List of Glossary Terms
| RACP |
11 - 11 - 2019 RECM and Calibre (RACP) is an investment holding company which has listed its preference shares on the JSE since June 2010. The company is controlled by Theunis de Bruyn,... read more |
| RAF |
Road Accident Fund (RAF) levy. This is a levy collected on every litre of petrol sold for the road accident fund, which is used to pay out victims of accidents on our roads. In July 2018 the... read more |
| RALLY |
A temporary upturn in the price of a share or index or other data stream, which occurs during an overall bear trend. The opposite of a correction. |
| RALLY TOPS |
A series of tops in an established ongoing trend. A bull trend will have a number of rally tops as bulls and bears get in and out of the market. Although the general sentiment in a bull trend... read more |
| RAND COST AVERAGING |
The idea of buying more of an investment after a large price move so that the average price is less volatile. Unit trusts make much of this idea because most investors buy small quantities of... read more |
| RAND HEDGE |
Some companies listed on the JSE, receive most of their income in a foreign currency like US dollars, yen or British pounds. These companies benefit directly when the rand falls in value because... read more |
| RAND MERCHANT BANK HOLDINGS LTD |
17 - 04 - 2020 Rand Merchant Bank Holdings (RMH) is a company which owns 34,1% of Firstrand and, since 2016, has been investing in property. RMBH was started 41 years ago by GT Ferriera,... read more |
| RAND MERCHANT INVESTMENT HOLDINGS LTD |
17 - 03 - 2020 Rand Merchant Investment Holdings (RMI) is an investment holding company which owns a financial services portfolio worth R56bn consisting of 25% of Discovery, 29,9% of UK... read more |
| RANDGOLD & EXPLORATION COMPANY LIMITED |
02 - 04 - 2020 Randgold (RNG) is a mining exploration company. It has a strong asset base which is mostly in cash which is being used to pursue legal claims and may be applied to investment... read more |
| RANDOM WALK |
A theory that says there is no sequential correlation (no "dependence") between prices from one day to the next, and that prices will act unpredictably as they seek a level in response to supply... read more |
| RANGE |
The difference between the high and low price during a given period. |
| RAROC |
Another measure of risk-adjusted profitability, derived as the ratio between P/L and value at risk. |
| RATE |
A forex term used to describe the price of one currency in terms of another, typically used for dealing purposes.
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| RATE OF CHANGE |
... read more |
| RATINGS AGENCY |
An agency that rates the debt instruments of governments, parastatals and companies. There are three primary ratings agencies - Fitch, Standard & Poors and Moodys. Their ratings have a major... read more |
| RATINGS DOWNGRADE |
The world has three major ratings agencies, Fitch, Moodys and Standard and Poors that constantly monitor and... read more |
| RATIO |
The relationship between two figures from the financial statements, designed to show the profitability or effectiveness of the management within a company. Ratios have no absolute significance,... read more |
| RAUBEX GROUP LIMITED |
04 - 06 - 2020 Raubex (RBX) is a construction company that was started in 1974 and listed on the JSE in 2007. The company has three divisions in construction, materials and infrastructure.... read more |
| RAV |
09 - 06 - 2020 Raven Property Group (previously Raven Russia) (RAV), which took a secondary listing on the JSE from 10th September 2018, specialises in property in Russia and it is the 18th... read more |
| RAVEN PROPERTY GROUP LIMITED |
09 - 06 - 2020 Raven Property Group (previously Raven Russia) (RAV), which took a secondary listing on the JSE from 10th September 2018, specialises in property in Russia and it is the 18th... read more |
| RBP |
04 - 05 - 2020 Royal Bafokeng Platinum (RBP) is a platinum company controlled by Royal Bafokeng Holdings (RBH) which holds about R32bn worth of assets on behalf of the Bafokeng tribe, a... read more |
| RBX |
04 - 06 - 2020 Raubex (RBX) is a construction company that was started in 1974 and listed on the JSE in 2007. The company has three divisions in construction, materials and infrastructure.... read more |
