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


P:E
The market price of a share divided by its most recent average annual earnings per share. This gives the reciprocal of the "earnings yield", and is used by some investors to compare shares with... read more
 
PADEFI
This index, called the "padefi" is an average of the performance of domestic equity unity trusts in South Africa. It is produced and maintained by Profile Media (Pty) Ltd.
 
PAIRS TRADING
Trading in two related securities by taking advantage of excessive and unusual variations between their prices - most commonly found in derivatives.
 
PALLADIUM
A platinum group metal (PGM) which is mainly used in autocatalysts. The metal is found in South Africa, Russia, America and Canada. Recycling is a major source of palladium.
 
PAN
03- 09 - 2020
Pan African Resources (PAN) is a London- and JSE-listed re-treatment gold producer. It has shifted most of its operation from underground mining at the recently closed Evander... read more
 
PAN AFRICAN RESOURCES PLC
03- 09 - 2020
Pan African Resources (PAN) is a London- and JSE-listed re-treatment gold producer. It has shifted most of its operation from underground mining at the recently closed Evander... read more
 
PANAMA PAPERS
A massive leak (over 11 million documents) of important documents from a Panamanian legal company involved in setting up off-shore companies and trusts in tax havens to avoid or evade tax in... read more
 
PAPER 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
 
PAPER PROFITS
The difference between the purchase price of a share and its current market price. Another term for this is "market appreciation". The opposite of a paper loss. There is a potential danger in... read more
 
PAPER TRADING
A training method which imitates the actions of the share market as closely as possible to enable investors to gain real-life experiences without the risks inherent in investing directly in the... read more
 
PAR VALUE
A concept from the old Companies Act which meant the value given to shares when they were created (i.e the price for which they were first sold). Normally, the market price of a share quickly... read more
 
PARASTATAL

Parastatals or State Owed Enterprises (SOE) are corporations owned and controlled by the government. In South... read more

 
PARENT COMPANY
A company which owns more than 50% of another company (its subsidiary). JSE listed companies are usually groups which own a number of subsidiaries. The Companies Act requires that the financials... read more
 
PARETO'S LAW
A law that states that 80% of results come from 20% of the effort.
 
PARIS CAC INDEX
The Cotation Assistee en Continu is an index of the 40 largest shares trading on the Paris stock exchange, now known as the Euronext Paris. It commenced with a base value of 1000 in 1987. It... read more
 
PARITY
An option is said to be trading at parity if the premium at which it is currently trading in the market is exactly equal to its intrinsic value. Time value, in other words, is zero.
 
PARTIAL FILL
When a trader has placed an order to buy or sell more than 1-lot, it is always possible that the order may be only partially filled. This happens most commonly when a market touches a price level... read more
 
PARTICIPANT
A CSDP is a person authorised to perform custodial, administrative or settlement duties. The central securities depository (CSD) in South Africa is known as STRATE (Share TRAnsactions Totoally... read more
 
PARTICIPATING PREFERENCE SHARE
Preference shares which participate in the profits of the company in some way - usually beyond a fixed percentage. For example, they might receive an additional 2% if the ordinary dividend is... read more
 
PARTNERSHIP
A business which is not incorporated and which is owned and managed by more than one person. Partnerships usually have a partnership agreement which stipulates the relationship between the partners,... read more
 
PASSIVE INCOME
An income which comes in regularly, usually as the result of a contractual obligation and a pre-arranged bank debit order. When analysing a share, it is always good to determine how much of its... read more
 
PASSIVE INVESTOR
An investor who aims to maximise his profits over the long term by holding on to his investments instead of taking advantage of short term highs and lows in the market.  Such an investor avoids... read more
 
PATTERNS
There is an on-going debate in the investment world about whether share prices move in patterns or are simply random. Obviously, it is impossible to predict a random series - by definition. So... read more
 
PAY AS YOU EARN TAX
A system of tax which is applied to salaried tax payers. Companies are required to deduct PAYE directly from employees' salaries and pay it to SARS. People whose income is variable like sales... read more
 
PAYE
A system of tax which is applied to salaried tax payers. Companies are required to deduct PAYE directly from employees' salaries and pay it to SARS. People whose income is variable like sales... read more
 
PAYMENT DATE
The date on which a dividend is paid. These days, dividend payments are mostly paid directly into shareholders' stockbroking accounts automatically. There are five dates associated with dividend... read more
 
