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.
GREEN FIELDS OPERATIONS |
A business activity, usually in the mining industry, which is a completely new start-up. This is a high-risk, potentially high return undertaking... read more |
FINANCE COSTS |
A disclosable expense which comes about as a result of a company having interest-bearing debt. Finance costs are usually disclosed... read more |
RETRENCHMENT |
The firing of an employee for operational reasons and not arising from any fault in the employee's performance. If not handled correctly, the company can... read more |
MOTOR VEHICLE SALES |
A monthly economic indicator showing the number and value of new motor vehicles sold in South Africa. The National Association of Automobile Manufacturers of South... read more |
MORTGAGE BOND |
A loan which is secured against fixed property - as opposed to a lien which is secured against movable property. The interest rate on mortgage... read more |
NET INCOME |
The earnings of an organisation after deducting taxation and all other expenses. This is obviously an important measure of a company's performance,... read more |
EXPROPRIATION OF LAND |
The compulsory taking over of land by the government of a country. In most capitalist... read more |
A2X |
The A2X is a South African stock exchange which competes directly with the Johannesburg Securities Exchange (JSE). It is currently operating only... read more |
A PRIORI |
A Latin phrase meaning "known ahead of time" or more precisely, known without any empirical evidence or experience. The classical example would be a mathematical... read more |
FLOWBACK |
The selling of shares due to a merger between companies in different countries where some shareholders do not want to have exposure... read more |
BULL TRAP |
A situation where bullish investors buy into a security too early, before all the bad news has been published and digested by the market.... read more |
BENEFICIATION |
The processing of raw materials into commodities with greater value. For example, combining iron ore, carbon and other metals to make steel. South... read more |
IMPAIRED ASSETS |
Assets whose book value has been reduced by the board in order to reflect their true market value more accurately. Impairments result... read more |
MARKET CAPITALISATION |
The current market price of a share multiplied by the number of shares that the company has in issue. The market capitalisation of a company... read more |
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... read more |
SAVINGS |
That portion of an individual's income which he/she saves. The national savings rate is important because those savings can be used by businesses to expand... read more |
SUBSISTENCE FARMER |
A form of farming where nearly all crops or livestock raised are used to maintain the farmer and the farmer's family, leaving little for sale or trade. |
OSCILLATOR |
A statistical term which refers to an indicator which moves above and below a set level - usually zero. Many line indicators are oscillators - like... 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 making... read more |
MUNICIPALITY |
A mechanism for providing governance over a local area. In South Africa there are 8 metropolitan municipalities, 44 district municipalities and 205 local municipalities... 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... read more |
BUSINESS CONFIDENCE INDEX |
There are two indices of business confidence in South Africa - the Rand Merchant Bank (RMB)/Bureau for Economic Research (BER) index and the South African... read more |
SHRINKFLATION |
Reducing the size of products while leaving the price unchanged. This process is usually found in the food and beverage sectors. When the manufacturer of a food... read more |
ASSESSED LOSS |
A loss made by a business which has been accepted as valid by the Receiver of Revenue. Until 2022 100% of assessed losses could be carried forward... read more |
GOING CONCERN |
A profitable business which is expected to be able to continue in business because it has sufficient cash-flow to meet its commitments. It is not... read more |
SHARE CAPITAL |
A figure on the balance sheet representing the amount of money raised by the company through the issue of shares to the public. A company... read more |
MERGER |
This occurs where two or more companies come under the control of one, whose shareholders then become the shareholders of the companies that were... read more |
CONTROLLING SHAREHOLDER |
A shareholder who owns more than 50% of a company's voting share capital and can therefore control the company's activities. |
REVERSE TAKE OVER |
Where one company buys another company, but the value greatly exceeds its net asset value (NAV) and pay for it with shares - so that the company... read more |
CAUTIONARY ANNOUNCEMENT |
This is a publicly advertised announcement made by a listed company to urge shareholders to exercise caution when trading in its shares.... read more |