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
 
PAN
14 - 05 - 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
14 - 05 - 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 PROFITS
The difference between the purchase price of a share and its current market price. Another term for this is "market appreciation". There is a potential danger in this figure, because it may not... read more
 
PAR
The full principal amount of an investment instrument.
 
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
 
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 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
12 - 12 - 2019
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
12 - 12 - 2019
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
 
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
24- 06- 2020
Pepkor Holdings (Pep) (PPH), previously known as Pep and part of the Steinhoff Retail Group (STAR), is 71% owned by Steinhoff International. With the collapse of the Steinhoff... 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
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
 
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
 
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
14 - 05 - 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
 
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 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
 
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 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
 
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
 
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
27 - 11 - 2019
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
27 - 11 - 2019
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
24- 06- 2020
Pepkor Holdings (Pep) (PPH), previously known as Pep and part of the Steinhoff Retail Group (STAR), is 71% owned by Steinhoff International. With the collapse of the Steinhoff... read more
 
PPR
10 - 03 - 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 properties in industrial,... 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
 
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 and... 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
 
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
 
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
 
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 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 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 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 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 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 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 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
 
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 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 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
 
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
 
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
 
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
 
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 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 TAKING
Selling tradables that have appreciated since initial purchase in order to take advantage of the appreciation.
 
PROGRAM TRADING
Trades based on signals from computer programs, usually entered directly from the trader's computer to the market's computer system.
 
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
01 - 07 - 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
 
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
 
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
01 - 07 - 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
 
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 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
 
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

 
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
10 - 03 - 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 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