PBG
20 - 07 - 2020
PBT Group (PBG) is a fledgling IT company in the general finance sector. It has operations in South Africa and Europe, having recently exited operations in the Middle East... read more
 
PBT GROUP LIMITED
20 - 07 - 2020
PBT Group (PBG) is a fledgling IT company in the general finance sector. It has operations in South Africa and Europe, having recently exited operations in the Middle East... read more
 
PCE
Private consumption expenditure (PCE) is an economics term which refers to all spending by consumers. The figures are produced quarterly. PCE is a very important component of gross domestic product... read more
 
PECORA COMMISSION
A commission set up in 1932 to look into the causes of the 1929 stock market crash. The commission found a wide range of abusive practices by banks and other financial institutions. Citibank... read more
 
PEF
A collective investment scheme (CIS) where the funds used are invested into equity (and sometimes debt instruments) in the hopes of generating a return for the investors. Sometimes a private... read more
 
PEGGED EXCHANGE RATE
Following the Bretton Woods agreement most currencies (and especially the US dollar) were fixed against gold. President Nixon abandonned Bretton Woods in the early 1970's and after that most... read more
 
PEMBURY LIFESTYLE GROUP LIMITED
08 - 10 - 2019
Pembury Lifestyle Group (PLG) has two divisions - running schools and retirement villages. They were listed on the JSE in April 2017 at 100c and had fallen to 38c by April... read more
 
PENNANT 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
 
PENNY STOCK
Shares which trade for low prices per share. They may be shares of a very good company; however, they are usually not. They are attractive to speculators who can generate returns based on big... read more
 
PEPKOR HOLDINGS LTD
27- 07- 2020
Pepkor Holdings (Pep) (PPH), previously known as Pep, is 71% owned by Steinhoff International. With the collapse of the Steinhoff group following admissions of "accounting irregularities",... read more
 
PER SHARE RATIO
Certain ratios are calculated as a number of cents per share - like the net asset value per share, the dividends per share and the earnings per share. These types of "per share" ratios depend... read more
 
PERCEPTION
Perceptions are very important in the stock market. They determine the overall "mood of the market" - is it bullish or bearish? They are also reflected in international investment sentiment which... read more
 
PERCEPTION
The way in which the investing public in general feel about a share,  an industry or the market as a whole.  In other words, do they see a share as highly-rated or poorly-rated? Are they expecting... read more
 
PEREGRINE HOLDINGS LIMITED
24 - 06 - 2020
Peregrine (PGR) is an owner-managed asset management and stockbroking group which was founded in 1996 and listed on the JSE in 1998. It consists of Citadel, Stenham and Peregrine... read more
 
PERFECT COMPETITION
A theoretical economic market in which their are many willing buyers and many willing sellers and lots of substitute products. The closest that modern economies come to perfect competition is... read more
 
PERMANENT CAPITAL
Capital which is tied up in the company permanently like share capital - as opposed to capital which is there temporarily - like loan capital from the bank. Loan capital must receive its interest... read more
 
PERSISTENCY RATE
The persistency rate is an insurance industry ratio which refers to the percentage of policy holders that hold their policy through to maturity. Obviously, this is very important for the profitability... read more
 
PERSONAL LIABILITY COMPANY
A private company, used mostly by professionals such as doctors, engineers, lawyers or accountants, in which the directors and previous directors can be held personally liable for the debts of... read more
 
PESSIMISTIC RATE OF RETURN
A statistic that adjusts the usual wins/losses statistic to estimate the worst return from trading results. It reduces the number of wins by the square root of the actual number and increases... read more
 
PETROL PRICE
The price of a litre of petrol, not including the general fuel levy or the Road Accident Fund (RAF) levy. These two levies make up approximately 37% of the cost of a litre of fuel in South Africa.... read more
 
PFB
19 - 05 - 2020
Premier Fishing (PFB) is a 55% subsidiary of listed AEEI - an investment holding company controlled by the Sekunjalo Group and ultimately by the Surve family. The company... read more
 
PFG
13 - 02 - 2020
Pioneer Foods (PFG) is one of the largest manufacturers and distributors of food products in South Africa. It has many well-known brands like Bokomo, Ceres, Liquifruit, Weetbix,... read more
 
PGM
These are platinum itself and rhodium, palladium, iridium, osmium and ruthenium. Normally these metals are all found in the same deposits and so are mined together in varying proportions. For... read more
 