| RCL |
09 - 06 - 2020 RCL is a large producer of food, sugar products and chicken in South Africa which is owned 78% by Remgro. The company owns a number of very well-known South African brands... read more |
| RCL FOODS LTD |
09 - 06 - 2020 RCL is a large producer of food, sugar products and chicken in South Africa which is owned 78% by Remgro. The company owns a number of very well-known South African brands... read more |
| RDF |
30 - 06 - 2020 Redefine (RDF) is the second largest real estate investment trust in South Africa (after Growthpoint) with assets worth R108bn against a market capitalisation of R48bn. The... read more |
| RDI |
Rockwell (RDI) develops and operates alluvial diamond deposits. The company owns and operates the Wouterspan property in Douglas, South Africa. This property has previously been mined, but has... read more |
| RDI REIT PLC |
14 - 05 - 2020 RDI (RPL) is a real estate investment trust (REIT) listed on the London Stock Exchange (LSE) and incorporated into the FTSE 250 index. It has a secondary listing on the JSE... read more |
| REACTION |
A short-term decline in price. |
| REAL BODY |
That part of a candlestick chart which appears between the opening and closing prices. Normally, if the close is below the open, the bears are said to have won the day and the candle is coloured... read more |
| REAL ESTATE INVESTMENT TRUST |
The standard and internationally recognised structure for a property investment company. REITs (pronounced "reet") came into effect in South Africa from the beginning of 2012. These are listed... read more |
| REAL RETURN |
The return on an investment after inflation and tax have been deducted. The return before inflation is deducted is known as the nominal return. You should remember that the after-tax real return... read more |
| REAL VALUE |
The real value of a share only exists as an opinion. Everyone has an opinion about whether a share is over- or under-priced. In relation to what? In relation to their perception of its real value.... read more |
| REAL-TIME QUOTES |
Market quotations which are not delayed. |
| REALISED PROFIT/GAIN |
A profit, which is actually in the bank, as opposed to a market appreciation. If you buy shares for R10 and they rise to R12 then you have a market appreciation of R2. Only if you then sell them... read more |
| REALISED/UNREALISED P/L |
... read more |
| REB |
01 - 07 - 2020 Rebosis (REB) was the first substantially black-owned and black-controlled real estate investment trust (REIT) listed on the JSE. It has a 50% exposure to retail property... read more |
| REBOSIS PROPERTY FUND LTD |
01 - 07 - 2020 Rebosis (REB) was the first substantially black-owned and black-controlled real estate investment trust (REIT) listed on the JSE. It has a 50% exposure to retail property... read more |
| RECESSION |
A cyclical period of lower economic activity, occurring at regular intervals; as opposed to a depression, which is a period of major economic downturn with high unemployment and declining gross... read more |
| RECKLESS LENDING |
The National Credit Act does not allow financial institutions to lend money to people who cannot afford to repay it. Under the Act, the financial institution must ensure that the borrower has... read more |
| RECM & CALIBRE |
RECM and Calibre (RACP) is an investment holding company which has listed its preference shares on the JSE since June 2010. The company is controlled by Theunis de Bruyn, Piet Viljoen and Jan... read more |
| RECM AND CALIBRE LIMITED PREFS |
11 - 11 - 2019 RECM and Calibre (RACP) is an investment holding company which has listed its preference shares on the JSE since June 2010. The company is controlled by Theunis de Bruyn,... read more |
| RECORD DATE |
The day determined by the issuer on which the holding, upon which the entitlement is based, is ascertained. |
| RECORD HIGH |
The highest point that an index (or other financial indicator) has reached since it was first recorded. Thus the S&P500 index reached a record high of 3386.15 on 19th February 2020, just... read more |
| RECTANGLE |
A charting formation in which a share's (or any security) price is bound between two horizontal lines. The upper horizontal line represents resistance at that price level. The bottom horizontal... read more |
