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


L2D
04 - 06 - 2020
Liberty Two Degrees (L2D) is a real estate investment trust (REIT) which contains the properties spun out of Liberty - most notably, it owns a share in the Sandton shopping... read more
 
L4L
19 - 05 - 2020
Long 4 Life (L4L) is an investment company which listed on the JSE on 7th April 2017. It raised R2bn on listing mainly because its CEO was Brian Joffe, who is very well known... read more
 
LAB
13 - 05 - 2020
Labat (LAB) is a 57% black-owned investment holding company which listed on the JSE in 1999. The company buys and improves subsidiaries and then sells them for a profit. At... read more
 
LABAT AFRICA LIMITED
13 - 05 - 2020
Labat (LAB) is a 57% black-owned investment holding company which listed on the JSE in 1999. The company buys and improves subsidiaries and then sells them for a profit. At... read more
 
LABOUR BROKER
A person or organisation that specialises in placing short-term workers. The union movement is strongly opposed to the existence of labour brokers, because, obviously, they make it possible for... read more
 
LABOUR RELATIONS
A field of commercial activity which seeks to optimize the relationship between business and the labour force so as to ensure a minimum number of days work lost to strike action through contented... read more
 
LAG
The number of data points that a filter, such as a moving average, follows or trails the input price data. So, for example, you can have a 65-day exponentially smoothed moving average which is... read more
 
LAGGING INDICATOR
Certain economic indicators regularly lag behind the business cycle because of the nature of their business. For example, large construction contracts normally have a duration of three to five... read more
 
LAISSEZ-FAIRE
This is the policy of leaving things to run their own course, without any interference. In economics, this refers to the non-interference by the government, in the free-market. It is a French... read more
 
LAND REFORM
Part of South Africa's constitution is to remedy the imbalances of the past and part of this process is to restore land claims to those who were dispossessed during the colonial and apartheid... read more
 
LAST DAY TO REGISTER
The date by which you must be registered as a shareholder in order to participate in a corporate action such as the paying of a dividend or a rights issue. The last day to register is three days... read more
 
LAST DAY TO TRADE
The last day to trade (LDT) in securities, which are subject to a corporate action (such as a rights issue or a dividend), in order to ensure settlement on record date (RD) and qualify for the... read more
 
LAST IN FIRST OUT
In accounting, a method of valuing closing stock which assumes that the most recently-purchased stock is the first stock to be used - which leaves the oldest and usually the less-expensive stock... read more
 
LAST TRANSACTION PRICE
The price at which a certain share was last traded. This information is normally reported on the price page of your newspaper in a column headed "last". It is sometimes called the "closing" or... read more
 
LATEST QUARTERLY EARNINGS
The percentage change from the latest earnings reported compared with the same quarter a year earlier.
 
LAZY BALANCE SHEET
Occasionally, you will come across a listed company which is said to have a "lazy balance sheet" because they are carrying a lot of cash and cash equivalents - which could be used for profitable... read more
 
LBH
04 - 06 - 2020
Liberty (LBH) is a financial services, asset management and insurance company which is a 54% subsidiary of Standard Bank. It is Standard Bank's "bancassurance" partner and... read more
 
LBR
10 - 06 - 2020
Libstar (LBR) is a recently-listed decentralised food and beverage company producing "consumer packaged goods" which raised R3bn in an initial public offer (IPO) in May 2018.... read more
 
LEAD
The number of data points that a filter, much as a moving average, precedes the input price data.
 
LEADING INDICATORS
(1) These are indicators which tend to anticipate movements in other indicators. For example, the paper and packaging industry tends to start experiencing better conditions before the rest of... read more
 
LEAPS
Acronym for long-term equity anticipation securities, which are long-term listed options, with maturities that can be as long as two and a half years.
 
LEG
One side of a spread.
 
LEG OUT
In rolling forward in futures, a method that would result in liquidating a position.
 
LEGAL PERSONA
This is a legal term that refers to the fact that, in addition to natural persons, companies are also considered by law to be persons independent of their owners or managers. Legal persona gives... read more
 
LEVERAGE
  1. The American term for "gearing" on the balance sheet where debts exceed equity.
  2. The ability to control large dollar amounts of a commodity with a comparatively small amount... read more
 
LEW
05 - 02 - 2020
Lewis (LEW) is a retailer of furniture and electrical appliances operating through 779 stores under the Lewis (494 stores), Beares (119 stores), Best Home (133 stores), and... read more
 
LEWIS GROUP LIMITED
05 - 02 - 2020
Lewis (LEW) is a retailer of furniture and electrical appliances operating through 779 stores under the Lewis (494 stores), Beares (119 stores), Best Home (133 stores), and... read more
 