PGR
24 - 06 - 2020
Peregrine (PGR) is an owner-managed asset management and stockbroking group which was founded in 1996 and listed on the JSE in 1998. It consists of Citadel, Stenham and Peregrine... read more
 
PHM
12 - 05 - 2020
Phumelela (PHM) is a gambling and gaming company which owns 4 race courses and 5 training centers across South Africa and stages 250 race meetings per annum. It provides betting... read more
 
PHUMELELA GAMING AND LEISURE LIMITED
12 - 05 - 2020
Phumelela (PHM) is a gambling and gaming company which owns 4 race courses and 5 training centers across South Africa and stages 250 race meetings per annum. It provides betting... read more
 
PIC
The Public Investment Corporation (PIC) manages the largest fund in South Africa which is the pensions contributions of the millions of public servants in this country. It is also the largest... read more
 
PICK 'N PAY STORES LTD
05 - 08 - 2020
Pick ‘n Pay (PIK) is a retail grocery chain with 1858 stores, mostly in South Africa, but also in the rest of Africa. The company was started by Raymond Ackerman in... read more
 
PIERCING PATTERN
A bullish candlestick formation consisting of two candles at the bottom of a trend. The formation begins at the end of a downtrend with a long red�candle. The next day opens at a new low... read more
 
PILLAR
A mining term which refers to a body of ore which is left in place to support the roof. Normally when the mine is worked out, the last action would be to mine the pillars for whatever ore can... read more
 
PIONEER FOODS GROUP LIMITED
13 - 02 - 2020
Pioneer Foods (PFG) is one of the largest manufacturers and distributors of food products in South Africa. It has many well-known brands like Bokomo, Ceres, Liquifruit, Weetbix,... read more
 
PIPS
Slang forex reference to digits added to or subtracted from the fourth decimal place in a quoted currency rate, i.e. 0.0001. See also Points.
 
PIT
The area on the trading floor where trading in futures or options contracts is conducted by open outcry.
 
PIVOT POINT
A technical indicator used with the purpose of identifying the overall trend over different time periods. Used as a price indicator to determine moves in the market, pivot points are calculated... read more
 
PLATINUM
A precious metal prodiminantly produced in South Africa. This metal is used primarily in autocatalysts together with other platinum group metals (PGMs) such as palladium and rhodium. There is... read more
 
PLATINUM GROUP METALS
These are platinum itself and rhodium, palladium, iridium, osmium and ruthenium. Normally these metals are all found in the same deposits and so are mined together in varying proportions. For... read more
 
PLG
08 - 10 - 2019
Pembury Lifestyle Group (PLG) has two divisions - running schools and retirement villages. They were listed on the JSE in April 2017 at 100c and had fallen to 38c by April... read more
 
PLUS TICK
A small upward move in the price of a security over a short time period such as a few minutes or a day and sometimes called a "plus tick". An up tick is not seen as necessarily indicating an... read more
 
PMI

An economic indicator which shows the health or otherwise of the manufacturing sector. This index is produced... read more

 
PMV
18 - 06 - 2020
Primeserve (PMV) describes itself as a, "provider of integrated business support services focused on providing client-centric human capital services, spanning staffing and... read more
 
POINT
One hundredth of one percent. This term is often used in the debt markets to refer to slight changes in the effective yield on debt insturments such as government bonds. It is also used when... read more
 
POINT AND FIGURE CHART
A price-only chart (i.e. without a date axis) that plots up prices as Xs and down prices as Os. The minimum price recorded is called the box size which is often 100c. Typically, a three-box reversal... read more
 
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
 
POISON PILL
A defensive tactic used by a company which is the subject of a hostile takeover to make it more difficult for the predatory company to gain control. It takes the form of a "shareholder rights... read more
 
POLITICAL RISK
Risk, which is political rather than economic, financial or managerial. This kind of risk is very difficult to determine and can cause tremendous fluctuations in the market. It is not usually... read more
 
PONZI
An illegal investment scheme which aims to steal money from members of the public by persuading them that they will make an above average return on their capital. Ponzi schemes take a variety... read more
 
POOR QUALITY EARNINGS
The quality of a company's earnings is a direct function of how sustainable they are. If the profits of a company rise every year by 15% and have done so for many years then analysts and investors... read more
 
POORLY RATED
Companies which have an erratic flow of profits are usually "poorly-rated" by investors. This means that their shares will trade on lower multiples of their earnings per share than "highly-rated"... read more
 
POPULATION
The population of a country and its growth rate are key long-term components of its unemployment rate and its per capita income levels. Essentially, a larger population can mean that each individual... read more
 
