in residential property and which is 66,24% owned by Arrowhead Properties. It owns residential... read more
 
INDUSTRIAL DEVELOPMENT ZONE
These are special business zones which enjoy tax and other benefits to encourage rapid industrialisation. They are often located in areas where business is depressed in order to encourage growth... read more
 
INDUSTRIAL SHARE
 
INDUSTRY
A grouping of all shares in the same industry, usually represented by a sector index. If you look at the price page of your newspaper, you will see that the share market is divided into sectors.... read more
 
INDUSTRY CLASSIFICATION
A grouping of all shares in the same industry, usually represented by a sector index. If you look at the price page of your newspaper, you will see that the share market is divided into sectors.... read more
 
INEFFICIENT MARKETS
Behavioural finance. Driven by frame dependence and heuristic bias, when market prices stray from fundamental values. In simple terms, new and important information which affects the profitability... read more
 
INFLATION
Inflation is the degree to which a country's currency loses purchasing power over one year - expressed as a percentage. This is usually measured by the consumer price index (CPI), but it can... read more
 
INFLATION TARGETING
The Reserve Bank, through its Monetary Policy Committee (MPC) strives to keep the inflation rate between 3% and 6%. They target the CPI-X which is the CPI without the effect of interest rates.... read more
 
ING
Ingenuity (ING) is a property development company which focuses on properties in the Western Cape. The company was listed on the JSE in 2007 with the objective of developing properties in the... read more
 
INGENUITY PROPERTY INVESTMENT LIMITED
Ingenuity (ING) is a property development company which focuses on properties in the Western Cape. The company was listed on the JSE in 2007 with the objective of developing properties in the... read more
 
INITIAL MARGIN
The amount a futures market participant must deposit into a margin account at the time an order is placed to buy or sell a futures contract.
 
INITIAL PUBLIC OFFERING
Usually coinciding with a listing, this is the first offer of shares to the investing public by a company.
 
INL
26 - 05 - 2020
Investec (INL) does specialist banking and asset management in South Africa, Australia, Europe, the UK and a few other countries. The surprise Brexit vote in the UK has put... read more
 
INSIDE DAY
Also called an inside day, the harami is a top or bottom candlestick reversal pattern which comprises of a small candle situated within the body of it's preceding candle. Harami means pregnant... read more
 
INSIDER TRADING
The illegal dealing in shares by people who, because of their privileged position, have information that materially impacts on the value of the shares, before that information has been made public.... read more
 
INSIDERS
The illegal dealing in shares by people who, because of their privileged position, have information that materially impacts on the value of the shares, before that information has been made public.... read more
 
INSIMBI INDUSTRIAL HOLDINGS LIMITED
15 - 04 - 2020
Insimbi (ISB) is a group which manufactures and supplies specialist products to the industrial sector. They source, buy, package and process ferrous and non-ferrous alloys,... read more
 
INSTITUTIONAL INVESTOR
A collective investment scheme (as opposed to an individual), that invests funds arising from deposits, premiums, contributions etc.. Examples are insurance companies, unit trusts and pension... read more
 
INSTITUTIONAL SHARE
A share which is followed by the big institutions and held by them in their portfolios. A listed share which is patronised by the large institutional investors on the JSE. In South Africa there... read more
 
INSTRUMENT
A very generalised term for any sort of security or debt claim. Thus instruments can include shares, debentures, bonds, derivative contracts and so on.
 
INSURANCE ACT (18 0F 2017)
This is a new act which came into effect on the 1st of July 2018 and which seeks "To provide for a legal framework for the prudential regulation and supervision of insurance business in the Republic... read more
 
INTANGIBLE ASSETS
Any asset which is not concrete. For example, goodwill or patents, which belong to the company, are not represented by any physical object, but refer to the company's rights to something or the... read more
 
INTEGRATED REPORT
The King 3 report on corporate governance requires that companies produce an integrated report which includes a "sustainability report". Listed companies are required by the JSE Rules to adhere... read more
 
INTERBANK RATES
The foreign exchange rates at which large international banks quote other large international banks. Because of the size of such transactions and creditworthiness of the counterparties, such... read more
 
