List of Glossary Terms

The PDSnet Glossary of Terms contains definitions and explanations for over 2600 financial market terms. These definitions are constantly kept up-to-date with current topical examples from the markets. They are also updated for changes in legislation and current events like COVID19 and the July 2021 civil unrest.

The terms in the Glossary are directly linked to all PDSnet articles, confidential reports, lecture modules and other material. This means that a client reading one of our publications can immediately see which terms are defined in the Glossary and click through to read the definition. Terms within the definitions in the glossary are similarly linked, which gives the Glossary an enormous educational depth share market investors.

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 Latest


T

The symbol for a transaction's date used by the JSE. Thus T is the date on which a transaction takes place, T+1 is the next trading day, T+n is the day... read more

 
T-BILLS

Instruments for short-term borrowing employed by governments. The bills are issued by tender to the money market. Usually, when economists refer... read more

 
TAIL

The wick or tail, at one end or both, designating the high and/or low prices for the period upon which a candle is based. In order... read more

 
TAIL

A candlestick charting term which refers to the extent to which a share's price trades below its open, in a green candle or... read more

 
TAILINGS

Residue ore from which precious metals or base metals have been extracted. As mining technology advances it is often possible to re-process... read more

 
TAINTED SCRIP

Share certificates and other securities which are fraudulent or forged. Since the advent of dematerialisation all shares have been converted... read more

 
TAKE-HOME PAY INDEX

An index prepared by Bankserv Africa which incorporates just over one third of salary and wage payments, mostly from large corporates but... read more

 
TAKE-OVER

The situation where one company makes an offer for some or all of the shares of another company. The offer to existing shareholders is usually... read more

 
TAKE-UP DATE

The date by which the new shares issued in terms of a rights issue must be taken up. On the ex-rights day (i.e. the day after the take-up date) the... read more

 
TAKE-UP PRICE

The price at which shares subject to a rights issue must be bought. Normally this price is below the market value of the shares, so... read more

 
TAKEOVER PANEL

A panel of 17 people whose job it is to examine mergers and acquisitions or any transaction which might change the control of a company.... read more

 
TAKING A VIEW

This phrase has two meanings. Firstly, it can refer to an investor taking a bullish or bearish view of the market depending on whether... read more

 
TANGIBLE ASSET

An asset which can be touched, and more particularly, sold for somewhere close to its book value. Tangible assets include assets such as land,... read more

 
TANGIBLE NET ASSET VALUE

A company's net asset value (NAV) is obtained by subtracting the value of all its liabilities (except for the owners' equity) from the value... read more

 
TANGIBLES
Cash equivalents of the futures contracts.
 
TANKAN
A quarterly business confidence indicator produced by the Bank of Japan (BOJ) for the Japanese economy. The Tankan is an important economic indicator and can sometimes influence... read more
 
TAPERING

A term that was coined to describe the gradual reduction of the purchases of assets by central banks to stimulate the economy of the... read more

 
TARGET

The Reserve Bank, through its Monetary Policy Committee (MPC) strives to keep the inflation rate between 3% and 6%. They target the CPI-X... read more

 
TARGET LEVEL

The Reserve Bank, through its Monetary Policy Committee (MPC) strives to keep the inflation rate between 3% and 6%. They target the CPI-X... read more

 
TARGET RANGE

The Reserve Bank, through its Monetary Policy Committee (MPC) strives to keep the inflation rate between 3% and 6%. They target the CPI-X... read more

 
TARIFF

A tax or levy which is added to the cost of imports by a country, usually to protect its local industry. Tariffs increase the cost of imported goods thus... read more

 
TAX AVOIDANCE

The organisation of a person's financial affairs in such a way as to minimise their tax liability within the requirements of the Income Tax Act (58... read more

 
TAX BASE

The group of people and companies in a country who pay tax. One of the most challenging problems of the new South Africa has been to widen the tax base... read more

 
TAX BRACKET

A bracket of personal taxable income which determines how much tax an individual has to pay. In the tax year ending on 28th February 2021, the tax threshold below... read more

 
TAX COMPLIANT

A term used to describe a business which complies with the requirements of the Income Tax Act (58 of 1962). Tax compliance levels in business are a function of... read more

 
TAX EVASION

A criminal offence committed by someone who does not declare their tax position correctly in their tax return, thereby defrauding The Receiver of of Revenue... read more

 
TAX EXEMPT SAVINGS ACCOUNT

The TFSA was brought in in 2015 to encourage people to save. It is a savings account which attracts no income tax, capital gains tax or interest... read more