POPULISM
A socio/political philosophy which ostensibly aims to do what is best for ordinary people. Unfortunately, most populist ideas ultimately result in the ordinary people being worse off. A good... read more
 
PORTFOLIO
A small group of shares and other investments belonging to a single investor. As a private investor, you should aim to have between 5 and 8 different shares in your portfolio. Each additional... read more
 
PORTFOLIO MANAGER
This is someone who manages portfolios on behalf of investors. He makes the investment decisions and is not usually obliged to get his clients' permission to change their investments if there... read more
 
PORTFOLIO STRUCTURE
The percentage breakdown of a portfolio over the various market sectors.
 
POSITION LIMIT
The maximum number of speculative futures contracts one can hold as determined by the CFTC and/or the exchange where the contract is traded.
 
POSITION MANAGEMENT RATIO
The ratio of profits extracted on winning transactions versus losses suffered on trades that liquidate unprofitably.  
 
POSITION TRADER
A trader who either buys or sells contracts and holds them for an extended period of time, as distinguished from a day trader.
 
PPC
14 - 08 - 2020
PPC is a leading manufacturer and supplier of cement, aggregates, ready-mix, lime, limestone and fly-ash in Africa. It has 11 cement factories in South Africa, Botswana, the... read more
 
PPC LIMITED
14 - 08 - 2020
PPC is a leading manufacturer and supplier of cement, aggregates, ready-mix, lime, limestone and fly-ash in Africa. It has 11 cement factories in South Africa, Botswana, the... read more
 
PPE
09 - 04 - 2020
Purple Group (PPE) is a trading platform and asset management company that is mainly aimed at the private investor and offers the cheapest costs of dealing in shares on the... read more
 
PPH
27- 07- 2020
Pepkor Holdings (Pep) (PPH), previously known as Pep, is 71% owned by Steinhoff International. With the collapse of the Steinhoff group following admissions of "accounting irregularities",... read more
 
PPR
07 - 09 - 2020
Putprop (PPR) is a property company which was spun out of Putco (the bus company) and separately listed on the JSE in July 1988. The company owns 14 properties in industrial,... read more
 
PRE-IPO PLACEMENT
The issue of large blocks of shares to specific investors before an initial public offer (IPO) usually at a discount to the listing price. These investors are taking a greater risk because the... read more
 
PRE-LISTING STATEMENT
A public press announcement required by the JSE before the listing of a company, which is not accompanied by a new issue of shares and therefore a prospectus. It is felt that the investing public... read more
 
PRE-TAX PROFIT
The company's earnings before the deduction of Companies tax. For example, Dischem in their results for the year ended 29th February 2020 disclosed a pre-tax profit of R868,8m and taxation of... read more
 
PRECIOUS METAL
There are really three main precious metals - gold, silver and platinum. To this you could add the other platinum group metals, like palladium and rhodium.� Base metals are much cheaper... read more
 
PREFERENCE SHARE
Shares which have preferential rights in relation to another class of share in the same company. These rights consist of: the right to receive dividends before ordinary shareholders, the right... read more
 
PREFERENTIAL DIVIDEND
These are the dividends paid on preference shares. Preference dividends are paid out, usually at a fixed rate, before any ordinary share dividend. Some preference shares are either convertible... read more
 
PREMIER FISHING BRANDS LIMITED
19 - 05 - 2020
Premier Fishing (PFB) is a 55% subsidiary of listed AEEI - an investment holding company controlled by the Sekunjalo Group and ultimately by the Surve family. The company... read more
 
PREMIUM
A general term used to describe the difference between the price at which a share was first issued and the current price. Often, a successful company wants to issue additional shares to raise... read more
 
PREMIUM ARISING ON ACQUISITION
An intangible asset which arises when a holding company pays more for a subsidiary than its book value. Goodwill is also called a "premium arising on acquisition" and is normally written off... read more
 
PREMIUM TO PAR
A concept from the old Companies Act which meant the value given to shares when they were created (i.e the price for which they were first sold). Normally, the market price of a share quickly... read more
 
PREPAYMENT
The payment of an expense before it is incurred. For example, a company may decide to pay the rent on its factory annually resulting in there being an amount of rent which has been paid but not... read more
 
PREPROCESSING
Altering data to some extent to be more accurately analysed; smoothing, reducing unwanted data, removing trends. Processing data is mathematically transforming the data from one form into another... read more
 