LHC
13 - 05 - 2020
Life Healthcare (LHC) is the second-largest, JSE main-board listed, healthcare company with private hospitals, same-day clinics and surgeries and healthcare companies in South... read more
 
LIABILITY
An accounting term, which records monies owed by the company to outsiders. The most common forms of liabilities are share capital and reserves (which are money "owed" to the shareholders), long-term... read more
 
LIBERTY HOLDINGS LIMITED
04 - 06 - 2020
Liberty (LBH) is a financial services, asset management and insurance company which is a 54% subsidiary of Standard Bank. It is Standard Bank's "bancassurance" partner and... read more
 
LIBERTY TWO DEGREES
04 - 06 - 2020
Liberty Two Degrees (L2D) is a real estate investment trust (REIT) which contains the properties spun out of Liberty - most notably, it owns a share in the Sandton shopping... read more
 
LIBOR
The interest rate which British banks charge each other for inter-bank loans. Libor is used as a bench-mark rate to determine other interest rates.
 
LIBSTAR HOLDINGS LTD
10 - 06 - 2020
Libstar (LBR) is a recently-listed decentralised food and beverage company producing "consumer packaged goods" which raised R3bn in an initial public offer (IPO) in May 2018.... read more
 
LIFE HEALTHCARE GROUP HOLDINGS LIMITED
13 - 05 - 2020
Life Healthcare (LHC) is the second-largest, JSE main-board listed, healthcare company with private hospitals, same-day clinics and surgeries and healthcare companies in South... read more
 
LIFESTYLE TAX AUDIT
The Receiver of Revenue sometimes undertakes a lifestyle audit of an individual who appears to be living beyond his taxed income and stated assets. The Income Tax Act allows for SARS to investigate... read more
 
LIFO
In accounting, a method of valuing closing stock which assumes that the most recently-purchased stock is the first stock to be used - which leaves the oldest and usually the less-expensive stock... read more
 
LIGHTHOUSE CAPITAL LIMITED
08 - 05 - 2020
Lighthouse Capital (LTE) (previously Greenbay) is an Alt-X listed share which is one of the Resilient group of REITs (real estate investment trusts) along with Resilient itself,... read more
 
LIMIT (UP OR DOWN)
The maximum price advance or decline from the previous day's settlement price permitted during one trading session, as fixed by the rules of an exchange. The purpose of limit up or limit down... read more
 
LIMIT MOVE
A change in price that exceeds the limits set by the exchange on which the contract is traded.
 
LIMIT ORDER
Limit order types are orders that stipulate both a volume to be bought or sold and a limit price. Limit orders will always execute at the specified limit or better. With on-line trading, all... read more
 
LIMITED LIABILITY
Corporate entities are juristic persons who have full legal persona. This means that they are responsible for their own debts separately from the people who own their shares. This is not true... read more
 
LINE CHART
Technical Analysis, or charting as it is called, has three primary divisions - Formations, Line Charts and Wave and Cycle Theories. Line charts start with a simple chart of the closing price... read more
 
LINEAR WEIGHTING
The even weighting of a moving average so that older data has proportionately less impact than more recent data. In a standard moving average every price from the most recent to the oldest in... read more
 
LIQUID
A liquid share is one which typically trades more than R5 million but less than R500 million worth of shares every trading day. A good example of this would be a share like Dischem or Coronation.... read more
 
LIQUID ASSETS
Assets that can be readily converted into cash. Normally, these are current assets such as debtors, stock and obviously cash or bank balances. The "liquidity" of an asset is the speed and ease... read more
 
LIQUID MARKET
A security or commodity market with enough units outstanding to allow large transactions without a substantial change in price.
 
LIQUIDATE
To settle the affairs of a company/firm by selling assets in order to pay creditors. When a company is liquidated, ordinary shareholders are entitled to receive their portion of remaining assets... read more
 
LIQUIDATING VALUE
A money balance figure calculated by beginning with adjusted total equity, subtracting short option value, and adding long option value. This figure provides a critical snapshot of the financial... read more
 
LIQUIDATION
The process whereby a company is dissolved. The court, the company itself, a shareholder, the Master of the court, the business rescue practitioner, a creditor, or the minister may initiate such... read more
 
LIQUIDITY
The ability of a company (or person) to raise cash on short notice, usually with a view to meeting debts, unexpected expenses, or to take advantage of opportunities. It is wise to keep a portion... read more
 
LISTING
The right to trade a particular security on an organised exchange. The JSE has stringent requirements for companies seeking to have their shares and other instruments listed. Securities may be... read more
 