 
TAX HAVEN

A country which has very low effective tax rates and sometimes also keeps the names and details of the individuals who invest there secret. Multi-national... read more

 
TAX RESIDENT

In terms of the Income Tax Act (1962), an individual who is ordinarily resident in South Africa under common law - or someone who meets the physical presence test.... read more

 
TAX THRESHOLD

The maximum amount of taxable income which an individual can have without exceeding their primary rebate. In the tax year ending on 28th February 2021,... read more

 
TAX YEAR

The financial year of the government. In South Africa our fiscal year runs from 1st March until the 28th or 29th of February the following year. Our budgets... read more

 
TAX-DEFERRED

When an investment allows an investor to postpone paying taxes on money put into the investment until the investor literally takes possession of... read more

 
TAXABLE INCOME

Your taxable income is your total income for the tax year less whatever expenses you have incurred in generating that income. Once you have calculated your taxable... read more

 
TAXATION

The amount paid to the government by individuals and companies to provide funds for the fiscus to meet government expenses. In South Africa there... read more

 
TAXATION TREATY

An agreement between two countries to avoid the double taxation of individuals and companies. Such treaties usually define the tax which a country can levy... read more

 
TECH SHARES

Technology shares world-wide are becoming more and more important as computers, cell phones and the internet become more powerful and ubiquitous. In America,... read more

 
TECHNICAL

The analysis of group investor behaviour, as reflected in the patterns of share prices and volumes, indices, exchange... read more

 
TECHNICAL ANALYSIS

The analysis of group investor behaviour, as reflected in the patterns of share prices and volumes, indices, exchange... read more

 
TECHNICAL ANALYST

A person who studies and makes use of patterns within the prices of shares and other securities. Technical analysis aims to develop... read more

 
TECHNICAL INDICATOR

A technical indicator is a mathematical formula which is applied to price and volume data for shares (and other securities) to identify... read more

 
TECHNICAL INSOLVENCY

A situation where a company's liabilities exceed its assets. This does not mean that it cannot continue in business, especilly if it is taking... read more

 
TECHNICAL RECESSION
Two consecutive quarters of negative economic growth as measured by a country's gross domestic product (GDP).
 
TECHNICAL RISK

The risk inherent in the volatility of a share's price on the JSE - as opposed to the fundamental risk that the company's... read more

 
TECHNICALLY

The analysis of group investor behaviour, as reflected in the patterns of share prices and volumes, indices, exchange... read more

 
TECHNICIAN

A technician is an investor who strives to predict the future progress of a share's price by studying patterns in its past price and... read more

 
TECHNOLOGY

This refers to the use of scientific advances to improve efficiency and productivity. Technology has a massive and growing impact on the share markets of... read more

 
TELEGRAPHER'S EQUATION

A variation of the Diffusion Equation that describes minor differences in the drunkard's walk, in which the random decision controls the change in direction rather... read more

 
TERM INSURANCE

Insurance which is aimed at covering you for a specific risk like your death or disability or the theft of your car or a house fire. This is as opposed... read more

 
TERM STRUCTURE

Also known as yield curve. The slope of the term structure is the yield on long-term government bonds minus the yield on short-term instruments such... read more

 
TERMINATION

The removal of a security from an organised exchange - after which it can no longer be traded on that exchange. This typically happens in the share... read more

 
TERMS OF TRADE

A ratio which expresses a country's exports as a percentage of its imports. A ratio above 100% shows that the country is exporting more in value... read more

 
TFSA

The TFSA was brought in in 2015 to encourage people to save. It is a savings account which attracts no income tax, capital gains tax or interest... read more

 
THE MINERALS COUNCIL OF SA

Previously known as the Chamber of Mines, this organisation represents employers in the mining industry in South Africa. Its objective is to support and... read more

 
THETA
The measurement of the time decay of a position.
 
THINLY TRADED

A term used to describe a share which has a very small number of shares changing hands each day. The first criteria which a private investor should... read more

 
THIRD WORLD COUNTRY

Originally, this meant a country which was not aligned to NATO or the Soviet Union during the cold war. First world countries were those aligned to NATO... read more

 
THREE BLACK CROWS

A candlestick formation which signals the end of an upward trend. It consists of three consecutive downward candles (black or red) with long... read more

 
THREE BUDDHA TOP

A charting formation at the top of a cycle. The price chart forms three peaks the middle one of which is the highest.... read more

 
THREE MOUNTAINS TOP

A top reversal signal in technical analysis which signals the end of a well established uptrend. The formation occurs when the price... read more

 
THREE RIVER BOTTOM

A technical analysis formation used to predict the bottom of a downward trend. Triple bottoms are quite rare in charting and they indicate... read more

 
THREE TIMES VOLUME RULE

Probably the most important criteria for you as a private investor when looking at which shares to purchase, this rule requires that you assess whether... read more

 
THRUST

A comparison between the price difference of successively lower pivot bottoms or higher pivot tops. For example, a reduction in the difference between pivot... read more

 
TICK
A short horizontal line off a bar chart showing the opening price (to the left) or the closing price (to the right).
(image) read more
 
TICK INDICATOR
The number of shares whose last trade was an uptick or a downtick.
 
