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.
UBUNTU |
A Zulu word which has found its way into the socio-economic jargon of the South African economy - and even into ideas on corporate governance. The... read more |
UMBERRIMAE FIDEI |
A latin phrase meaning "the utmost good faith" and used primarily in the insurance industry to describe the requirement for full disclosure by a policyholder. |
UMBRELLA BOTTOM |
This is the name that technicians give to the bottom formation of a share price where it drifts out slowly from a strong downward trend... read more |
UMBRELLA 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... read more |
UNABLE |
A working order which has not yet been able to be executed. |
UNBUNDLE |
To dispose of a subsidiary by handing the shares which the parent company holds directly to the parent company’s shareholders... read more |
UNCERTAINTY |
In the investment world, future outcomes are unknown which means that investors constantly need to accommodate a degree of uncertainty. In general... read more |
UNCOVERED OPTION |
The purchase or sale of an option without a position in the underlying futures contract; also known as a "naked option". |
UNDERLYING FUTURES CONTRACT |
The specific futures contract that the option conveys the right to buy (in case of a call) or sell (in the case of a put). |
UNDERLYING INSTRUMENT |
A trading instrument subject to purchase upon exercise of a derivative instrument such as a future or option. |
UNDERPRICED |
Where the market price of a security is below its "real" value. Whether a share is under-priced or not is always a perception. Clearly, at any price... read more |
UNDERWRITING |
An agreement to buy all the units of a new issue not sold by a specific day. Banks typically underwrite new share issues, thus assuring the issuing... read more |
UNDISCLOSED |
An item which is not required to be disclosed in terms of the Companies Act (71 of 2008). The Act is concerned to ensure that investors have sufficient information about the company... read more |
UNEMPLOYMENT |
The number or percentage of people in the economy who are trying to find work and cannot. In a first-world economy, this means that as many as 5%... read more |
UNENCUMBERED ASSETS |
These are assets which have not been used in any way as a surety for any debt. |
UNGEARED |
The opposite of "geared". Gearing in companies refers to the relationship between their borrowings and their equity. An ungeared company is one that has no debt. The... read more |
UNICORN |
A startup company, usually in high-tech or communications that reaches a valuation of over $1bn. The term was coined by the venture capital investor, Aileen Lee, in a 2013 New York Times Article,... read more |
UNIFORM GIFTS TO MINORS ACTS |
A law that allows minors to own property without the use of a trust. |
UNIMPAIRED |
An adjective to describe an asset the value of which does not need to be reduced for any reason. For example, a debtors book may need to be impaired because some of the debtors will turn out... read more |
UNION ACTIVITY |
Union activity is a major problem in South Africa where labour legislation is skewed heavily in favour of employees and against employers. Strikes are common place in all of our labour-intensive... read more |
UNIT TRUST |
A collective investment scheme (in terms of the Collective Investment Schemes Act 45 of 2002) consisting of a management company like STANLIB and... read more |
UNIT TRUST CONTROL ACT |
This act was replaced by the Collective Investment Schemes Control Act (45 of 2002). |
UNITED NATIONS PRINCIPLES FOR RESPONSIBLE INVESTMENT |
A United Nations initiative to promote responsible investment which considers environmental, social and governance (ESG) factors. Signatories to this undertake not to invest in projects... read more |
UNIVERSE OF SHARES |
The shares listed on the Johannesburg Stock Exchange (JSE) which are available for private shareholders to choose from. There are about 350 listed companies... read more |
UNLISTED INVESTMENT |
A balance sheet item, normally shown by way of a note, and indicating share investments held by the company in unlisted companies which may be private or public. |
UNPRI |
A United Nations initiative to promote responsible investment which considers environmental, social and governance (ESG) factors. Signatories to this undertake not to invest in projects... read more |
UNSECURED CREDITOR |
A person or company who lends money without the security of a lien (over movable assets) or mortgage (over fixed property). Unsecured creditors can be either senior... read more |
UNSECURED LENDING |
That part of a commercial bank or other institution's lending which is not secured against an asset (usually property). Thus, credit cards and most personal... read more |
UNSYSTEMATIC RISK |
A term to describe that risk which attaches to a specific investment - as opposed to systematic risk which pertains to the market as... read more |
UP 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 |
UPPER SHADOW |
A candlestick term which refers to the gap between the top of a candle body (either open or close) and the highest point which share reached during the trading day. The length of... read more |
UPSIDE BREAK |
An upward break above some form of resistance. Quite often a share's price will get stuck below a resistance line. When it breaks above this... read more |
UPSIDE POTENTIAL |
The potential for, and the extent to which, a specific security is likely to increase in value in the near future. As a private investor, your main... read more |
UPTHRUST |
Occurs when price moves above a pivot top and a widespread reversal ensues as follows: a) two previous closes are reversed, b) close is below pivot top, c) close is below opening and mid-range,... read more |
UPTREND |
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 when a new uptrend has begun... read more |
UPWARD MARKET |
A market where the average of all shares is rising such that each high is higher than the previous high and each low is higher... read more |
UPWARD TREND |
A long period of consistently rising share prices, or index levels. Usually such trends last from 2 to 4 years. During a bull trend... read more |
UPWARD TRENDÂ |
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 when a new uptrend has begun... read more |
US DOLLAR HEGEMONY |
Since 1990, the US dollar has dominated international trade approximately 90% of interantional deals being dollar-denominated. This is esepcailly true in the commodities... read more |
US DOLLAR INDEX |
An index of the strength of the US dollar based on a weighted group of first-world currencies. In that index, the euro accounts for 57,6%, the Japanese yen is 13,6%, the... read more |
US TREASURIES |
Instruments for short-term borrowing employed by governments. The bills are issued by tender to the money market. Usually, when economists refer... read more |
USDX |
An index of the strength of the US dollar based on a weighted group of first-world currencies. In that index, the euro accounts for 57,6%, the Japanese yen is 13,6%, the... read more |
USURIOUS |
The Usury Act (73 of 1968) is designed to place limits on the interest which can be charged on lending various amounts of money and to regulate the disclosure... read more |
USURY ACT |
The Usury Act (73 of 1968) is designed to place limits on the interest which can be charged on lending various amounts of money and to regulate the disclosure... read more |