LISTINGS BOOM
This describes a surge in companies lising on the JSE over a period of time. As a company executive, having your company listed on the JSE is attractive, as capital can be generated to grow the... read more
 
LJUNG-BOX STATISTIC
A chi-square test of significance of higher order correlation existence. The marginal significance level is the probability that a no more higher order correlation exists. There are a large number... read more
 
LNF
28 - 02 - 2020
London Finance and Investment Group (LNF) is a British company involved in management and finance in the UK, America and Europe. It is listed on the London Stock Exchange... read more
 
LOAD
Commission and fees taken out of investment capital; that is, the situation in which a front-loaded mutual fund takes commission and fees out of investment capital before the money is put to... read more
 
LOAN TO VALUE
This is the amount of debt which a real estate investment trust (REIT) or property company has as a proportion of the value of the properties which it owns. In general an LTV of above 40% is... read more
 
LOCAL COUNTER-PARTY TRANSACTION
A transaction where a member firm trades as a principal with a person in South Africa, other than a member firm in South Africa.
 
LOCKED IN
A special arrangement whereby certain shareholders are prevented from selling their shares for a defined period of time. This is typically a condition of an acquisition where the major shareholders... read more
 
LOCKED LIMIT
A market that, if not restricted, would seek price equilibrium outside the limit but, instead, moves to the limit and ceases to trade.
 
LOG CHARTS
Long-term standard charts, especially of indexes, have the disadvantage that the older data cannot be compared with the most recent data. For example, the 40% collapse of the JSE Overall index... read more
 
LOGARITHMIC CHART
There are a number of ways to display the data on a chart. A linear chart is just like the charts that you used to draw at school with both the X and the Y axis showing one unit for each interval.... read more
 
LON
 
LONDON FINANCE AND INVESTMENT GROUP PLC
28 - 02 - 2020
London Finance and Investment Group (LNF) is a British company involved in management and finance in the UK, America and Europe. It is listed on the London Stock Exchange... read more
 
LONDON STOCK EXCHANGE
The London Stock Exchange is one of the world's oldest stock exchanges and can trace its history back more than 300 years. Starting life in the coffee houses of 17th century London, the Exchange... read more
 
LONG
Establishing ownership of the responsibilities of a buyer of a tradable; holding securities in anticipation of a price increase in that security. An investor who is "long of a stock" is a person... read more
 
LONG 4 LIFE LTD
19 - 05 - 2020
Long 4 Life (L4L) is an investment company which listed on the JSE on 7th April 2017. It raised R2bn on listing mainly because its CEO was Brian Joffe, who is very well known... read more
 
LONG LEGGED DOJI
A candlestick formation which comprises of a very small or non-existent body and very long upper and lower shadows. The body of the candle is exactly in between the two shadows. The Rickshawman... read more
 
LONG OPTION VALUE
The current market value of all long options in a trading account. This amount of cash would flow into the account (less any commissions and fees) in the event that the options were offset (sold)... read more
 
LONG-TERM LIABILITY
A debt, which is to be repaid over years rather than months. A good example of this would be debentures, which carry a fixed percentage return and are redeemable by the company at some future... read more
 
LONMIN PLC
 
LOOKBACK INTERVAL
The number of periods of historical data used for observation and calculation. For example, a 50-day moving average has a lookback interval of 50 trading days.
 
LOOP STRUCTURE
An illegal structure where a person resident in South Africa for tax purposes owns a company or trust overseas which then, in turn, owns assets in South Africa. Certain loop structures can be... read more
 
LOOSELY HELD
This expression refers to shares which are held by people who are not familiar with the inner workings of the company. They will sell their shares easily, especially if the price rises a little.... read more
 
LOT
A unit of trading. In the futures market, one lot refers to one futures or options contract. In the forex market, one lot is equivalent to 100,000 units of a particular foreign currency. Originally... read more
 
LOW
The lowest point in a price pattern over a specific period.
 
LOW PASS FREQUENCY FILTER
A data smoother or filter that lets pass low frequency trend sinusoids and rejects high frequency noise (see SMA).
 
LOW-TICKING
To sell at the bid price.
 
LSE
The London Stock Exchange is one of the world's oldest stock exchanges and can trace its history back more than 300 years. Starting life in the coffee houses of 17th century London, the Exchange... read more
 
LTE
08 - 05 - 2020
Lighthouse Capital (LTE) (previously Greenbay) is an Alt-X listed share which is one of the Resilient group of REITs (real estate investment trusts) along with Resilient itself,... read more
 
LTV
This is the amount of debt which a real estate investment trust (REIT) or property company has as a proportion of the value of the properties which it owns. In general an LTV of above 40% is... read more