PRESCRIBED ASSET
An asset which must be held by a retirement fund by law. This idea was introduced by the National Party, to ensure that they had sufficient funds for major projects during the apartheid era.... read more
 
PRESCRIBED OFFICER
In terms of the Companies Act (77 of 2008) a prescribed officer is "“a person who, within a company, performs any function that has been
designated by the Minister in terms of section... read more
 
PRESCRIPTION
This is the period of time for which a debt remains valid, after the creditor ceases to demand payment. In terms of the Prescription Act. If the creditor does not demand payment (i.e. by delivering... read more
 
PRESS RELEASE
An announcement made by a company, either voluntarily or to comply with legal requirements, to inform the public of some material development which will impact on shareholders. Typically, profit... read more
 
PRICE
The value of a share or other security on an organised exchange in the currency of the country where it is traded. In South Africa the price of shares is always given in cents per share. Every... read more
 
PRICE CHANGE
A revision to a previously reported fill, usually due to the resolution of an out trade.  
 
PRICE DISCOVERY
The process of determining the price of a commodity by trading conducted in open outcry at an exchange.
 
PRICE EQUILIBRIUM
A price region that represents a balance between demand and supply. This is a microeconomics term which suggests that in any free market supply and demand are opposing forces which reach a balance... read more
 
PRICE LIMIT
The maximum advance or decline, from the previous day's settlement price, permitted for a futures contract in one trading session. Also referred to as Maximum Price Fluctuation.
 
PRICE MAKER
An entity or individual with a sufficient monopoly in a product to increase prices. When there is strong demand for a product or a good brand loyalty, then the manufacturer can push their prices... read more
 
PRICE PAGE
The page of your daily newspaper which displays the previous day's closing prices on the JSE. The price page is divided into the same sectors and sub-sectors as the JSE and gives the high, low,... read more
 
PRICE RANGE
The difference between the highest and lowest prices at which a particular share has traded over a certain time period - such as one trading day, or one year. The range is a good indication of... read more
 
PRICE TAKER
A person or organisation that is forced to pay a higher price for a product than competitive products because of brand loyalty or because the market for the product is dominated by a monopoly.... read more
 
PRICE TO SALES RATIO
The price of a stock divided by sales-per-share of the company in the most recent fiscal year.
 
PRICE:EARNINGS GROWTH RATIO
A ratio which is designed to show whether a share is cheap or expensive at the current market price, in relation to its track record of growing earning per share over a period of time. For example,... read more
 
PRICE:EARNINGS RATIO
The market price of a share divided by its most recent average annual earnings per share. This gives the reciprocal of the "earnings yield", and is used by some investors to compare shares with... read more
 
PRICING POWER
The ability of a company to raise the price of its products without losing significant market share. Pricing power is determined by the existence of suitable substitute products and competition.... read more
 
PRIMARY DEALER
 
PRIMARY INDUSTRY
An industry engaged in extracting or producing raw materials. The two best examples of primary industry are agriculture (including fishing) and mining. Both are exploiting natural resources which... read more
 
PRIMARY LISTING
A listing on the stock market of a company's origin and where it has its main business. Thus a company might have a primary listing on the JSE because it is a South African company, and then... read more
 
PRIMARY MARKET
The market for shares when they are first sold by a company to raise capital. New issues and rights issues are examples of activity on the primary market. Once the company has sold the shares,... read more
 
PRIMARY REBATE
In terms of the Income Tax Act (58 of 1962), individual tax payers can claim primary, secondary and tertiary rebates. The primary rebate is one which everyone can claim irrspective of their age... read more
 
PRIMARY TREND
The overall long-term trend of the share market as a whole. The primary trend is either bullish (up) or bearish (down) separated by periods of indecisiveness where the market moves sideways,... read more
 
PRIME OVERDRAFT RATE
The rate of interest which commercial banks charges to its most credit-worthy clients. This rate is usually 3,5% above the repo rate. The difference between the primary overdraft rate and the... read more
 
PRIME RATE
The rate of interest charged by a commercial bank to its very best (i.e. lowest risk) clients. The prime overdraft rate is usually about 3,5% higher than the repo rate, which is the rate which... read more
 
PRIMESERVE GROUP LIMITED
18 - 06 - 2020
Primeserve (PMV) describes itself as a, "provider of integrated business support services focused on providing client-centric human capital services, spanning staffing and... read more
 
