List of Glossary Terms

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


4-PRICE DOJI
A candlestick where all four prices, high, low, close and open are all the same for one trading day. On a well-traded share this would be a very rare occurrence. With a thinly traded share, if... 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 truism like 1 + 1 = 2. This truth... read more
 
ABANDON
An option contract which is not enforced because it is out-of-the-money. Options confer a right to either buy (call) or sell (put) a certain quantity of shares (or other... read more
 
ABANDONED BABY
A rare candlestick pattern which can indicate either a new bullish or a new bearish trend. A bullish abandoned baby pattern occurs where there is a long red candle, representing... read more
 
ABC
Elliott wave terminology for a three-wave countertrend (or downtrend) price movement in an Elliott cycle. Wave "a" is the first down-wave against the trend of the... read more
 
ABNORMAL ITEM
An income or expense which may be part of the company's normal business but which is abnormal in amount. So, an unusually high expense or income might be considered abnormal.This... read more
 
ABOVE-THE-LINE
Any normal expense or income which has been included in the calculation of a company's gross profit and which is a part of its normal business (such as cost-of-sales... read more
 
ACCELERATED BOOKBUILD
An offering of new shares in the short term which is non-promoted to institutional investors in order to raise capital. An accelerated bookbuild is an immediate means of... read more
 
ACCEPTANCE
Where a bank "accepts" some kind of debt instrument usually at a discount. Debt instruments are basically IOU's written by one organisation in favour of another. If the company... read more
 
ACCEPTANCE DATE
The date on which the right acquired by a shareholder, as a result of a rights issue, must be exercised. Listed companies often raise additional capital from... read more
 
ACCOMMODATION
The extension of credit by the Reserve Bank to commercial banks. The central bank acts as a banker to the commercial banks, lending them money as they need it through what... read more
 
ACCOUNTANCY
A set of conventions for recording and gathering financial transactions in an organisation. The academic discipline which is accountancy has established a set of conventions for totaling the... read more
 
ACCOUNTING CONSERVATISM
Accountants are notoriously conservative people. Conservatism applies to incomes, expenses, liabilities and assets of unknown amounts. To be conservative means generally... read more
 
ACCOUNTING CONVENTION
These are conventions developed by the accounting profession to ensure that the financial statements display a clear and accurate picture of the progress of the business during the accounting.... read more
 
ACCOUNTING PERIOD
The period of time over which the financial affairs of a company are being accounted for in the financial statements. The matching principle ensures that the incomes... read more
 
ACCOUNTING POLICY
A policy established by the board of directors for the allocation of transaction entries into the books of account. For public, listed companies, the accounting policies... read more
 
ACCOUNTING RECORDS
The books of a business. These are the books of first entry and other working papers used by the accountants to draw up a company's financial statements. The financial statements... read more
 
ACCOUNTS PAYABLE
Amounts owing to the company's creditors in the balance sheet. These appear under current liabilities. These amounts are owed by the company in the short term (normal... read more
 
ACCOUNTS RECEIVABLE
Amounts owing to the company, usually by customers who have bought products on credit. This is another term for "debtors" and appears in the balance sheet under current assets.... read more
 
ACCRUAL
A balance sheet item that consists of an expense or income which has not yet been paid or received. So, for example, if a company owes rent on the date of the balance sheet... read more
 
ACCUMULATION
When the volumes traded in a share start to pick up while the share price moves sideways or upwards, this is known as an "accumulation phase". It indicates that the... read more
 
ACG
22 - 09 - 2020
Anchor (ACG) is a local and off-shore financial services holding company with primarily three businesses - asset management, private clients and stockbroking. It listed on... read more
 
ACID TEST RATIO
An accounting ratio used to determine whether a company's current assets excluding its stock (i.e. just its debtors' book and cash balance) is... read more
 
ACID TURN RATIO

The ratio os a company's turnover to its assets. The ratio is calculated by dividing a company's total sales by the average value... read more

 
ACL
30 - 09 - 2020
ArcelorMittal (ACL) is South Africa's largest steel producing company. It has survived where companies like Highveld Steel have disappeared. Arguably, ArcelorMittal felt the... read more
 
ACQUISITION
This is when one company acquires more than 50% of the shares of another. The company acquiring the shares then becomes the "holding company" and the acquired company becomes... read more
 
ACT OF GOD
A completely unpredictable event or "black swan" (see The Black Swan" by Nasssim Talbert) event, usually but not always occurring as a result of some natural phenomenon such as a hurricane,... read more
 
ACTUALS
(1) Refers to actual physical commodities, as distinguished from the futures on those commodities. So, for example, there is a "spot market" for gold which shows the... read more
 
ACTUARIES INDEX
Most stock market indexes, except for the very simplest are calculated by actuaries. This is because the calculation must take into account the minute-to-minute trading in... read more
 
ACTUARY
An actuary is an expert in mathematics and statistics who is capable of calculating the probability of key commercial events or of calculating the changing weightings in a stock market... read more
 
ACZ
06 - 06 - 2020
Arden Capital (ACZ) is an investment holding company registered in Mauritius which specialises in running tourist-orientated businesses in Zimbabwe, particularly hotels, game... 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 into the Nature and Causes... 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 that it excludes any unrealised... 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. For example, water, paraffin,... read more
 
ADRS
Certificates that are issued by a bank of US origin and traded in the U.S. as domestic shares. The certificates represent the foreign securities that the bank holds in that security's... 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 by Richard Arms, an American... read more
 
ADVANCE/DECLINE RATIO
Your software includes 10 net advance/decline lines (sometimes called "breadth indicators") for various sectors and the market as a whole. The Net Over shows the number of shares in the overall... 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 total number of shares down by... read more
 
ADVERSE EXCURSION
The loss attributable to price movement against the position in any one trade from the time that the trade began. So, for example, if XYZ shares were bought for 1000c each and the share has fallen... read more
 
ADVERSE OPINION
 
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 is better than inflation... read more
 
AEG
18 - 05 - 2020
The once-massive construction company, Aveng (AEG), which traded at R69 a share in 2008, has been reduced to a 2c penny stock. This sad demise has been brought about by a... read more
 
AEL
09 - 04 - 2020
Allied Electronics Corp, or Altron (AEL), is an information and communications technology company which was started by Bill Venter in 1965. It has recently been re-focusing... 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 any type of merger, acquisition... read more
 
AFH
09 - 06 - 2020
Alexander Forbes (AFH) is a financial services company offering asset management, insurance, healthcare, retirement, consulting and wealth management to both corporate and... read more
 
AFRICA BOARD
A division of the JSE which was abandoned in June 2012. The Africa board was originally supposed to attract companies from the rest of Africa to list on the JSE. Only two shares... read more
 
AFRICAN AND OVERSEAS
05- 09- 2020
This is the holding company of Rex Truform (RTO) which is also listed on the JSE. Rex Trueform (RTO) is an extremely thinly-traded company listed on the JSE - which makes it... read more
 
AFRICAN DAWN CAPITAL
03 - 09 - 2020
This is a small micro-lending company, listed on the Alt-X in 2004. Its share price rose as high as 550c in November 2007, but has since fallen back to 13c. The company is... read more
 
AFRICAN GROWTH AND OPPORTUNITY ACT
An American Act which allows certain African countries to export to America duty free. Altogether, 37 countries in Africa benefit from this piece of American legislation, but South Africa,... read more
 
AFRICAN PHOENIX INVESTMENTS LIMITED
06 - 03 - 2020
Phoenix (AXL) is a black-controlled investment holding company whose principal asset is its 100% subsidiary, Standard General Insurance (Stangen). African Bank Investments... read more
 
AFRICAN STOCK EXCHANGE

A stock exchange located somewhere in Africa. The largest stock exchange in Africa is the JSE with... read more

 
AFRIMAT CONSTRUCTION INDEX
An index of activity in the construction sector prepared and produced quarterly by Afrimat. The index includes wages in the construction sector, new building plans passed, the sales of building... read more
 
AFTER TAX EARNINGS
The profit of the company after taxation has been deducted. This figure is shown in the income statement and is used for calculating the return on shareholders'... read more
 
AFTER TAX INCOME
The profit of the company after taxation has been deducted. This figure is shown in the income statement and is used for calculating the return on shareholders'... 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 the return on shareholders'... 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 fix) and then again at 3pm (the afternoon... 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 2021, the primary rebate allows people under the... 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 clients and has no personal interest... read more
 
AGGREGATE DEMAND
This is an economics term which refers to the total expenditure within the economy. It is a method of calculating gross domestic product. The formula is:
Gross Domestic Product = Consumer... read more
 
AGL
31 - 07 - 2020
With Anglo American (AGL), the risk normally associated with commodity stocks is mitigated in two ways. Firstly, the company has diversity of different minerals which reduces... read more
 
AGM
This is a meeting of the shareholders of a company, which is required in terms of section 61 of the Companies Act (71 of 2008). The AGM must be held within six months of... read more
 
AGOA
An American Act which allows certain African countries to export to America duty free. Altogether, 37 countries in Africa benefit from this piece of American legislation, but South Africa,... 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 beans, wheat, sunflower and maize... 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 part of the economy and... read more
 
AHL
15 - 10 - 2020
AH Vest (AHL) produces a range of sauces under the All-Joy brand and seeks to diversify into ready meals, soups and canned vegetables. It is the second largest producer of... read more
 
AIM
A part of the London Stock Exchange which caters for smaller companies - in a similar way to the JSE's Alt-X. Some South African companies are listed on both the AIM... read more
 
ALAN GREENSPAN
The Chairman of the Federal Reserve Bank of America (Fed) from 1987 to 2006. Alan Greenspan is notable because he ushered in the idea of stimulating the economy by the injection of funds to compensate... read more
 
ALCO
A committee of senior executives in a large company that manage the cash flow of the business to ensure that there is sufficient liquidity to meet working capital... read more
 
ALGO
Trading automatically, usually without human intervention, through a computer system that is directly connected to an organised exchange. This type of trading has become more common with... 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 has become more common with... read more
 
ALH
23 - 09 - 2020
Alaris Holdings (ALH) is a designer, manufacturer and marketer of RF antennas and related equipment. Its products are used in communication, frequency spectrum monitoring,... read more
 
ALL SHARE INDEX
All stock exchanges have indexes which provide averages of the prices of their listed shares. These averages are normally "weighted" so that larger companies are more important and smaller companies... read more
 
ALLOCATION
The number of shares actually sold to a person who has applied to participate in a new issue. Where the shares of an initial public offer (IPO) are very popular and in great demand... read more
 
ALLOTMENT LETTER
Formerly a letter which was issued to inform someone who had applied for shares, either in a rights issue or a public issue, that they had been apportioned a certain number of shares.... read more
 
ALP
28 - 05 - 2020
Atlantic Leaf Properties (ALP) is a property company, listed on the JSE and the Mauritian Stock Exchange, which has become a real estate investment trust (REIT) and intends... read more
 
ALPHA
Premium that an investment portfolio earns above a given point of reference; a measure of stock performance independent of the market. Unit trusts and other collective... read more
 
ALPHAMIN RESOURCES CORPORATION
12 - 08 - 2020
Alphamin (APH) is a tin mining and exploration company operating out of Mauritius. Its primary asset is just over 80% of Alphamin Bisie Mining which has a tin mine in the... read more
 
ALT-X
The Alt-X is part of the JSE. It is a board which is available to those companies which cannot qualify to list on the "main board". The listing requirements... read more
 
ALTERABLE PROVISION
The Companies Act (71 of 2008) distinguishes between alterable and unalterable provisions. An alterable provision is one which may be changed to suit the company concerned - as... read more
 
ALTERNATE DIRECTOR
An individual appointed to take the place of existing director in certain specific circumstances, or at times when he is not available. The Companies Act in section 1 defines an... read more
 
ALTERNATIVE ASSET
This is an asset which is not traded on any organised exchange in a conventional manner. So, for example, properties are alternative assets, but the shares in a real estate investment... read more
 
ALTERNATIVE EXCHANGE (ALT-X)
The Alt-X is part of the JSE. It is a board which is available to those companies which cannot qualify to list on the "main board". The listing requirements... read more
 
ALTERNATIVE INVESTMENT MARKET
A part of the London Stock Exchange which caters for smaller companies - in a similar way to the JSE's Alt-X. Some South African companies are listed on both the AIM... read more
 
ALUMINIUM
A silvery white, soft, non-magnetic and ductile base metal. It is noted for it's low density and ability to resist corrosion. It is used in the transportation and building industries such... read more
 
AMALGAMATION
This occurs where two or more companies come under the control of one, whose shareholders then become the shareholders of the companies that were merged. The Companies Act (71 of 2008) uses the... read more
 
AMERICAN DEPOSITORY RECEIPT
Certificates that are issued by a bank of US origin and traded in the U.S. as domestic shares. The certificates represent the foreign securities that the bank holds in that security's... read more
 
AMERICAN OPTION
An options contract that allows the holder to exercise the option at any time up to and on the expiration date. This is as opposed to a European option that can only be exercised... read more
 
AMERICAN STOCK EXCHANGE
Originally an overflow of companies that were too small to list on the New York Stock Exchange, the "Amex" or "the curb" as it was known used to trade on the... read more
 
AMEX
Originally an overflow of companies that were too small to list on the New York Stock Exchange, the "Amex" or "the curb" as it was known used to trade on the... read more
 
AMORTISATION
Accounting method in which an asset's cost is spread out over a period of time. For example, a vehicle costing R100 000 might be amortised or "depreciated" over five years... read more
 
AMS
28 - 07 - 2020
Anglo American Platinum (AMS), or Amplats, is the second largest platinum producing company in the world (after Sibanye), producing a large portion of the world's platinum.... read more
 
ANAUME
Candlestick formation. An exceptional exhaustion pattern (meaning "gap filling") composed of five candles. The anaume occurs when the gap is filled in after a market price... read more
 
AND
09 - 04 - 2020
Andulela (AND) is an investment holding company listed on the main board. It has two subsidiaries - 83,6% of Kilken Platinum, a producer of low cost PGMs (palladium, platinum,... read more
 
ANDREWS METHOD
This is a technical analysis technique (also known as "Andrews' pitchfork" because of its shape) for establishing upper and lower support and resistance lines. A median line is... read more
 
ANG
22 - 09 - 2020
Anglogold Ashanti (ANG) is an international gold producer which used to have operations in South Africa, the last of which, Mponeng, has now been sold, the DRC, Tanzania,... read more
 
ANH
31 - 07 - 2020
Anheuser-Busch, or AB-Inbev (ANH), is the world's largest brewer of beer, operating in both first world countries and emerging markets. On 10th October 2016, AB-Inbev bought... read more
 
ANNUAL EARNINGS CHANGE
The historical earnings change between the most recently reported fiscal year's earnings and the preceding or a forecast. Paragraph 3.4(b) of the JSE's Listing Requirements... read more
 
ANNUAL FINANCIAL STATEMENTS
Sometimes known as an Annual Report or just the "financial statements", this is a document required by the Companies Act (71 of 2008) to be produced once a year for presentation... read more
 
ANNUAL GENERAL MEETING
This is a meeting of the shareholders of a company, which is required in terms of section 61 of the Companies Act (71 of 2008). The AGM must be held within six months of... read more
 
ANNUAL NET PROFIT MARGIN
The percentage that the company earned from gross sales (also called "turnover") for the most recently reported fiscal year. In other words, the after-tax profit... read more
 
ANNUAL REPORT
Sometimes known as an Annual Report or just the "financial statements", this is a document required by the Companies Act (71 of 2008) to be produced once a year for presentation... read more
 
ANNUAL RETURN
Every company is required in terms of section 33 of the Companies Act (71 of 2008) to submit a return to the Companies and Intellectual Property Commission (CIPC). This return... read more
 
ANNUAL SALES CHANGE
The percentage change in sales (turnover) between the most recently reported financial year and the preceding. You should note that unless the increase in sales is more than... read more
 
ANNUALISE
The process of adjusting performance or return which has been made over a period of less than or more than a year so that it can be compared with the annual results of other entities.... read more
 
ANNUITY INCOME
An income which comes in regularly, usually as the result of a contractual obligation and a pre-arranged bank debit order. When analysing a share, it is always good to determine... read more
 
APEC
APEC is a group of 21 countries formed in 1989 to encourage trade among the Pacific rim countries. The countries in APEC are: United States; Australia; Brunei Darussalam; Canada; Chile; China;... read more
 
APH
12 - 08 - 2020
Alphamin (APH) is a tin mining and exploration company operating out of Mauritius. Its primary asset is just over 80% of Alphamin Bisie Mining which has a tin mine in the... read more
 
APN
10 - 09 - 2020
Aspen (APN) is a pharmaceutical company which trades in 150 countries in a wide range of specialty and branded products aimed at a range of acute and chronic medical conditions.... read more
 
APPLICANT
An investor who applies for shares in a company's new issue. Sometimes, if the company is seen to be a very good investment, the shares will be heavily "over-subscribed".... read more
 
APPLICATION
This is a form completed by someone who wishes to buy shares as part of a primary market offer. When companies list on the stock exchange, they normally do so by way... read more
 
APPRAISAL RIGHTS
Where a minority shareholder does not agree with a fundamental transaction (i.e. one which will change the control of the company, such as a merger or acquisition,... read more
 
ARA
03 - 08 - 2020
Astoria (ARA) was an investment company which was formed to give investors exposure to an international selection of equities in developed economies. Among its investments... read more
 
ARBITRAGE
Simultaneous trading in assets, currency or bills of exchange in different international markets, to take advantage of the different rates of return ruling in each. For example,... read more
 
ARDEN CAPITAL LIMITED
06 - 06 - 2020
Arden Capital (ACZ) is an investment holding company registered in Mauritius which specialises in running tourist-orientated businesses in Zimbabwe, particularly hotels, game... read more
 
ARH
24 - 08 - 2020
ARB Holdings (ARH) is an electrical contracting company that owns property and is involved in vehicle leasing. It owns 74% of ARB Electrical Wholesalers which has 23 branches... read more
 
ARL
15 - 09 - 2020
Astral Foods (ARL) is a leading poultry producer in South Africa. The company’s activities include integrated broiler operations, where they have a processing capacity... read more
 
ARMS INDEX
Also known as TRading INdex (TRIN): An advance/decline stock market indicator. A reading of less than 1.0 indicates bullish demand, while greater than 1.0 is bearish. The... read more
 
ARMS RICHARD
Richard Arms was an American technical analyst and wrote books on technical analysis. He was most famous for his book "The Arms Index", but wrote many other books including "Trading... read more
 
ART
07 - 08 - 2020
Argent (ART) is a manufacturer and beneficiator of steel and aluminium products supplying a wide range of businesses in South Africa. It also has operations in the US and... read more
 
ARTICLES OF ASSOCIATION
Prior to the Companies Act (71 of 2008), this was a document, drawn up by the subscribers of a company at its inception, which governed the internal affairs and management... read more
 
ASC
01 - 10 - 2020
Ascendis Health (ASC) is a South African company which manufactures brands aimed at health in animals, plants and people. The company has recently sold off its sports nutrition... read more
 
ASCENDING FORMATION
A formation, which is part of an uptrend, where the share price forms a triangle bounded by a horizontal resistance line at the top and characterised by a pattern... read more
 
ASCENDING SCALLOP
Similar to the cup and handle formation, this chart formation occurs when price dips momentarily, forming a cup, before resuming its upward course. Typically bullish, the scallop form can be... read more
 
ASIA PACIFIC ECONOMIC COOPERATION (APEC)
APEC is a group of 21 countries formed in 1989 to encourage trade among the Pacific rim countries. The countries in APEC are: United States; Australia; Brunei Darussalam; Canada; Chile; China;... read more
 
ASK
The price at which an investor who is holding a share (or other security) is willing to sell. Also referred to as the "offer price." The JSE's computer system will... read more
 
ASR
09 - 04 - 2020
Assore (ASR) is a miner of base metals, especially iron ore, manganese and chrome. It has 50% of Associated Manganese (Assmang) with partner African Rainbow Minerals. The... read more
 
ASSESSED LOSS
A loss made by a business which has been accepted as valid by the Receiver of Revenue. Such assessed losses can be carried forward and off-set against the profits of the... read more
 
ASSET
An item on the balance sheet that means the possessions of a company, an organisation or an individual. Assets can be tangible (e.g. a vehicle), or intangible (e.g. goodwill).... read more
 
ASSET BACKING
A strong asset backing indicates that a company has large resources of assets. These may reside in a parent company, or they may belong to the company itself. As a private investor,... read more
 
ASSET BASE
A concept which came from the previous Companies Act and its doctrine of Capital Preservation. Money raised by a company as a result of issuing shares to the public was protected... read more
 
ASSET BUBBLE
An asset bubble is a period where the price of a particular asset reaches unsustainable levels due to investor enthusiasm. Over the centuries there have been a number of famous... read more
 
ASSET CLASS
A category of assets which all have similar characteristics. Thus shares, property, commodities, and fixed interest investments bonds are all particular asset classes.... read more
 
ASSET LIABILITY COMMITTEE (ALCO)
A committee of senior executives in a large company that manage the cash flow of the business to ensure that there is sufficient liquidity to meet working capital... read more
 
ASSET MANAGEMENT
The management of listed or unlisted assets (equities, options etc.) by a "fund manager". Asset management is a very well-developed business in South Africa... read more
 
ASSET MANAGER
The JSE is dominated by institutional investors which account for as much as 90% of all trades. These institutions are pension funds, insurance companies and unit trusts. The funds which they... read more
 
ASSET MARKET
An asset market is the spot market for a particular asset. Thus, the gold market or the oil market or the market for pork bellies in America. Financial assets... read more
 
ASSET OF LAST RESORT
An asset which will hold its value irrespective of any developments in the economy. Investors are primarily concerned with achieving a balance between risk and security.... read more
 
ASSET STRIPPING
 
ASSET TURN RATIO
The ratio of a company's sales or turnover to the average value of assets held over the accounting period. The objective is to determine how efficiently... read more
 
ASSIGNMENT
When a trader sells short an option, he may be assigned in the event that the purchaser exercises the option. A trader with a short call position is assigned a short... read more
 
ASSOCIATED COMPANY
A company in which between 20% and 50% of the share capital is held. Where less than 20% is held then the shares would be considered an "investment" and where more than 50%... read more
 
ASTROPHYSICAL CYCLE
Any earthly cycle, such as a market cycle, that has been scientifically related to the physics of the planetary system.
 
ASX
Formed in 1987 with the amalgamation of the six state exchanges, the ASX offers organised exchanges in equities, derivatives, fixed interest and commodities. It is... read more
 
AT BEST
An instruction given to a stockbroker by his clients to sell or buy "at best" would give the broker freedom to purchase or sell the shares concerned at the price most advantageous... read more
 
AT CALL
The term used to describe money placed, usually with a bank, which can be drawn immediately - as opposed to money which is tied up for a period of time. The rate of interest which... read more
 
AT MARKET
An order to be transacted immediately against the best opposite order in the book at the time of making such entry.
 
AT-THE-MONEY
An option whose strike price is nearest the current price of the underlying deliverable.
 
ATL
Atlatsa (ATL) is a BEE company involved in platinum group metals (PGM) in the Bushveld Complex. It has a primary listing on the Toronto Stock Exchange (TSE) and a secondary listing on the Alt-X... read more
 
ATS
ATS (see SETS). In 1996 the open outcry trading floor was closed on 7 June and replaced by an order driven, centralised, automated trading system known as the Johannesburg Equities Trading... read more
 
ATT
23 - 09 - 2020
Attacq (ATT) is a BEE level 2 property developer that converted to a real estate investment trust (REIT) in May 2018 and has been listed on the JSE since 2013. It is the owner... read more
 
ATTRIBUTABLE EARNINGS
That part of a company's profit which is "attributable" to the ordinary shareholders. In other words, after the normal operating expenses have been deducted, together... read more
 
ATTRIBUTABLE PROFIT
That part of a company's profit which is "attributable" to the ordinary shareholders. In other words, after the normal operating expenses have been deducted, together... read more
 
AUDIT
All companies listed on the JSE have to produce at least two sets of audited financial statements each financial year - interim and final. Those financials... read more
 
AUDIT DISCLAIMER
This is an audit opinion given when the auditor cannot obtain sufficient documents and information to support their opinion. This can happen because management does not have the necessary... read more
 
AUDITOR
A person who is qualified to conduct an audit on a company or other organisation. Auditors are either internal auditors working for the company that they are auditing or external,... read more
 
AUDITOR-GENERAL
The auditor-general of South Africa (AGSA) is an appointment in terms of Chapter 9 of the constitution (section 181). The AGSA is tasked with conducting regular audits of all national... read more
 
AUDITORS' REPORT
A part of the annual financial statements required by the Companies Act where the auditors state that they have examined the financials and that in their opinion they represent... 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 and commodities. It is... read more
 
AUTHORISED CAPITAL
The number of shares in each class which a company is authorised to issue to the public or in exchange for assets. The authorised shares must be stated in the Memorandum... read more
 
AUTHORISED SHARES
The number of shares in each class which a company is authorised to issue to the public or in exchange for assets. The authorised shares must be stated in the Memorandum... read more
 
AUTO CATALYST
A stainless-steel cylinder containing a honeycomb coated with a solution of rhodium, platinum and palladium. It is installed on a vehicle's exhaust system to convert pollutants from the burning... read more
 
AUTOMATED TRADING SYSTEM
ATS (see SETS). In 1996 the open outcry trading floor was closed on 7 June and replaced by an order driven, centralised, automated trading system known as the Johannesburg Equities Trading... read more
 
AUTOREGRESSIVE INTEGRATED MOVING AVERAGE (ARIMA)
A linear stochastic model forecasting methodology described by Box and Jenkins in their book "Time Series Analysis, Forecasting and Control".
 