INTEREST
Interest is the price of money. When one peson or company lends money to another then interest is charged at a percentage of the capital lent over a period of time. Interest rates are typically... read more
 
INTEREST RATE
The price of money. Money behaves in much the same way as a commodity, in the sense that when it is in short supply, it becomes more expensive and vice versa. The interest rate is the cost of... read more
 
INTEREST RATE SWAPS
An arrangement that requires both sides of the transaction to make payments to each other based on two different interest rates. The most commonly traded requires one side to pay a fixed rate... read more
 
INTERIM DIVIDEND
 
INTERIM FINANCIAL RESULTS
In terms of the Companies Act, all public companies are required to produce interim financial statements covering the first six months of their financial year. These "interims" are published... read more
 
INTERMARKET ANALYSIS
Observing the price movement of one market for the purpose of evaluating a different market.
 
INTERNAL RATE OF RETURN
The rate of interest which an individual, or, more commonly, an investment company is willing to accept. To determine your IRR, you need to ask yourself what amount of money received in a year's... read more
 
INTERNATIONAL ACCOUNTING STANDARDS BOARD
In March 2001, the International Accounting Standards Committee (IASC) Foundation was formed as a not-for-profit corporation incorporated in the State of Delaware, US. The IASC Foundation is... read more
 
INTERNATIONAL MONETARY FUND
An organisation with over 185 member countries that aims to maintain international currency stability and maximise economic growth. The IMF regularly reports on world growth and economic developments.... read more
 
INTERNATIONAL SECURITIES IDENTIFICATION NUMBER
 
INTRADAY
Literally, "within the day" as opposed to inter-day. Intraday trades are those that occur during the trading day - i.e. where a security is both bought and sold on the same day. This is mostly... read more
 
INTRINSIC VALUE
 
INTRODUCING BROKER
A firm or individual that solicits and accepts futures orders from customers but does not accept money, securities, or property from the customer. An IB must be registered with the Commodity... read more
 
INTU PROPERTIES PLC
26 - 06 - 2020
Intu (ITU) is a UK-based real estate investment trust (REIT) which is part of the FTSE 100 index. It was founded by the late Donald Gordon in 2010. It specialises in retail... read more
 
INVENTORY
Another word for stocks of raw material, work in progress, consumable stores and finished goods. The valuation of the inventory is critical to the balance sheet.
 
INVERTED HAMMER
The counterpart of the hammer, this is also a bullish bottom reversal candlestick formation which derives its significance from it's shadow and implies that an upward trend is imminent. The inverted... read more
 
INVERTED THREE BUDDHA
The opposite of a head-and-shoulders formation, this formation normally comes at the bottom of a long down-trend and signals the end of that down-trend. The market makes a left shoulder with... read more
 
INVESTABLE 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
 
INVESTEC AUSTRALIA PROPERTY FUND
04 - 11 - 2019
Investec Australia Property Fund (IAP) is a real estate investment trust (REIT) which concentrates on property investments in Australia and New Zealand. It is owned 23% by... read more
 
INVESTEC BANK LTD
26 - 05 - 2020
Investec (INL) does specialist banking and asset management in South Africa, Australia, Europe, the UK and a few other countries. The surprise Brexit vote in the UK has put... read more
 
INVESTEC PROPERTY FUND
26 - 05 - 2020
Investec Property Fund (IPF) is a diversified South African real estate investment trust (REIT) with a R24bn portfolio of which R16bn is in South Africa. Like most REITs,... read more
 
INVESTMENT
  1. An asset on the balance sheet that refers to the shares held in a company or loans granted to other companies, which do not amount to or confer a controlling interest. The Act requires... read more
 
INVESTMENT ANALYST
An investment analyst does research on listed shares in order to provide information to a fund manager to enable him to allocate funds to specific investments. Investment analysts have to have... read more
 
INVESTMENT CLUBS
Small, private organisations in which a group of investors, usually novices, pool their time and resources to learn more than they could on their own about various forms of investments and then... read more
 
INVESTMENT HOLDING COMPANY
A company which holds shares in other companies as subsidiary or associate companies.
 