TICK SIZE
A short horizontal stroke on a bar graph showing the price at which the share closed.
 
TIER 1 CAPITAL

The equity and retained earnings of a bank. This is its best capital also called its "core" capital. Only 15% of this capital is allowed... read more

 
TIER 2 CAPITAL

That portion of a bank's capital that consists of hybrid instruments, undisclosed reserves, revaluation reserves and sub-ordinated term debt. In... read more

 
TIGHT MONETARY POLICY

An individual on the Monetary Policy Committee (MPC) who is against reducing interest rates to stimulate the economy - the opposite of a "dove".... read more

 
TIGHTLY HELD

A term used to describe a share which has a very small number of shares changing hands each day. The first criteria which a private investor should... read more

 
TIME AND SALES
Official exchange transcript of the prices at which a futures contract traded, as well as the precise times at which such trades occurred.
 
TIME SERIES

A data stream is any continuous flow of end-of-day financial data which can be displayed as a chart. The most common forms of this are the end-of-day... read more

 
TIME SERIES MOVING AVERAGE

A time series moving average is not really a moving average in the strictest sense. It draws a line which is the end of a regression line. A regression... read more

 
TIME VALUE
The difference between the premium paid for an option and the intrinsic value. As the option approaches expiration, the time value erodes, eventually to zero.
 
TIME VALUE DECAY

A term which describes the fact that the time value of an option diminishes as the option approaches the expiry date. Time value decay follows a negative... read more

 
TIP

If you talk about the stock market socially with your friends and colleagues at work, you will certainly get tips on what to buy and what to sell from time... read more

 
TIP SHEET

A newsletter, which concentrates on giving its readers hot tips regarding which share to buy and sell and when to transact. Such letters should be followed... read more

 
TOKYO STOCK EXCHANGE
The stock exchange of Japan. The Nikkei index of the 225 largest companies trading on the TSE gives a very good idea of the performance of this market. The TSE opens in the... read more
 
TOKYO STOCK PRICE INDEXES

A range of indexes (known as the Topix) weighted for the free-float market capitalisation calculated in real time by the Tokyo Stock Exchange (TSE).... read more

 
TOO LATE TO CANCEL

When a trader attempts to modify or replace an order that has already been executed but not yet reported as having been filled, the order is said... read more

 
TOP

The highest point on a share price or other graph over a defined period. Obviously, as a private investor, you will be trying everything... read more

 
TOP 40 INDEX

An index of the 40 biggest companies trading on the JSE. This is a weighted index for the market capitalisation of the companies... read more

 
TOP DOWN

An approach to financial analysis which begins with a company's financial statements and attempts to assess how the company is doing based on what... read more

 
TOP FORMATION

A term used in technical analysis to describe a formation at the top of a trend which signals that the trend is likely to change... read more

 
TOP REVERSAL SIGNAL

A term used in technical analysis to describe a formation at the top of a trend which signals that the trend is likely to change... read more

 
TOT

A ratio which expresses a country's exports as a percentage of its imports. A ratio above 100% shows that the country is exporting more in value... read more

 
TOUCH POINTS

A touch point is a the point on a chart where the share (or other data stream) touches a trendline. The more touch points that a trendline... read more

 
TOURISM

An industry focused on supplying the needs of people traveling on holiday. This industry provides a wide variety of accommodation from hotels to camp sites... read more

 
TOUT

If you talk about the stock market socially with your friends and colleagues at work, you will certainly get tips on what to buy and what to sell from time... read more

 
TOWER BOTTOM

A candlestick reversal signal which is the opposite of the tower top formation. The Tower Bottom, also call the Spike Bottom, takes form beginning... read more

 
TOWER TOP

A candlestick top reversal signal formed at the top of a well established trend in an uncertain market. The Tower Top, also call the... read more

 
TRADABLE INDEX

An index which can be traded through some type of derivative contract such as a futures contract. Derivative instruments like futures enable... read more