AVERAGE
The mean of a set of numbers. Averages are used extensively in the share market for the determination of market indexes and economic data. The moving average... read more
 
AVERAGE COST
A method of valuing shares in a portfolio at the average of what they cost. For example, if 100 shares are bought for 100 cents each and then a further 100 of the same shares... read more
 
AVERAGE DIRECTIONAL MOVEMENT INDEX
Indicator developed by J. Welles Wilder to measure market trend intensity. Average Directional Movement Index Technical Indicator (ADX) helps to determine if there is a price... read more
 
AVERAGE NUMBER OF SHARES IN ISSUE
Certain statistics for listed companies on the JSE are given in the form of "per share" data - such as earnings per share and dividends per share. These... read more
 
AVERAGE TRUE RANGE
A moving average of the true range. Developed by J. Welles Wilder and introduced in his book, "New Concepts in Technical Trading Systems" (1978), the Average True Range (ATR) indicator... read more
 
AVI
08 - 09- 2020
Anglovaal Industries (AVI) is a generalised producer of consumer products in the food, cosmetics and apparel sectors. It has a diverse range of very well-known South African... read more
 
AVOIDANCE
The organisation of a person's financial affairs in such a way as to minimise their tax liability within the requirements of the Income Tax Act (58 of 1962). In other words, avoidance... read more
 
AVOISION
Taking advantages of those parts of the Income Tax Act (58 of 1962) which are not clear to get out of paying tax. This practice runs the risk that it is found to be evasion rather than... read more
 
AVR
05 - 02 - 2020
Avior (AVR) is a capital markets research and trading firm covering equities, fixed interest and derivative markets in Southern Africa. The company claims to have 200 institutional... read more
 
AVV
29 - 09 - 2020
Alviva Holdings (AVV) is "one of Africa's largest providers of information and communication technology products and services". It has three operating divisions - ICT Distribution... read more
 
AWA
09 - 10 - 2020
Arrowhead (AWA) is a real estate investment trust (REIT) which owns a diversified South African portfolio and shares in a number of other property companies worth in total... read more
 
AYO
28 - 05 - 2020
This is a black-owned technology company that was spun out of AEEI and in which AEEI still holds 49,4%. There were suspicious circumstances with a massive R4,3bn investment... read more
 
B ORDINARY SHARES
A second tier of share capital which has different risk and return characteristics from the "A" ordinary shares. For example, following its merger with Gemgrow, Arrowhead... read more
 
BA
A document, also known as a "bill of exchange" in terms of which a commercial bank accepts that it will pay the holder within a specified period, such as 90 days ,from the issue... read more
 
BA RATE
The annualised interest rate at which financial institutions (typically banks) accept or discount bills of exchange. Often in business a company in need of short-term cash will... read more
 
BACK MONTHS
Those futures delivery months with expiration or delivery dates furthest into the future; in other words, futures delivery months other than the spot month, or nearby, delivery... read more
 
BACK OFFICE
 
BACK-DOOR LISTING
Where a company buys assets, the value of which greatly exceeds its net asset value in exchange for the majority of its shares - so that the seller of the assets ends up with a controlling stake.... read more
 
BACK-END RATIO
The ratio of a person's mortgage payments plus any other loan repayments they have to his/her gross monthly income. This ratio is sometimes used by banks to determine whether... read more
 
BACK-TESTING
A strategy is tested or optimized on historical data and then the strategy is applied to new data to see if the results are consistent. For example, you may believe that a 200-day moving average... read more
 
BACKWARD BENDING CURVE
An economics concept used to describe a phenomenon which occurs in the labour market. As employees are paid more per hour they will tend to work longer hours up to the point where... read more
 
BACKWARDATION
A futures market phenomena in which the relationship between two delivery months of the same commodity is abnormal. The opposite of "contango".
 
BACTERIAL OXIDATION
The process whereby bacteria oxidise mined ore to assist in the extraction of valuable minerals. The process has been patented by a South African company called Biomin in South Africa... read more
 
BAD DEBT
This is a debt which cannot be recovered - thus forcing the company to write it off against profits. Most companies make provision for bad debts, a figure that is adjusted... read more
 
BAIL OUT
A bail out occurs where the government of a country or a large company injects funds to save a commercial organisation (usually a bank) from failure. The justification for this... read more
 
BALANCE OF PAYMENTS
The combined net position on the capital account and current account of the country. The current account indicates whether South Africa is spending more foreign currency on imports... read more
 
BALANCE OF TRADE
This forms part of the balance of payments calculation, but refers only to the difference between the value of exports offset against imports. While the balance of trade... read more
 
BALANCE SHEET
A list of all balances taken from a company's ledger after incomes and expenses have been offset to arrive at a profit or loss. These balances are combined... read more
 
BALANCED MUTUAL FUND
A mutual fund that seeks a return that is a combination of capital appreciation and current income, generally by building a portfolio of bonds, preferred stocks and... read more
 
BALOPAY
The combined net position on the capital account and current account of the country. The current account indicates whether South Africa is spending more foreign currency on imports... read more
 
BANCASSURANCE
The working together of a bank and an insurance company to exchange their customer lists and thereby increase business. This usually involves a merger, acquisition... read more
 
BANDPASS FILTER
An oscillator that accentuates only the frequencies in an intermediate range and rejects high and low frequencies. Implemented by first applying a low pass filter to the data and then a high... read more
 
BANK

An organisation registered in terms of the Banks Act (94 of 1990). Commercial banks are deposit-taking institutions that must be registered under the Act to conduct the business... read more

 
BANK FOR INTERNATIONAL SETTLEMENTS (BIS)
The BIS is an international bank, owned by central banks, which acts as a bank for bankers. It was formed in 1930 by an agreement between the governments of 7 European countries... read more
 
BANK INVESTMENT CONTRACTS
A negotiated-term deposit issued by a commercial bank. See Guaranteed Investment Contracts (GICs).
 
BANK OF ENGLAND (BOE)
The central bank of the United Kingdom, located on Threadneedle street. Like all central banks, the BOE is engaged in monetary policy which includes controlling inflation... read more
 
BANK RATE
This is the "repurchase rate" - an interest rate which is set by the supply and demand for money between the Reserve Bank and the commercial banks.It is also sometimes known as the "base rate"... read more
 
BANKABLE FEASIBILITY STUDY
A detailed project study that can be submitted to a bank or other lending or investing organistaion with the objective of raising funds to complete the project. A key element of a bankable... read more
 
BANKERS' ACCEPTANCE (BA)
A document, also known as a "bill of exchange" in terms of which a commercial bank accepts that it will pay the holder within a specified period, such as 90 days ,from the issue... read more
 
BANKING COVENANTS
An agreement reached by a company with its creditors for the repayment of principal and interest on its outstanding debts. Debt covenants give the dates on which the debts and interest will be... read more
 
BANKRUPTCY
This refers to where an individual has been unable to pay his debts and has been declared insolvent in terms of the Insolvency Act (24 of 1936). This is as distinct from the term "liquidation"... read more
 
BANKSERV ECONOMIC TRANSACTION INDEX
This index, better known as the "Beti" shows transactions captured at the Bankserv clearing house for cards, automatic teller machines (ATM) and electronic funds transfers (EFT). It gives... read more
 
BAR
A South African slang term used in the gilts market meaning R1 million - which is the minimum unit of trade in that market. This is similar to the South African slang term "a grand"... read more
 
BAR CHART
A bar chart shows the range of trade for the previous day, week or month by connecting the highest price reached during the day to the lowest price with a vertical bar. The... read more
 
BASE CURRENCY
In general terms, the base currency is the currency in which an investor or issuer maintains its book of accounts. In the FX market, the U.S. Dollar is normally considered... read more
 
BASE EFFECT
Most economic statistics are measured over the most recent full year, but updated monthly. This means that the latest month's figures will have as much impact as the oldest month... read more
 
BASE LOAD
The minimum electricity use on an electricity grid over a specific time period, like one week. Ideally, this level of electricity should be provided by an energy source which is constant and... read more
 
BASE METAL
A metal which has a low value relative to its weight - as opposed to a precious metal or "noble" metal such as gold, silver or platinum. Some base metals also corrode,... read more
 
BASE RATE
This is the "repurchase rate" - an interest rate which is set by the supply and demand for money between the Reserve Bank and the commercial banks.It is also sometimes known as the "base rate"... read more
 
BASE SALARY
The gross salary that is paid to an employee every month. From this are deducted pay-as-you-earn (PAYE), unemployment insurance fund contributions (UIF) and sometimes other agreed... read more
 
BASEL ACCORD
An agreement between the major countries of the world on the standards to be applied to their major banks so as to minimise the risk of a bank collapse which could have knock-on effects... read more
 
BASEL AGREEMENT
An agreement between the major countries of the world on the standards to be applied to their major banks so as to minimise the risk of a bank collapse which could have knock-on effects... read more
 
BASIC EARNINGS PER SHARE
A company's earnings (profit) divided by the number of ordinary shares usually expressed as a number of cents per share. The earnings per share (EPS) includes all the companies incomes and expenses... read more
 
BASIS POINTS
The measure of yields on bonds, notes and interest rates; one basis point equals 0.01% of yield. For example if the Governor of the Reserve Bank announces that... read more
 
BASIS RISK
The risk that a hedge contract will not exactly eliminate the risk in the underlying instrument. For example, an investor owns 1000 ounces of gold and the gold... read more
 
BASKET TRADES
Large transactions made up of a number of different stocks.
 
BAT
26 - 06 - 2020
Brait (BAT) is an investment holding company which owns 78% of Virgin Active, 93,7% of Premier and 18,5% of New Look (a clothing retailer in the UK). It sold its stake in... read more
 
BATS
03 - 08 - 2020
British American Tobacco (BTI) describes itself as a "leading consumer goods company" - which is a euphemistic way of saying that they produce and sell an enormous number... read more
 
BAU
25 - 09 - 2019
Bauba (BAU) is a black-empowered junior mining company which has recently moved away from platinum group metals (PGM) production because of low prices to concentrate on chrome... read more
 
BAW
29 - 04 - 2020
Barloworld (BAW) is an international supplier of heavy earth-moving equipment and vehicles to the mining, agriculture, infrastructure, power, automotive and logistics sectors.... read more
 
BBBEE
A policy introduced with the Broad-Based Black Economic Empowerment Act (53 of 2003) which came into effect on 21st April 2004. This Act states its objectives as establishing a legislative framework... read more
 
BBBEE SCORECARD
The Broad Based Black Economic Empowerment Act (53 of 2003) has as its objective the empowerment of black people in South Africa. In order to achieve this it rates companies according to a scorecard... read more
 
BCF
09- 09 - 2020
Bowler Metcalf (BCF) is a plastics manufacturing company that began in 1972 and listed on the JSE in 1987. The company's products include tube manufacture, printing, injection... read more
 
BDA
Broker Deal Accounting system provided for member firms by the JSE information technology division. The system keeps the securities records and books of account for individual member firms in... read more
 
BDI
The Baltic Dry Index (BDI) is a composite index calculated by the Baltic exchange in London and made up of the Capesize, Panamax and Supramax averages. This is a measure of ship sizes.... read more
 
BEAR
An investor who believes that the market or a particular share is going to decline from its current position. In the share market, bulls and bears constantly tussle... read more
 
BEAR MARKET
A market where the average of all shares is falling so that each high is lower than the previous high and each low is lower than the previous low. Bear markets usually... read more
 
BEAR RAID
Where investors who have sold short (made bear sales) attempt to force the price of a share down by making further bear sales so that they can cover their positions... read more
 
BEAR SALE
A sale of shares before they are purchased. A bear sale (or short sale) is the sale of an undertaking to supply a certain number of shares at a specified date in the future.... read more
 
BEAR SQUEEZE
A market where the shortage of scrip or a commodity which has been heavily short-sold forces short-sellers to cover at exhorbitant prices. In earlier times a short... read more
 
BEAR TREND
A long downward trend in a share's price, a sector's index, the all-market index or other indicator. Bear trends and bull trends are interrupted... read more
 
BEARISH COUNTER ATTACK
The counter part of the bullish counter-attack candlestick formation, this is a top reversal signal consisting of two candles: the first is a green candle within a... read more
 
BEARISH ENGULFING PATTERN
A top reversal candlestick formation consisting of a small green candle followed by a large red candle which engulfs the previous green candle. This formation is the counter-part of the... read more
 
BEE
The Black Economic Empowerment Act (53 of 2002) aimed to empower black people through providing private sector companies with an incentive to increase the black ownership of their... read more
 
BEE BOARD
A section of the JSE which is devoted to the trade of black empowerment shares. These shares can only be bought and sold by black people. The need for this arises from the problem... read more
 
BEL
08- 09 - 2020
Bell (BEL) is a manufacturer and distributor of heavy equipment, mainly earth-moving equipment to the mining construction, agriculture and waste management industries. As such,... read more
 
BELL CURVE
A statistical concept which seeks to reduce a population to its average and then show the positive and negative departures from that average. So, for example, you could take all... read more
 
BELOW THE LINE
Those expenses and incomes which are not included in the calculation of headline earnings because they are not part of the company's normal business.
 
BENEFICIAL INTEREST
An interest of 5% or more in a company. Section 121 (1) of the Companies Act (71 of 2008) states that any investor (natural or juristic) acquiring or disposing of... read more
 
BENEFICIARY
Someone who is entitled to receive benefits from a trust. The benefits which are disbursed are placed in the hands of trustees and are at their discretion. In general the trustees... 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 Africa is primarily an exporter... read more
 
BENEFIT
An addition to an employee's wage or salary such as a clothing allowance, car allowance, pension contribution or medical aid contribution. Generally, the value such benefits are added... read more
 
BESA
BESA belongs to the JSE which acquired it in 2009 and administers it. It is the largest debt market in Africa and is highly liquid and very well developed. It trades both government bonds (where... read more
 
BETA (COEFFICIENT)
A measure of the market/non-diversifiable risk associated with any given security in the market. A ratio of an individual stock's historical returns to the average... read more
 
BETI
This index, better known as the "Beti" shows transactions captured at the Bankserv clearing house for cards, automatic teller machines (ATM) and electronic funds transfers (EFT). It gives... read more
 
BETWEEN THE CHAINS
The stock market in Johannesburg overflowed onto the street outside the old stock exchange building on the corner of Simmonds Street and Commissioner. After a time, the authorities closed... read more
 
BICS
A negotiated-term deposit issued by a commercial bank. See Guaranteed Investment Contracts (GICs).
 
BID
27- 08 - 2020
Bidcorp (BID) is a diversified international food company which operates in 34 countries around the world. It was spun out of Bidvest in June 2017 to release shareholder value.... read more
 
BID
An expression of willingness to buy a commodity or share at a given price; the opposite of "offer" or "ask".
 
BID AND ASK
Highest price and lowest price that an investor will pay or receive for a trade. For example, this is the highest price at which a share could be sold and the lowest price... read more
 
BID PRICE
The price offered by a buyer for a share.
 
BID SIZE
The number of futures or options contracts bid at a certain price.
 
BID/OFFER SPREAD
This is the difference between the price at which buyers will buy shares and sellers will sell shares. For smaller, thinly-traded shares the percentage difference between... read more
 
BIG BANG
The term coined to denote the deregulation of the London Stock Exchange in 1986. It introduced dual capacity and the dematerialisation of shares. After the big bang,... read more
 
BIG MAC INDEX
This is an index set up by The Economist magazine in 1986 and based on the cost in US dollars of a Big Mac burger, in various countries around the world. It is an indication of the relative... read more
 
BIK
14 - 10 - 2020
Brikor (BIK) is a company that manufactures bricks, roof tiles and clay pipes. It was listed on the Alt-X in August 2007 and describes itself as "a diverse manufacturer and... read more
 
BIL
21 - 10 - 2020
BHP is a world-wide commodities company with its headquarters in Melbourne Australia. It processes minerals, oil and gas and it has 62000 employees, mostly in the Americas... read more
 
BILL OF EXCHANGE
A document which reflects that a person (natural or juristic) undertakes to pay a certain amount to another person within a defined period. The bill must be in writing and signed by the... read more
 
BILL OF EXCHANGE
A document, also known as a "bill of exchange" in terms of which a commercial bank accepts that it will pay the holder within a specified period, such as 90 days ,from the issue... read more
 
BIOX
The process whereby bacteria oxidise mined ore to assist in the extraction of valuable minerals. The process has been patented by a South African company called Biomin in South Africa... read more
 
BLACK BOX
A proprietary, computerized trading system whose rules are not disclosed or readily accessible. Black boxes usually take the form of a computer program which receives share market data... read more
 
BLACK CHIP
A listed company whose management consists mainly of Black shareholders.
 
BLACK ECONOMIC EMPOWERMENT
The Black Economic Empowerment Act (53 of 2002) aimed to empower black people through providing private sector companies with an incentive to increase the black ownership of their... read more
 
BLACK KNIGHT
 
BLACK MONDAY
Monday, 19th October 1987 when the New York Stock Exchange fell by almost 23% in a single trading day. On the JSE, the fall happened the next day, 20th October... read more
 
BLACK SWAN EVENT
This is a completely unpredictable event which has a major impact on the world economy. The best current example is the corona pandemic which caused stock markets around the world... read more
 
BLOCK
A large amount of stock sold as a single unit. This term is most often used to describe a unit of 1000 shares or more.
 
BLOCKED RAND
Since the 1960's and the Sharpeville riots, the South African government has been motivated to restrict and control the flow of funds out of South Africa. In order to do this, they have regulated... read more
 
BLOW-OFF TOP
A steep and rapid increase in price followed by a steep and rapid drop in price. Also called a "V-top".
 
BLSA
An organisation represetning an estimated 90% of big business in South Africa which has the objective of defending the constitution and holding the state to account by strengthening key state... read more
 
BLT
29 - 08 - 2020
Blue Label Telecoms (BLT) is a company which has interests in selling secure tokens of value - such as airtime, starter packs and electricity. It bought 45% of Cell-C in September... read more
 
BLUE CHIP
A very safe share that has a long history of sound management and steady dividends. Examples of such shares are Sasol, Bidvest, First National Bank, Pick n Pay, Standard Bank and... read more
 
BLUE COLLAR
A term used to describe people who work mainly with their hands - as opposed to "white collar" who are generally office workers, involved with paper work. The term blue collar originates from... read more
 
BOARD
The collective term for the directors of a company. Directors, appointed by the shareholders, are tasked with the management of the company. They have a responsibility to act in the best interests... read more
 
BOARD LOT
The official minimum number of shares that can be traded on a stock exchange without incurring additional costs. A board lot on the JSE is 100 shares. Some stock exchanges have higher board lots... read more
 
BODY
That part of a candlestick chart which appears between the opening and closing prices. Normally, if the close is below the open, the bears are said to have won the day and the candle is coloured... read more
 
BODY
In candlestick charting, the body of the candle is drawn between the opening price and the closing price and is coloured either green (when the close is above the open) or red (where the close... read more
 
BOLLINGER BANDS
An envelope indicator that draws two lines 2 standard deviations above and two standard deviations below a moving average of the share's price. The idea is that 95% of prices will occur between... read more
 
BOLT-ON ACQUISITION
An acquisition which is small relative to the size of the acquiring company. Smaller acqusitions do not impact on the companies business culture and core activities as much as larger acquisitions... read more
 
BOND
A long-term debt security with a stated interest rate and fixed due dates, issued by a corporation or a government, when interest and principal must be paid. The South African government regularly... read more
 
BOND EXCHANGE OF SOUTH AFRICA (BESA)
BESA belongs to the JSE which acquired it in 2009 and administers it. It is the largest debt market in Africa and is highly liquid and very well developed. It trades both government bonds (where... read more
 
BONUS ISSUE
A term synonymous with scrip issue and capitalisation issue which describes shares given without charge to existing shareholders in proportion to the shares already held.
 
BOOK BUILD
When a listed company wishes to raise a large amount of capital from the public by selling shares or bonds, they normally do so through a book build. The CEO of the company and some of his directors... read more
 
BOOK LOSS
A theoretical loss in the value of an asset which has not yet been incurred, but is recorded in the books of account. Financial accounting is generally done on an historical cost basis where... read more
 
BOOK VALUE
This is the value at which an asset appears in the books or accounts of a company. Very often, book values are higher or lower than the real values of the assets, and can be misleading when considering... read more
 
BOOKBUILD
A scenario in the share market where a company, or even an individual, sells a large amount of shares, called "the book", off market to institutional investors. In the case of a company, a bookbuild... read more
 
BOOM
This describes a stage in the business cycle when economic activity is increasing.
 
BOP
The combined net position on the capital account and current account of the country. The current account indicates whether South Africa is spending more foreign currency on imports... read more
 
BORD AND PILLAR
A mining strategy which involves excavating "bords" and leaving regular "pillars" for support purposes. Those pillars are then subsequently mined as part of a retreat strategy. This approach... read more
 
BORROWINGS
This is a term used by share market analysts to refer to a company's long-term indebtedness. It excludes those current liabilities which arise as the result of normal business practice.
 
BOTTOM
The lowest point in a share's price cycle. Beginners get excited when a share is going up - smart investors get excited when it is going down, especially if it is a high-quality blue chip. Their... read more
 
BOTTOM REVERSAL SIGNAL
A term used in technical analysis to describe a formation at the bottom of a trend which signals that the trend is likely to change and become a upward trend. Examples of such formations include... read more
 
BOTTOM-UP APPROACH
In the share market, this term usually applies to how an accountant approaches the preparation of financial statements. Accountants begin with the books of first entry, like the cash book and... read more
 
BOURSE
A European term for a stock market. For example, the Paris Bourse, or the Frankfurt Bourse.
 
BOX SIZE
An element of point and figure charting. Point and figure is a one-dimensional chart which has no consistent x-axis showing the passage of time (unlike a line chart). The idea is to identify... read more
 
BOZU
Literally "bald" or "monk" in Japanese; in candlestick terminology refers to a situation during which a trading cycle opens or closes on a high or low, indicating a victory for the bulls or the... read more
 
BRACKET CREEP
Bracket creep, also called "fiscal drag" occurs because, with inflation, tax payers are pushed into higher tax brackets each year. In normal circumstances the Minister of Finance will compensate... read more
 
BRACKETING
A trading range market or a price region that is non-trending. This means a market, share or index that is moving back and forth between two horizontal trendlines.
 
BREADTH
Breadth indicators are a group of indicators which measure how extensive a move in the share market is by comparing the number of shares which went up with the number that went down each trading... read more
 
BREADTH INDICATOR
Your software includes 10 net advance/decline lines (sometimes called "breadth indicators") for various sectors and the market as a whole. The Net Over shows the number of shares in the overall... read more
 
BREAK
Where a share, index or other instrument's price moves outside the trading range which has constrained it, breaking a trendline and so establishing a new trend or direction.
 
BREAK AWAY GAP
A visible gap between the highest price of one day and the lowest price of the next. When a share has been trending down for some time it often reaches a point where the buyers and sellers are... read more
 
BREAK FEE
A fee usually payable by a company seeking to make an acquisition, to the target company in the event that the acquisition for whatever reason does not go through. This acts as an incentive for... read more
 
BREAK OUT
A technical term which indicates that a share price has moved clearly up or down after a period of relative indecisiveness or stagnation. A break-out is often a buy/sell signal, especially in... read more
 
BREAK-EVEN
A term used by accountants to indicate that a company has reached the point where it is neither making a loss nor a profit. The expenses at a company are divided into fixed (those which are not... read more
 
BRENT
A type of oil which is produced in the North Sea. Brent generally trades at a higher price than other types of crude oil and it is not produced by countries in the Middle East or America, so... read more
 
BRETTON WOODS
An agreement that established fixed foreign exchange rates for major currencies, provided for central bank intervention in the currency markets, and pegged the price of gold at U.S. $35 per ounce.... read more
 
BRETTON WOODS AGREEMENT OF 1944
An agreement that established fixed foreign exchange rates for major currencies, provided for central bank intervention in the currency markets, and pegged the price of gold at U.S. $35 per ounce.... read more
 
BREXIT
The British exit from the European Union (EU) or "brexit" as it is known, entered a transitional period between 1st January 2020 and 31st December 2020. Brexit was the result of referendum held... read more
 
BRICS
Brazil, Russia, India, China and South Africa have formed an economic alliance as emerging economies to promote economic growth and co-operation. The BRICS block is seen as opposing the European... read more
 
BRIDGING FINANCE
This is a loan obtained by a company to tide it over a short temporary cash flow problem.
 
BROAD-BASED BLACK ECONOMIC EMPOWERMENT (BBBEE)
A policy introduced with the Broad-Based Black Economic Empowerment Act (53 of 2003) which came into effect on 21st April 2004. This Act states its objectives as establishing a legislative framework... read more
 
BROADENING FORMATION
A technical analysis formation which is the opposite of an asymmetrical triangle. The broadening formation occurs when there is uncertainty and high volatility in the market. The formation takes... read more
 
BROKER DEALER ACCOUNT SYSTEM
Broker Deal Accounting system provided for member firms by the JSE information technology division. The system keeps the securities records and books of account for individual member firms in... read more
 
BROKER'S DECK
Orders physically held by the floor broker in the trading pit. Today, with the advent of computerised trading the stock exchange's computer system shows the best bids and offers as soon as stockbroking... read more
 
BROKER'S NOTE
A contract document sent to the buyer or seller of shares by his stockbroker to act as confirmation of the transaction. It shows the name of the client, the share or stock in question, the dealing... read more
 
BROKER-DEALER
A firm that handles transactions for its customers and also purchases securities for its own account, selling them to customers.
 
