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.
| 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 |
| 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 |
| 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 |
| 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 |
| THETA |
The measurement of the time decay of a position. |
| 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 |
| 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 |
| 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 |
| 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 |
| 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 |
| 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 |
| 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 |
| 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 |
| TECHNICAL RECESSION |
Two consecutive quarters of negative economic growth as measured by a country's gross domestic product (GDP). |
| 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 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 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 ANALYSIS |
The analysis of group investor behaviour, as reflected in the patterns of share prices and volumes, indices, exchange... 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 |
| 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 |
| 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 |
| 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 |
| 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 |
| 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 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 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 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 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 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 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 |