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.

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BUREAU FOR ECONOMIC RESEARCH

An independent economic research institute affiliated with the University of Stellenbosch in South Africa. Established in 1944,it is renowned for its objective... 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

 
EXPROPRIATION OF LAND

The compulsory taking over of land by the government of a country. In most capitalist... read more

 
MOODYS INVESTORS SERVICES

This is one of the three major world-wide ratings agencies involved in rating bonds - both government and corporate. Generally, they will do an assessment... read more

 
SERVICE COMPANY

A service company is one which sells some type of service to the public rather than a physical product. Service companies do not have the usual working... 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

 
ARTIFICIAL INTELLIGENCE

Artificial intelligence (AI) is the replication of human intellectual capabilities in a computer. The abilities which are replicated are (1) Learning. The computer... read more

 
ZARONIA

Zaronia is replacing the Johannesburg Interbank Overnight Rate (JIBAR) as the benchmark interest rate following scandals with the London Interbank... read more

 
JOHANNESBURG INTERBANK AGREED RATE

The interest rate which banks in South Africa charge each other for funds lent in the open market and it is agreed by the ten largest financial... read more

 
TRANSACTION TIMING

The exact point in time when the purchase or sale of an investment is executed. Transaction timing can have a significant impact on the profitability of... read more

 
ALGORITHMIC TRADING (ALGO)

Trading automatically, usually without human intervention, through a computer system that is directly connected to an organised exchange. This type of trading... read more

 
AGRICULTURE

An industry engaged in the production of a wide variety of products, both animal and vegetable, by means of cultivating the land. This industry is a major... read more

 
AGRICULTURAL PRODUCTS DIVISION

A division of the JSE that runs spot markets and derivatives markets in agricultural grain products. The main products are soya... read more

 
AGENT

A natural or juristic person who acts on behalf of another such person in a commercial transaction. When a stockbroker acts on behalf of his/her... read more

 
AGE REBATE

The Income Tax Act (58 of 1962) offers three rebates - primary, secondary and tertiary. In the tax year ending on 28th February 2024, the primary... read more

 
AFTERNOON FIX

Twice every trading day members of the London Gold Market Fixing meet on a conference call to decide the gold price - at 10.30am (the morning... read more

 
EUROPEAN PUBLIC REAL ESTATE ASSOCIATION

The European Public Real Estate Association (EPRA) is the industry body for European real estate investment trusts (REIT). EPRA Net Initial Yield is a measure... read more

 
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