BROKERAGE
The stockbroker's fee for completing a share transaction. Brokerage is usually calculated on a sliding scale depending on the total value of the transaction. Since deregulation of the JSE in... read more
 
BROWNFIELD OPERATIONS
A mining term which refers to the development and exploitation of known and proven deposits of minerals. This type of mining operation is clearly less risky than "greenfields operations" where... read more
 
BRT
03 - 09 - 2020
Brimstone (BRT) is a black-controlled investment holding company with a diverse portfolio of holdings. It owns:
1. 54,2% of Sea Harvest, which is a listed fishing company... read more
 
BSR
14 - 10 - 2019
Basil Read (BSR) was one of South Africa's leading construction companies involved in mining, civil engineering, road construction, housing and other areas. Like other construction... read more
 
BUBBLE
A period where a particular asset is excessively over-priced. Throughout history there have been various asset bubbles. Perhaps the most famous one was the tulip mania in Holland in the 17th... read more
 
BUC
24 - 08 - 2020
Buffalo (BUC) mines high-quality bituminous coal and anthracite in Dundee, Natal. It has a primary listing on the Toronto Stock Exchange (TSX) and a secondary listing on the... read more
 
BUDGET
Every year, at the end of February, the Minister of Finance presents the budget to parliament. In the budget he puts forward an estimate of how much money will be raised through taxes, customs... read more
 
BUDGET DEFICIT
This is the difference between government revenue and expenditure. Typically, governments spend more than they receive from taxes and other types of revenue. This is disclosed in the budget at... read more
 
BUFFETT WARREN
Warren Buffett is arguably the most successful investor who has ever lived. He began at the age of 6, selling chewing gum door-to-door in Omaha making a 2c profit on each pack that... read more
 
BULL
This term describes an investor who believes that market trends are rising or that a particular share is rising. In the share market the bulls and bears (people who think that the share or market... read more
 
BULL MARKET
A market where the average of all shares is rising such that each high is higher than the previous high and each low is higher than the previous low. Bull markets generally last for between 3... 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. Bear trends typically have an "A-B-C" structure where... read more
 
BULL TREND
A long period of consistently rising share prices, or index levels. Usually such trends last from 2 to 4 years. During a bull trend you should be 100% invested in the share market, because about... read more
 
BULLETIN
The bulletin is published by the Reserve Bank every quarter and in avaliable in PDF format free of charge. The bulletin covers a very wide range of information and comment on the progress of... read more
 
BULLION
Any precious metal (most commonly gold), which has not been processed into jewellery, coins, or used for any other manufacture. It is normally kept in bulk form in bars known as ingots. Most... read more
 
BULLISH COUNTER ATTACK
A bottom reversal candlestick pattern comprising of two candlesticks: first a red candle, then a green candle opening well below the close of the preceding red candle and closing at near the... read more
 
BULLISH ENGULFING PATTERN
A bottom candlestick reversal signal, this is a two candlestick pattern consisting of a large green candle enveloping a preceding red candle. This pattern implies that the trend is likely to... read more
 
BULLISH FLAG
A bullish candlestick signal, formed in the progress of an established uptrend, and used to predict the continuation of the current trend. This formation begins with a long green candle within... 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 of minerals and metals, including... read more
 
BUSINESS CONFIDENCE INDEX
There are two indexes of business confidence in South Africa - the Rand Merchant Bank (RMB)/Bureau for Economic Research (BER) index and the South African Chamber of Commerce and Industry (SACCI)... read more
 
BUSINESS CYCLE
The overall upward-peak-downward-trough pattern that is followed by business activity. There are a number of theories about the causes of these cycles, but no real explanation for this. The share... read more
 
BUSINESS JUDGEMENT RULE
This rule is contained in section 76 (4) of the Companies Act (71 of 2008). It protects directors of a company from personal liability if the company incurs a loss due to their acts or omissions,... read more
 
BUSINESS LEADERSHIP SOUTH AFRICA (BLSA)
An organisation represetning an estimated 90% of big business in South Africa which has the objective of defending the constitution and holding the state to account by strengthening key state... read more
 
BUSINESS PLAN
An detailed written estimate of how a business or an organisation is going to perform in the future, especially financially and in terms of its cash flow. There are many different ways to develop... read more
 
BUSINESS RESCUE
This is a state which can be invoked by the directors of a company if the company is in extreme stress and cannot meet its immediate debt obligations. The concept replaced the old idea of “judicial... read more
 
BUSINESS RESCUE PLAN
A plan produced by the business rescue practitioner and presented to a meeting of creditors and holders of a voting interest for a company which has been placed into business rescue. In terms... read more
 
BUSINESS RESCUE PRACTITIONER
A person appointed in terms of section 138 of the Companies Act (71 of 2008) to conduct the business rescue of a company. Companies can enter business rescue when they are "distressed" but believe... read more
 
BUST
This describes a stage in the business cycle when economic activity is low. A bust in the economy results in lower inflation, or even deflation, high unemployment, lower income and a lower general... read more
 
BUY AND HOLD
A strategy of buying a tradable such as a share for the long term rather than buying it with the idea of making a quick profit.
 
BUY LINE
A horizontal line drawn on a line indicator (such as the OB/OS, Momentum or MACD) below which there is historically a much lower probability of being wrong in buying than elsewhere on the chart.... read more
 
BUY ORDER
An order placed by an investor to purchase shares in a listed company on an organised exchange. Buy orders can be either "market orders" or "limit orders". A market order is one where the stockbroker... read more
 
BUY-BACK
The process whereby a company buys its own shares on the JSE in exchange for cash. Share buy-backs are allowed, provided the company can establish and the directors are prepared to certify that... read more
 
BUY-IN
This is when a stockbroking firm has to buy shares (or other securities) on the market to rectify a failed trade. A failed trade occurs where a trade is not settled on the JSE within the T+3... read more
 
BUYER'S PRICE
The price at which someone is prepared to buy the shares at a certain time. On the price page of your daily newspaper this is shown at the close of the session reported on, usually under the... read more
 
BUYING OPPORTUNITY
A buying opportunity occurs where a share's price is perceived to be well below its true value. Of course, the true value of a share is a matter of opinion because it depends on the investor's... read more
 
BUYING PRESSURE
A high demand for a particular share or class of shares which exceeds the supply and so causes the price to rise.
 
BUYING SIGNAL
A technical term which refers to a specific event or occurrence which signals to a chartist that it is the correct time to go long (i.e to buy in). The simplest example of a buying signal is... read more
 
BVT
15 - 09 - 2020
Bidvest (BVT) is a highly diversified South African company with dozens of subsidiaries. Its most notable investments are 66% of Bidvest Namibia which also owns a large property... read more
 
BWN
13 - 10 - 2020
Balwin Properties (BWN) is a developer of secure sectional title properties in South Africa. The company is now turning its attention to renting out some of the properties... read more
 
BWZ
04 - 10 - 2019
Brainworks (BWZ) is an exclusively Zimbabwean company with investments in the hotel and leisure industry there. It owns an array of hotels like the Monomotapa hotel and the... read more
 
C.A.
A member of the South African Institute of Chartered Accountants (SAICA). A chartered accountant (CA) is a person who has passed his bachelors degree (usually a bachelor of commerce or bachelor... read more
 
CA
A member of the South African Institute of Chartered Accountants (SAICA). A chartered accountant (CA) is a person who has passed his bachelors degree (usually a bachelor of commerce or bachelor... read more
 
CAC
26 - 05 - 2020
Cafca (CAC) is a cable manufacturer that produces over 900 cable and transmission products. Most of its business is conducted in Southern Africa. The company is 70% owned... read more
 
CAC INDEX
The Cotation Assistee en Continu is an index of the 40 largest shares trading on the Paris stock exchange, now known as the Euronext Paris. It commenced with a base value of 1000 in 1987. It... read more
 
CAC40
The trading system used in the 1980's and 1990's by the Paris Bourse in France. This system gave way to the Nouveau Systeme de Cotation (NSC) in 2000, but the the CAC40 index has retained the... read more
 
CALL ACCOUNT
An account with a bank where the funds on deposit can be withdrawn immediately without notice. Call accounts typically attract a lower rate of interest than funds which require a notice period.... read more
 
CALL OPTION
The purchased right to buy (call) specified securities at a specified price (strike price) within a specified period (American) or on a specified date (European). By the payment of a premium... read more
 
CALL WARRANT
This is a securities contract which gives the holder the right to purchase a specified quantity of a company's shares on or before a specific date. Call warrants are issued by the company itself... read more
 
CALMAR RATIO
The average rate of return for the last 36 months divided by the maximum drawdown for the same period. It is usually calculated on a monthly basis. A negative value for the Calmar ratio means... read more
 
CANCEL ORDER
To abort a pending or working order. Occasionally, a trader may attempt to cancel an order that has already been executed but not yet reported as having been filled. In such a case, when the... read more
 
CANDLE VOLUME
This is a variation of standard candle stick charts whereby the width of the candle reflects the volume traded on that particular day. The greater the volume, the wider the body of the candle... read more
 
CANDLE VOLUME CHART
A candlestick chart where the width of the candles is determined by the volume traded during the day. Obviously this leads to an irregular X-axis which can create some problems with the application... read more
 
CANDLESTICK
An individual display of the high, low, open and close of a specific security over a period of time. A candlestick chart is composed of multiple candles, each of which represent the sentiment... read more
 
CANDLESTICK BODY
In candlestick charting, the body of the candle is drawn between the opening price and the closing price and is coloured either green (when the close is above the open) or red (where the close... read more
 
CANDLESTICK CHARTING
A charting method which offers an alternative to the bar chart method of displaying daily weekly or monthly data. This method originated in Japan. The price range between the open and the close... read more
 
CAP ISSUE
Also called �bonus issues", these do not involve transfer of cash between the company and its members. They occur when a company feels it desirable to convert part of its reserves (profits... read more
 
CAPESIZE SHIP
A ship which is too large to pass through the Suez or Panama Canals and so has move from one ocean to another by going around Cape Town in South Africa or Cape Horn in South America. Capesize... read more
 
CAPEX
 
CAPITAL
Money which is used to supply "working" capital or to purchase capital goods, which are to be used to generate the income of the company. Capital can also include the reserves of undistributed... read more
 
CAPITAL ACCOUNT
An element of the Balance of Payments (BOP) which shows the movement of capital into and out of a country. For example, it shows overseas investors investing into and disinvesting out of South... read more
 
CAPITAL ADEQUACY RATIO
The Reserve Bank's capital requirement for commercial banks set in terms of their risk-weight assets (RWA). The bank's RWA is made up of its Tier I, Tier II and Tier III assets. The minimum requirement... read more
 
CAPITAL ALLOWANCE
A capital allowance enables a company to deduct a portion of any capital cost which they may have incurred during the tax year for the purchase of plant and machinery or the purchase of land... read more
 
CAPITAL BASE
This is the capital which the private investor has available for investment. This can include the equity in your house, your stock market portfolio and other assets (such as krugerands). To calculate... read more
 
CAPITAL EMPLOYED
An out-dated term referring to the liabilities side of the balance sheet. 
 
CAPITAL FLOWS
The movement of capital into and out of a country as shown in the capital account of their balance of payments. In any financial period there will be people investing into South Africa from outside... read more
 
CAPITAL GAIN
When a gain is made when an investment is sold for more than its purchase price, it is called a capital gain. This must not be confused with the definition of Capital Gains Tax (CGT), as certain... read more
 
CAPITAL GAINS DISTRIBUTION
A distribution to investment company shareholders from net long-term capital gains realised by a regulated investment company on the sale of portfolio securities.
 
CAPITAL GAINS TAX
A tax levied on the sale of an asset at a profit. For example, if you buy a piece of land and then later sell it for R100 000 more than you paid for it, you will have to pay tax on that gain.... read more
 
CAPITAL INTENSIVE
A term which describes those businesses which use huge amounts of capital to make a profit. Maybe they have plant, machinery and land tied up in their production process. Obviously, having all... read more
 
CAPITAL LOSS
Losses resulting from selling at a loss.
 
CAPITAL MARKETS
A broad term which incorporates any market where capital is raised. Mostly this means either the stock market or the bond market. Capital markets typically have a primary and secondary market.... read more
 
CAPITAL PRESERVATION
A policy of keeping the cash which a business has in the company rather than paying it out in the form of dividends or using it for capital projects. Companies usually adopt a capital preservation... read more
 
CAPITAL STRUCTURE
This is the way in which a company has raised the capital needed to establish and expand its business activities or, more specifically, the number of shares and long-term loans in each class... read more
 
CAPITALISATION ISSUE
Also called �bonus issues", these do not involve transfer of cash between the company and its members. They occur when a company feels it desirable to convert part of its reserves (profits... read more
 
CAPITALISING LOANS/INTEREST
This is the process when loans or interest payable are converted to capital. This alters the gearing or borrowing ratio of the company by shifting loans into permanent capital. It also improves... read more
 
CAPITALISM
A socio-economic system in which the factors of production are substantially controlled by the private sector rather than the government. Adam Smith proposed the concept of laissez-faire (leave... read more
 
CAPITALIST
A socio-economic system in which the factors of production are substantially controlled by the private sector rather than the government. Adam Smith proposed the concept of laissez-faire (leave... read more
 
CAPITALIZE
This refers to the  conversion of an expense from the income statement into an asset on the balance sheet. This is one of the "tricks" which private investors have to watch out for. For... 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 give up their optimism and sell their shares. It is also... read more
 
CAPPED INDEX
An index where the influence of components of the index is limited to a specific percentage of the total. For example, the JSE Top 40 index has a 10% "cap" which means that no single share in... read more
 
CARBON CREDIT
The is a policy established in terms of the Carbon Tax Act (15 of 2019) in terms of which taxpaters whoc are subject to carbon tax may make use of certain allowances to reduce the tax which they... read more
 
CARBON DIOXIDE TAXATION
A tax introduced by President Cyril Ramaphosa from 1st June 2020 in terms of the Carbon Tax Act (15 of 2019). In terms of this Act, companies will be taxed at the rate of R120 per ton of carbon... read more
 
CARBON FOOTPRINT
The amount of greenhouse gas (GBG) emissions (particularly carbon) put into the air by a person, company or other organisation. Your carbon footprint includes the burning of fossil fuels for... read more
 
CARBON IN LEACH
A technique whereby cyanide leaching and granulated activated carbon are used to absorb precious metals. The "loaded" carbon is then separated and the gold extracted. The carbon and cyanide are... read more
 
CARBON NEUTRALITY
This means achieving a position of zero net emissions of greenhouse gases (GHG) by off-setting emissions with carbon credits or by carbon removal. Some countries have set a goal to become carbon... read more
 
CARBON OFFSET
The is a policy established in terms of the Carbon Tax Act (15 of 2019) in terms of which taxpaters whoc are subject to carbon tax may make use of certain allowances to reduce the tax which they... read more
 
CARBON TAX
A tax introduced by President Cyril Ramaphosa from 1st June 2020 in terms of the Carbon Tax Act (15 of 2019). In terms of this Act, companies will be taxed at the rate of R120 per ton of carbon... read more
 
CARRY TRADE
The movement of cash from a low interest country or area to a high interest country. Emerging economies typically have considerably higher interest rates than first world countries. This offers... read more
 
CARRYING BROKER
A member of a futures exchange, usually a clearinghouse member, through which another firm, broker or customer chooses to clear all or some trades.
 
CARRYING CHARGE
The cost of storing a physical commodity, such as grain or metals, over a period of time. The carrying charge includes insurance, storage and interest on the invested funds as well as other incidental... read more
 
CARTEL
A group of companies that together have a sufficiently large share of a particular product or industry so that they can force prices up by not competing with each other. An agreement is reached... read more
 
CASH
A balance sheet asset which appears among the current assets as "Cash and Bank Balances" . Cash is part of the company's working capital because the company must always have some cash to meet... read more
 
CASH ASSET / SHELL
A company which has cash or near-cash as its only asset. Besides the income derived from investing this cash, these companies have no income-producing assets and are not conducting normal business... read more
 
CASH COMMODITY
The actual physical commodity as distinguished from the futures contract based on the physical commodity. Also referred to as Actuals.
 
CASH CONVERSION RATIO
The ratio of operating cash flow to EBITDA (earnings before interest, taxation, depreciation and amortisation). This ratio shows how effective a company is at converting its profits into cash.... read more
 
CASH EQUIVALENT
Money held in various accounts by a company where it can only be liquidated after a delay. Thus the money in the company's bank account is immediately availabe, but the company... read more
 
CASH FLOW
This is the amount of cash coming into a company less the amount going out. Cash flow is important because a profitable company can easily go bankrupt if its profits are tied up in stock or debtors,... read more
 
CASH MARKET
 
CASH RATIO
An accounting ratio used to determine whether a company's current assets excluding its stock (i.e. just its debtors' book and cash balance) is... read more
 
CASH SETTLEMENT
A method of settling certain futures or options contracts whereby the market participants settle in cash (rather than delivery of the commodity). This is typical of a financial future where there... read more
 
CASH SHELL
A listed company which has cash as its only asset and conducts no business. Occasionally, a company will sell all of its assets because it can get good prices for them and then ends up with just... read more
 
CASUS FORTUITUS
In law this refers to an unpredictable event which prevents one party from completing its obligations in terms of a contract. Most major contracts contain a force majeure clause which allows... read more
 
CAT
13 - 10 - 2020
Caxton (CAT) is a South African printer and publisher. It publishes 13 well-known South African magazines such as Bona and Farmers Weekly. It employs 5500 people. In its results... read more
 
CATAPULT FORMATION
A formation usually associated with point & figure charting where the chart makes a triple top, breaks above that top and then forms a double top at a higher level - and breaks above that.... 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. These announcements appear on SENS (Stock Exchange News... read more
 
CBOT
Chicago Board of Trade. The CBOT is a global commodity futures exchange trading treasury bonds, corn, soybean, wheat, mini-sized Dow, gold, silver and more. The CBOT was founded in 1848 by a... read more
 
CCO
13 - 08 - 2020
Capital Counties Properties (CCO), Capco, is a real estate investment trust (REIT) with a primary listing on the London Stock Exchange (LSE) and a secondary listing on the... read more
 
CENSURE
The JSE has very strict rules about what listed companies can and cannot do. If these rules are ignored or broken the JSE sometimes issues a public censure. Sometimes, a director of a listed... read more
 
CENTRAL BANK
A government or quasi-governmental organization that manages a country's monetary policy. For example, the U.S. central bank is the Federal Reserve, and the ECB (European Central Bank) manages... read more
 
CENTRAL ENERGY FUND (CEF)
This is a state-owned and controlled company established in terms of the Central Energy Fund Act (38 of 1977) which was originally established by the National Party in the 1950's to create secure... read more
 
CENTRAL SECURITIES DEPOSITORY
The role of a central depository is to maintain records of all purchases and sales of securities on organised exchanges within the country. In South Africa, this function is performed by STRATE... read more
 
CENTRAL SECURITIES DEPOSITORY PARTICIPANT
A CSDP is a person authorised to perform custodial, administrative or settlement duties. The central securities depository (CSD) in South Africa is known as STRATE (Share TRAnsactions Totoally... read more
 
CEO
The leader of a company's board of directors. The CEO is in charge of and responsible for everything that happens in the company. However, to the Companies Act, he is just another director and... read more
 
CERTIFICATE OF DEPOSIT
A commercial "I.O.U", usually issued by a commercial bank. It is a certificate representing a deposit usually of at least R100 000 which entitles the holder to a rate of annual interest and the... read more
 
CERTIFICATED SECURITY
A security which is represented by a certificate. This can be the case for equity shares in South Africa, but since dematerialisation in about the year 2000, most shares are uncertificated and... read more
 
CERTIFIED FINANCIAL PLANNER
To become a certified financial planner (CFP) you must have a post-graduate qualification from one of the recognised Financial Planning Institute's (FPI) approved educuation providers. There... read more
 
CFD
A derivative contract that is not guaranteed by any organised exchange - which means that the counter-party risk is carried by the person buying or selling the contract. CFD's are a kind of bet... read more
 
CFO
The Chief Financial Officer (CFO) is the senior executive responsible for managing the financial affairs of a company. The CFO's duties include tracking cash flow, financial planning, record... read more
 
CFR
17 - 07 - 2020
Richemont (CFR) is the world's second-largest supplier of luxury goods controlled by the Rupert family in Stellenbosch. Its sales are entirely located overseas so it is an... read more
 
CGR
20 - 10 - 2020
Calgro (CGR) is a developer of large-scale integrated properties, rental units and memorials. It was established in 1995 and listed on the JSE in November 2007. It acquires... read more
 
CGT
A tax levied on the sale of an asset at a profit. For example, if you buy a piece of land and then later sell it for R100 000 more than you paid for it, you will have to pay tax on that gain.... read more
 
CHAIKIN OSCILLATOR
An oscillator created by subtracting a 10-day EMA from a three-day EMA of the accumulation /distribution line. This technical analysis tool compares the day's closing price to the intraday high... read more
 
CHAIRMAN
The chairman of the board of directors of a company is usually appointed by the directors. His position is in no way different from the other directors unless he is given a special mandate in... read more
 
CHAIRMAN OF THE BOARD OF DIRECTORS
The chairman of the board of directors of a company is usually appointed by the directors. His position is in no way different from the other directors unless he is given a special mandate in... read more
 
CHAIRMAN'S REPORT
Most annual financial statements contain a Chairman's report, although this is not a requirement of the Companies Act. It is worth reading the chairman's report, especially for South Africa's... read more
 
CHAMBER OF MINES
Previously known as the Chamber of Mines, this organisation represents employers in the mining industry in South Africa. Its objective is to support and promote mining in this country. It was... read more
 
CHANNEL
A technical analysis term which refers to a period during which a data stream oscillates between upper and lower parallel channel lines. You will often find when looking at charts that there... read more
 
CHAPTER 9 INSTITUTIONS
Those institutions which are established in terms of chapter 9 of the constitution of South Africa. There are six chapter 9 institutions - the Electoral Commission, the Public Protector, the... read more
 
CHARISMATIC LEADER
Many companies listed on the JSE were founded or are run by a charismatic leader. The problem with this is that when that leader leaves the company, the share price can drop significantly and... read more
 
CHARLES DOW
Charles Dow was one of the founders of Dow Jones & Co. and the originator of the famous Dow Jones indexes. He developed the "Dow Theory" of market movements and is regarded as one of the... read more
 
CHART

In the context of the share market, this is a display or picture of a security that plots price and/or volume (the number of shares changing hands) over time.... read more

 
CHARTERED ACCOUNTANT
A member of the South African Institute of Chartered Accountants (SAICA). A chartered accountant (CA) is a person who has passed his bachelors degree (usually a bachelor of commerce or bachelor... read more
 
CHARTING
The analysis of group investor behaviour, as reflected in the patterns of share prices and volumes, indices, exchange rates and other data streams. More commonly known as charting, this consists... read more
 
CHARTING STYLE
The manner in which the five data points for a share are displayed in a chart. Every trading day, every share has a price for its high, low, open and... read more
 
CHEAP
The meaning of the word "cheap" in the share market is not the same as it is in common parlance. When a share is regarded as cheap, then it is perceived to be trading in the market for less than... read more
 
CHICAGO MERCANTILE EXCHANGE
The Chicago Mercantile Exchange (CME). The CME is the largest futures exchange in the United States and also owns and operates the largest futures Clearing House in the world. CME products fall... read more
 
CHIEF EXECUTIVE OFFICER
The leader of a company's board of directors. The CEO is in charge of and responsible for everything that happens in the company. However, to the Companies Act, he is just another director and... read more
 
CHIEF FINANCIAL OFFICER (CFO)
The Chief Financial Officer (CFO) is the senior executive responsible for managing the financial affairs of a company. The CFO's duties include tracking cash flow, financial planning, record... read more
 
CHINESE WALL
A communications barrier between members or departments of a financial institution to prevent the transfer of price sensitive information. Chinese walls are imaginary but are taken seriously... read more
 
CHP
14 - 10 - 2020
Choppies (CHP) is a Botswana-based grocery retailer previously with 212 stores which operated in South Africa, Botswana, Zimbabwe, Zambia and Kenya. The company has a primary... read more
 
CHROME
A hard, corrosion-resistant, brittle metal processed through a smelter into ferrochrome and used as an additive to make stainless steel. South Africa produces about 60% of the world's chromium... read more
 
CHROMIUM
A hard, corrosion-resistant, brittle metal processed through a smelter into ferrochrome and used as an additive to make stainless steel. South Africa produces about 60% of the world's chromium... read more
 
CIG
17 - 08 - 2020
Consolidated Infrastructure Group (CIL) is an African infrastructure company which listed on the JSE in 2007. The company has four divisions - Power, Rail, Building Materials... read more
 
CIPC
Established by the Companies Act, this commission is responsible for registering companies in South Africa and maintaining a register of all companies. It has the power to issue "compliance notices... read more
 
CIRCUIT BREAKER
A system of limiting trading highs and price limits on equities and derivatives markets designed to provide a cooling-off period during large, intraday market declines. Thus when a market falls... read more
 
CISCA
This Act replaces the Unit Trust Control Act and the Participation Bonds Act and it came into effect in 2003. It regulates any scheme where members of the public invest in a portfolio and share... read more
 
CKS
30 - 06 - 2020
Crookes Brothers (CKS) is an agricultural and property company which was formed in 1913 and listed on the JSE in 1948. The company produces sugar cane, bananas, macadamia... read more
 
CLAIMS RATIO
A ratio used by the insurance industry to determine its profitability. The ratio is the total of claims as a percentage of insurance premiums earned. Santam breaks the definition down further:... read more
 
CLASS
Some listed companies may issue a variety of different shares with different risk profiles to entice investors to support them. For example, there are ordinary and preference shares - two different... read more
 
CLAW BACK CLAUSE
This is a clause in an agreement which allows one of the parties to retrieve monies already paid under certain specific circumstances. Typically, employee contracts which are incentive-based... read more
 
CLEAR
The process by which a clearinghouse maintains records of all trades and settles margin flow on a daily mark-to-market basis for its clearing members.
 
CLEARING HOUSE
An agency or separate corporation of a futures exchange that is responsible for settling trading accounts, collecting and maintaining margin monies, regulating delivery and reporting trade data.... read more
 
CLEARING MEMBER
A member of an exchange clearinghouse responsible for the financial commitments of its customers. All trades of a non-clearing member must be registered and eventually settled through a clearing... read more
 
CLH
05 - 09 - 2020
City Lodge (CLH) runs a group of about 63 hotels in six African countries, with most of its business in South Africa. It is primarily aimed at the business traveller and hence... read more
 
CLI
20 - 08 - 2020
Clientele Life (CLI) is a small insurance company selling short- and long-term policies and underwriting insurance products. Their products are sold through agents and brokers... read more
 
CLIMATE CHANGE
A major shift in the earth's climate, almost certainly caused by the build-up of so-called greenhouse gasses like carbon dioxide and methane. Current research shows that global warming is taking... read more
 
CLOSE
This is the price at which the last transaction of a particular share took place during the trading session being reported on. The uncrossing prices calculated during the closing auction call... read more
 
CLOSE
When the share market stops trading at the end of each trading day. The share price at the close is what is used in all charts and technical analysis and is known as "the close" or "the closing... read more
 
CLOSE CORPORATION
A type of juristic person designed for use by small businesses to give them the benefits of limited liability but without the red tape and bureacracy associated with setting up a private company.... read more
 
CLOSE OF TRADE
When the share market stops trading at the end of each trading day. The share price at the close is what is used in all charts and technical analysis and is known as "the close" or "the closing... read more
 
CLOSED PERIOD
The time between the end of a company's financial year and the publication of its audited financial statements. For JSE companies, this period cannot be more than three months and is usually... read more
 
CLOSED TRADES
Positions that have been either liquidated or offset.
 
CLOSED-END FUNDS
A mutual fund that does not sell unlimited shares; one with a specific number of outstanding shares.
 
CLOSING DAY OF OFFER
Last day on which an offer made by a company to its shareholders may be accepted (e.g. in the case of a rights offer or an offer to purchase a shareholder's shares in a take-over bid).
 
CLOSING PRICE
This is the price at which the last transaction of a particular share took place during the trading session being reported on. The uncrossing prices calculated during the closing auction call... read more
 
CLOSING RANGE
A range of prices at which futures transactions took place during the close of the market.
 