PRINCIPAL
The initial amount of an investment or loan. The principal amount of a loan (or mortgage bond) is the amount intially borrowed. That must be paid back together with interest. The principal amount... read more
 
PRIOR YEAR ADJUSTMENT
An adjustment which is made for an error in the financial statement of a previous accounting period. Occasionally, the accountants make a mistake in the financials which is not picked up by the... read more
 
PRIVATE COMPANY
A company defined by the Companies Act which may not make an offer of shares to the public - as opposed to a public company which may. So all the shares trading on the JSE represent public companies.... read more
 
PRIVATE CONSUMPTION EXPENDITURE
Private consumption expenditure (PCE) is an economics term which refers to all spending by consumers. The figures are produced quarterly. PCE is a very important component of gross domestic product... read more
 
PRIVATE CREDIT EXTENSION
The amount of money borrowed by companies, private individuals and other non-government organisations. This figure is made up of private individuals borrowing on credit cards, overdrafts and... read more
 
PRIVATE EQUITY FUND
A collective investment scheme (CIS) where the funds used are invested into equity (and sometimes debt instruments) in the hopes of generating a return for the investors. Sometimes a private... read more
 
PRIVATE INVESTOR
A natural person (rather than a corporate entity) who invests on the stock market either directly or indirectly. Private investors make up only about 10% of the trades done on the JSE. The other... read more
 
PRIVATE PLACING
An offer of shares to specific investors chosen by the board of directors. Usually, a private placing is offered to staff members, suppliers, clients and others who are closely connected with... read more
 
PRIVATE SECTOR
That part of a country's economy which is run and organised by individuals and private companies, with no direct control from government. This sector is made up of private households and private... read more
 
PRIVATE SECTOR CREDIT EXTENSION
An economic indicator which measures changes in bank lending to the domestic private sector year-on-year. This is a key indicator of how consumers and businesses are feeling. When they lack ... read more
 
PRIVATE SHAREHOLDER
Anyone who is not a public shareholder of a company listed on the main board of the JSE. In terms of the JSE's listing requirements a company listed on the main board must have at least 20% of... read more
 
PRIVATISATION
The sale of government assets to the private sector. The union movement in South Africa has been implacably opposed to privatisation since 1994 because they see it as resulting in retrenchments.... read more
 
PROBABILITY
The chances that a certain event or outcome will occur. It has been well said that investment is not about certainty. It is about probability. When you buy a share, you are making a forecast.... read more
 
PROCUREMENT
This is the buying of goods and services by the government from the private sector. In South Africa procurement has been highly controversial with many instances of corruption, the most notable... read more
 
PRODUCER GOODS
An economics term which refers to manufactured goods which will be used in the futher manufacture of other goods. Thus producer goods ultimately become part of the final finished product which... read more
 
PRODUCER PRICE INDEX
The inflation rate measured at the producer level. This is the average price of goods sold by manufacturers to wholesalers. If the PPI is rising then you can expect the Consumer Price Index to... read more
 
PRODUCT DIFFERENTIATION
The incorporation into a product of characteristics that vary from those of competitive products. All manufacturing and retailing companies do everything they can to separate their products from... read more
 
PRODUCTION
The act of producing a product. This can take many forms such as harvesting, mining or manufacturing. Th effciency with which goods and services are produced in the economy is a function of productivity.... read more
 
PRODUCTIVITY
The efficiency with which a product is produced. Prodcutivity is a key metric in any economy because it determines that country's ability to compete with other countries on world markets. For... read more
 
PROFESSIONAL INVESTOR
A private person who makes his/her living out of buying and selling shares on the JSE. These people generally keep a very low profile and are hard to find. Usually, they operate out of a tax... read more
 
PROFILES ALL DOMESTIC EQUITY FUND INDEX
This index, called the "padefi" is an average of the performance of domestic equity unity trusts in South Africa. It is produced and maintained by Profile Media (Pty) Ltd.
 