INVESTOR
A person, either natural or juristic, that purchases and holds any investment in a security. On the JSE, most of the investors are institutions (pension funds, unit trusts and insurance companies)... read more
 
INVESTOR PROTECTION LEVY
A levy charged by the JSE on all trades on the JSE consisting of 0,0002% of the value of the trade. This pays for insider trading investigations and prevents market manipulation.
 
INVICTA HOLDINGS LIMITED
17 - 04 - 2020
Invicta (IVT) has two divisions - Engineering Solutions Group (ESG), which is a supplier of engineering consumables, components and spare parts, and Capital Equipment Group... read more
 
IPF
26 - 05 - 2020
Investec Property Fund (IPF) is a diversified South African real estate investment trust (REIT) with a R24bn portfolio of which R16bn is in South Africa. Like most REITs,... read more
 
IPL
06 - 06 - 2020
Imperial (IPL) was a massive logistics and motor business. It operated in 32 European and African countries and employed 27 000 people. The company split off and separately... read more
 
IPO
Usually coinciding with a listing, this is the first offer of shares to the investing public by a company.
 
IRA
An American retirement vehicle called an Individual Retirement Account (IRA). An employer's retirement plan that, as specified by tax law, allows employees to elect to have their federal taxable... read more
 
IRR
The rate of interest which an individual, or, more commonly, an investment company is willing to accept. To determine your IRR, you need to ask yourself what amount of money received in a year's... read more
 
IRREGULAR FLAT
A type of Elliott wave correction that has a 3-3-5 wave pattern, where the B wave terminates beyond the start of wave A. A "flat" is in progress, implying that a larger pattern is developing.... read more
 
ISA
11 - 06 - 2020
ISA Holdings (ISA) is a small Alt-X listed IT company offering network, internet and information security in sub-Saharan Africa. The company claims to employ some of the leading... read more
 
ISA HOLDINGS
11 - 06 - 2020
ISA Holdings (ISA) is a small Alt-X listed IT company offering network, internet and information security in sub-Saharan Africa. The company claims to employ some of the leading... read more
 
ISB
15 - 04 - 2020
Insimbi (ISB) is a group which manufactures and supplies specialist products to the industrial sector. They source, buy, package and process ferrous and non-ferrous alloys,... read more
 
ISIN
 
ISLAND FORMATION
A period of sideways movement after a substantial fall, where the share moves up and down within a relatively narrow trading range. Eventually, there should be an up-side break-out from the island,... read more
 
ISSUED CAPITAL
The value of the company’s authorised shares which have been sold to shareholders. Companies issue shares to the public to raise capital in what is known as the "primary market". This is... read more
 
ISSUED SHARES
The value of the company’s authorised shares which have been sold to shareholders. Companies issue shares to the public to raise capital in what is known as the "primary market". This is... read more
 
ISSUED SHARES
The number of shares which a company has sold to the public to raise capital for its establishment or expansion. A company must obtain authorisation from the Companies and Intellectual Property... read more
 
ITALTILE LTD
18 - 06 - 2020
Italtile (ITE) is a franchisor of tiles, sanitary ware, flooring and home finishing products - which it manufactures and wholesales itself. The company is controlled by the... read more
 
ITE
18 - 06 - 2020
Italtile (ITE) is a franchisor of tiles, sanitary ware, flooring and home finishing products - which it manufactures and wholesales itself. The company is controlled by the... read more
 
ITRIX
A joint initiative by the JSE and Deutsche Bank to offer South African investors a method of investing in overseas markets using rands on the JSE. There are five Itrix ETF's trading on the JSE: ... read more
 
ITU
26 - 06 - 2020
Intu (ITU) is a UK-based real estate investment trust (REIT) which is part of the FTSE 100 index. It was founded by the late Donald Gordon in 2010. It specialises in retail... read more
 
IVT
17 - 04 - 2020
Invicta (IVT) has two divisions - Engineering Solutions Group (ESG), which is a supplier of engineering consumables, components and spare parts, and Capital Equipment Group... read more