CLOSING STOCK
At the end of the accounting period, stock (also called "inventory") must be valued to determine the company's "cost of sales". The usual calculation for cost of sales is: Opening Stock plus... read more
 
CLR
23 - 07 - 2019 Clover (CLR) is the leading supplier of dairy products in South Africa. In the past year it has been moving towards branded high-margin products and away from bulk products. To... read more
 
CLS
13 - 08 - 2020
Clicks (CLS) describes itself as a retail-led healthcare group. It incorporates Clicks, Musica, GNC and The Body Shop. Clicks has 704 stores of which 545 include pharmacies... read more
 
CM42
The form which must be completed and signed by both the purchaser and seller of shares for a transfer of shares to take place. In practice, since shares on the JSE were dematerialised, stockbroking... read more
 
CM42
A form required by the Companies Act (71 of 2008) for the transfer of shares (and other securities) from one person to another. This form is also known as a CM42. The form... read more
 
CME
The Chicago Mercantile Exchange (CME). The CME is the largest futures exchange in the United States and also owns and operates the largest futures Clearing House in the world. CME products fall... read more
 
CMH
20 - 10 - 2020
Combined Motor Holdings (CMH) runs car dealerships in Nissan, Volvo, Toyota, Opel, Subaru, Lexus, Mazda, Isuzu and Ford - selling both new and used vehicles. The motor industry... read more
 
CML
15 - 10 - 2020
Coronation (CML) is one of South Africa's largest asset managers and the only one listed on the JSE. Founded in 1993, the company grew very well until 2015. At that point... read more
 
CMO
17 - 07 - 2020
Chrometco (CMO) is a company involved in the exploration and mining of chrome. In its results for the year to 29th February 2020 the company reported revenue down by 11% and... read more
 
CND
26 - 09 - 2020
Conduit Capital (CND) is a small financial services company, mainly in the insurance industry. It has two operating divisions - Investments and Insurance & risk. Through... read more
 
COAL
A sedimentary rock which is formed by layers of plants, mostly trees which have become compressed into seams in the rock. Coal is combustible as a fossil fuel and comes in four grades - Lisnite,... read more
 
CODE
An abbreviation for securities traded on an organised exchange. Share codes on the JSE are between 3 and 6 letters long - so, for example, the code for Sasol is "sol". Most stockbroking trading... read more
 
CODE FOR RESPONSIBLE INVESTING IN SOUTH AFRICA (CRISA)
Developed by the Institute of Directors, this code is similar to the "Principles of Responsible Investing" which is backed by the United Nations and was developed from the International Corporate... read more
 
CODE OF GOOD PRACTICE
This is a lengthy document established in terms of the Braod-Based Black Economic Empowerment Act (53 of 2003) covering such issues as the dismissal of employees, how to determine whether a person... read more
 
COH
08 - 09 - 2020

Curro (COH) is a private education group that concentrates on building and running schools for children up to matric. Their tertiary division... read more

 
COINCIDENCE
In Gann theory, a projected reversal point.
 
COINCIDING INDICATOR
An economic indicator that moves in the same direction as the business cycle. In other words, it turns when the economy as a whole turns, either up or down. Obviously, the country's gross domestic... read more
 
COLLATERAL
An asset of some type which is given to a lender as security for the money lent. Any asset of value can act as collateral. With property, the land itself and the imporvements are security of... read more
 
COLLECTIBLE
An asset which acquires value independently of its inherent value because it is collected by a sufficiently large group of collectors. Collectibles can be anything from rare stamps, to coins,... read more
 
COLLECTIVE BARGAINING
The process whereby employers negotiate with organised labour on issues such as wages, conditions of employment and other benefits. Both parties have a direct interest in settling negotiations... read more
 
COLLECTIVE INVESTMENT SCHEMES CONTROL ACT
This Act replaces the Unit Trust Control Act and the Participation Bonds Act and it came into effect in 2003. It regulates any scheme where members of the public invest in a portfolio and share... read more
 
COLLUSION
This term is normally used in conjuction with the competition authorities, one of whose functions is to prevent price collusion between companies. Most of these cases are settled with some or... read more
 
COLOCATION
The JSE offers a colocation facility for those companies that want to use program trading to extract very small profits from arbitrage and other trading strategies. Their facility offers its... read more
 
COM
06 - 06 - 2020
Comair (COM) was South Africa's only listed airline until it went into business rescue on 5th May 2020. It operated for British Airways in South Africa and also ran the discount... read more
 
COMBINED FORECAST
The weighted average of two or more forecasts.
 
COMEX
The Comex, which was previously the commodities exchange, is a division of the New York Mercantile Exchange (NYMEX). It trades futures and options in a variety of precious and base metals. This... read more
 
COMMERCIAL
An entity involved in the production, processing, or merchandising of a commodity.
 
COMMERCIALLY ACTIVE
A term which is used to describe those unemployed people in the economy who are actively seeking employment and have not yet succeeded in finding it. The quarterly labour force survey (QLFS)... read more
 
COMMERICAL BANK

An organisation registered in terms of the Banks Act (94 of 1990). Commercial banks are deposit-taking institutions that must be registered under the Act to conduct the business... read more

 
COMMISSION
A fee charged by a broker or agent to a customer for executing a transaction.
 
COMMODITY
Basically these are raw materials such as gold, silver, soya beans, sugar, coffee, steel, etc. Many commodities (such as gold) are traded in markets around the world. The gold price is set in... read more
 
COMMODITY CURRENCY
This is a currency the strength of which is primarily determined by a or group of commodities. Typically, this can be found in third world countries, a large percentage of whose income is derived... read more
 
COMMODITY CYCLE
Commodity prices tend to move in cycles lasting several years. For example, the aluminium price bottomed at $1100 a ton in late 1993 and peaked at $2000 a ton in early 1995, before declining... read more
 
COMMODITY POOL OPERATOR
An individual or organisation which operates or solicits funds for a commodity pool. A CPO is generally required to be registered with the CFTC.
 
COMMODITY SHARE
Shares of companies in the resource sector. Commodity shares are shares of those companies which manufacture, extract or sell commodities of various types. These shares are usually very volatile... read more
 
COMMODITY TRADING ADVISOR
A person who, for compensation or profit, directly or indirectly advises others as to the advisability of buying or selling futures or commodity options. Providing advice includes exercising... read more
 
COMMON STOCK
A term used in America to describe their equivalent of ordinary shares.
 
COMPANIES ACT
The Companies Act (71 of 2008) contains the law concerning the formation and management of companies in South Africa. It can be viewed at https://www.cipc.co.za/files/2413/9452/7679/CompaniesAct71_2008.pdf.... read more
 
COMPANIES AND INTELLECTUAL PROPERTY COMMISSION
Established by the Companies Act, this commission is responsible for registering companies in South Africa and maintaining a register of all companies. It has the power to issue "compliance notices... read more
 
COMPANY
An organisation which is registered with the Companies and Intellectual Properties Commission and incorporated in terms of the Companies Act (71 of 2008). Companies are juristic persons (as opposed... read more
 
COMPANY BUY-BACK
The Companies Act (71 of 2008) allows a company to buy back its own shares in the open market, provided it can pass a solvency and liquidity test. To do this the company board of directors must... read more
 
COMPANY REGISTERED OFFICE
In terms of the Companies Act (71 of 2008) every company must have a registered office. That office must be where certain records are maintained and the company must ensure that the address of... read more
 
COMPANY REGISTRATION CERTIFICATE
A certificate which is issued when a company is registered with the Companies and Intellectual Property Commission (CIPC). The certificate is proof that the company is registered and is endorsed... read more
 
COMPANY REGISTRATION NUMBER
This is a 16-digit number consisting of 8 numbers followed by 2 letters and then a further 6 numbers which is given to identify each company and limited liability partnership, on their registration... read more
 
COMPANY SECRETARY
In terms of section 86 of the Companies Act (71 of 2008), public or state-owned companies must appoint a company secretary who must be a permanent resident of South Africa but can be a juristic... read more
 
COMPANY TAX
In South Africa, company tax is 28% of a company's taxable income. Taxable income is the total of a company's incomes less all its deductible expenses. It is important to understand that the... read more
 
COMPANY WEBSITE
These are an immensely valuable source of information for private investors. Almost every listed company maintains a website on which it posts all useful information about the company. Usually... read more
 
COMPARATIVE FINANCIALS
The Companies Act (71 of 2008) requires that companies provide comparative figures when reporting their financials. This usually takes the form of a second column of figures in the income statement... read more
 
COMPARATIVE RELATIVE STRENGTH INDICATOR
A technical indicator which compares the price movement of a stock with that of its competitors, industry group or the entire market. This technique enables you to determine whether a share is... read more
 
COMPARATIVE RSI
A technical indicator which compares the price movement of a stock with that of its competitors, industry group or the entire market. This technique enables you to determine whether a share is... read more
 
COMPETITION
The capitalist economic system is based on competition. Manufacturers produce a product which they perceive to be in demand and they compete with each other on quality, price and service. This... read more
 
COMPETITION ACT
This Act sets up the Competition Tribunal, Appeal Court and Commission. Together these three organisations prosecute breaches of the Act and require notification from all companies making acquisitions... read more
 
COMPETITION TRIBUNAL
The Competition Tribunal is established in terms of section 26 of the Competition Act (89 of 1998) to hear and decide on competition cases prepared by the Competition Commission. These are of... read more
 
COMPETITIVENESS RANKING
The global competitiveness index (GCI) is prepared by the World Economic Forum (WEF) annually and it ranks 141 countries on how competitive they are. To do this it uses 12 areas which indicate... read more
 
COMPLIANCE OFFICER
These days, companies, and especially listed companies have a host of rules and regulations that they must comply with - from the Companies Act to the JSE Rules and the King 3 report on corporate... read more
 
COMPOUNDING
Compounding occurs where the return from an investment is added to the original capital and then itself earns a further return which is further added to the capital and so on. Over time the compounding... read more
 
COMPULSORY ACQUISITION
The forced acquisition of minority shares by a majority of more than 90% of the shareholders of a company. In terms of section 124 of the Companies Act (71 of 2008),... read more
 
CONCESSIONARY FINANCE
Finance which is provided at very low interest rates or even as a donation in order to further an altruistic objective. For example, in 2020, Escom was negotiating with various European governments... read more
 
CONDITIONAL OFFER
An offer made to the shareholders of a company conditional to the occurrence of some event. Typically, where a take-over bid is being made, the predator will make an offer to shareholders conditional... read more
 
CONFIRMATION
A charting pattern giving credibility to a formation which has taken place.  Typically, it is advised to wait for at least three days which consist of data points confirming the trend or... read more
 
CONFIRMATION SIGNAL
The next candle in a candlestick formation which confirms the previous reversal signal, confirming that a change in the direction of the trend is likely and giving confidence to the dominating... read more
 
CONFLICT OF INTEREST
A situation in which an offical (either commercial or government) can derive a personal benefit from a decision which he is making or is a party to.  Conflicts of interest litter the landscape... read more
 
CONGESTION AREA OR PATTERN
A series of trading days in which there is no visible progress in price either upwards or downwards. This is also known as a "sideways" market or a period of "consolidation".
 
CONGLOMERATE
These are massive, usually multi-national, holding companies involved in a wide variety of industries. Their size tends to make them immune to developments in any one country.
 
CONSENSUS FORECAST
An average of the forecasts of a group of analysts of economists for a particular economic indicator or the profit of a particular blue chip share. Economists usually make predictions of key... read more
 
CONSOLIDATION
1. Technically, where a chart moves up and down within a narrow range, bounded by a support and resistance level. This is called a sideways market of a period of consolidation. A period of consolidation... read more
 
CONSTRUCTION INDEX
An index of activity in the construction sector prepared and produced quarterly by Afrimat. The index includes wages in the construction sector, new building plans passed, the sales of building... read more
 
CONSUMER DEMAND
This is the total of what consumers spend on goods and services for their personal use. It makes up about 60% of gross domestic product (GDP) in South Africa. It generally rises consistently... read more
 
CONSUMER GOODS
Anything which is normally bought by consumers as the end user. This differs from industrial goods, which are bought with the objective of producing some other product or service.
 
CONSUMER PRICE INDEX
The measure of the degree to which the currency of a country is losing purchasing power over time through inflation. In South Africa, the Reserve Bank has chosen the CPIX as its target measure... read more
 
CONSUMER SPENDING
This is the total of what consumers spend on goods and services for their personal use. It makes up about 60% of gross domestic product (GDP) in South Africa. It generally rises consistently... read more
 
CONSUMPTION
Consumption is the buying of goods and services by consumers. Private consumption expenditure by consumers accounts for about 60% of gross domestic product (GDP). It was 59,3% of GDP in March... read more
 
CONSUMPTION EXPENDITURE
Consumption is the buying of goods and services by consumers. Private consumption expenditure by consumers accounts for about 60% of gross domestic product (GDP). It was 59,3% of GDP in March... read more
 
CONSUMPTION FUNCTION
A linear function representing the realtionship between disposable income and consumer spending. The function assumes that there is a certain amount of spending which is independent of disposable... read more
 
CONTANGO
A futures market in which prices in succeeding delivery months are progressively higher. The opposite of "backwardation".
 
CONTINUATION CHART
A derivatives chart in which the price scale for the data for the end of a given contract and the data for the beginning of the next contract are merged in order to ease the transition of one... read more
 
CONTINUATION SIGNAL
A pattern in technical analysis which suggests that a chart is diverging slightly from it's trend however will eventually continue in the general direction as seen before. These patterns, recognised... read more
 
CONTINUING OPERATIONS
Those operations which a company intends to continue with. Companies are always concerned with their focus and they tend to sell or discontinue those operations which they consider not to be... read more
 
CONTRACT FOR DIFFERENCE
A derivative contract that is not guaranteed by any organised exchange - which means that the counter-party risk is carried by the person buying or selling the contract. CFD's are a kind of bet... read more
 
CONTRACT MONTH
The month in which delivery is to be made in accordance with the terms of the futures contract. Also referred to as Delivery Month.
 
CONTRARIAN
An investor who believes that to beat the market you have to be right when the market is on average wrong. Contrarians delight in buying when everyone else is selling and vice versa. They take... read more
 
CONTROL
Section 2 of the Companies Act (71 of 2008) says, "a person controls a juristic person, or its business, if:
(a) in the case of a juristic person that is a company—
(i) that juristic... read more
 
CONTROL PREMIUM
The additional cost which an acquiring company must pay in order to obtain control of a subsidiary. This cost is incurred because control is seen as conferring an added benefit.
 
CONTROLLING SHAREHOLDER
A shareholder who owns more than 50% of a company's voting share capital and can therefore control the company's activities.
 
CONVARIANCE
 
CONVERGENCE
When futures prices and spot prices come together at the futures expiration. Futures contracts expire at the end of each quarter - in other words at the end of March, June, September, and December.... read more
 
CONVERSION ARBITRAGE
Traders buy and sell two different securities (or synthetic securities), forcing equivalent prices for equivalent securities.
 
CONVERTIBLE PREFERENCE SHARE
This is a preference share which can be converted into an ordinary share on a specified future date.� This gives a higher degree of security than buying ordinary shares directly because... read more
 
CONVERTIBLE SECURITIES
These are shares, debentures or other securities which are convertible either voluntarily or compulsorily into ordinary shares at some future specified date. Most commonly, preference shares... read more
 
COPPER
One of the elements with the symbol "cu". Copper is a maleable base metal which conducts electricity and heat very efficiently. It is used for most electrical wiring, in plumbing and construction.... read more
 
COPPOCK CURVE
A long-term price momentum indicator. For example, a 10-month weighted moving average of the sum of the 14-month rate of change and the 11-month rate of change for the Dow Jones Industrial Average... read more
 
CORE BUSINESS
The primary business of any company. You will often hear of companies selling off their non-core businesses in order to focus on their most profitable core businesses. The board of directors... read more
 
CORNER
This is when a share, which has been short -sold, falls into the hands of a few investors who are unwilling to sell and who thus cause a bear squeeze. Also where one or a group of investors gain... read more
 
CORPORATE
Of or pertaining to a company. Thus, for example, a company's image is known as its "coporate image". Companies are juristic persons resonsible for their own debts and management... read more
 
CORPORATE ACTION
Any action taken by a company that has a major effect on its shareholders. Corporate actions are divided into those which require the shareholder to do something (like take up a right) and those... read more
 
CORPORATE GOVERNANCE
A set of rules and procedures which control the way in which a company is managed in the interests of its primary stakeholders including its shareholders, employees, the community in which it... read more
 
CORPORATE IMAGE
The way in which the public perceives a company. This can be very important to the company's marketing and to its share price. Companies with a bad corporate image usually have declining share... read more
 
CORRECTION
 
CORRECTION WAVE
A wave or cycle of waves moving against the current impulse trend's direction.
 
CORRELATION COEFFICIENT
This is the degree to which two continuous data streams (such as two share price graphs or currencies) are the same - i.e. the degree to which they "correlate". When two random variables X and... read more
 
COST ACCOUNTANCY
The recording and analysis of a company's costs in such a way as to improve its profitability. Cost accounting is distinguished from financial accounting. Financial accounting simply... read more
 
COST BASIS
The cost of a given share or group of stock shares. This is used as a bench-mark to establish whether the investment is profitable or not and by what percentage.
 
COST OF EXTRACTION
This is a mining term which refers to the cost extracting a metal or mineral from its ore body so that it can be sold. In South Africa, this concept is mainly applied to precious metals mines... read more
 
COST OF SALES
An accounting measure which endeavours to measure the cost the goods sold during the accounting period. The method is to value the stock at the start of the period (the opening stock) and at... read more
 
COTATION ASSISTEE EN CONTINU (CAC)
The trading system used in the 1980's and 1990's by the Paris Bourse in France. This system gave way to the Nouveau Systeme de Cotation (NSC) in 2000, but the the CAC40 index has retained the... read more
 
COUNTER
A part-ownership of a company. The ownership of companies is divided into individual shares which, if the company is listed on the JSE, can be bought and sold by members of the public through... read more
 
COUNTER PARTY
One of the participants in a financial transaction. This term is typically used when speaking of foreign exchange (FX) transactions.
 
COUNTER PARTY RISK
The risk that the other party to a securities transaction will not fulfil their obligations. In other words, if you are buying and the seller will not supply the scrip or if you are selling and... read more
 
COUNTER TREND
A period in a price chart showing movement opposite to the direction of the prior time period. Also called a "retracement" or sometimes a "counter trend". It has been well said that "nothing... read more
 
COUNTERMOVE
A period in a price chart showing movement opposite to the direction of the prior time period. Also called a "retracement" or sometimes a "counter trend". It has been well said that "nothing... read more
 
COVENANT
An agreement reached by a company with its creditors for the repayment of principal and interest on its outstanding debts. Debt covenants give the dates on which the debts and interest will be... read more
 
COVER
Purchasing back a contract sold earlier. For example, if a share is sold short, the short seller is exposed until he buys back sufficient shares to "cover" his short sale delivery.
 
COVERED OPTION
A short call or put option position which is covered by the sale or purchase of the underlying futures contract or physical commodity.
 
COVERED WRITE
Writing a call option against a long position in the underlying stock. By receiving a premium, the writer intends to realize additional return on the underlying common stock or gain some element... read more
 
COVID-19
In January of 2020, the World Health Organisation confirmed a corona virus (SARS-CoV-2) as the causative agent of coronavirus disease 2019. (COVID-19). By June of 2020, the disease had spread... read more
 
CP2
09 - 09 - 2020
Kore (KP2) is a potash mining company which owns 97% of Sinukola Potash which has the Kola and Dougou (DX) mining leases in the Congo. Kola has a resource of 508m tons and... read more
 
CPI
The measure of the degree to which the currency of a country is losing purchasing power over time through inflation. In South Africa, the Reserve Bank has chosen the CPIX as its target measure... read more
 
CPI-X
The consumer price index excluding the effect of interest rate changes. This is the number that the Reserve Bank uses in their inflation targeting. They strive to keep this rate between 3% and... read more
 
CPO
An individual or organisation which operates or solicits funds for a commodity pool. A CPO is generally required to be registered with the CFTC.
 
CRASH
A significant and sudden fall in the total market. In general, anything less than a 20% fall in the market as a whole is regarded as a correction and anything above that is caled a bear trend.... read more
 
CRASH
A sudden fall in stock market prices, sometimes in a single trading day, and which is usually followed by a bear trend.  This happens generally because market prices have risen to unrealistically... read more
 
CREDIT ACTIVE
This term is used to describe a consumer who makes use of credit in various forms. In South Africa, about 25m people are credit active - and over 40% of those or over 10 million are behind by... read more
 
CREDIT EXTENSION
An economic indicator which measures changes in bank lending to the domestic private sector year-on-year. This is a key indicator of how consumers and businesses are feeling. When they lack ... read more
 
CREDIT EXTENSION
The amount of money borrowed by companies, private individuals and other non-government organisations. This figure is made up of private individuals borrowing on credit cards, overdrafts and... read more
 
CREDIT LOSS RATIO
This is a banking ratio which is the total impairment losses as a percentage of total loans and advances. This shows how much the bank has had to write off as a proportion of the amount it has... read more
 
CREDITORS
Amounts owing to the company's creditors in the balance sheet. These appear under current liabilities. These amounts are owed by the company in the short term (normal... read more
 
CRISA
Developed by the Institute of Directors, this code is similar to the "Principles of Responsible Investing" which is backed by the United Nations and was developed from the International Corporate... read more
 
CRITICAL MASS
In the share market this refers to a company's size and its ability to achieve economies of scale in its production. Smaller companies are often at a disadvantage because they do not have the... read more
 
CRN
This is a 16-digit number consisting of 8 numbers followed by 2 letters and then a further 6 numbers which is given to identify each company and limited liability partnership, on their registration... read more
 
CROSS HOLDING
A cross holding occurs where two closely connected companies own shares in each other. This often happens when a subsidiary company owns shares in its parent. Cross holdings can make it difficult... read more
 
CROSS MARKETING
Where one company or division within a group markets its products to the clients of another company or division in the group. This creates some synergies and reduces the cost of marketing. There... read more
 
CROSS RATE
The exchange rate between any two currencies that are considered non-standard in the country where the currency pair is quoted. For example, in the United States, a GBP/JPY (British pound against... read more
 
CROSSED MARKET
Where a quoted bid price is higher than the offer price for a security.
 
CRP
16- 10 - 2020
Capital and Regional (CRP) is a UK real estate investment trust (REIT) which owns and manages in-town community centers in England. Obviously, both the UK consumer and property... read more
 
CRYPTOCURRENCY
A digital or virtual currency used as a medium of exchange using cryptography for security, transactional accuracy, creation and verification. These currencies are extremely difficult to counterfeit... read more
 
CSB
03 - 09 - 2020
Cashbuild (CSB) is the largest retailer in Southern Africa of building materials and related hardware, concentrating on the home improvements market. In the currently depressed... read more
 
CSD
The role of a central depository is to maintain records of all purchases and sales of securities on organised exchanges within the country. In South Africa, this function is performed by STRATE... read more
 
CSDP
A CSDP is a person authorised to perform custodial, administrative or settlement duties. The central securities depository (CSD) in South Africa is known as STRATE (Share TRAnsactions Totoally... read more
 
CSG
01 - 07 - 2019
CSG Holdings (CSG) is an outsource business, supplying staffing solutions, facility management and, recently, security services. In its results for the six months to 30th... read more
 
CTA
A person who, for compensation or profit, directly or indirectly advises others as to the advisability of buying or selling futures or commodity options. Providing advice includes exercising... read more
 
CTK
15 - 10 - 2020
Cartrack (CTK) is a vehicle recovery, insurance, telematics and fleet management company operating in 24 countries around the world. It has a 92% recovery rate, which it claims... read more
 
CUM DIV
Shares are said to be "cum div" in the period between declaration of the dividend and the last day to trade. A sale of shares while they are "cum div" passes on the right to the next dividend... read more
 
CUMULATIVE PREFERENCE SHARE
A preference share accumulates its dividend in the event of the preferential dividend being passed for one or more years. Preferential dividends are paid out before ordinary dividends, but sometimes,... read more
 
CUP AND HANDLE
An accumulation pattern observed on bar charts. The pattern lasts from seven to 65 weeks; the cup is in the shape of a "U" and the handle is usually more than one or two weeks in duration. The... read more
 
CURATORSHIP
The safeguarding and management of the financial affairs and estate of another person because they are incapacitated by their absence or because they are incapable of managing their own affairs... read more
 
CURB
Originally an overflow of companies that were too small to list on the New York Stock Exchange, the "Amex" or "the curb" as it was known used to trade on the... read more
 
CURRENCY
A medium of exchange used as a store of value or in the commercial exchange of value between persons or organisations. Historically, currencies were physical commodities that actually had the... read more
 
CURRENCY BACKING
A hard asset, usually gold, that is used to back a national currency. Originally when paper money was first used, these were certificates certifying a deposit of gold at what were to become banks.... read more
 
CURRENCY CROSS
An exchange rate between the traded currencies of two countries. Thus the US dollar/euro, the pound/rand and the yen/dollar are all currrency crosses which have active markets and are constantly... read more
 
CURRENCY FUTURE
A contract to exchange one currency for another at a specific future date (the expiration date) and at a specified rate (the exchange rate). More than most derivatives, foreign exchange futures... read more
 
CURRENT ACCOUNT
This is an element of the balance of payments (BOP) toegther with the capital account. It shows a country's trade in goods and services with other countries. It shows the value of the country's... read more
 
CURRENT ASSET
An item on a balance sheet which includes any assets which can easily be turned into cash (have high liquidity) and which will only be held for a short time. Most commonly, these are stock, debtors... read more
 
CURRENT LIABILITY
Any liability that must be paid within a year from the date of the balance sheet. These are mainly amounts owed by the company, which must be repaid within the normal commercial periods (30,... read more
 
CURRENT RATIO
The ratio of current assets to current liabilities. The objective of this ratio is to determine whether the company can meet its short-term obligations out of its short-term assets (as these... read more
 
CUSIP
The number assigned by the Committee of Uniform Security Identification Procedure that appears on all securities documents. Each security is given a number so that it is easily identifiable.... read more
 
CUSTODY AND ADMINISTRATION OF SECURITIES ACT (85 OF 1992)
An Act which dealt with the transition from an open-outcry share market with physical share certificates to an electronic market with dematerialised shares held in electronic format by STRATE.... read more
 
CUTOFF FREQUENCY
A point where higher frequency cycles will not pass through a filter (e.g., a 10-day SMA will eliminate cycles of 20 days or less).
 