PROFIT
The earnings of a company are its profits. They are calculated by deducting the expenses of a period from the incomes of the same period. Earnings in South Africa are subject to taxation at 28%.... read more
 
PROFIT AND LOSS ACCOUNT
The profit and loss account (P&L) subtracts indirect expenses from gross profit to arrive at net profit. The P&L itself is not disclosable in terms of the Companies Act or GAAP, but elements... read more
 
PROFIT CALCULATION
The subtracting of a business's costs from its turnover in order to arrive at its profit/earnings in the financial period. Typically, the profit calculation takes place in three steps - (1) the... read more
 
PROFIT HISTORY
The past earnings of a company going back over many years. Examining a company's profit history should be a key part of a private investors investigations. The profit history shows whether the... read more
 
PROFIT MARGIN EXPANSION
In long-term reference, a measure of a company's net profit margin in the latest reported quarter divided by profit margin in the fiscal year previous. In short-term reference, a measure of a... read more
 
PROFIT SHIFTING
A method of moving profits out of a high-tax regime into a low tax regime, used by multinational companies with subsidiaries or business interests in a variety of countries. By selling product... read more
 
PROFIT TAKING
Selling tradables that have appreciated since initial purchase in order to take advantage of the appreciation.
 
PROFITABILITY
The ability of a company to generate profits in relation to its turnover, operating costs, capital employed or shareholders' equity. Each one of these ratios highlights an aspect of the company's... read more
 
PROGRAM TRADING
Trades based on signals from computer programs, usually entered directly from the trader's computer to the market's computer system.
 
PROHIBITED PRACTISE
An action or activity which is illegal. In the context of the JSE this usually means some form of market abuse or insider trading. The JSE has published a booklet on insider trading and market... read more
 
PROMISSORY NOTE
A written agreement by one party (the payor) to pay another (the payee) a specific sum of money on a specific date or on demand. A promissory note is thus a debt instrument. The note will usually... read more
 
PROPERTY
A fixed asset, being land with or without improvements, owned by both private individuals and companies. Property is unique among assets in that its lack of homogeneity means that it cannot easily... read more
 
PROPRIETARY TRADING
The buying and selling of shares by a stockbroking firm or commercial bank for its own account, rather than as an agent for other parties. In 1996, with the advent of "dual trading", stockbroking... read more
 
PROSPECTING
In the context of the share market, this means searching for shares which have the potential to yield a good return. Prospecting begins with the universe of shares listed on the JSE and through... read more
 
PROSPECTUS
This is a requirement of the Companies Act (71 of 2008) for every offer of shares made to the public. Section 108 of the Act requires that a company cannot allot shares or accept money for those... read more
 
PROSUS NV1
12 - 08 - 2020
On 11th September 2019, Naspers (NPN) separately listed Prosus (PRX) on the Euronext in Amsterdam which houses all its international assets including its stake in Tencent,... read more
 
PROTECTIONISM
The economic policy of protecting certain industries within an economy from outside competition, usually by the imposition of tariffs. In theory capitalism encourages free trade between countries... read more
 
PROVEN RESERVES
The quantity of a mineral which can be economically and legally extracted from a company's mining area. Reserves are usually proven by drilling exploratory holes and analysing the resultant "core".... read more
 
PROVISION
An item on the balance sheet that falls under liabilities. A provision is "raised" when the company has an expense for which it has not yet received an invoice and therefore does not know the... read more
 
PROVISIONAL TAX
A method of paying income tax whereby the taxpayer estimates their tax liability and pays it in advance before the final assessment. Provisional tax payers are people who do not receive a regular... read more
 
PROXY
A document, signed by a shareholder of a company, which entitles a person (who is not necessarily a shareholder of that company) to attend shareholders' meetings, speak and vote on behalf of... read more
 
PRUDENTIAL AUTHORITY
A juristic person within the South African Reserve Bank (SARB) responsible for the regulation of the banking sector, the insurance industry, cooperative financial institutions, financial conglomerates... read more
 
PRX
12 - 08 - 2020
On 11th September 2019, Naspers (NPN) separately listed Prosus (PRX) on the Euronext in Amsterdam which houses all its international assets including its stake in Tencent,... read more
 
PSBR
This is the total claim which the government, state owned enterprises and other government or quasi-government entities like municipalities has on the capital markets. The government has a number... read more
 
PSG
04 - 05 - 2020
PSG is an investment holding company which began in stockbroking but which has now branched out into various other businesses, including banking, education, agriculture, asset... read more
 
PSG GROUP LIMITED
04 - 05 - 2020
PSG is an investment holding company which began in stockbroking but which has now branched out into various other businesses, including banking, education, agriculture, asset... read more
 
PSG KONSULT LIMITED
16 - 04 - 2020
PSG Konsult (KST) is a well-established financial services group which grew out of PSG's stockbroking business and which now offers a wide range of financial services including... read more
 
PSV
19 - 03 - 2020
This is an Alt-X listed industrial holding company with two divisions - Omnirapid which supplies mining and industrial consumables, and Specialised Services consisting of... read more
 