| REDEEMABLE PREFERENCE SHARE |
This refers to preference shares or debentures, which are issued with the specific undertaking that they will be bought back or paid out by the company at a certain future date. So redeemable... read more |
| REDEFINE PROPERTIES LIMITED |
30 - 06 - 2020 Redefine (RDF) is the second largest real estate investment trust in South Africa (after Growthpoint) with assets worth R108bn against a market capitalisation of R48bn. The... read more |
| REDEMPTION DATE |
The date on which redeemable preference shares or debentures will be redeemed or paid back by the company. These are really forms of long-term indebtedness, which clearly have to be paid back... read more |
| REGISTERED FINANCIAL SERVICES PROVIDER |
Any person or organization that wishes to engage in the business of asset management or investment advice must first register with the Financial Services Board as a "Financial Services Provider"... read more |
| REGISTRAR OF COMPANIES |
An old term used under the old Companies Act. Under the new Companies Act (71of 2008) the Registrar of Companies is replaced by the Companies and Intellectual Property Commission (CIPC). The... read more |
| REGISTRATION CERTIFICATE |
When a company is registered with the Companies and Intellectual Property Commission (CIPC) the commission issues a registration certificate and the date of that certificate marks the commencement... read more |
| REGRESSION LINE |
A regression line is a mathematical construct which is used in technical analysis - and especially in the construction of a time series moving average. A regression line is a line drawn through... read more |
| REGULAR TRADING HOURS |
The standard, morning/afternoon trading sessions at the U.S. markets. |
| REINET INVESTMENT LIMITED |
04 - 06 - 2020 Reinet (RNI) is an investment holding company whose main asset is a holding of roughly 3% of British American Tobacco (BAT) which now accounts for 40,6% of its net asset value... read more |
| REIT |
The standard and internationally recognised structure for a property investment company. REITs (pronounced "reet") came into effect in South Africa from the beginning of 2012. These are listed... read more |
| REIT DISTRIBUTION |
A Dividend paid out by a REIT to investors. REITs (Real Estate Investment Trusts) are investment vehicles listed on the JSE that provide exposure to income generating property. They are required... read more |
| RELATED PARTY TRANSACTION |
A related party is one who has an interest in a transaction made by a company and yet stands to gain from the transaction. In other words, he/she has a conflict of interest. Normally when this... read more |
| RELATIVE RETURN |
The annualised return on an investment in excess of the average three-month US Treasury bill yield during the same period as the investment. This statistic measures the return on an investment... read more |
| RELATIVE RETURN STANDARD DEVIATION |
Measures the amount of variability of the relative return. A large relative return standard deviation indicates that the relative return experienced during the holding period fluctuated dramatically... read more |
| RELATIVE STRENGTH INDEX |
An indicator invented by Welles Wilder, Jr (see his book, New Concepts in Technical Trading Systems) and used to ascertain overbought/oversold and divergent situations. The RSI is a momentum... read more |
| REM |
17 - 04 - 2020 Johann Rupert's Remgro (REM) is an investment holding company which owns 28,2% of Rand Merchant Bank Holdings (RMH) and 3,9% of Firstrand. RMBH owns 34,1% of Firstrand too... read more |
| REMAINING LIFE |
An estimate of how long a mine will be able to extract gold (or other minerals) profitably, given the lease area and the expected grade. Clearly an assumption has to be made about the future... read more |
| REMGRO LIMITED |
17 - 04 - 2020 Johann Rupert's Remgro (REM) is an investment holding company which owns 28,2% of Rand Merchant Bank Holdings (RMH) and 3,9% of Firstrand. RMBH owns 34,1% of Firstrand too... read more |
| REN |
01 - 07 - 2020 Renergen (REN) describes itself as an "integrated alternative energy business" which invests in renewable energy projects in Africa. The company listed on the JSE in June... read more |