CVW
17 - 06 - 2020
Castleview (CVW) is a real estate investment trust that owns a single property - a shopping mall in Port Elizabeth in the Eastern Cape. That is "Pier 14" which the company... read more
 
CYCLE
Shares, industries and markets move in cycles. There are three types of cycles: primary, secondary and daily fluctuations. Primary trends last from 2 to 5 years, secondary trends from 2 to 6... read more
 
CYCLICAL
A cyclical share is one which is heavily impacted by the business cycle. When the economy is going through a slow growth period (a recession) then consumers tend to put off buying big-ticket... read more
 
CYCLICAL SHARES
A cyclical share is one which is heavily impacted by the business cycle. When the economy is going through a slow growth period (a recession) then consumers tend to put off buying big-ticket... read more
 
DAILY DEALS
One of the pieces of information supplied by the JSE for each listed company after each trading day. There are no indicators which utilise this piece of information, but it can be useful to distinguish... read more
 
DAILY FLUCTUATIONS
Charles Dow in his "Dow Thoery" proposed that share prices, and especially indexes, move in three distinct patterns - bull and bear trends which can last from about 18 months to five years or... read more
 
DAILY RANGE
The difference between the high and low price during one trading day. This range shows the degree of uncertainty prevailing among the investors interested in a particular share. A large range... read more
 
DARK CLOUD COVER
A top reversal candlestick formation which consists of a long green candle followed by a red candle. Confirmation to this signal would be the appearance of another red candle with an open that... read more
 
DARK POOL LIQUIDITY
Trade which takes place between institutional investors on private confidential exchanges which are not open to the public. Institutions do this to prevent other institutions from knowing what... read more
 
DATA MINING
The process of using super-computers to sift through the massive quantities of data produced every day by the securities markets to establish potentially profitable correlations. This process... read more
 
DATA PREPROCESSING
Altering data to some extent to be more accurately analysed; smoothing, reducing unwanted data, removing trend. Processing data is mathematically transforming the data from one form into another... read more
 
DATA SMOOTHING
Removing the variability and market noise in a chart to reveal the correct underlying trend. This can be done by using a moving average, among other mathematical algorithms.
 
DATA STREAM
A data stream is any continuous flow of end-of-day financial data. The most common form of this is the end-of-day high, low, open, close and volume for each listed equity share. But there are... read more
 
DATE ISSUE CLOSES
The date on which a rights issue closes. A right issue is the issue by a company of additional shares to its existing shareholders. Shareholders who have received their rights must exercise them... read more
 
DATE OF DECLARATION
The date on which a dividend is declared by a company's board of directors once they have seen the results from the interim or final accounting period. This date is usually followed by the last... read more
 
DATE OF FOUNDING
The date on which a company was founded. You should bear in mind that this date is often long before the date that the company was listed on the JSE. Your stock exchange handbook gives the year... read more
 
DATE OF INCORPORATION
The date on which a company was granted its certificate of incorporation by the Companies and Intellectual Property Commission (CIPC). Every company must register a Memorandum of Incorporation... read more
 
DATE OF LISTING
The date on which a company was listed on the JSE. Most listing are accompanied by an initial public offer (IPO) whereby the company raises capital from the public to fund its business. One of... read more
 
DATE OF PAYMENT
The date on which a dividend is paid. These days, dividend payments are mostly paid directly into shareholders' stockbroking accounts automatically. There are five dates associated with dividend... read more
 
DATE OF PAYMENT
One of the dates associated with the payment of a dividend by a listed company. The dates are the date of declaration when the board announces the dividend, the last day to register (LDR) by... read more
 
DATE OF RECORD
The date on which a dividend payout or rights issue is based. These "corporate actions" apply to shares which are in the company register on the date of record. The date of record is normally... read more
 
DAVID LI
A Chinese actuary and quatitative analyst who is best known for his application of gaussian copulas for securitised mortgage bonds leading to the "sub-prime" crisis of 2007/8. Li's formulae justified... read more
 
DAW
Dawn (DAW) is a manufacturer and retailer of bathroom fittings, sanitary ware and related products in Southern Africa. The company has been battling with the depressed consumer environment in... read more
 
DAX
This is the main index of the Frankfurt Stock exchange, better known as the "Dax". This is a simple average of the 30 largest companies trading on the Frankfurt Stock Exchange - and so is the... read more
 
DAX
This is a simple index of the thirty largest shares trading on the German stock exchange. The DAX is a Paasche index which began on 30-12-1987 at a base value of 1000. The DAX generally follows... read more
 
DAX INDEX
This is a simple index of the thirty largest shares trading on the German stock exchange. The DAX is a Paasche index which began on 30-12-1987 at a base value of 1000. The DAX generally follows... read more
 
DAY ORDER
An order that if not executed expires automatically at the end of the last trading session on the day it was entered.
 
DAY'S MOVE
The extent to which a share moves during the course of the trading day on the Stock Exchange. You will find the day's move quoted as a separate column in the newspapers, both in cents and as... read more
 
DBSA
The DBSA is a government funded and run bank which aims to promote development in South Africa and the rest of Africa. It is involved in the design, preparation, funding and building of infrastructure... read more
 
DBSA
This is a state owned enterprise which focuses on supporting projects which will enhance the standard of living and infrastructure of South Africa and the rest of Africa. It is engaged in a wide... read more
 
DCM
 
DCP
26 - 08 - 2020
Dis-Chem Pharmacies (DCP) listed in November 2016 and competes directly with Clicks (CLS) in the pharmaceutical, medicine and beauty products markets. It is a family business... read more
 
DE-LEVERAGE
Leverage is an American term which refers to the level of debt which a company has in relation to its equity. In South Africa we use the term "gearing" to mean the same thing. When a company... read more
 
DE-LISTING
The removal of a security from an organised exchange - after which it can no longer be traded. This typically happens in the share market when a company has been taken over by another company... read more
 
DEAD CAT BOUNCE
A rebound in a market that sees prices recover from a very sharp fall and come back up somewhat. Usually this occurs at the start of a bear market where the extent of the initial fall is beyond... read more
 
DEAL
In the context of the share market this means a transaction whereby shares are exchanged for cash, either in the primary or the secondary market. In heavily traded shares, like Naspers as much... read more
 
DEALER
An individual or firm acting as a principal or counterparty to a transaction. Principals take one side of a position, hoping to earn a spread (profit) by closing out the position in a subsequent... read more
 
DEALING COSTS
The costs of trading in shares are brokerage - which varies according to the stockbroker you are dealing through, STRATE settlement costs (0,005% of the value of the transaction) and securities... read more
 
DEBASEMENT
The reduction of a commodity currency by adding a base metal - such as lead. During the time of the Roman empire, periodically the gold coins of the realm were brought in and melted down on the... read more
 
DEBENTURE
This is a form of long-term loan. A company issues debentures, usually at R1000 each, at a fixed percentage return. Debentures are then redeemable at a certain specified date, but in some cases... read more
 
DEBIT BALANCE
A stockbroking account with no positions and a negative adjusted total equity. A debit balance typically arises as a result of a trader losing more money in the marketplace than was available... read more
 
DEBSWANA
Debswana Mining Company Limited (Debswana) is a 50/50 joint venture formed in 1969 between the government of Botswana and De beers. De beers is 85% owned by Anglo American. Debswana focuses on... read more
 
DEBSWANA DIAMOND MINING COMPANY LTD
Debswana Mining Company Limited (Debswana) is a 50/50 joint venture formed in 1969 between the government of Botswana and De beers. De beers is 85% owned by Anglo American. Debswana focuses on... read more
 
DEBT
Money owed by one person (natural or juristic) to another. Debt which is expected to be repaid withing normal commercial periods of 30, 60 or 90 days is usually not interest-bearing. Longer term... read more
 
DEBT CEILING
A debt ceiling is a legally imposed limit to the amount of debt which the treasury of a country can uncur. In America the constitution (article 1, section 8) says that the debt ceiling can only... read more
 
DEBT COVENANT
An agreement reached by a company with its creditors for the repayment of principal and interest on its outstanding debts. Debt covenants give the dates on which the debts and interest will be... read more
 
DEBT INSTRUMENT
A form of long-term debt whereby the borrower agrees to pay the lender annual interest (the "coupon") until the debt is settled or converted into equity. Governments, state-owned enterprises... read more
 
DEBT LIMIT
A debt ceiling is a legally imposed limit to the amount of debt which the treasury of a country can uncur. In America the constitution (article 1, section 8) says that the debt ceiling can only... read more
 
DEBT MORATORIUM
A period of grace on the repayment of debt and the interest due on it. If a company is placed underr business rescue, then it is immune to any attempt to pursue its debts at law until the business... read more
 
DEBT TO INCOME RATIO
This is the ratio of an individual's monthly debt repayments and other expenses to their gross income. In South Africa, we have an average debt to income ratio of 72,8% - and it has come down... read more
 
DEBT TRAP
A debt trap is when a borrower is in a cycle of re-borrowing or rolling over their debt. This can occur because of high interest rates or because the borrower cannot keep up with the scheduled... read more
 
DEBT/EBITDA RATIO
The ratio of a company's net debt (or interest-bearing liabilities) to it earnings before interest, taxation, depreciation and amortisation (EBITDA). A ratio above 3 can indicate that the company... read more
 
DEBT/EQUITY RATIO
The ratio of shareholders' equity in the company (share capital and reserves) to the company's borrowing. The company has two primary sources of capital: shareholders' equity (consisting of the... read more
 
DEBTOR
An item on the balance sheet which shows the amount the company is owed, and which is to be paid over the short term. It is common for companies to allow their customers credit of 30 days, or... read more
 
DEBTORS DAYS OUTSTANDING RATIO
The average number of days that it takes for a company to collect its debts. This can be calculated by dividing the debtors figure and then multiplying by 365 (the number of days in the year).... read more
 
DEBTORS' BOOK
A debtors' book is a collection of all the receivable invoices, i.e the cash that is due or owing to a business from it's clients.
 
DECLARATION DATE
The date on which a dividend is declared by a company's board of directors once they have seen the results from the interim or final accounting period. This date is usually followed by the last... read more
 
DECLARATION DATE
The date on which the board of directors declare their dividend. This date is worth noting for the shares which you are following.
 
DEEP-IN-THE-MONEY
A deep-in-the-money call option has the strike price of the option well below the current price of the underlying instrument. A deep-in-the-money put option has the strike price of the option... read more
 
DEFAULT
The failure to perform on a futures contract as required by exchange rules, such as a failure to meet a margin call or to make or take delivery.
 
DEFENSIVE SHARES
Some JSE-listed companies perform well even in a recession and they are known as "defensive shares". Typically they are in sectors which the consumer cannot do without - like medical care. Even... read more
 
DEFERRED DELIVERY MONTH
The distant delivery months in which futures trading is taking place, as distinguished from the "nearby" futures delivery month which refers to the next futures contract to mature.
 
DEFERRED SHARE
This is a share which has even less rights than an ordinary share. Preference shares receive their dividends and payments on liquidation of the company before ordinary shareholders. Deferred... read more
 
DEFERRED TAXATION
When a company computes income tax expense, it bases that computation on taxable income per the Income Statement. The income taxes payable, a current liability account, reflects only the amount... read more
 
DEFICIT
This is the difference between government revenue and expenditure. Typically, governments spend more than they receive from taxes and other types of revenue. This is disclosed in the budget at... read more
 
DEFICIT
Government borrowing is the excess of a government's spending over its income in a particular year. The deficit is usually funded by government borrowing. The size of the deficit is usually expressed... read more
 
DEFLATION
The opposite of inflation. A period where the purchasing power of money increases in terms of a basket of goods and services.
 
DEFLATIONARY CRASH
A crash which is caused or exacerbated by a shortage of money within the economy. There has only been one deflationary crash in recorded history and that was the 1929 crash. In 1929, the Federal... read more
 
DELAYED PRICES
Market quotations which are delayed by the various futures exchange's required time period, usually 10-20 minutes. The JSE provides 15-minute delayed share price data for free.
 
DELAYED QUOTES
Market quotations which are delayed by the various futures exchange's required time period, usually 10-20 minutes. The JSE provides 15-minute delayed share price data for free.
 
DELINQUENT DIRECTOR
This refers to a director of a company that has done something in contradiction of the Companies Act. Directors are expected to act in the "utmost good faith" and to act in the best interests... read more
 
DELISTING
A term decribing the removal of a company from the JSE and the termination of its listing. Companies delist for a number of reasons, but usually because their share is very thinly traded or is... read more
 
DELIVERY
The transfer of the cash commodity from the seller of a futures contract to the buyer of a futures contract. Each futures exchange has specific procedures for delivery of a cash commodity. Most... read more
 
DELTA
The amount by which the price of an option changes for every dollar move in the underlying instrument.
 
DEMAND
An economics term which refers to the extent to which a product or service is needed in the economy. When the product or service is widely needed and especially when there is limited supply,... read more
 
DEMAND INDEX
An index that shows the buying and selling power of markets and stocks from mathematical calculations of volume and price ratios.
 
DEMATERIALISATION
The replacement of physical share certificates with an electronic record. In South Africa this record is maintained by STRATE (Share TRAnsactions Totally Electronic). STRATE is the South African... read more
 
DEMATERIALISED SCRIP
The elimination of certificates or documents of title which represent ownership of securities, so that securities exist only as electronic records.
 
DEMERGER
The breaking up of a company into smaller component companies. This is usually done to imporve focus and to give each operting unit autonomy over decision making. It is also done to unlock shareholder... read more
 
DEMURRAGE
This was originally a cost of not off-loading a chartered ship within an agreed time period. Shipping charters typically include an amount of "laytime" which is time allowed for unloading the... read more
 
DEPENDENCE
In modern portfolio theory the central concept is that share prices are impossible to predict because there is no "dependence" between today's price and yesterday's price. In other words share... read more
 
DEPRECIATION
The process of charging the value of a fixed asset against the company's profits at the same rate at which it is expected to wear out or become obsolete. It would not be reasonable to charge... read more
 
DEPRESSION
A economic term which refers to an extended period of very low economic activity. A depression is considerably worse and deeper than a recession. Recessions are a normal part of the business... read more
 
DEPTH OF THE MARKET
The depth of the market for a particular share is a display of the best three bids and the best three offers for that share which have not yet been fulfilled. Stockbrokers, on their trading platforms,... read more
 
DERIVATIVE
A financial instrument, traded on or off an exchange, the price of which is directly dependent upon the value of one or more underlying securities, equity indices, debt instruments, commodities,... read more
 
DESIGNATED ADVISOR
When a company wishes to list on the Alt-X market it must appoint a designated advisor. The main role of a Designated Adviser is to competently, professionally and impartially advise the applicant... read more
 
DESTOCKING
The reduction in a company's stock levels. Stock is a part of a company's working capital and as such it means money tied up, usually costing the company interest on its overdraft. For this reason... read more
 
DETREND
To remove the general drift, tendency, or bent of a set of statistical data as related to time.
 
DEUTSCHER AKTIENINDEX
This is the main index of the Frankfurt Stock exchange, better known as the "Dax". This is a simple average of the 30 largest companies trading on the Frankfurt Stock Exchange - and so is the... read more
 
DEVALUATION
The reduction of a currencies value in a fixed exchange rate system. Most currencies are allowed to float and are freely traded with market forces determining their equilibrium prices. However... read more
 
DEVELOPING COUNTRY
An economy which is in a development phase - as opposed to a first-world economy which is said to be fully developed. Emerging economies generally enjoy more rapid growth than first world economies,... read more
 
DEVELOPMENT BANK OF SOUTH AFRICA
This is a state owned enterprise which focuses on supporting projects which will enhance the standard of living and infrastructure of South Africa and the rest of Africa. It is engaged in a wide... read more
 
DEVELOPMENT BANK OF SOUTHERN AFRICA
The DBSA is a government funded and run bank which aims to promote development in South Africa and the rest of Africa. It is involved in the design, preparation, funding and building of infrastructure... read more
 
DEVELOPMENT CAPITAL MARKET
 
DGH
21 - 10 - 2020
Distell (DGH) is a Remgro (REM) subsidiary which produces a variety of alcoholic beverages which are well-known brands in South Africa and elsewhere. Their brands include... read more
 
DIAGONAL SHARE
A share whose price chart goes from the bottom left-hand corner to the top right-hand corner. There are very few shares which can be described as "diagonals", especially over the long term. If... read more
 
DIAMOND
A solid crystalline form of carbon with the greatest hardness and heat conductivity of any natural substance. Diamonds have both industrial and jewellery use. The rarity of diamonds has given... read more
 
DIFFERENCE-IN-MEANS TEST
A statistical test that indicates the likelihood of observing the difference if the true difference were zero. A large value of this statistic leads to non-acceptance of the null hypothesis that... read more
 
DIFFERENCING
Subtracting previous from current values to obtain a stationary (detrended) time series: P stationary = Pt - Pt-1.
 
DIFFUSION EQUATION
A partial differential equation, used in solving a random walk problem.
 
DIFFUSION INDEX
 
DILUTED HEADLINE EARNINGS PER SHARE
This is headline earnings per share (HEPS) calculated using the number of shares in issue at the end of the financial period rather than the average number of shares in issue during the accounting... read more
 
DILUTION
In the context of the share market, dilution occurs where a company issues additional shares without receiving commensurate earnings potential, resulting in lower earnings per share for the original... read more
 
DIRECT COST
A cost in the books of a company which increases and decreases with their sales level. The main variable cost (also known as a "direct cost") is cost of sales. The cost of... read more
 
DIRECTIONAL MOVEMENT INDEX (DMI)
Developed by J. Welles Wilder, DMI measures market trend. The concept of Directional Movement is based on the assumption that in an upward trend today's highest price is higher than yesterday's... read more
 
DIRECTOR
All public companies are required to have at least two directors and all private companies at least one. The directors are appointed (and confirmed by their consent on a signed CM27 form lodged... read more
 
DIRECTOR DEALINGS
The directors of a company are allowed to deal in the shares of their company, but in terms of the JSE rules, they must disclose the details of their transactions on the Stock Exchange News Service... read more
 
DIRECTORATE OF MARKET ABUSE (DMA)
The DMA was formed in terms of the Insider Trading Act (135 of 1998) to investigate and take legal action where appropriate in cases of financial market abuse. It has been in operation since... read more
 
DIRECTORS' REPORT
The Companies Act requires companies to put before the Annual General Meeting (AGM) a directors' report with respect to the state of affairs, the business and profitability of the company. The... read more
 
DISCLAIMER
This is an audit opinion given when the auditor cannot obtain sufficient documents and information to support their opinion. This can happen because management does not have the necessary... read more
 
DISCLOSURE
The concept of disclosure is entrenched in the Companies Act. The Act is concerned to ensure that shareholders are properly informed of all the information that they need to make good investment... read more
 
DISCONTINUED OPERATIONS
Companies are always trying to be focused on their core business. To achieve this they may decide from time to time that a particular division or subsidiary is no longer part of that core business.... read more
 
DISCOUNT BROKER
This is a stockbroking firm that does not undertake research into listed companies or give advice. For this reason the cost of dealing through a discount broker is much lower than through a "full... read more
 
DISCOUNT WINDOW
The mechanism by which the central bank provides short-term funds to commercial banks and other eligible institutions. Originally, central banks had an actual window through which they passed... read more
 
DISCOUNTED CASH FLOW
A process whereby a future flow of incomes is reduced to a current value by applying an "internal rate of return" (IRR). For example, if you are looking at a share and your analysis indicates... read more
 
DISCOUNTING
The price of a share is the average of all investors' discounted cash flows of the future dividends of the company. If the profits and hence the dividends of a company are expected to fall then... read more
 
DISCOURAGED WORKER
This is an adult person who is part of a country's labour force but who has not been able to find work for an extended period of time. Such people would like to work but have given up looking... read more
 
DISCRETIONARY STOCKBROKING ACCOUNT
An account opened with a stockbroker where the client has entered into an arrangement with the stockbroker that authorises the stockbroker to conduct transactions on the client's behalf with... read more
 
DISINVESTMENT
This term is usually applied to investors in South Africa who decide to withdraw their investment. Disinvestment impacts directly on the capital account of the Balance of Payments (BOP). Overseas... read more
 
DISPOSABLE INCOME
The income which is left for a consumer after all his main expenses have been met - such as his rent or bond repayment, money for food and clothing, school fees, insurance, taxation, money for... read more
 
DISSENTING SHAREHOLDER
In terms of the Companies Act, a dissenting shareholder is one who disagrees with a fundamental transaction being contemplated by the majority shareholders. A fundamental transaction is a major... read more
 
DISSOLUTION
The process whereby a company is dissolved. The court, the company itself, a shareholder, the Master of the court, the business rescue practitioner, a creditor, or the minister may initiate such... read more
 
DISSOLVED
To settle the affairs of a company/firm by selling assets in order to pay creditors. When a company is liquidated, ordinary shareholders are entitled to receive their portion of remaining assets... read more
 
DISTRESSED COMPANY
This refers to a company which does not have sufficient short-term cash flow to meet its immediate expenses. When a company is in "financial distress", the provisions of chapter 6 of the Companies... read more
 
DISTRIBUTABLE RESERVES
A concept from the old Companies Act which aimed to preserve the capital of companies. In terms of that Act, dividends could only be paid out of a company's profits and not out of its asset base.... read more
 
DISTRIBUTED LEDGER TECHNOLOGY
Distributed Ledger Technology (DLT) is a computer technique which is used to create a completely reliable and and 'unhackable' database. The most common use is for the "blockchain" directories... read more
 
DISTRIBUTION
  1. The payment of a dividend.
  2. Any set of related values described by an average (that is, mean), which identifies its midpoint, a measure of spread (that is, standard distribution)... read more
 
DISTRIBUTION
That portion of a company's earnings which is paid out to shareholders - also sometimes called a "distribution". Most blue chip companies have a dividend policy in terms of which they pay out... read more
 
DISTRIBUTION AREA
A sideways to downward market, usually at the top of a bull trend where shares are being sold off by the "smart money" in anticipation of a downward trend.
 
DIVERGENCE
When two or more averages or indices fail to show confirming trends.
 
DIVERSIFICATION
The process whereby a company (or individual) spreads its investments among a number of different enterprises so as to reduce its exposure through one of them. Research conducted in America has... read more
 
DIVESTITURE
Companies are always trying to be focused on their core business. To achieve this they may decide from time to time that a particular division or subsidiary is no longer part of that core business.... read more
 
DIVIDEND
That portion of a company's earnings which is paid out to shareholders - also sometimes called a "distribution". Most blue chip companies have a dividend policy in terms of which they pay out... read more
 
DIVIDEND COVER
The number of times the dividend could be taken out of the earnings. For example, if a company has earnings (profits) of R50 000 and pays out a dividend of R5 000 then the dividend cover is 10... read more
 
DIVIDEND EQUALISATION RESERVE
A distributable reserve which is specifically set up to ensure that dividends remain stable despite changes in earnings. If a company normally pays a dividend of 10 cents per share, the directors... read more
 
DIVIDEND POLICY
Most of the larger listed blue chip companies pay two dividends each financial year - an interim and final. They also usually have a dividend policy - which means that they pay out a set percentage... read more
 
DIVIDEND REINVESTMENT PLAN
A program offered by a publicly held company in which dividends are used to buy more shares of the company. This process reduces the number of shares in issue since the shares which are bought... read more
 
DIVIDEND STRIPPING
This occurs where a share is bought just before the last day to register (LDR) for its dividend and then sold immediately afterwards. The dividend is effectively stripped out. The problem with... read more
 
DIVIDEND WITHHOLDING TAX
A 20% tax (as per the 2017 budget speech) on dividends paid by all South African taxpayers, but withheld by the company paying the dividend. DWT obviously reduces the returns which you will get... read more
 
DIVIDEND YIELD
Dividends per share expressed as a percentage of the current market price. For example, if a company pays a dividend of R10 000 and it has 10 000 ordinary shares in issue (sold to the public)... read more
 
DIVIDENDS PER SHARE
The ordinary dividend of a company for the most recent financial year divided by the number of shares in issue. The DPS is calculated from the most recent year's dividends paid - so that means... read more
 
DJIA
Charles Dow was the first person to construct an index. His first index was the "transportation average" which he constructed in 1884 and then maintained as a director of the Dow Jones Company.... read more
 
DLT
Distributed Ledger Technology (DLT) is a computer technique which is used to create a completely reliable and and 'unhackable' database. The most common use is for the "blockchain" directories... read more
 
DLT
25 - 08 - 2020
Delta Property (DLT) was a level 2 black empowered real estate investment trust (REIT) with a portfolio valued at R11,3bn and a loan-to-value ratio of 44,3%. Roughly 80% of... read more
 
DMA
The DMA was formed in terms of the Insider Trading Act (135 of 1998) to investigate and take legal action where appropriate in cases of financial market abuse. It has been in operation since... read more
 
DNB
06 - 06 - 2020
Deneb (DNB) is a 67,8% subsidiary of Hosken Consolidated Investments (HCI), listed on the JSE under specialty financial services. Deneb is an investment holding company with... read more
 
DOJI
A candlestick charting term which describes a trading session in which the opening price and closing price for a share are the same (or almost the same). Different varieties of doji lines (such... read more
 
DOJI STAR
A Doji Star is a trend reversal pattern which is composed of a long black body followed by a doji (a pattern with the same opening and closing price). It may be recognized because it consists... read more
 
DOMESTIC UNIT TRUST
A unit trust which is focused on investments into the local equity market. In other words, excluding overseas investments. Profile Media has an index of such unit trusts which it maintains calle... read more
 
DORE
An alloy of gold and silver usually created at the mine before being moved to the refinery. Dore is usually cast in bars of bullion. At the refinery it is processed further.
 
DOT COM
Technology shares, specifically those which deal with internet based products or telecommunications. From 1997 to 1998, these shares did particularly well during the hype and excitement over... read more
 
DOUBLE BOTTOM
The price action of a security or market average where it has declined twice to the same approximate level, indicating the existence of a support level and a possibility that the downward trend... read more
 
DOUBLE COUNTING
An economics term which means counting the same item twice so producing an erroneous result. This can happen with the calculation of gross domestic product (GDP) or other important economic statistics... read more
 
DOUBLE SMOOTHING
Double smoothing in the context of the share market and technical analysis simply means making a moving average of a moving average. This has the effect of smoothing the trend even further. The... read more
 
DOUBLE TAXATION AGREEMENT
An agreement between two countries the objective of which is to avoid double taxation. For example, South Africa and the UK have a double taxation agreement which they entered into in 2002. The... read more
 
DOUBLE TOP FORMATION
A price pattern seen on a chart at the top of a trend. The pattern occurs when prices rise to a resistance level on significant volume, retreat to a support level, and subsequently return to... read more
 
DOUBLE-SMOOTHED
A price series that has been smoothed by a mathematical technique such as a moving average. This first series of smoothed price data is then smoothed a second time.
 