PSV HOLDINGS LIMITED
19 - 03 - 2020
This is an Alt-X listed industrial holding company with two divisions - Omnirapid which supplies mining and industrial consumables, and Specialised Services consisting of... read more
 
PUBLIC ANNOUNCEMENT
An announcement made by a listed company about an event within the company which may have an impact on its shareholders or the price of its shares. Companies listed on the JSE are required by... read more
 
PUBLIC COMPANY
A company as defined by the Companies Act may issue shares to the public, has no restrictions concerning the number of shareholders, or the transfer of shares from one person to another. Public... read more
 
PUBLIC FINANCE MANAGEMENT ACT
An Act which governs the management of public funds in the hands of government departments, provinces and municipalities. It establishes procedures for borrowing funds, guarantees and the purchase... read more
 
PUBLIC INTEREST SCORE
A public interest score is a requirement of the Companies Act (71 of 2008) in order to determing the type of annual financial statement your company needs to rpepare and the reporting standards... read more
 
PUBLIC INVESTMENT CORPORATION
The Public Investment Corporation (PIC) manages the largest fund in South Africa which is the pensions contributions of the millions of public servants in this country. It is also the largest... read more
 
PUBLIC OFFER
An offer of shares made to the public. The public is invited to apply for the shares by completing an application form and submitting it with their cheque. If the total amount raised exceeds... read more
 
PUBLIC PRIVATE PARTNERSHIP
A partnership between the government and the private sector in terms of the Public Finance Management Act. The Gauteng freeway project and toll roads undertaken by Sanral with various construction... read more
 
PUBLIC SECTOR
That part of the economy which is controlled by the government. This includes government departments, state-owned enterprises (SOE) and municipalities. Altogether the public sector is a significant... read more
 
PUBLIC SECTOR BORROWING REQUIREMENT
This is the total claim which the government, state owned enterprises and other government or quasi-government entities like municipalities has on the capital markets. The government has a number... read more
 
PUBLIC SHAREHOLDER
A shareholder who is not directly associated with the company itself, but rather is a member of the public at large. The JSE is intent in its listing requirements to ensure that there is a good... read more
 
PUBLIC UNLISTED COMPANY
A company which may offer shares to the public but which is not listed on any stock exchange. The Companies Act (71 of 2008) distinguishes between public companies and private companies. A public... read more
 
PUBLISHED ACCOUNTS
Sometimes known as an Annual Report or just the "financial statements", this is a document required by the Companies Act (71 of 2008) to be produced once a year for presentation to the Annual... read more
 
PURCHASE AND SALE STATEMENT
A statement sent by a Futures Commission Merchant to a customer in the US when a futures or options position has been liquidated or offset. The statement shows the number of contracts bought... read more
 
PURCHASING MANAGERS INDEX

An economic indicator which shows the health or otherwise of the manufacturing sector. This index is produced... read more

 
PURCHASING POWER
The ability of a currency to be exchanged for goods and services. The purchasing power of most paper currencies decreases because of inflation over time. Inflation, in the long term, results... read more
 
PURCHASING POWER PARITY
A point of equilibrium where a basket of goods costs the same in two countries after taking into account the exchange rate between their currencies. Obviosuly the wider the basket of products... read more
 
PURPLE GROUP LIMITED
09 - 04 - 2020
Purple Group (PPE) is a trading platform and asset management company that is mainly aimed at the private investor and offers the cheapest costs of dealing in shares on the... read more
 
PUT OPTION
The purchased right to sell (put) specified securities at a specified price (strike price) within a specified period (American) or a specified date (European). By the payment of a premium per... read more
 
PUT UP OR SHUT UP
A rule of certain stock exchanges which requires an acquiring company to make a formal offer or to publicly abandon its take over attempt. The London Stock Exchange frequently enforces this policy,... read more
 
PUTPROP LIMITED
07 - 09 - 2020
Putprop (PPR) is a property company which was spun out of Putco (the bus company) and separately listed on the JSE in July 1988. The company owns 14 properties in industrial,... read more
 
PYRAMID
A holding company that holds subsidiaries that in turn holds other subsidiaries and so on. In this way the company at the top of the pyramid can control those at the bottom even though it effectively... read more
 
PYRAMID SCHEME
A scheme whereby people are promised a percentage return for getting other people to invest in the scheme. Participants are encouraged to enroll as many people below them in the the pyramid as... read more