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


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

 
PRICE RANGE

The difference between the highest and lowest prices at which a particular share has traded over a certain time period - such as one trading... read more

 
DOT PLOT

A chart which shows the opinion/forecast of each member of the US Federal Open Market Committee (FOMC) concerning the future of the federal funds... read more

 
FEDERAL OPEN MARKET COMMITTEE

The monetary policy making committee of the US Federal Reserve Bank. The Federal Open Market Committee (FOMC) consists of twelve members--the seven members... read more

 
PUBLIC ANNOUNCEMENT

An announcement made by a listed company about an event within the company which may have an impact on its shareholders or the price... read more

 
GOLD AND FOREIGN EXCHANGE CONTINGENCY RESERVE ACCOUNT

The gross gold and foreign exchange contingency reserves account (GFECRA) of the government is published every month. For example, in January 2024... read more

 
RISK PROFILE

The degree of risk that an investor is willing to take for a given potential return. The rule in investment is that risk and return... read more

 
SURPLUS

An economics concept which refers to an excess of government revenue over expenses. Surpluses are very rare among the governments of the world. Most governments... read more

 
CAPITULATION

This is a charting term which refers to the lowest point in a bear trend. It is the point where even the most optimistic of the bulls... read more

 
FLAG

This is a fairly rare charting formation which can occur in a upward trend, downward trend or horizontal where the market enters... read more

 
ACQUISITION

This is when one company acquires more than 50% of the shares of another or obtains a controlling interest in its shares. The company acquiring the... read more

 
MANDATORY OFFER

When one shareholder acquires more than 35% of a listed company, he/it is obliged by section 123 of the Companies Act (71 of 2008) to make... read more

 
PETROL PRICE

Fuel costs are a key factor in the inflation rate, both directly through increased transport costs and  indirectly through their role in production... read more

 
POORLY RATED

Companies which have an erratic flow of profits are usually "poorly-rated" by investors. This means that their shares will trade on... read more

 
POOR QUALITY EARNINGS

The quality of a company's earnings is a direct function of how sustainable they are. If the profits of a company rise every year by 15% and... read more

 
PONZI

An illegal investment scheme which aims to steal money from members of the public by persuading them that they will make an above average return... read more

 
POLITICAL STABILITY

A major factor in emerging economies like South Africa which directly affects their ratings by the international ratings agencies (Fitch,... read more

 
POLITICAL RISK

Risk, which is political rather than economic, financial or managerial. This kind of risk is very difficult to determine and can cause tremendous... read more

 
POLICY UNCERTAINTY INDEX

An index, which was started in February 2023, (the PUI) to measure policy uncertainty in South Africa by surveying articles from the top 20 media publications... read more

 
POISON PILL

A defensive tactic used by a company which is the subject of a hostile takeover to make it more difficult for the predatory company to gain control.... read more

 
POINT AND FIGURE CHART
A price-only chart (i.e. without a date axis) that plots up prices as Xs and down prices as Os. The minimum price recorded is called the box size which is often 100c. Typically,... read more
 
POINT

One hundredth of one percent. This term is often used in the debt markets to refer to slight changes in the effective yield on debt instruments... read more

 
PLATINUM GROUP METALS

These are platinum itself and rhodium, palladium, iridium, osmium and ruthenium. Normally these metals are all found in the same deposits and so... read more

 
BUSHVELD IGNEOUS COMPLEX (BIC)

This is the largest layered igneous intrusion in the world. It was thrust up from the earth's core about 2,1 billion years ago and it is contains a vast wealth... read more

 
PLATINUM

A precious metal predominantly produced in South Africa. This metal is used primarily in auto catalysts together with other platinum group metals... read more

 
PIVOT POINT

A technical indicator used with the purpose of identifying the overall trend over different time periods. Used as a price indicator to determine... read more