 
TRADE

The purchasing and selling of goods and services both within an economy and internationally between economies. Goods and services are exchanged for... read more

 
TRADE ACCOUNT

This, together with the Capital Account make up the Balance of Payments. The Trade Account shows the country's exports minus its imports... read more

 
TRADE AND OTHER PAYABLES

Amounts owing to the company's creditors in the balance sheet. These appear under current liabilities. These amounts are owed by the... read more

 
TRADE DEFICIT

A trade deficit occurs on the trade account of the balance of payments (BOP) when imports are greater than exports. Imports are usually... read more

 
TRADE SURPLUS

The trade account shows the value of South Africa's merchandise exports minus its merchandise imports. If the exports exceed the imports during... read more

 
TRADE UNION

The trade union movement in South Africa has become a major force since the advent of democracy in 1994. The union movement was an important component of the ANC's... read more

 
TRADE-WEIGHTED

A term used to describe the strength of a currency based on its relationship to other world currencies in proportion to that country's trade with them.... read more

 
TRADEABILITY
The ease with which a share can be traded. Some shares are free-dealing and highly tradeable, others are tightly held.
 
TRADER

An individual who trades securities with a relatively short-term horizon. Most securities can be traded on an organised exchange and a trader is... read more

 
TRADING ACCOUNT

The first account in the profit calculation where a company's variable costs (also called direct) are subtracted from its turnover... read more

 
TRADING ASSETS
 
TRADING BANDS
Lines surrounding an index or indicator - also called trading bands. For example Bollinger Bands.
 
TRADING BANDS

Lines plotted in and around the price structure to form an envelope, answering whether prices are high or low on a relative basis and forewarning... read more

 
TRADING DAY

A normal business day during which trades can be made on the JSE - usually from 9am until 5pm. There are approximately 250 trading days in the year and... read more

 
TRADING DENSITY

A term used to describe the ratio of sales to floor space in shopping malls. Real estate investment trusts (REIT) that own shopping malls watch the... read more

 
TRADING FLOOR

A large room where stockbrokers gather during specific hours every working day to trade shares and other instruments on behalf of their clients... read more

 
TRADING HALT

A period of time when a company requests that a stock exchange on which its shares are listed stops the trading in its shares pending... read more

 
TRADING IDEA

A strategy for making money from an investment. This can be as simple as buying a share which you think is going to go up, to complex strategies... read more

 
TRADING PARTNER

This refers to another country with whom trade relations have been established. South Africa has many trading partners, but the main ones are the UK, Europe, America,... read more

 
TRADING PLATFORM

A website through which orders can be placed to buy or sell shares by a stockbroking firm's clients. To open an account with a stockbroker it is... read more

 
TRADING RANGE

The difference between the high and low prices traded during a period of time; in commodities, the high/low price limit established... read more

 
TRADING STATEMENT

Listed companies are required by the JSE rules to publish on the Stock Exchange News Service a statement which gives an indication... read more

 
TRADING STRATEGY

A pre-determined concrete plan for buying and selling which does not rely on any abstract or subjective input. So, for example, you may decide to buy a certain... read more

 
TRADING UPDATE

A report on its recent operational acitivites given by a listed company in the interests of keeping its shareholders up to date. Unlike... read more

 
TRAILING STOP ORDER

This special order type allows the trader to profit from favourable movement in the market while having the protection of a Stop order. But it frees... read more

 
TRANSACTION TIMING

The exact point in time when the purchase or sale of an investment is executed. Transaction timing can have a significant impact on the profitability of... read more

 
TRANSFER AGENT
Financial institution that manages ownership records of company shares.
 
TRANSFER DEED 

A form required by the Companies Act (71 of 2008) for the transfer of shares (and other securities) from one person to another. This form... read more

 
TRANSFER FORM

A form required by the Companies Act (71 of 2008) for the transfer of shares (and other securities) from one person to another. This form... read more

 
TRANSFER PAYMENT

A government payment where no goods or services are given in return. For example, in South Africa the old age pension and child pensions are examples... read more

 
TRANSFER PRICING

A method of moving profits out of a high-tax regime into a low tax regime, used by multi-national companies with subsidiaries or business... read more

 
TRANSFER SECRETARY

A transfer secretary is responsible for maintaining a company's share register and ensuring that it is always kept up to date. They also assist with... read more

 
TRANSFORM
A process to change or convert. For example, a simple moving average is a filter to reduce noise; the moving average is the transform function. 
 