| RENERGEN LIMITED |
01 - 07 - 2020 Renergen (REN) describes itself as an "integrated alternative energy business" which invests in renewable energy projects in Africa. The company listed on the JSE in June... read more |
| RENKO CHARTING |
A kind of charting, similar to point and figure, that does not take time into account. Invested by the Japanese, renko charting focuses on changes in the price movement that satisfy a specific... read more |
| RENMINBI |
The unit of the Chinese currency - also called a "yuan", which means "round". |
| REPLACE ORDER |
To modify an existing, pending or working order. |
| REPO RATE |
This is the "repurchase rate" - an interest rate which is set by the supply and demand for money between the Reserve Bank and the commercial banks.It is also sometimes known as the "base rate"... read more |
| REPORTABLE IRREGULARITY |
Auditors are required to report anything which they find during the course of their audit which indicates fraud, a breach of fiduciary duties, or anything which might cause the shareholders of... read more |
| RES |
21 - 02 - 2020 The Resilient group of companies (Resilient, Lighthouse - previously Greenbay, Rockcastle and Fortress) used to be the high-flyers of the property sector until the beginning... read more |
| RESERVE |
A figure from the liabilities side of the balance sheet, which is money ploughed back into the business out of profits, arising from a revaluation of assets, or money set aside for the redemption... read more |
| RESERVE ARISING ON ACQUISITION |
A reserve which arises as a result of a holding company paying less for a subsidiary than its book value. The difference is shown in the balance sheet as a liability. |
| RESIDUAL VALUE |
The standard deviation of the unexplained portion of the monthly return. |
| RESILIENT REIT LTD |
21 - 02 - 2020 The Resilient group of companies (Resilient, Lighthouse - previously Greenbay, Rockcastle and Fortress) used to be the high-flyers of the property sector until the beginning... read more |
| RESISTANCE |
A price level at which rising prices have stopped rising and either moved sideways or reversed direction; usually seen as a price chart pattern. Resistance levels are normally caused by one or... read more |
| RESISTANCE LINE |
On a chart, a line drawn indicating the price level at which rising prices have stopped rising and have moved sideways or reversed direction. |
| RESOLUTION |
There are two types of resolutions which can be voted and passed at shareholder meetings. The ordinary resolution which usually deals with normal business like the appointment of directors and... read more |
| RESOURCE GENERATION LIMITED |
06 - 04 - 2020 Resource Generation (RSG) is a junior coal mining company that is busy developing the Boikarabelo mine in the Waterberg in Limpopo Province. The company listed on the Australian... read more |
| RESOURCE NATIONALISM |
The process whereby particularly African governments seek to get a higher return or ownership of companies involved in mining and the exploitation of natural resources. Governments in Africa... read more |
| RESTING ORDER |
An order placed with a condition or qualifier but not yet executed. |
| RETAINED EARNINGS |
That portion of a company's profits which is ploughed back into the business rather than paid out as dividends - so the equation is: profits (earnings) - dividends = retained earnings. Companies... read more |
| RETENDER |
In specific circumstances, some contract markets permit holders of futures contracts who have received a delivery notice through the clearinghouse to sell a futures contract and return the notice... read more |
| RETENTION RATE |
Percentage of a firm's after-tax profits that can be put to those earnings retained. |
| RETRACEMENT |
A price movement in the opposite direction of the trend. These are corrections (in a bull trend) or a rallies (in a bear trend). A retracement implies that some of the ground lost or gained is... read more |
| RETURN |
The return on an investment consists of income plus capital gain expressed as an annualized percentage of the original investment. The income can take the form of a dividend (shares), interest... read more |
| RETURN ON ASSETS |
The net earnings of a company expressed as a percentage of its assets. |
