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


V-BOTTOM FORMATION

V-bottoms are a fairly rare formation in technical analysis and usually signal some sort of artificial interference in the progress of the... read more

 
V-TOP FORMATION

Changes in the direction of market sentiment from bullish to bearish represent points or periods at which the sentiment has shifted... read more

 
VACANCIES

This is the percentage of a property company's rentable space which is vacant. It is a key statistic in the assessment of real estate investment... read more

 
VACANCY RATE

This is the percentage of a property company's rentable space which is vacant. It is a key statistic in the assessment of real estate investment... read more

 
VALUE ADDED TAX

A tax which is applied to the value added by an organisation to a product. The value added is measured by the difference between what a company paid for... read more

 
VALUE AT RISK

A measure of exposure within a given portfolio, which attempts to estimate how much the portfolio would be expected to lose, given the recent behaviour... read more

 
VALUE INVESTING

A fundamental approach to share assessment which involves identifying shares which are undervalued in terms of their future profit and dividend... read more

 
VALUE-WEIGHTED INDEX
A market average such as Standard & Poor's 500 Index that takes into account the market value of each security's market capitalisation rather than... read more
 
VANGUARD

The second largest asset management company in the world with over $7 trillion in assets under management (AUM). The company was founded by... read more

 
VAR

A measure of exposure within a given portfolio, which attempts to estimate how much the portfolio would be expected to lose, given the recent behaviour... read more

 
VARIABLE COST

A cost in the books of a company which increases and decreases with their sales level. The main variable cost (also known as a "direct cost") is... read more

 
VARIABLE LIMIT

A price system that allows for larger than normal allowable price movements under certain conditions. In periods of extreme volatility, some exchanges... read more

 
VARIABLE RATE PREFERENCE SHARE

A preference share which receives a dividend based on a variable - like the prime overdraft rate from a specific bank. These shares... read more

 
VARIABLE-LENGTH MOVING AVERAGE

A moving average where the number of periods selected for smoothing is based on a volatility measurement of price. Typically, the standard... read more

 
VARIANCE FUTURE

A derivative instrument where the holder buys the variance from a future strike price at a specific future date. In South Africa these are... read more

 
VARIATION MARGIN

Additional margin required to be deposited by a clearing member firm to the clearing house during periods of great market volatility or in the case... read more

 
VAT

A tax which is applied to the value added by an organisation to a product. The value added is measured by the difference between what a company paid for... read more

 
VCM

A division of the JSE which was folded into the Alt-X. This division was originally for smaller companies requiring less capital and... read more

 
VEGA
The amount by which the price of an option changes when the volatility changes.
 
VELOCITY OF CIRCULATION

The speed with which money circulates in the economy. In a recession, money tends to circulate more slowly than in a boom. When money is circulating... read more

 
VENTURE CAPITAL

High-risk, start-up operations which normally raise capital by selling shares in a public unlisted company directly to the public through... read more

 
VENTURE CAPITAL MARKET

A division of the JSE which was folded into the Alt-X. This division was originally for smaller companies requiring less capital and... read more

 
VERTICAL INTEGRATION

This is where a company owns or tries to own its entire supply chain. So, it might begin by selling sauces to retailers and then buy the manufacturer that... read more

 
VERTICAL SHAFT

In mining, a vertical shaft is used to take workers down to the horizontal tunnels so that they can get access to the working areas. The vertical shaft... read more

 
VERTICAL SPREAD

A stock option spread based on simultaneous purchase and sale of options on the same underlying stock with the same expiration months but different strike... read more

 
VESTING
The rights that an employee gains for working at a firm for a specific length of time.
 
VIEW

An investor’s perception of the market and economy as a whole. Learning to develop and accurate view of the world economy and exactly... read more

 
VIS MAJOR

In law this refers to an unpredictable event which prevents one party from completing its obligations in terms of a contract. Most major contracts contain a force... read more

 
VIX

The volatility index (or "VIX" as it is known) is a measure of implied volatility maintained by the Chicago Board Options Exchange (CBOE). The Vix is calculated... read more

 
VOIDABLE DISPOSITION
A disposal which is made within six months of an estate becoming insolvent. In terms of the Insolvency Act (24 of 1936),  section 29 regulates that dispositions which are made within... read more
 
VOIDABLE PREFERENCE
A disposal which is made within six months of an estate becoming insolvent. In terms of the Insolvency Act (24 of 1936),  section 29 regulates that dispositions which are made within... read more
 
VOLATILITY

The degree to which a share deviates from its average. High volatility is associated with risk, both fundamental risk and technical... read more

 
VOLATILITY INDEX

The volatility index (or "VIX" as it is known) is a measure of implied volatility maintained by the Chicago Board Options Exchange (CBOE). The Vix is calculated... read more

 
VOLUME

The number of shares changing hands during a single trading day. This figure is calculated by counting the number of shares traded in a particular... read more

 
VOLUME DECLINE INDEX

A breadth indicator which gives a ratio of the volumes of shares with rising prices to shares with falling prices, developed... read more

 
VOLUME PRICE TREND
In which a running sum is maintained when a day's total volume is added if the market closes positive or the day's total volume is subtracted if the market closes lower. In this calculation... read more
 
VOLUME WEIGHTED AVERAGE PRICE

This is the average price weighted for the volume traded each day over a defined period such as the previous 30 days. The VWAP is used... read more

 
VOLUNTARY CORPORATE ACTION

A corporate action which requires a decision from shareholders - such as a rights issue. With a rights issue, shareholders must decide whether... read more

 
VOLUNTARY LIQUIDATION

Where a company decides to enter liquidation without being forced to do so by its creditors. In terms of sections 79 to 83 of the Companies... read more

 
VOTING AND NON-VOTING PREFERENCE SHARES

Preference shares are usually non-voting, but can also be voting shares. If given the ability to vote the value of the shares is greater. Because preference... read more

 
VOTING POWER

A class of shares (usually ordinary shares or equity shares) which can vote at shareholder's meetings. Some shares are specifically non-voting.... read more

 
VOTING SHARES

A class of shares (usually ordinary shares or equity shares) which can vote at shareholder's meetings. Some shares are specifically non-voting.... read more

 
VWAP

This is the average price weighted for the volume traded each day over a defined period such as the previous 30 days. The VWAP is used... read more