TRANSMUTED LISTING STATEMENT

A statement which must be published by a listed company when it undergoes a major change such as a reverse takeover, a change of control... read more

 
TREASURY

The National Treasury falls under the Ministry of Finance and is established in terms of section 13 of the Constitution to manage the government's finances. Through... read more

 
TREASURY BILLS

Instruments for short-term borrowing employed by governments. The bills are issued by tender to the money market. Usually, when economists refer... read more

 
TREASURY SHARES

Shares of a company which it has bought back from shareholders. Treasury shares are normally destroyed, thereby reducing the number of shares... read more

 
TREND

The general drift, tendency or bent of a set of statistical data as related to time. There are two types of primary trend - "bull trends" which are... read more

 
TREND DAY
 
TREND FOLLOWING
Moving in the direction of the prevailing price movement.
 
TREND LINE

A line joining the high points on a bear trend and the low points on a bull trend. When the price breaks through the... read more

 
TRENDING DOWN

A period when the price of a share (index or other security) falls. Normally a downtrend can be clarified with the addition of a downward... read more

 
TRENDING MARKET
Price moves in a single direction, generally closing at an extreme for the day.
 
TRENDING UP

A period where a security's value and price move generally upwards. Uptrends can last from a few minutes to a decade or longer. The key is to determine... read more

 
TRENDLESS
Price movement that vacillates to the degree that a clear trend cannot be identified.
 
TRI-STAR

A candlestick formation consisting of three consecutive doji candles found at either the top or bottom of a trend which signal the... read more

 
TRIANGLE FORMATION

A charting pattern that exhibits a series of narrower price fluctuations over time; top and bottom boundaries need not be of equal length.... read more

 
TRIANGULAR MOVING AVERAGE

A moving average in which each day's data are multiplied by a weight that increases in value at steady increments to a peak value and then declines to zero... read more

 
TRIN

Also known as TRading INdex (TRIN): An advance/decline stock market indicator. A reading of less than 1.0 indicates bullish demand, while greater... read more

 
TRIPLE BOTTOM FORMATION

A technical analysis formation used to predict the bottom of a downward trend. Triple bottoms are quite rare in charting and they indicate... read more

 
TRIPLE TOP FORMATION

A top reversal signal in technical analysis which signals the end of a well established uptrend. The formation occurs when the price... read more

 
TRIPLE WITCHING

The simultaneous expiry of equity options, index options and index futures. This occurs every three months on the 3rd Friday of March,... read more

 
TROY OUNCE

A measure of weight used with precious metals. A troy ounce is just over 31,1 grams. The name dates back to the 16th Century. An ounce used in America is... read more

 
TRUE RANGE
The largest of the following: Today's high minus today's low, today's high minus yesterday's close, today's low minus yesterday's close.
 
TRUE STRENGTH INDEX
A momentum indicator developed by William Blau that double-smoothes the ratio of the market momentum to the absolute value of the market momentum.
 
TRUST

A legal persona which is established by a founder and administered by trustees on behalf of beneficiaries. In South Africa a trust is either inter vivos... read more

 
TRUSTEE

An individual or corporate entity that administers assets on behalf of other people (usually known as "beneficiaries"). A registered trust... read more

 
TSE
The stock exchange of Japan. The Nikkei index of the 225 largest companies trading on the TSE gives a very good idea of the performance of this market. The TSE opens in the... read more
 
TSUTSUMI

In candlestick terminology, a multiple candlestick line pattern; a major reversal signal with two opposing-color real bodies making up the... read more

 
TULIP SECTOR
A sector that is the intense focus of speculators at a given time.
 
TURNING POINT
The approximate time at which there is a change in trend.
 
TURNOVER

A figure in the income statement of a company's financial statements which consists of the company's total sales or income figure... read more

 
TWEEZER BOTTOM

A bottom reversal pattern comprising of at least three candles and which signals the beginning of an upward trend. The Tweezer bottom... read more

 
TWEEZER TOP

A top reversal candlestick formation consisting of three candles, the last two of which have the same, or nearly the same, highs. It does... read more

 
TWENTY-FOOT EQUIVALENT UNIT

A twenty-foot equivalent unit (TEU) is a container of a standardised size suitable for international imports and exports. Millions of TEU's are transported... read more

 
TWIN PEAKS

This is a new regulatory environment for the banking and financial markets, first introduced by the then Minister of Finance, Pravin Gordhan... read more

 
TWO POT RETIREMENT SYSTEM

A new system for managing retirement funds implemented with effect from 1st September 2024, but affecting people who began their retirement fund earlier than that... read more

 
TWO-WAY PRICE
When both a bid and offer forex rate is quoted by the dealer.