| RETURN ON CAPITAL EMPLOYED |
A ratio used to measure pre-tax profitability. It may be calculated as pre-tax profit plus interest paid, divided by total shareholders' funds. |
| RETURN ON EQUITY |
The net earnings of a company divided by its equity. |
| REUNERT LIMITED |
19 - 06 - 2020 Reunert (RLO) is a company in electrical appliances, electrical engineering and information communications. The company has been in existence for 130 years and listed for... read more |
| REVALUATION (OF ASSETS) |
When a company purchases an asset the transaction is normally recorded in the books of account at purchase price (known as the book value). In time, however, the asset may come to be worth more... read more |
| REVERSAL GAP |
When a share's price has been rising for some time and quickly, it will sometimes have a day where the lowest price is far above the previous day's high price - this shows on the chart as a gap... read more |
| REVERSAL SIGNAL |
A term used in technical analysis to describe a formation found either at the top or bottom of a trend which signals that the trend is about to be reversed. Candlestick formations commonly form... read more |
| REVERSAL SIZE |
In point and figure charting the number of reverse boxes required (set by the user) to indicate a change in the direction of the trend. So for example, in an upward trend, if the box size is... read more |
| REVERSAL STOP |
A stop that, when hit, is a signal to reverse the current trading position, i.e., from long to short. Also known as stop and reverse. |
| REVERSE EXPONENTIAL MOVING AVERAGE |
An exponential moving average computed working backward through the time series, rather than forward, as is the case with a standard EMA. A REMA is used so the target would reflect only future... read more |
| REVERSE HEAD AND SHOULDERS FORMATION |
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 |
| REVERSE TAKE OVER |
Where a company buys assets, the value of which greatly exceeds its net asset value in exchange for the majority of its shares - so that the seller of the assets ends up with a controlling stake.... read more |
| REWARD-RISK RATIO |
Monthly excess return to risk comparison, calculated by dividing alpha by standard deviation. A ratio better than 0.4 is excellent. |
| REX TRUEFORM GROUP LIMITED |
06 - 04 - 2020 Rex Trueform (RTO) is an extremely thinly-traded company listed on the JSE - which makes it completely impractical for private investors in its current form. The company was... read more |
| RFG |
26 - 05 - 2020 Rhodes (RFG) is a Western Cape manufacturer of convenience foods - started by Cecil John Rhodes in 1896. It has several well-known South African brands like Bisto, Bull Brand... read more |
| RH BOPHELO LIMITED |
14 - 10 - 2019 RH Bophelo (RHB) is a black-owed African healthcare company that listed on the JSE in July 2017 as a "special purpose acquisition company" (SPAC) after raising R500m (50 000... read more |
| RHB |
14 - 10 - 2019 RH Bophelo (RHB) is a black-owed African healthcare company that listed on the JSE in July 2017 as a "special purpose acquisition company" (SPAC) after raising R500m (50 000... read more |
| RHODES FOOD GROUP LTD |
26 - 05 - 2020 Rhodes (RFG) is a Western Cape manufacturer of convenience foods - started by Cecil John Rhodes in 1896. It has several well-known South African brands like Bisto, Bull Brand... read more |
| RICH |
Price higher than expected. |
| RICKSHAWMAN |
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 |
| RIGHTS ISSUE |
An offer of additional shares to existing shareholders, usually at a discount to the current market price. When a company wishes to raise additional capital, one of the ways it can do so is by... read more |
| RISING THREE METHODS |
A bullish candlestick signal, formed in the progress of an established uptrend, and used to predict the continuation of the current trend. This formation begins with a long green candle within... read more |
| RISK |
The probability that a share price will go down rather than up. All investments have an element of risk, which is always harder to quantify, mathematically, than their return, and therefore very... read more |
| RISK (IMPLIED) |