DOUBTFUL DEBT
A debt which may not be collectible. Companies usually distinguish between bad debts, which they know they cannot collect, and doubtful debts which may not be collected because they are already... read more
 
DOVE
A member of a country's monetary policy committee (MPC) who is in favour of reducing interest rates to stimulate the economy. The monetary policy committee is made up of experienced economists... read more
 
DOW CHARLES
Charles Dow was one of the founders of Dow Jones & Co. and the originator of the famous Dow Jones indexes. He developed the "Dow Theory" of market movements and is regarded as one of the... read more
 
DOW JONES INDUSTRIAL AVERAGE
Charles Dow was the first person to construct an index. His first index was the "transportation average" which he constructed in 1884 and then maintained as a director of the Dow Jones Company.... read more
 
DOW THEORY
The Dow Theory was the first technical analysis idea to be invented in Western markets (the Japanese invented candlestick charts much earlier). Charles Dow, working in the later 1800's made an... read more
 
DOWNSIDE BREAK
In technical analysis, this occurs where a security's price encounters a support level which prevents it from going lower for a period. Finally when the support is exhausted, the price breaks... read more
 
DOWNTREND
A period when the price of a share (index or other security) falls. Normally a downtrend can be clarified with the addition of a downward trendline which connects the successive lower highs of... read more
 
DOWNWARD TREND
A long downward trend in a share's price, a sector's index, the all-market index or other indicator. Bear trends and bull trends are interrupted... read more
 
DOWNWARD TREND
A period when the price of a share (index or other security) falls. Normally a downtrend can be clarified with the addition of a downward trendline which connects the successive lower highs of... read more
 
DPS
The ordinary dividend of a company for the most recent financial year divided by the number of shares in issue. The DPS is calculated from the most recent year's dividends paid - so that means... read more
 
DRAGONFLY DOJI
A candlestick charting term used to describe a type of doji which signifies indecision. The dragonfly doji has a long lower shadow with no upper shadow, signifying either bullish or bearish sentiment... read more
 
DRAWDOWN
The reduction in account equity as a result of a trade or series of trades.
 
DRD
03- 09 - 2020
DRDGOLD (DRD) is a gold surface treatment operation which is at an all-in sustaining cost of extraction of just over R517219 per kilogram which compares to the average received... read more
 
DSY
17 - 09 - 2020
Discovery (DSY), developed and built by Adrian Gore over the past 25 years, offers the A/B income group of people a matrix of financial services which are inter-linked and... read more
 
DTA
An agreement between two countries the objective of which is to avoid double taxation. For example, South Africa and the UK have a double taxation agreement which they entered into in 2002. The... read more
 
DTA
This share has been delisted.
 
 
DTC
08-10-2020
Datatec (DTC) is an international IT and telecommunications company operating in more than 50 countries. It operates in the United States, South America, Europe, Africa, the Middle... read more
 
DUAL CAPACITY TRADING
Dual capacity trading was introduced following the deregulation of the JSE in 1995. It means that a stockbroker may act as a principal and as an agent in share dealing activities. In terms of... read more
 
DUAL LISTING
This is where a company is listed on two stock exchanges. On the JSE there are dozens of companies which are also listed on at least one other stock exchange for a variety of reasons. Some of... read more
 
DUE DILIGENCE
The checking of the books of account of a prospective acquisition to ensure that what was held out by its directors corresponds with the reality. It is a standard procedure of all acquisitions... read more
 
DUMPLING TOP
A cycle top on a chart which drifts out and down in a gradual loss of momentum. This is as opposed to a "V" top which is very sharp and sudden. Also called an Umbrella Top, a Frying Pan Top,... read more
 
DURABLE GOODS
Products, offered to consumers, which are expected to last for a considerable period of time and which are generally more highly priced. Examples range from "white goods" like fridges, stoves... read more
 
DUTY
The tax paid on the import of foreign-made products into a country according to a specific import tariff. In general, countries try to avoid having too many onerous tariffs on imports because... read more
 
DWT
A 20% tax (as per the 2017 budget speech) on dividends paid by all South African taxpayers, but withheld by the company paying the dividend. DWT obviously reduces the returns which you will get... read more
 
DY
Dividends per share expressed as a percentage of the current market price. For example, if a company pays a dividend of R10 000 and it has 10 000 ordinary shares in issue (sold to the public)... read more
 
EAO
This is an order handed down by a court in terms of which an amount may be deducted from an employee's income for the repayment of a creditor. Thousands of salary-earners have EAOs against their... read more
 
EARLY ENTRY
A large price movement in one direction within the first 15 minutes after the open of the daily session.
 
EARMARKING
The setting aside of funds by an organisation or individual for a specific purpose. In the context of government expenditure, funds collected from a specific source can be earmarked to be spent... read more
 
EARNINGS
The earnings of a company are its profits. They are calculated by deducting the expenses of a period from the incomes of the same period. Earnings in South Africa are subject to taxation at 28%.... read more
 
EARNINGS BEFORE INTEREST AND TAXATION
This earnings figure, better known as EBIT, shows the company's earnings before the cost of interest-bearing debt and taxation. It does not exclude the cost of assets (depreciation) or impairments... 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 performance. Some companies express the gearing... read more
 
EARNINGS ESTIMATES
The estimated earnings projected for a company for a fiscal year. Estimating future earnings is an art. It depends on both internal factors within the company such as working capital management,... read more
 
EARNINGS MULTIPLE
The market price of a share divided by its most recent average annual earnings per share. This gives the reciprocal of the "earnings yield", and is used by some investors to compare shares with... read more
 
EARNINGS PER SHARE
A company's earnings (profit) divided by the number of ordinary shares usually expressed as a number of cents per share. The earnings per share (EPS) includes all the companies incomes and expenses... read more
 
EARNINGS YIELD
Earnings per share expressed as a percentage of the current market price of the share. For example, a company with 25 cents earnings per share and a market price of 250 cents would have an earnings... read more
 
EBIT
This earnings figure, better known as EBIT, shows the company's earnings before the cost of interest-bearing debt and taxation. It does not exclude the cost of assets (depreciation) or impairments... read more
 
EBITDA
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 performance. Some companies express the gearing... read more
 
ECB
The Central Bank for the European Union.
 
ECONOMETRICS
This is the application of statistics and probability to economic data. Like all social sciences, economics is measuring the behaviour of people and developing rules based on their behavioural... read more
 
ECONOMIC CONTRACTION
A cyclical period of lower economic activity, occurring at regular intervals; as opposed to a depression, which is a period of major economic downturn with high unemployment and declining gross... read more
 
ECONOMIC GROWTH
In the context of economics, this refers to the increase in a country's gross domestic product (GDP). GDP growth is impacted by many things, but mainly by consumer spending which, in South Africa,... 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 to be published that week and... read more
 
ECONOMIC SANCTIONS
Economic penalties which are imposed on one country, organisation or individual by one or more countries with the objective of getting that country, organisation or individual to change their... read more
 
ECONOMIC STIMULUS
A mechanism to encourage economic activity within the economy. The Monetary Policy Committee (MPC) meets every two months to decide whether to reduce interest rates, increase them or leave them... read more
 
ECONOMICS
The study of the allocation of scarce resources within a country and between countries. Economics is a social science because it looks at human behaviour and how people make financial decisions.... read more
 
ECONOMIES OF SCALE
Achieving economies of scale is the objective of every manufacturing business, because it substantially reduces costs and increases profitability. There is a distinct advantage to size in manufacturing,... read more
 
ECONOMY
The economy of a country is the aggregate of all economic activity within that country. It is measured in various ways to determine whether it is growing or shrinking. The most commonly used... read more
 
ECS
03 - 09 - 2020
Ecsponent (ECS) is a penny stock, listed in the venture capital fledgling sector of the JSE. The company presents itself as a financial services group with operations in Botswana,... read more
 
EEL
01 - 09 - 2020
Efora Energy (EEL) is an African oil and gas company incorporated in 1993 and listed on the JSE in October 1994. The company is involved in numerous projects from oil production... read more
 
EFFECTIVE INTEREST RATE
The interest coupon on a bond expressed as a percentage of its current price. Thus, a R1m bond with a coupon of 10% would earn R100 000 per annum, but if the price of the bond falls to R900 000... read more
 
EFFECTIVE TAXATION RATE
This is the percentage of its taxable income that a company pays to the Receiver. The Income Tax Act allows companies to deduct certain initial and investment allowances when they purchase capital... read more
 
EFFICIENT MARKET
The basis of modern portfolio theory, the efficient market hypothesis, maintains that all information is already discounted by the market and reflected in share prices due to market participants... read more
 
EFFICIENT MARKET THEORY
The basis of modern portfolio theory, the efficient market hypothesis, maintains that all information is already discounted by the market and reflected in share prices due to market participants... read more
 
EFG
25 - 11 - 2019
The Efficient Group (EFG) is an asset management and financial services group managed by well-known economist, Dawie Roodt (who is also a 5,7% shareholder). It is involved... read more
 
EIA
The EIA describes itself as, "The U.S. Energy Information Administration (EIA) collects, analyzes, and disseminates independent and impartial energy information to promote sound policymaking,... read more
 
ELASTICITY
  1. The ability to recover an original configuration.
  2. The elasticity of demand or supply refers to the degree to which demand or supply responds to changes in price. For example,... read more
 
ELECTRONIC ORDER
An order placed electronically (without the use of a broker) either via the Internet or an electronic trading system.
 
ELECTRONIC SCRIP REGISTER
After dematerialisation in South Africa, physical share certificates were replaced by an electronic record and share registers were replaced by an electronic scrip register. Obviously, the electronic... read more
 
ELECTRONIC SETTLEMENT
Settlement of securities transactions on a T+3 rolling contractual settlement cycle through STRATE, the electronic settlement system.
 
ELECTRONIC TRADING HOURS
The U.S. after-hours markets during the evenings. Futures contracts trading during ETH do so on electronic trade matching platforms such as Globex or A/C/E.
 
ELECTRONIC TRADING SYSTEMS
Systems that allow participating exchanges to list their products for trading after the close of the exchange's open outcry trading hours (i.e., Chicago Board of Trade's A/C/E, Chicago Mercantile... read more
 
ELI
02 - 10 - 2020
Ellies (ELI) is a fledgling electronics company which imports and distributes electrical products and supplies solar power solutions. From its heyday in 2013 when the share... read more
 
ELLIOT IMPULSE WAVE
The strong moves in Elliot Wave theory which move in the direction of the larger degree wave. In Elliot Wave theory there ware two types of waves: impulse and corrective. Impulse waves are the... read more
 
ELLIOTT WAVE
A pattern-recognition technique published by Ralph Nelson Elliott in 1939, which holds that the stock market follows a rhythm or pattern of five waves up and three waves down to form a complete... read more
 
ELLIOTT WAVE THEORY
A pattern-recognition technique published by Ralph Nelson Elliott in 1939, which holds that the stock market follows a rhythm or pattern of five waves up and three waves down to form a complete... read more
 
ELR
08 - 09 - 2020
The Elb Group Limited (ELR), formally Edward L Bateman, is an engineering and construction company that is involved in materials handling, minerals separation, power solutions... read more
 
EMBEDDED DERIVATIVE
This is a derivatives contract that is made part of a commercial agreement. The idea is that the derivative contract only comes into play if and when, certain conditions are met. The objective... read more
 
EMBEDDED VALUE
Thi is an insurance term which means the current value of future earnings plus net asset value (NAV). Embedded value approximates the value of the shareholder's interest in the company - and... read more
 
EME
An exempted micro enterprise (EME) is a small business in South Africa that is exmpted from the requirements of the Broad Based Balck Economic Empowerment Act (53 of 2003) because of its small... read more
 
EMERGING MARKET
An economy which is in a development phase - as opposed to a first-world economy which is said to be fully developed. Emerging economies generally enjoy more rapid growth than first world economies,... read more
 
EMERGING MARKETS INDEX
An average index of the stock markets of emerging economies produced and maintained by Morgan Stanley Capital International (MSCI). It is weighted 40,95% China, 12,28% Taiwan, 11,61% Korea, 8,02%... read more
 
EMH
26 - 05 - 2020
E-Media Holdings (EMH) owns 67,7% of E-Media Investments which in turn runs ETV and E-News as well as other smaller operations. This company is investing heavily into multi-channel... read more
 
EMI
01 - 09- 2020
Emira Property (EMI) is a real estate investment trust (REIT) which has substantial exposure to the South African economy through its office properties. It owns 79 properties... read more
 
EMOLUMENTS ATTACHMENTS ORDER
This is an order handed down by a court in terms of which an amount may be deducted from an employee's income for the repayment of a creditor. Thousands of salary-earners have EAOs against their... read more
 
EMPHASIS OF MATTER
An audit opinion which is specifically meant to draw attention to a particular point in the financials. Listed companies which have an emphasis of matter are marked with the letter "E" by the... read more
 
EMPLOYEE
A person who exchanges their time and skill for a salary or wage. Labour is one of the four factors of production and every adult can engage in employment to earn their living. The more highly... read more
 
EMPLOYEE SHARE INCENTIVE SCHEME
Most listed companies use their shares to motivate their employees through an employee share option scheme. This usually involves the employee getting options to buy a certain quantity of shares... read more
 
EMPLOYMENT EQUITY ACT
This Act is aimed at redressing the wrongs of the Apartheid era and ensuring that employment is not racially based. It does this by trying to ensure that companies above a certain size (with... read more
 
EMPLOYMENT TAX INCENTIVE ACT
An Act designed to incentivise employers to employ young people in the economy. The Employment Tax Incentive Act (26 of 2013), which is also called the Youth Employment Tax Incentive,... read more
 
ENCUMBERED
The word "encumbered" is applied to assets which are bonded or otherwise used as security to cover a loan.
 
END OF DAY PRICE
This is  closing price of a share at the end of the trading day. Most software available to private investors makes use of end of day data. The JSE provides a feed of such data for a royalty... read more
 
ENDOWMENT
An endowment insurance policy is a type of savings/investment. A pure endowment offers no risk or term insurance. The problem with these policies is that they generally give a very low return... read more
 
ENERGY INFORMATION ADMINISTRATION (EIA)
The EIA describes itself as, "The U.S. Energy Information Administration (EIA) collects, analyzes, and disseminates independent and impartial energy information to promote sound policymaking,... read more
 
ENGULFING GREEN
A bottom candlestick reversal signal, this is a two candlestick pattern consisting of a large green candle enveloping a preceding red candle. This pattern implies that the trend is likely to... read more
 
ENGULFING PATTERN
In candlestick terminology, a multiple candlestick line pattern; a major reversal signal with two opposing-color real bodies making up the pattern (also referred to as a tsutsumi). An engulfing... read more
 
ENTREPRENEUR
This is a "go-getter" who establishes and runs a business for his own account and shares in the risks and profits.
 
ENTRY
The point at which a trader gets into a position in the market.
 
ENTRY THRESHOLD
This is the cost of establishing a new business in a particular industry. Some industries require a considerable capital investment to be viable and so have a high entry threshold. For example,... read more
 
ENVELOPE
Lines surrounding an index or indicator - that is, trading bands.
 
ENX
01 - 06 - 2020
The enX Group (ENX) is a "diversified industrial group that provides branded products and services to the petrochemical, fleet management, logistics and industrial sectors.”... read more
 
EOH
10 - 06 - 2020
Enterprise Outsourcing Holdings (EOH) was Africa’s largest information technology company with involvement in almost every aspect of computer applications. The company... read more
 
EPE
29-09-2020
Ethos Capital Partners (EPE) is a private equity fund (PEF), incorporated in Mauritius, which invests into unlisted companies for long-term capital appreciation on behalf of its... read more
 
EPP
30 - 09 - 2020
EPP is a Dutch-based real estate investment trust (REIT), listed on both the JSE and the Luxembourg Stock Exchange, and is owned 39% by Redefine. It owns 25 retail centers... read more
 
EPS
A company's earnings (profit) divided by the number of ordinary shares usually expressed as a number of cents per share. The earnings per share (EPS) includes all the companies incomes and expenses... read more
 
EQU
14 - 10 - 2020
Equites (EQU) is the only real estate investment trust (REIT) on the JSE which specialises in industrial logistics and distribution properties in South Africa and the UK.... read more
 
EQUILIBRIUM
A price region that represents a balance between demand and supply. This is a microeconomics term which suggests that in any free market supply and demand are opposing forces which reach a balance... read more
 
EQUILIBRIUM MARKET
A price region that represents a balance between demand and supply. This is a microeconomics term which suggests that in any free market supply and demand are opposing forces which reach a balance... read more
 
EQUITY
That portion of share capital which carries risk, and shares in profits through dividends that are dependent on profitability. Ordinary shares are often called equity shares, and other types... read more
 
EQUITY ACCOUNTING
When a company owns more than 20% of another company, then in terms of IAS 28, that company is an associate company and it must be valued at its cost plus any increase in net asset value. Investments... read more
 
EQUITY INVESTOR
A natural person (rather than a corporate entity) who invests on the stock market either directly or indirectly. Private investors make up only about 10% of the trades done on the JSE. The other... read more
 
EQUITY SHARE
Also sometimes called "equity" shares, these shares share in the profits and risks of the company. Unlike the fixed dividend paid to preference shareholders, the ordinary dividend is decided... read more
 
EQUIVOLUME CHART
Created by Richard W. Arms in 1963, a chart in which the vertical axis is the high-low range for each day, while the horizontal axis represents the volume of shares of stock or the number of... read more
 
ERN
29 - 05 - 2019 This is a bankrupt oil and gas exploration company which was listed in New York and on the JSE in 2014. The company is 56,7% held by Camac Energy Holdings, which is a company said... read more
 
ESCROW
An escrow account is one which is under the control of a third party (usually an attorney) who then determines when the funds can be released for payment based on specified conditions. Escrow... read more
 
ESR
This was one of South Africa's large listed construction and engineering companies involved in sanitation, pipelines, building and housing. Esor (ESR) recently went into business rescue in August... read more
 
ESTATE DUTY
A tax on a deceased estate. In South Africa, estate duty is 20% on the first R30m of an estate and then 25% on any amount above that. 
 
ESTIMATED EPS CHANGE
Change in estimated mean earnings per share for the current fiscal year from the last month, last three months and last six months to the current month.
 
ETF
Collections of securities that are bought and sold as a package on an exchange. Essentially, buying an ETF means tracking a group or "basket" of shares, bonds or commodities, and sometimes an... read more
 
ETN
A debt security traded on a stock exchange. An exchange trade note (ETN) is similar to an exchange traded fund (ETF) in that they both track underlying assets and both are traded on a stock exchange... read more
 
ETO
14 - 08 - 2020
Etion (ETO), previously Ansys, is an Alt-X listed technology company that started 31 years ago and listed on the JSE in June 2007. It seeks to capitalise on the digital revolution... read more
 
EURIBOR
This is abreviated to "euribor" and it is an interest rate which is based on the average rates for unsecured funds at European banks. It is Europe's equivalent of the London interbank offer rate... read more
 
EURO INTERBANK OFFERED RATE
This is abreviated to "euribor" and it is an interest rate which is based on the average rates for unsecured funds at European banks. It is Europe's equivalent of the London interbank offer rate... read more
 
EURODOLLAR
Dollars deposited in foreign banks, with the futures contract reflecting the rates offered between London branches of top US banks and foreign banks.
 
EUROPEAN CENTRAL BANK
The Central Bank for the European Union.
 
EUROPEAN OPTION
 
EUROPEAN UNION (EU)
The principal goal of the EU has been to establish a single European currency called the Euro, to officially replace the national currencies of the member EU countries. On January 1, 1999, the... read more
 
EUROSTOXX
The Eurostoxx 50 index is an index (weighted average) of the 50 largest and most liquid stocks trading in the Eurozone. It is just one of the indexes offered by Stoxx - which is owned by the... read more
 
EUZ
08 - 10 - 2020
Europa (EUZ) is a European metals developer which operates primarily in Spain where it mines lead, zinc and silver. They own 100% of the Toral project in Leon Province which... read more
 
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 of taxes due. Evasion differs from... read more
 
EVENING STAR
A candlestick formation which is the bearish counterpart of the morning star pattern; a top reversal, it should be acted on if it arises after an uptrend. The morning star and evening star formations... read more
 
EX OFFICIO DIRECTOR
This is a person who is deemed to be a director by virtue of his office or function within an organisation. Section 66 (4) (a) (ii) of the Companies Act (71 of 2008) states: "a person to be an... read more
 
EX-DIV
A share is "ex div" once the last day to trade has passed. Any sales after the last day to trade are done on the basis that the dividend accrues to the buyer, even if it has not yet been actually... read more
 
EX-DIVIDEND DATE
The day on which the right to receive a current dividend is not automatically transferred to a buyer. This is usually the Monday after the last day to register for the dividend. On this day the... read more
 
EXCHANGE
A securities exchange that is properly formulated and run in accordance with an Act of Parliament. The Johannesburg Securities Exchange (JSE) is an organised exchange and there are many others... read more
 
EXCHANGE CONTROL
This is a set of rules and limitations placed on the trade in foreign currencies. The normal objective of exchange control is to enable the government to stabilise the flow of funds into and... read more
 
EXCHANGE RATE
An exchange rate is the rate at which one currency can be traded for another. Thus, for example, the rand trades against the US dollar at rates which fluctuate throughout the day. The same is... read more
 
EXCHANGE TRADED FUND
Collections of securities that are bought and sold as a package on an exchange. Essentially, buying an ETF means tracking a group or "basket" of shares, bonds or commodities, and sometimes an... read more
 
EXCHANGE TRADED NOTE
A debt security traded on a stock exchange. An exchange trade note (ETN) is similar to an exchange traded fund (ETF) in that they both track underlying assets and both are traded on a stock exchange... read more
 
EXEMPT INCOME
In terms of the Income Tax Act natural persons (i.e. not corporate entities) do not have to pay tax on interest income from a South African source up to R23800 per annum (and R34500 for people... read more
 
EXEMPT SUPPLIES
South Africa has Value Added Tax of 15% which is levied on all products except  for what are known as "exempt supplies" - which include education, after-care for children, rentals, and certain... read more
 
EXEMPTED MICRO ENTERPRISE
An exempted micro enterprise (EME) is a small business in South Africa that is exmpted from the requirements of the Broad Based Balck Economic Empowerment Act (53 of 2003) because of its small... read more
 
EXERCISE
The process by which the holder of an option makes or receives delivery of shares of the underlying security.
 
EXHAUSTION GAP
When a share's price has been rising for some time and quickly, it will sometimes have a day where the lowest price is far above the previous day's high price - this shows on the chart as a gap... read more
 
EXIT
The point at which a trader closes out of a trade.
 
EXP
29 - 05 - 2020
Exemplar (EXP) is a real estate investment trust (REIT) which specialises in developing rural shopping centres through its relationship with McCormick Property Development.... read more
 
EXPANSIONARY POLICY
A policy of the Reserve Bank's Monetary Policy Committee (MPC) to stimulate the economy by reducing interest rates and other expansionary monetary policies such as buying back government bonds... read more
 
EXPENDITURE
This is an economics term which refers to the total expenditure within the economy. It is a method of calculating gross domestic product. The formula is:
Gross Domestic Product = Consumer... read more
 
EXPENSE
This something which a company has to pay for. Companies have two types of expenses - those which go up and down with sales and those which have to be paid even if there are no sales. The variable... read more
 
EXPENSE RATIO
This is a ratio used in the insurance industry to establish the direct costs associated with acquiring, servicing and underwriting the premiums earned by the company. These costs could include... read more
 
EXPENSIVE
A term used by analysts and investors to describe a share which is trading above what they perceive to be its real value. Obviously, this is a value judgement and each analyst and investor will... read more
 
EXPIRATION DATE
Generally the last date on which an option may be exercised. It is not uncommon for an option to expire on a specified date during the month prior to the delivery month for the underlying futures... read more
 
EXPONENTIAL MOVING AVERAGE
An exponential moving average (EMA) is one in which the latest prices in the moving average are weighted much more heavily than the oldest prices. The weighting varies over the period of the... read more
 
EXPONENTIAL SMOOTHING
A mathematical-statistical method of forecasting that assumes future price action is a weighted average of past periods; a mathematic series in which greater weight is given to more recent price... read more
 
EXPONENTIAL WEIGHTING
Moving averages are the most basic form of line chart in technical analysis. They are more commonly used in conjunction with other indicators than as indicators in their own right. One of the... read more
 
EXPORT
The sale of products produced locally in foreign markets generating an inflow of foreign currency. The value of a country's imports is subtracted from the value of its exports in the trade account... read more
 
EXPORT LED
A term used by economists to explain the fact that economic booms in South Africa are generally caused by a strong recovery in commodity exports and prices. This is because South Africa is primarily... read more
 
EXPOSED
The degree to which a portfolio or other investment is susceptible to risk from certain factors. For example, a share in a company whose main business is importing would be highly "exposed" to... read more
 
EXPOSURE
The degree to which a portfolio or other investment is susceptible to risk from certain factors. For example, a share in a company whose main business is importing would be highly "exposed" to... read more
 
EXPRESSION OF INTEREST
An expression of interest (EOI) is an approach by an acquisitive company which seeks to acquire another company. They would first send an EOI - and then engage in discussions with the target... read more
 
EXPROPRIATION OF LAND

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

 
EXTRAORDINARY ITEM
An Income Statement item which shows an expense or income which is not part of the company's normal business. For example, if a supermarket chain sells a piece of land and makes a profit, then... read more
 
EXTREME POVERTY
The worst level of poverty defined by the World Bank as an income per person of less than $1.25 per day. About one fifth of people living in developing countries are in extreme poverty... read more
 
EXX
14 - 08 - 2020
Exxaro (EXX) is South Africa's BEE coal company with interests in iron and heavy minerals. It has interests in Australia, America and Europe. It is a provider of coal to Eskom's... read more
 
EY
Earnings per share expressed as a percentage of the current market price of the share. For example, a company with 25 cents earnings per share and a market price of 250 cents would have an earnings... read more
 
FACE OF THE ACCOUNTS
The actual income statement and balance sheet - as opposed to the notes to those accounts. Certain information is always shown on the face of the accounts - like fixed assets or turnover - while... read more
 
FACE VALUE
The dollar value of a U.S. Treasury Bill at maturity. T-Bills are issued at a discount to face value and gradually increase in value until reaching the full face value on the maturity date.
 
