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.
| STOP-WITH-LIMIT ORDER |
Used by the trader who wishes to give the floor broker a limit as to how far through the specified stop the order may be filled. Two prices must be stipulated... read more |
| STOP-RUNNING |
After a trend, the market will enter into a trading range and have a tendency to trade to levels where stop-loss orders have been placed. |
| STOP-LOSS STRATEGY |
A strategy to sell out of a share (or other security) after it has fallen by a pre-determined percentage from its highest level since it was purchased.... read more |
| STOP-LOSS |
Once a share that you have bought is "in-the-money" (i.e. your stop-loss level has moved above the price you paid for the share), then you... read more |
| STOP-LIMIT ORDER |
Used by the trader who doesn't wish to be filled any worse than his stop price. Here, the stop and limit prices specified on the order are one and... read more |
| STOP-CLOSE-ONLY ORDER |
This order type is used by the trader who desires his stop order to be filled only if elected in the closing range of trading. Since... read more |
| STOP OUT |
To sell out of a share because it has reached or passed a pre-set stop-loss level in terms of a defined stop-loss strategy. A stop-loss strategy... read more |
| ECONOMIC INDICATORS |
Every week there are a variety of economic indicators which are published. The Business Day runs a special column on Mondays explaining which indicators are going... read more |
| AFTER-TAX PROFIT |
The profit of the company after taxation has been deducted. This figure is shown in the income statement and is used for calculating... read more |
| AFRIMAT CONSTRUCTION INDEX |
An economic index of activity in the construction sector prepared and produced by the economist Roelof Botha, on behalf of Afrimat, every quarter.... read more |
| AFRICAN GROWTH AND OPPORTUNITY ACT |
An American Act which allows certain African countries to export to America duty free. Altogether, 35 countries in Africa benefit from this piece of American... read more |
| AFRICAN STOCK EXCHANGE |
A stock exchange located somewhere in Africa. The largest stock exchange in Africa... read more |
| AFFECTED TRANSACTION |
A transaction defined in the Companies Act (71 of 2008) as one which will result in a change in the control of the company. This could be... read more |
| ADVICE |
Investment advice has become a big industry in South Africa and world-wide. Lay people with surplus cash obviously wish to generate a return which... read more |
| ADVERSE OPINION |
An audit opinion which indicates that the company's financial statements do not accurately reflect the company's performance during the accounting... read more |
| ADVANCE/DECLINE RATIO |
This is a refinement of the net advance/decline line (Net A/D), calculated by dividing the difference between the total number of shares up and the... read more |
| ADVANCE 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 |
| ADMINISTERED PRICE |
Prices of certain products in South Africa are determined, not by the forces of supply and demand, but by various government departments and institutions.... read more |
| ADJUSTED TOTAL EQUITY |
This is also known as "adjusted shareholders' equity" and refers to the total amount of money which the shareholders have in a business - the adjustment made is... read more |
| ADAM SMITH |
The first person to study and write about economics. Adam Smith (1723 - 1790) is regarded as the father of the discipline of economics. His book "An Inquiry... read more |
| EARNINGS BEFORE INTEREST, TAXATION, DEPRECIATION AND AMORTISATION |
This is shortened to EBITDA and it shows the company's profits before non-operational costs. This allows investors to see the company's operating... 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 |
| RESERVE REQUIREMENT |
The minimum amount of cash which commercial banks are required to keep with the central bank. In South Africa the reserve requirement is 2,5% of... read more |
| PUBLIC PRIVATE PARTNERSHIP |
A partnership between the government and the private sector in terms of the Public Finance Management Act. The Gauteng freeway project and toll roads undertaken... read more |
| TWO POT RETIREMENT SYSTEM |
A new system for managing retirement funds implemented with effect from 1st September 2024, but affecting people who began their retirement fund earlier than that... read more |
| SANTA CLAUSE RALLY |
A rise of between 1% and 2% on Wall Street in the last five trading days of the old year and the first two trading days of the new year. Santa Clause... read more |
| TREASURY BILLS |
Instruments for short-term borrowing employed by governments. The bills are issued by tender to the money market. Usually, when economists refer... 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 |
| AUSTRALIAN SECURITIES EXCHANGE (ASX) |
Formed in 1987 with the amalgamation of the six state exchanges, the ASX offers organised exchanges in equities, derivatives, fixed interest... read more |
| QUANTITATIVE TIGHTENING |
The reduction in the size of a central bank's (especially the US Federal Reserve Bank or the "Fed") balance sheet in order to control inflationary... read more |