In which the formula produces the percentage overbought/oversold for a contract using the price, a moving average and the option's implied volatility. |
| RISK-ADJUSTED RETURN ON CAPITAL |
Another measure of risk-adjusted profitability, derived as the ratio between P/L and value at risk. |
| RISK-OFF |
A period when international investors are for some reason "spooked" and rush to take money out of more risky investments (like emerging markets) and place it in traditionally safe assets like... read more |
| RISK-ON |
A time when short-term international investors feel comfortable with investing in more risky assets. This makes them inclined to invest in emerging markets like South Africa. During a risk-on... read more |
| RLF |
07 - 11 - 2019 Rolfes (RLF) is a black-empowered chemicals company in the fledgling sector of the JSE which supplies products to the agricultural, chemicals, colourants, food ingredients... read more |
| RLO |
19 - 06 - 2020 Reunert (RLO) is a company in electrical appliances, electrical engineering and information communications. The company has been in existence for 130 years and listed for... read more |
| RMI |
17 - 04 - 2020 Rand Merchant Bank Holdings (RMH) is a company which owns 34,1% of Firstrand and, since 2016, has been investing in property. RMBH was started 41 years ago by GT Ferriera,... read more |
| RNG |
02 - 04 - 2020 Randgold (RNG) is a mining exploration company. It has a strong asset base which is mostly in cash which is being used to pursue legal claims and may be applied to investment... read more |
| RNI |
04 - 06 - 2020 Reinet (RNI) is an investment holding company whose main asset is a holding of roughly 3% of British American Tobacco (BAT) which now accounts for 40,6% of its net asset value... read more |
| ROAD ACCIDENT FUND LEVY |
Road Accident Fund (RAF) levy. This is a levy collected on every litre of petrol sold for the road accident fund, which is used to pay out victims of accidents on our roads. In July 2018 the... read more |
| ROCKWELL DIAMONDS INCORPORATED |
Rockwell (RDI) develops and operates alluvial diamond deposits. The company owns and operates the Wouterspan property in Douglas, South Africa. This property has previously been mined, but has... read more |
| ROLFES HOLDINGS LIMITED |
07 - 11 - 2019 Rolfes (RLF) is a black-empowered chemicals company in the fledgling sector of the JSE which supplies products to the agricultural, chemicals, colourants, food ingredients... read more |
| ROLL |
Substituting a far option for a near option on the same underlying instrument at the same strike price; also to roll forward or roll over. |
| ROLLOVER |
... read more |
| ROTATION |
Moving funds from one sector to another sector of the stock market as the business cycle unfolds. |
| ROTH IRA |
... read more |
| ROUNDED TOP |
A cycle top on a chart which drifts out and down in a gradual loss of momentum. This is as opposed to a "V" top which is very sharp and sudden. Also called an Umbrella Top, a Frying Pan Top,... read more |
| ROUNDTURN |
A completed futures transaction involving both a purchase and a liquidating sale, or a sale followed by a covering purchase. |
| ROYAL BAFOKENG PLATINUM LTD |
04 - 05 - 2020 Royal Bafokeng Platinum (RBP) is a platinum company controlled by Royal Bafokeng Holdings (RBH) which holds about R32bn worth of assets on behalf of the Bafokeng tribe, a... read more |
| RPL |
14 - 05 - 2020 RDI (RPL) is a real estate investment trust (REIT) listed on the London Stock Exchange (LSE) and incorporated into the FTSE 250 index. It has a secondary listing on the JSE... read more |
| RSG |
06 - 04 - 2020 Resource Generation (RSG) is a junior coal mining company that is busy developing the Boikarabelo mine in the Waterberg in Limpopo Province. The company listed on the Australian... read more |
| RULING PRICE |
The price at which the last trade on a security took place, unless there was a higher bid or a lower offer. So, for example, if the most recent trade took place at 100c, but there is an offer... read more |
| RUNNING MARKET |
A market wherein prices are changing rapidly in one direction with very few or no price changes in the opposite direction. |
| RUNNING TOTAL |
Each day's value is added to yesterday's total or subtracted if the value is negative.
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