FACTOR
A mechanism for financing a business by selling its debtors' book to a financing company, known as a "factor", usually at a significant discount. This method of finance is usually far more expensive... read more
 
FACTOR MARKET
A market for one of the factors of production. Traditionally in economics there are four factors of production identified - labour, land, capital and entrepreneurial ability. Each of these factors... read more
 
FACTORING
A mechanism for financing a business by selling its debtors' book to a financing company, known as a "factor", usually at a significant discount. This method of finance is usually far more expensive... read more
 
FACTORS OF PRODUCTION
An economics concept which refers to the four broad categories of scarce resources used in the economy. Those resources are land, labour, capital and entrepreneurial ability. All products and... read more
 
FACTORY OUTPUT
An economic indicator which measures the output from manufacturing. Manufacturing production is measured and published monthly. Following the COVID-19 pandemic, manufacturing production in South... read more
 
FADE
Selling a rising price or buying a falling price. A trader fading an up opening would be short, for example.
 
FAILED STATE
The governing ability of a failed state is weakened to an extent where it is unable to fulfil the organisational and administrative functions required to control people. The State can only provide... read more
 
FAILED TRADE
A securities trade in equities, bonds or other securities where either the seller fails to supply the security of the buyer fails to supply the cash within the required time-frame. The JSE has... read more
 
FAILURE
 
FAILURE SWINGS
The inability of price to reaffirm a new high in an uptrend or a new low in a downtrend.
 
FAIR VALUES
(1) A value for the shares of dissenting shareholders in determining their appraisal rights. The Companies Act (71 of 2008) allows minority shareholders the right to have their shares bought... read more
 
FAIS
This Act (37 of 2002) tries to protect the public from financial advisors and those who sell financial/investment products. It substantially increases the accountability and disclosure of financial... read more
 
FALLING THREE METHODS
A candlestick formation which occurs in an established bear trend and which is used to predict the continuation of that trend. This formation begins with a long red candle within a downtrend.... read more
 
FAMILY GROUP
A holding company which is currently owned and controlled by a single family. There are many such companies listed on the JSE. Here a company is started by an entrepreneur and then grown over... read more
 
FANG
The four new high-tech companies which are dominating the New York Stock Exchange. They are Facebook, Amazon, Netflix and Google. All four companies are growing quickly and are deeply invested... read more
 
FAST MARKET
A declaration that market conditions in the futures pit are so disorderly temporarily to the extent that floor brokers are not held responsible for the execution of orders.
 
FAST MOVING CONSUMER GOODS
This is a category of retailers which sell products that have a relatively short sales cycle - like groceries, clothing and small appliances. Typical examples would be Pick 'n Pay, Woolies, Shoprite,... read more
 
FBR
15 - 10 - 2020
Famous Brands (FBR) is Africa's largest branded fast-food retail franchisor with 27 brands and more than 2900 restaurants. The company owns well-known South African brands... read more
 
FDI
All investment into South Africa by foreigners. FDI is a very important factor in the South African economy. We have some tremendous successes and some dismal failures. The successes include... read more
 
FDP
01 - 09 - 2020
Freedom Property Fund (FDP) is a property share that listed on the JSE on 12th June 2014. The properties are commercial, industrial and residential. The company's shares were... read more
 
FED
The governing central bank of the US. There are twelve regional federal reserve banks in America, located in Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St Louis, Minneapolis,... read more
 
FEDERAL DEPOSIT INSURANCE CORPORATION
A self-sustaining, independent executive agency established to insure deposits of all US banks entitled to federal deposit insurance, as stated by the Federal Reserve Act.
 
FEDERAL OPEN MARKET COMMITTEE
The policy making committee of the Federal Reserve Bank. They meet on a regular basis, every other Monday to make decisions on US economic policy. These meetings are open to the public. Specifically... read more
 
FEDERAL RESERVE BANK
The governing central bank of the US. There are twelve regional federal reserve banks in America, located in Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St Louis, Minneapolis,... read more
 
FENCE
An options startegy which uses three contracts to establish a range around a security or commodity. It locks in the value of a position but sacrifices some of the upside potential in doing so.... read more
 
FENCE STRATEGY
An options startegy which uses three contracts to establish a range around a security or commodity. It locks in the value of a position but sacrifices some of the upside potential in doing so.... read more
 
FERRO-CHROME
 
FFA
19 - 08 - 2020
See the opinion for Fortress "B" - FFB
Click here to go to the company's website.
 
FFB
05 - 09 - 2020
Fortress (FFA and FFB) is a real estate investment trust (REIT) with properties held in its own name and shareholdings in other REITs. Principally, it owns shares in Nepi... read more
 
FGL
05 - 10 - 2020
Finbond (FGL) is a micro-lending and insurance operation which operates in South Africa and America. This company wants to expand in the US to the point where 70% to 80% of... read more
 
FIA
The US national trade association for Futures Commission Merchants. The FIA is the only association representative of all organisations that have an interest in the futures market in the US.... read more
 
FIAT CURRENCY
All currencies were originally commodity currencies - which means that they had the value inherent in the commodity which they were made of. Thus, a gold coin was worth the value of its gold... read more
 
FIBONACCI RATIO
The ratio between any two successive numbers in the Fibonacci sequence, known as phi (f). The ratio of any number to the next higher number is approximately 0.618 (known as the Golden Mean or... read more
 
FIBONACCI SEQUENCE
The sequence of numbers (0, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233...), discovered by the Italian mathematician Leonardo de Pisa in the 13th century and the mathematical basis of the Elliott... read more
 
FICA
This Act (38 of 2001) is known as FICA and it came into effect on 1st July 2001. The objective is to combat crimes such as tax evasion and money laudering and it is similar to legislation in... read more
 
FIFO
The "first in first out" method of valuing stocks. The assumption is made that the oldest stock is sold first when valuating what remains at the end of the accounting period.
 
FILL
An executed order; sometimes the term refers to the price at which an order is executed.
 
FILL OR KILL
(FK) means the full order must be executed immediately or otherwise cancelled.
 
FILL ORDER
An order that must be filled immediately (or cancelled).
 
FILTER
A device or program that separates data, signal or information in accordance with specified criteria. So a charting program typically contains a filter of some sort which allows the user to search... read more
 
FILTER POINT
The time at which a portfolio insurance program makes an adjusting trade.
 
FINAL ACCOUNTS
Sometimes known as an Annual Report or just the "financial statements", this is a document required by the Companies Act (71 of 2008) to be produced once a year for presentation... read more
 
FINAL CONSUMPTION EXPENDITURE
A national accoutns figure which includes that expenditure which is undertaken by individuals and companies within a country or whose main business is inside the country to satisfy needs and... read more
 
FINAL DIVIDEND
The dividend paid when the directors know what the final profit for the year will be. Added to the interim dividend, this gives the total dividend for the year.
 
FINAL FINANCIAL STATEMENTS
Sometimes known as an Annual Report or just the "financial statements", this is a document required by the Companies Act (71 of 2008) to be produced once a year for presentation... read more
 
FINAL GOOD
A "good" or product which is consumed rather than used to create another product. This is as opposed to intermediate goods which are used in the manufacture of other products.
 
FINANCE COSTS
A disclosable expense which comes about as a result of a company having interest-bearing debt. Finance costs are usually disclosed on the Income Statement as a net figure (i.e. interest paid... read more
 
FINANCIAL ACCOUNTING
A set of conventions for recording and gathering financial transactions in an organisation. The academic discipline which is accountancy has established a set of conventions for totaling the... read more
 
FINANCIAL ADVISOR
To become a certified financial planner (CFP) you must have a post-graduate qualification from one of the recognised Financial Planning Institute's (FPI) approved educuation providers. There... read more
 
FINANCIAL ADVISORY AND INTERMEDIARY SERVICES ACT
This Act (37 of 2002) tries to protect the public from financial advisors and those who sell financial/investment products. It substantially increases the accountability and disclosure of financial... read more
 
FINANCIAL DIRECTOR
One of the directors of a company who is responsible for the company's finances. The Companies Act makes no distinction between the various directors of a company - they all have the same responsibilities... read more
 
FINANCIAL FUTURE
A futures contract which has as its underlying instrument a financial indicator such as an index or an exchange rate. Clearly, indexes and exchange rates cannot be delivered so 100% of financial... read more
 
FINANCIAL INDEPENDENCE
Obviously, every private investor's goal is to reach a point of financial independence, where they no longer have to "work for a living", but can live off the return from their investments. The... read more
 
FINANCIAL INSTITUTION
A financial institution is one which makes its profits by dealing with other people's money. Perhaps the best example is a commercial bank, but there are many other types - like insurance companies... read more
 
FINANCIAL INTELLIGENCE CENTERS ACT
This Act (38 of 2001) is known as FICA and it came into effect on 1st July 2001. The objective is to combat crimes such as tax evasion and money laudering and it is similar to legislation in... read more
 
FINANCIAL MARKETS ACT
This Act which came into force in the middle of 2014 brings our legislation into line with international norms. Its objective is to tighten up control over the financial markets and it aligns... read more
 
FINANCIAL MEDIA
These are newspapers, magazines, talk shows and websites that are devoted to reporting on developments in the financial markets for the benefit of investors and the business community. South... read more
 
FINANCIAL RATIO
The relationship between two figures from the financial statements, designed to show the profitability or effectiveness of the management within a company. Ratios have no absolute significance,... read more
 
FINANCIAL REPORTING STANDARDS COUNCIL
The FRSC replaced the Accounting Practices Board in October 2011 as the official body determining accounting standards in South Africa. It is established in terms of the Companies Act (71 of... read more
 
FINANCIAL RESULTS
Sometimes known as an Annual Report or just the "financial statements", this is a document required by the Companies Act (71 of 2008) to be produced once a year for presentation... read more
 
FINANCIAL SECTOR CONDUCT AUTHORITY
Previously known as the Financial Services Board (FSB). The Financial Sector Conduct Authority (FSCA), newly named with the advent of the Twin Peaks mechanism, introduced on 1st April 2018, is... read more
 
FINANCIAL SECTOR REGULATION ACT
Brought into effect on 22 August 2017, the Financial Sector Regulation Act (9 of 2017) introduces the Twin Peak model, which is a new regulatory environment for the banking and financial... read more
 
FINANCIAL SERVICES BOARD
Previously known as the Financial Services Board (FSB). The Financial Sector Conduct Authority (FSCA), newly named with the advent of the Twin Peaks mechanism, introduced on 1st April 2018, is... read more
 
FINANCIAL SERVICES CHARTER

The major sectors of the South African economy are governed by sets of rules known as charters which establish... read more

 
FINANCIAL SERVICES PROVIDER
The Financial Advisory and Intermediary Act provides for the registration of persons (natural or corporate) to give investment advice to investors. The Act requires that such persons are people... read more
 
FINANCIAL STABILITY OVERSIGHT COMMITTEE
The Financial Stability Oversight Committee consists of the Reserve Bank, the National Treasury and the Financial Services Board established in terms Part 3 of the Financial... read more
 
FINANCIAL TIMES
This is an English daily financial paper that has become international and which is published digitally. It is owned by the Japanese company, Nikkei which also publishes the Nikkei Asian Review... read more
 
FINANCIAL TIMES INDUSTRIAL INDEX
A share price index calculated hourly during business hours from an unweighted average of thirty leading blue chips listed on the London Stock Exchange. Until recently this index was the best... read more
 
FINANCIAL TIMES STOCK EXCHANGE
Financial Times Stock Exchange. This is a company which specializes in calculating indexes on the London Stock Exchange (LSE). It has produced a group of indices which are developed and maintained... read more
 
FINANCIAL TIMES STOCK EXCHANGE 100 INDEX
A market-capitalisation weighted index of the 100 largest companies trading on the London Stock Exchange (LSE). This index is more commonly known as the "footsie". Like most markets around the... read more
 
FINANCIAL TIMES STOCK EXCHANGE GROUP PLC
Financial Times Stock Exchange. This is a company which specializes in calculating indexes on the London Stock Exchange (LSE). It has produced a group of indices which are developed and maintained... read more
 
FINANCIAL YEAR
The period of time over which the financial affairs of a company are being accounted for in the financial statements. The matching principle ensures that the incomes... read more
 
FINANCIAL YEAR
In terms of section 27 of the Companies Act (71 of 2008), every company is required to have a financial year-end which is the end of its accounting period. By paying a fee and lodging the prescribed... read more
 
FINANCIAL YEAR-END
In terms of section 27 of the Companies Act (71 of 2008), every company is required to have a financial year-end which is the end of its accounting period. By paying a fee and lodging the prescribed... read more
 
FINANCIALLY DISTRESSED
This refers to a company which does not have sufficient short-term cash flow to meet its immediate expenses. When a company is in "financial distress", the provisions of chapter 6 of the Companies... read more
 
FINANCIALS
These are share in the financials sector of the JSE. They are mainly involved in banking, asset management or insurance. Financial companies are inherently service companies offering a service... read more
 
FINISHED GOODS
Products which are ready for sale. Usually a manufacturing company will divide its stock into 3 categories - raw materials, work-in-progress and finished goods. Finished goods are those products... read more
 
FIRMING MARKET
A market which is gradually getting stronger - successive highs and lows are higher than previous highs and lows. Firming trends can be short-term lasting for a few days or weeks, a rally which... read more
 
FIRMING TREND
A market which is gradually getting stronger - successive highs and lows are higher than previous highs and lows. Firming trends can be short-term lasting for a few days or weeks, a rally which... read more
 
FIRST NOTICE DAY
The first day on which notice of intent to deliver a commodity in fulfilment of an expiring futures contract can be given to the clearinghouse by a seller and assigned by the clearinghouse to... read more
 
FIRST WORLD
These are the larger and better established economies that have substantial capital bases and a long track record of effective management. Their currencies are generally far more stable than... read more
 
FIRST WORLD ECONOMY
These are the larger and better established economies that have substantial capital bases and a long track record of effective management. Their currencies are generally far more stable than... read more
 
FIRST-IN-FIRST-OUT
This is a method of valuing stock which assumes that the oldest stock in the warehouse is used before the more recently purchased stock. Since the price of stock purchased will usually go up... read more
 
FISCAL
Every government spends money and levies taxes to finance its expenditure. Every government must therefore regularly decide how much to spend, what to spend it on and how to finance its expenditure.... read more
 
FISCAL CLIFF
A radical reduction in government spending caused by an unforseen event or series of events which increase government debt substantially. America almost experienced a fiscal cliff in January... read more
 
FISCAL CONSOLIDATION
Concrete policies undertaken by government to stem debt accumulation and reduce the fiscal deficit. This can be achieved by an increase in revenue, or taxation, and a reduction in government... read more
 
FISCAL DRAG
Bracket creep, also called "fiscal drag" occurs because, with inflation, tax payers are pushed into higher tax brackets each year. In normal circumstances the Minister of Finance will compensate... read more
 
FISCAL POLICY
Every government spends money and levies taxes to finance its expenditure. Every government must therefore regularly decide how much to spend, what to spend it on and how to finance its expenditure.... read more
 
FISCAL STIMULATION
The government of a country can stimulate its economy in two primary ways - through monetary policy (mostly by reducing the repo rate) of fiscal policy. Fiscal stimulation means decreasing taxes... read more
 
FISCAL YEAR
The financial year of the government. In South Africa our fiscal year runs from 1st March until the 28th or 29th of February the following year. Our budgets are made for this fiscal year and... read more
 
FISCUS
This is another term for the national treasury which controls the finances of the country. The national treasury is part of the Ministry of Finance and it is instrumental in producing the budget... read more
 
FITCH
One of the three internationally recognised rating agencies (along with Standard and Poors and Moodys). Ratings agencies rate governments, companies and para-statals - anyone who issues and sells... read more
 
FIX
The result of a twice-a-day dedicated conference between the 15 members of the London Gold Market Fixing Ltd. Previously this meeting was held at the premises of Nathan Meyer Rothchild &... read more
 
FIXED ASSET
An asset which is expected to last and be useful for a number of years, and which is held for use in the production or supply of goods or services, for rental to others or for administrative... read more
 
FIXED COSTS
These are costs which a company has to pay whether or not they sell anything. So expenses like rent, telephone, salaries and so on. This is as opposed to "variable costs" which go up and down... read more
 
FIXED EXCHANGE RATES
Following the Bretton Woods agreement most currencies (and especially the US dollar) were fixed against gold. President Nixon abandonned Bretton Woods in the early 1970's and after that most... read more
 
FIXED INCOME
These are investments which give a set return, such as preference shares, bonds, debentures and savings accounts.
 
FIXED INCOME INVESTMENT
These are investments which give a set return, such as preference shares, bonds, debentures and savings accounts.
 
FIXED INTEREST UNIT TRUST
A unit trust which only invests in fixed interest investments on the money market, sometimes also called a "fixed interest unit trust". These unit trusts offer much greater security that unit... read more
 
FLAG
This is a fairly rare charting formation which can occur either in a upward or a downward trend where the market enters a period of uncertainty and moves sideways for a period before the trend... read more
 
FLAG FORMATION
A charting formation where the price chart forms a pattern which looks something like a triangle. The difference between a pennant and a triangle is the length of time that the formation occurs... read more
 
FLASH FILL
Order filled immediately by hand signal on an "open outcry" trading floor.
 
FLEDGLING
Consisting of ordinary shares which comply with all listing requirements, but are too small to be included in the All Share Index and which are not tested for liquidity. There are five JSE indices... read more
 
FLIGHT TO QUALITY
A period when international investors are for some reason "spooked" and rush to take money out of more risky investments (like emerging markets) and place it in traditionally safe assets like... read more
 
FLIPPING
The practice of buying shares in a new listing before it comes to the market with the objective of making a profit when trading begins.
 
FLOAT
(1) The number of shares currently available for trading. (2) As a verb, meaning to list a company on an organised exchange, usually through an initial public offer (IPO)
 
FLOATING
(1) The number of shares currently available for trading. (2) As a verb, meaning to list a company on an organised exchange, usually through an initial public offer (IPO)
 
FLOOR BROKER
An individual who executes orders on the trading floor of an "open outcry" exchange for any other person. They are independent members of the various futures exchanges who typically handle customer... read more
 
FLOOR TRADER
An individual who is a member of an exchange and trades for his own account on the floor of the exchange.
 
FLOW OF FUNDS STATEMENT
Today, this statement is more commonly called a "Flow of Funds Statement" but is also known as the "Cash Flow Statement". It aims to show where the cash in the business came from and how it was... read more
 
FLYERS
Speculative or high-risk trades.
 
FMCG
This is a category of retailers which sell products that have a relatively short sales cycle - like groceries, clothing and small appliances. Typical examples would be Pick 'n Pay, Woolies, Shoprite,... read more
 
FOCUS
The degree to which a company can concentrate it's energy on its core business. Philip Kotler, the world-renowned management consultant said that the most important question a business can ask... read more
 
FOMC
The policy making committee of the Federal Reserve Bank. They meet on a regular basis, every other Monday to make decisions on US economic policy. These meetings are open to the public. Specifically... read more
 
FORCE MAJEURE
A completely unpredictable event or "black swan" (see The Black Swan" by Nasssim Talbert) event, usually but not always occurring as a result of some natural phenomenon such as a hurricane,... read more
 
FORCE MAJEURE
In law this refers to an unpredictable event which prevents one party from completing its obligations in terms of a contract. Most major contracts contain a force majeure clause which allows... read more
 
FORECAST ORIGIN
The most recent historical period for which data is used to build a forecasting model. The next time period is the first forecast period.
 
FORECLOSURE
A legal option available to a lender who has an asset as collateral which entitles him to sell that asset to recover what is owed to him. In general, foreclosures happen when a person is behind... read more
 
FOREIGN ASSETS
Assets held outside of a country minus its foreign liabilities. In South Africa, most foreign assets are held by companies which are required to disclose them by law. The value of South Africa'... read more
 
FOREIGN COLLECTIVE INVESTMENT SCHEME
This is a collective investment scheme which has at least 85% of its investments outside South Africa all the time. Collective investment schemes are controlled by the Collective Investment Schemes... read more
 
FOREIGN CURRENCY
The foreign exchange (forex) market. This is the cash or "spot" market for foreign currencies. Trade does not occur on centralized contract markets but rather, over-the-counter in an international... read more
 
FOREIGN DIRECT INVESTMENT
All investment into South Africa by foreigners. FDI is a very important factor in the South African economy. We have some tremendous successes and some dismal failures. The successes include... read more
 
FOREIGN EXCHANGE
The foreign exchange (forex) market. This is the cash or "spot" market for foreign currencies. Trade does not occur on centralized contract markets but rather, over-the-counter in an international... read more
 
FOREIGN EXCHANGE FUTURE
A contract to exchange one currency for another at a specific future date (the expiration date) and at a specified rate (the exchange rate). More than most derivatives, foreign exchange futures... read more
 
FOREIGN INVESTMENT ALLOWANCE
A limit on the ammount that South Africans can take out of the country for investment purposes. At the moment that limit is set at R10m per annum in addition to the R1m "discretionary allowance"... read more
 
FOREIGN INVESTOR
THis refers to any non-South African who brings money into South Africa. The government is at pains to encourage foreing investors into Sotuh Africa to create jobs and stimulate the economy.... read more
 
FOREIGN INWARD LISTING
A foreign company, listed on the JSE and classified by the South African Reserve Bank (SARB) as foreign for index purposes. These companies can be included in the indices, but at a reduced weight.... read more
 
FOREIGN RESERVES
A reserve of precious metals and foreign currencies kept by the Reserve Bank.
 
FOREX
The foreign exchange (forex) market. This is the cash or "spot" market for foreign currencies. Trade does not occur on centralized contract markets but rather, over-the-counter in an international... read more
 
FOREX FUTURE
A contract to exchange one currency for another at a specific future date (the expiration date) and at a specified rate (the exchange rate). More than most derivatives, foreign exchange futures... read more
 
FORMAL BUSINESSES
That part of the economy that operates within the country's laws. It complies with all the laws on income tax, licencing, reporting and other regulations. This is as opposed to the informal sector... read more
 
FORMAL SECTOR
That part of the economy that operates within the country's laws. It complies with all the laws on income tax, licencing, reporting and other regulations. This is as opposed to the informal sector... read more
 
FORMATION
The discipline of "technical analysis" or "charting", as it is sometimes called, consists of studying chart patterns with a view to establishing patterns that can be used to improve prediction... read more
 
FORMATION ANALYSIS
The study of technical analysis can be divided into three primary areas - Formation Analysis, Line charts and Wave and Cycle Theories. Formation analysis is the study of the various patterns... read more
 
FORWARD (CASH) CONTRACT
A contract which requires a seller to agree to deliver a specified cash commodity to a buyer sometime in the future. All terms of the contract are customised, in contrast to futures contracts... read more
 
FORWARD BOOK
An account in the derivatives market that the Reserve Bank maintains to execute transactions in the currency market. There is always a temptation for the Reserve Bank to try to protect the rand... read more
 
FORWARD BOOK
This is the state of the Reserve Bank's forward book in the foreign currency market. In the past, the Reserve Bank ran a substantial deficit on the forward book which reached as much as US$25bn... read more
 
FOUNDING DATE
The date on which a company was founded. You should bear in mind that this date is often long before the date that the company was listed on the JSE. Your stock exchange handbook gives the year... read more
 
FOUR PRICE DOJI
A candlestick where all four prices, high, low, close and open are all the same for one trading day. On a well-traded share this would be a very rare occurrence. With a thinly traded share, if... read more
 
FRAMING OR FRAME DEPENDENCE
Behavioural finance. The tendency to evaluate current decisions within the framework in which they have been presented. Making decisions based on perceptions of risk/return rather than pure risk... read more
 
FRAUD ON THE MINORITY
An old concept which has been replaced in the Companies Act (71 of 2008) in sections 163/4 with the concept of a dissenting shareholder and their appraisal rights. Basically, if a shareholder... read more
 
FREE CARRY
This is a percentage of a company's equity and profits that is not paid for. This is typically enforced by law in favour of the government on a business, usually a mining company, for the exploitation... read more
 
FREE CASH FLOW
The cash generated by a company from its sales (revenue) less its operating expenses and any capital expenditure that it may have to make. Free cash flow is used to determine the company's cash... read more
 
FREE DEALING
A term used to describe listed shares which trade in large volumes regularly and can be bought or sold freely on the Securities Exchange. You should be careful of shares which are "tightly held"... read more
 
FREE FLOAT
The proportion of a company's shares which are held by the public at large. This excludes shares which are part of a lock-in or which are destined for the company's employee share option scheme.... read more
 
FREE MARKET
This refers to a  market which is free from interference or control by government. In such markets prices are determined by the interaction of supply and demand. Transactions are completely... read more
 
FREE TRADE
This refers to a  market which is free from interference or control by government. In such markets prices are determined by the interaction of supply and demand. Transactions are completely... read more
 
FREE-FLOAT MARKET CAPITALISATION
The free float of a company's shares multiplied by their current market price. Also known as the free float market cap., or the investable market capitalisation. This is used in the construction... read more
 
FRIEDMAN MILTON
Friedman was a Nobel prize winning American economist who developed the economic school of thought known as "monetarism". This school rejected the Keynesian approach in the mid-1970s. The major... read more
 
FRONT END DEBT-TO-INCOME RATIO
A ratio which measures how much of a person's gross monthly income is allocated to their cost of housing. Their cost of housing is either rent or mortgage repayments. The banks that provide mortgage... read more
 
FRONT END RATIO
A ratio which measures how much of a person's gross monthly income is allocated to their cost of housing. Their cost of housing is either rent or mortgage repayments. The banks that provide mortgage... read more
 
FRONT MONTH
The first expiration month in a series of expiration months. Futures contracts typically expire at the end of March, June, September and December.
 
FRONT-LOADED
Commission and fees taken out of investment capital by an asset manager before the balance of the money is put to work.
 
FRONT-RUNNING
The practice of trading ahead of large orders to take advantage of favourable price movements. Brokers are prohibited from this practice.
 
FRONTING
In terms section 1 of the Broad Based Black Economic Empowerment Act (53 of 2003), fronting is any activity which undermines the Act. In effect this means trying to appear compliant with the... read more
 
FRSC
The FRSC replaced the Accounting Practices Board in October 2011 as the official body determining accounting standards in South Africa. It is established in terms of the Companies Act (71 of... read more
 
FRYING PAN BOTTOM
This is the name that technicians give to the bottom formation of a share price where it drifts out slowly from a strong downward trend and then begins to tentatively move upwards into a new... read more
 
FRYING PAN TOP
A cycle top on a chart which drifts out and down in a gradual loss of momentum. This is as opposed to a "V" top which is very sharp and sudden. Also called an Umbrella Top, a Frying Pan Top,... read more
 
FSCA
Previously known as the Financial Services Board (FSB). The Financial Sector Conduct Authority (FSCA), newly named with the advent of the Twin Peaks mechanism, introduced on 1st April 2018, is... read more
 
FSP
The Financial Advisory and Intermediary Act provides for the registration of persons (natural or corporate) to give investment advice to investors. The Act requires that such persons are people... read more
 
FSR
11 - 09- 2020
FirstRand (FSR) has five divisions - First National Bank (FNB), Rand Merchant Bank (RMH), Wesbank, Ashburton (in the UK) and Aldermore. It operates in 10 African countries,... read more
 
FT
This is an English daily financial paper that has become international and which is published digitally. It is owned by the Japanese company, Nikkei which also publishes the Nikkei Asian Review... read more
 
FTSE
Financial Times Stock Exchange. This is a company which specializes in calculating indexes on the London Stock Exchange (LSE). It has produced a group of indices which are developed and maintained... read more
 
FTSE/JSE INDEXES
The indexes are produced as a joint venture between the FTSE group and the JSE. These indexes are mostly in your software and have short codes beginning with "J" such as the FTSE/JSE Overall... read more
 
FULL SERVICE BROKER
A stockbroking firm that mainatins a research department that does research on behalf of its clients and then charges higher brokerage fees. With the advent of online broking, discount brokers... read more
 
FULLY DILUTED
A per share ratio which uses the number of issued shares at the end of the accounting period. Typically a listed company will issue additional shares during the year for a variety of reasons.... read more
 
FULLY DISCOUNTED
When an event which impacts on the profitability of a listed company is fully reflected in its share price, we say that is has been fully discounted. Events which impact the profitability of... read more
 
FULLY PRICED
Fully priced is when the potential of a share to produce future dividends is fully discounted into its price. This means that there is no opportunity for investors to make money by buying the... read more
 
FUND MANAGER
The JSE is dominated by institutional investors which account for as much as 90% of all trades. These institutions are pension funds, insurance companies and unit trusts. The funds which they... read more
 
FUND OF FUNDS
This is a fund manager or unit trust which invests in other funds rather than investing directly into shares, bonds or other primary investments. Fund of funds unit trusts are collective investment... read more
 
FUND OF FUNDS UNIT TRUST
This is a fund manager or unit trust which invests in other funds rather than investing directly into shares, bonds or other primary investments. Fund of funds unit trusts are collective investment... read more
 
FUNDAMENTAL ANALYSIS
The study of all factors which will impact the profitability of a company. Typically, the fundamental analyst is asking the question, "How good will this company be as a generator of dividends... read more
 
FUNDAMENTAL RISK
This is the risk which is inherent in a particular company. It can be assessed by considering the company's financials or visiting it. The more you know about a company and the people who run... read more
 
FUNDAMENTAL TRANSACTION
A transaction undertaken by a company which involves: (1) the sale of all or a large part of the assets of the company (2) a scheme of arrangement, or (3) an amalgamation or merger. The Companies... read more
 
FUNDAMENTALIST
A person who uses fundamental analysis, (rather than technical analysis) to select shares and time their transactions in the stock market. Fundamentalists are concerned with establishing the... read more
 
FUNDAMENTALS
All those factors which will tend to influence the future profits of a company. The most important of these is its past profitability - which is best discovered by a careful examination of the... read more
 
FUNDING AGENCY
An organisation established and funded by the government that provides funds to businesses which are furthering government's objectives. There are many such organisations. For example: (1) the... read more
 
FUNGIBILTY
The tradability of an asset, usually on an organised exchange. The ability to easily sell an asset can have a significant impact on its value. For example, the shares of companies listed on the... read more
 
FUNGIBLE
Fungible instruments are securities which can be easily traded because they are homogenous (i.e. all the same). Organised exchanges deal in and guarantee trades in fungible instruments. Instruments... read more
 
FUNGIBLE INSTRUMENT
Fungible instruments are securities which can be easily traded because they are homogenous (i.e. all the same). Organised exchanges deal in and guarantee trades in fungible instruments. Instruments... read more
 
FUTURE VOLATILITY
A prediction of what volatility may be like in the future. The volatility of a share's price is determined by the degree to which it departs from its average. Obviously a straight line is the... read more
 
FUTURES CONTRACT
A legally binding, standardised agreement to buy or sell a commodity or financial instrument at a future date. Futures contracts are standardised according to the quality, quantity and delivery... read more
 
FUTURES INDUSTRY ASSOCIATION
The US national trade association for Futures Commission Merchants. The FIA is the only association representative of all organisations that have an interest in the futures market in the US.... read more
 
FVT
26 - 09 - 2020
Fairvest (FVT) is a real estate investment trust which specialises in investing in smaller rural and non-urban shopping centers that are focused on consumers who have a lower... read more
 
G20
A group of 19 countries and the European Union which replaced the G7 and includes the larger emerging economies such as China and South Africa. Its objectives include promoting growth of the... read more
 
G30
An international group 24 of academics, financial leaders and econimists that aims to imporve the world economy through a better understanding of economic impacts and decisions. It also has 16... read more
 
G7
This was a group of 7 countries - America, Canada, United Kingdom, France, Germany, Italy and Japan. It was established in in 1975 and was formed from the "Group of 6" which excluded Canada.... read more
 
GAAP
Section 19 of the Financial Advisory and Intermediary Services Act (FAIS) requires that "the financial statements be prepared in conformity with generally accepted accounting practice". The auditor... read more
 
GAI
30 - 07 - 2020
Gaia (GAI) is an infrastructure investment company. It has three divisions - (1) Infrastructure Partners, which invests in large projects in energy, transport, water and sanitation;... read more
 
GAM
Global Asset Management (GAM) is a small asset management and energy company that is extremely thinly traded and is about to be de-listed from the JSE. It is therefore of no interest to private... read more
 
GAMMA
The degree by which the delta changes with respect to changes in the underlying instrument's price.
 
GANN THEORY
Various analytical techniques developed by legendary trader W.D. Gann. His first prophecy is believed to have happened during World War I when he predicted the Nov 9, 1918, abdication of the... read more
 
GANN WILLIAM
An American trader of securities who developed a complex system of charts using astrology, geometry and archaic maths. He died in 1955, but left a substantial following who still use his methods... read more
 
GANN'S SQUARE OF 9
A trading tool that relates numbers, such as a stock price, to degrees on a circle. The Square of 9 is basically a spiral of numbers. The initial value can be found in the centre of the spiral.... read more
 
GAP
A day in which the daily range is completely above or below the previous day's daily range. This term normally refers to a bar chart where the low for one day is considerably above the high for... read more
 
GARNISHEE
A court order which obliges an employer to deduct money from an employee's salary or wage for payment to a creditor. In South Africa a garnishee order cannot be more than 25% of the employee's... read more
 
GAS
Natural gas is a clean burning hydrocarbon, producing far less carbon dioxide and air pollutants compared to coal, when used to generate electricity. It is abundant, there are estimated to be... read more
 
GAUSSIAN
A Chinese actuary and quatitative analyst who is best known for his application of gaussian copulas for securitised mortgage bonds leading to the "sub-prime" crisis of 2007/8. Li's formulae justified... read more
 
GAZETTE
A web site where the government publishes all official notices. Certain legal notices must also be published on this site to be legally binding.
 
GCI
The global competitiveness index (GCI) is prepared by the World Economic Forum (WEF) annually and it ranks 141 countries on how competitive they are. To do this it uses 12 areas which indicate... read more
 
GDI
An economics concept which is the total income created by the production of final goods and services within the economy.
 
GDP
The GDP of a country is defined as the market value of all final goods and services produced within a country in a given period of time. It is also considered the sum of value added at every... read more
 
GEARING
The relationship of a company's borrowings or debt to ordinary shareholders' funds. A company can obtain the finance it needs to conduct its operations from two sources: by the issuing of its... read more
 
GEMSTONE
A cut and polished semi-precious stone used in the making of jewellery. Gemstones can include amber, and pearls which are not stones but organic in origin. On the JSE, the company Gemfields... read more
 
GENERAL EQUITY UNIT TRUST
A unit trust which focuse on listed shares - as opposed to fixed interest investments or other types of investments. The performance of these funds can be expected to be more-or-less in line... read more
 
GENERAL FUEL LEVY
A general tax changed per litre of petrol sold. This tax is administered by the National Treasury, and despite most people thinking it is used to maintain the roads, it is a general tax included... read more
 
GENERAL MEETING
This is a meeting of the shareholders of a company, which is required in terms of section 61 of the Companies Act (71 of 2008). The AGM must be held within six months of... read more
 
GENERAL MINING
The extraction and exploitation of metals and minerals from the ground. This activity in South Africa is controlled by the Mineral and Petroleum Resource Development Act (MPRDA - 28 of 2002)... read more
 
GENERAL OFFER
An offer made to all shareholders of a company for the purchase of their shares. The purchase price could be in cash or in shares of a predator company or a combination of both.
 
GENERALLY ACCEPTED ACCOUNTING PRACTICE
Section 19 of the Financial Advisory and Intermediary Services Act (FAIS) requires that "the financial statements be prepared in conformity with generally accepted accounting practice". The auditor... read more
 
GENERIC SCORECARD
In terms of the BBBEE (Braod Based Black Economic Empowerment) Act, companies over a certain size are required to maintain a scorecard in which black ownership, black management, black employment... read more
 
GEPF
A pension fund for government employees, the GEPF is the single largest investor on the JSE owning about 12,5% of its market capitalisation and with about R1,8 trillion rand invested. The GEPF... read more
 
GFI
21 - 08 - 2020
Gold Fields (GFI) is a high-cost international gold mining house with a single mine in South Africa - South Deep. South Deep was bought by Gold Fields in 2006 and it has struggled... read more
 
GIC
A single lump-sum deposit that earns a guaranteed interest until a known maturity date. GICs are issued by insurance companies.
 
GILT
Any fixed interest security which has very low risk and relatively low return. Government bonds are considered to be gilts, and especially US Treasury bills. The originally only applied to government... read more
 
GIVE-UP
When a broker executes an order for another broker's client and the two brokers split the commission; the client pays nothing extra.
 
GLASS STEAGAL
These are four provisions of the US Banking Act which were sponsored by Senator Glass and Representative Steagall. These provisions separated commercial banking from other financial activities,... read more
 
GLI
19 - 03 - 2020
Go Life International (GLI) is a company listed in Mauritius with a secondary listing on the JSE's Alt-X market. Its focus is in "nutraceuticals" which are products associated... read more
 
GLN
07 - 08 - 2020
Glencore (GLN) describes itself as, "one of the world’s largest global diversified natural resource companies and a major producer and marketer of more than 90 commodities.... read more
 
GLOBAL COMPETITIVENESS INDEX
The global competitiveness index (GCI) is prepared by the World Economic Forum (WEF) annually and it ranks 141 countries on how competitive they are. To do this it uses 12 areas which indicate... read more
 
GLOBAL DOW
An index created and maintained by the Dow Jones company which tracks the average movement of 150 blue chip shares from around the world. The objective is to track the performance of all world... read more
 
GLOBAL ECONOMIC SYSTEM
The combined economies of all the countries of the world also called the global economic system. It is important for the private investor to develop a view on the state of... read more
 
GLOBAL INFLATION
This is the  average inflation rate of the world tracked by the International Monetary Fund (IMF). The global inflation rate has been falling since the 1980's primarily because central banks,... read more
 
GLOBE TRADE CENTRE S.A
21 - 08 - 2020
GTC is a property group operating in central and Eastern Europe. The company has properties in Poland, Bucharest, Budapest, Belgrade, Sophia and Zagreb. It manages 46 buildings... read more
 
GLOBEX
The Chicago Mercantile Exchange's electronic trading platform. Some futures contracts are available for trading on Globex only during the U.S. evening hours, while others -- such as the very... read more
 
GML
21 - 09 - 2020
The Gemfields Group (GML) (previously Palinghurst Group) is a mining group that has two major projects: (1) Kagem, the world's largest producer of emeralds (in Zambia) and... read more
 
GND
30 - 06 - 2020
Grindrod (GND) is an international freight and financial services company which operates in 28 countries. In mid-June 2018, Grindrod unbundled and separately listed its loss-making... 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.
 
GOING PUBLIC
A term used to describe the sale of shares of a privately-held company to the public for the first time.
 
GOING SHORT
A sale of shares before they are purchased. A bear sale (or short sale) is the sale of an undertaking to supply a certain number of shares at a specified date in the future.... read more
 
GOLD
A precious metal that has been known and kept for thousands of years as a currency and a way to store value. In the past, South Africa has been the largest supplier of gold in the world. In 1970,... read more
 
GOLD FIX
The result of a twice-a-day dedicated conference between the 15 members of the London Gold Market Fixing Ltd. Previously this meeting was held at the premises of Nathan Meyer Rothchild &... read more
 
GOLD SHARES
South Africa has traditionally been a gold-producing country and gold shares used to make a large proportion of the JSE, but today, the gold industry has shrunk substantially and gold shares... read more
 
GOLD STANDARD
A past financial discipline whereby a country's currency was directly linked to that country's gold reserves. Form 1989 until 1933 America was on the gold standard which acted as a limitation... read more
 
GOLDEN MEAN
The ratio of any two consecutive numbers in the Fibonacci sequence, known as phi and equal to 0.618; a proportion that is an important phenomenon in music, art, architecture and biology. The... read more
 
GOLDEN RATIO
The ratio of any two consecutive numbers in the Fibonacci sequence, known as phi and equal to 0.618; a proportion that is an important phenomenon in music, art, architecture and biology. The... read more
 
GOLDEN SECTION
Any length divided so that the ratio of the smaller to the larger part is equivalent to the ratio between the larger part and the whole and is always 0.618. See also the Fibonacci Sequence.
 
GOOD
An economic term meaning a product with value. Economists talk about the "goods" and services in the economy. A good can be anything from a raw material to a finnished product - but it is something... read more
 
GOOD THRU DATE
Good Thru Date order. This order works until executed or cancelled, or until the end of the trading session on the date specified by the trader.
 
GOOD TILL CANCELLED
Good Till Cancelled order. This order works until executed or cancelled, unlike a Day order, which, if not filled, expires automatically at the end of the trading session on the day it was entered.... read more
 
GOODWILL
An intangible asset which arises when a holding company pays more for a subsidiary than its book value. Goodwill is also called a "premium arising on acquisition" and is normally written off... read more
 
GOVERNMENT BORROWING
Government borrowing is the excess of a government's spending over its income in a particular year. The deficit is usually funded by government borrowing. The size of the deficit is usually expressed... read more
 
GOVERNMENT DEBT
Government borrowing is the excess of a government's spending over its income in a particular year. The deficit is usually funded by government borrowing. The size of the deficit is usually expressed... read more
 
GOVERNMENT EMPLOYEES PENSION FUND
A pension fund for government employees, the GEPF is the single largest investor on the JSE owning about 12,5% of its market capitalisation and with about R1,8 trillion rand invested. The GEPF... read more
 
GOVERNMENT GUARANTEED DEBT
The government is constantly trying to balance the books. This means that they are always looking for additional sources of money to accommodate competing needs. To do this they have a number... read more
 
GOVERNMENT INSTITUTIONS
A state-owned enterprise (SOE), is a legal entity owned by the government, that participates in commercial activities. It can either be partially or completely owned by the Government. Examples... read more
 
GPA
15 - 07 - 2019 On 10th April 2019, Arrowhead announced its intention to merge with Gemgrow. Arrowhead owns 53,3% of Gemgrow. The deal will be structured so that Gemgrow buys all of Arrowhead's... read more
 
GPI
25 - 09 - 2020
Grand Parade Investments (GPL) is an investment holding company with interests in the gaming industry and the fast food industry. The company is a BEE company which was listed... read more
 
GRADE
The number of grams per ton of ore milled, usually in a gold mine or other precious metals mine. Mines are categorised by their average grade and it is a key component of their results. Low grade... read more
 
GRAHAM BENJAMIN
Benjamin Graham is the author of "Security Analysis" and "The Intelligent Investor", two books which Warren Buffett said had a great influence over his approach to share market investing. Graham... read more
 
GRAMM RUDMAN
An American Act, "The Balanced and Emergency Budget Deficit Control Act" was designed to bring the American budget into balance by 1991 or a series of budget cuts would come into effect. The... read more
 
GRAND SUPER CYCLE
First proposed by Russian economist Nicolai Kondratiev in his 1926 book, a very long cycle of around 54 years in commodity prices was identified. This was subsequently re-iterated by R. N. Elliott... read more
 
GRANTOR
A person who sells an option and assumes the obligation to sell (in the case of a call) or buy (in the case of a put) the underlying futures contract at the exercise price. Also referred to as... read more
 
GRANVILLE JOSEPH
A financial public speaker and writer from America, Joseph Granville championed the the idea of using volumes as a key technical indicator. He developed the On Balance Volume technique (OBV)... read more
 
GRAPH

In the context of the share market, this is a display or picture of a security that plots price and/or volume (the number of shares changing hands) over time.... read more

 
GRAVESTONE DOJI
A candlestick pattern with a long upper shadow and where the open and close for the day occur at the low for the day. This candlestick pattern signifies uncertainty in the market and can signify... read more
 
GREEN BONDS
 A debt instrument with a fixed coupon where the money raised is used for climate and environmental projects. Green bonds can be listed on the JSE provided they comply with the listing requirements... read more
 
GREEN CHIP
Environmentally friendly companies which are usually in the JSE's Socially Responsible Index.
 
GREEN ENGULFING PATTERN
A bottom candlestick reversal signal, this is a two candlestick pattern consisting of a large green candle enveloping a preceding red candle. This pattern implies that the trend is likely to... read more
 
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 compared to a "brownfields" operation where an... read more
 
GREEN TAX
A tax introduced by President Cyril Ramaphosa from 1st June 2020 in terms of the Carbon Tax Act (15 of 2019). In terms of this Act, companies will be taxed at the rate of R120 per ton of carbon... read more
 
GREENSPAN ALAN
The Chairman of the Federal Reserve Bank of America (Fed) from 1987 to 2006. Alan Greenspan is notable because he ushered in the idea of stimulating the economy by the injection of funds to compensate... read more
 
GRF
10 - 06 - 2020
Group 5 (GRF) is one of South Africa's iconic construction and engineering groups which has taken enormous strain over the past 10 years because of the fall-off in government... read more
 
GROSS DOMESTIC EXPENDITURE
This is an economics term which refers to the total expenditure within the economy. It is a method of calculating gross domestic product. The formula is:
Gross Domestic Product = Consumer... read more
 
GROSS DOMESTIC INCOME
An economics concept which is the total income created by the production of final goods and services within the economy.
 
GROSS DOMESTIC PRODUCT
The GDP of a country is defined as the market value of all final goods and services produced within a country in a given period of time. It is also considered the sum of value added at every... read more
 
GROSS FIXED CAPITAL FORMATION
The net increase in fixed capital in the economy, usually over the fiscal year. Basically this includes all new assets in the economy plus improvements to existing assets. So this is everything... read more
 
GROSS LETTABLE AREA
The area which a property company has available for rent. Real estate investment trusts (REIT) and property companies typically quote this statistic with the interim and final results. It shows... read more
 
GROSS NATIONAL PRODUCT
Gross National Product or GNP is the value of all final goods and services produced within the economy during a specified period. It usually includes all domestic consumption expenditure, domestic... read more
 
GROSS PROFIT
A company's profit after its direct or variable costs have been deducted. Typically, the gross profit is the final figure in the company's trading account which begins with sales and subtracts... read more
 
GROSS SALES
A figure in the income statement of a company's financial statements which consists of the company's total sales or income figure.
 
GROUP
The holding company of a number of subsidiaries. Such companies produce group consolidated accounts once per annum, showing the consolidated position and performance of the holding company and... read more
 
GROUP FINANCIAL STATEMENTS
In terms of section 30 of the Companies Act, a company is obliged to produce group consolidated financial statements in such a way that inter-company loans are eliminated, the minority or outsider... read more
 
GROUP INVESTOR BEHAVIOUR
The behaviour of investors as a group. Group investor behaviour creates observable patterns in share prices, indexes and other financial information. This is the basis for technical analysis.... read more
 
GROUP OF THIRTY
An international group 24 of academics, financial leaders and econimists that aims to imporve the world economy through a better understanding of economic impacts and decisions. It also has 16... read more
 
GROWTH
In the context of economics, this refers to the increase in a country's gross domestic product (GDP). GDP growth is impacted by many things, but mainly by consumer spending which, in South Africa,... read more
 
GROWTH FUND
A more speculative mutual fund made up primarily of the growth or performance stocks that are expected to appreciate in price more than the broad market over an extended time period.
 
GROWTH SHARES
A growth share is a share in a listed company which is expected to grow rapidly. This term is normally applied to companies which have recently listed on the JSE, have raised capital and intend... read more
 
GRP
Greenbay (GRP) is an Alt-X listed share which is one of the Resilient group of REITs (real estate investment trusts) along with Resilient itself, Rockcastle and Fortress. These companies were... read more
 
GRT
10 - 09 - 2020
Growthpoint (GRT) is South Africa's largest real estate investment trust (REIT) with a primary listing on the JSE. Prior to COVID-19, it has consistently grown its dividends... read more
 
GSH
29 - 08 - 2020
Grindrod (GND) is an international freight and financial services company which operates in 28 countries. In mid-June 2018, Grindrod unbundled and separately listed its loss-making... read more
 
GTC
Good Till Cancelled order. This order works until executed or cancelled, unlike a Day order, which, if not filled, expires automatically at the end of the trading session on the day it was entered.... read more
 
GTC
21 - 08 - 2020
GTC is a property group operating in central and Eastern Europe. The company has properties in Poland, Bucharest, Budapest, Belgrade, Sophia and Zagreb. It manages 46 buildings... read more
 
GTD
Good Thru Date order. This order works until executed or cancelled, or until the end of the trading session on the date specified by the trader.
 
GTR
06 - 07 - 2020
Grit (GTR) is a “pan-African” real estate company - which means that it invests in property on the African continent, but not in South Africa. It has a focus on... read more
 
GUARANTEE FUND
A fund which is built and sustained by the stock exchange to cover any counter party risks which may exist in securities trading. For example, the risk that a stockbroking firm... read more
 
GUARANTEED INVESTMENT CONTRACTS
A single lump-sum deposit that earns a guaranteed interest until a known maturity date. GICs are issued by insurance companies.
 
GURU
A person who is thought to be an expert on predicting the future course of the market. At any point in time there are always experts who are called upon to predict the future of the stock market.... read more
 
HAMMER FORMATION
A bullish reversal candlestick pattern implying the start of an upward trend is likely to begin. The hammer consists of a candle which has a lower shadow at least twice the length of the candle's... read more
 
HANDBOOK
A regurlarly updated hard-copy book which gives details of all the listed companies on the JSE. This book is updated three times a year and contains abbreviated financials going back five years... read more
 
HANG SENG
An index of the 50 largest companies trading on the Honk Kong Stock Exchange. The companies represent about 60% of the market capitalisation of the market. The index is weighted for the free-float... read more
 
HANGING MAN
A top reversal candlestick formation which signals the end of an upward trend, consisting of a candle with a small body and long lower shadow. This formation implies that the bulls are losing... read more
 
HAR
16 - 09 - 2020
Harmony (HAR) is probably South Africa's most marginal gold mine. A marginal gold mine is one which has a cost of extraction which is relatively close to the current gold... read more
 
HARAMI
Also called an inside day, the harami is a top or bottom candlestick reversal pattern which comprises of a small candle situated within the body of it's preceding candle. Harami means pregnant... read more
 
HARAMI CROSS
A top or bottom candlestick reversal pattern, very similar to the harami, comprising of two candles, one situated within the body of the other. The first candle has a large body. The second candle... read more
 
HARD ASSET
A commodity such as a metal or mineral. Most paper assets reflect some sort of claim to or against a hard asset, either directly or indirectly. The ultimate hard asset is gold, but all hard assets... read more
 
HARD COMMODITY
Hard commodities are mostly the product of mining - base metals and minerals as well as precious metals. This is as opposed to soft commodities which are the product of agriculture - such as... read more
 
HARD CURRENCY
A first-world currency which is relatively stable and serves as a good store of value. The hard currencies of the world include the US dollar, the euro, the British pound, the Japanese yen, the... read more
 
HARMFUL TAX PRACTICES
A harmful tax practice occurs when a country offers a lower than normal tax rate and other tax incentives which attract investment at the expense of other countries. The OECD created a forum... read more
 
HAULAGE
In underground mining a large diameter tunnel which connects the central vertical shaft to the mine's working area. The working area is usually accessed by "stopes" which lead off the haulage... read more
 
HAWK
An individual on the Monetary Policy Committee (MPC) who is against reducing interest rates to stimulate the economy - the opposite of a "dove". The Central Bank... read more
 
HCI
18- 06 - 2020
Hosken Consolidated Investments (HCI) is a BEE investment holding company owned by the South African Clothing and Textile Workers' Union. It has investments in gaming, hotels,... read more
 
HDC
26- 06 - 2020
Hudaco (HDC) is an importer and supplier of "automotive, industrial and consumer products" mostly in Southern Africa. Its business has two sides (1) supplying automotive security,... read more
 
HDSA
The laws of South Africa are based on the constitutional requirement to remedy the imbalances of the past by benefiting historically disadvantaged South Africans. This generally means that the... read more
 
HEAD AND SHOULDERS FORMATION
A charting formation at the top of a cycle. The price chart forms three peaks the middle one of which is the highest. The "left shoulder" is generally reckoned to be where the "smart" money sells... read more
 
HEADLINE EARNINGS
The earnings of a company which are directly associated with its continuing operational activities. Profits or losses from discontinued operations are excluded as are profits and losses on the... read more
 
HEADLINE EARNINGS PER SHARE
The earnings of a company derived from its normal core business divided by the company's average number of shares in issue during the accounting period. This figure excludes exceptional and once-off... read more
 
HEADLINE INDEXES
The JSE has seven headline indexes - they are the All Share Index (J203), the Top 40 index (J200), the Large cap index (J205), the Large and mid cap index (J206), the Mid-cap index (J201), the... read more
 
HEADROOM
This is the amount of financial space that a company has in terms of surplus available funds. Most companies have cash assets as well as pre-arranged financial facilities which are available... read more
 
HEAP LEACHING
A method of extracting, particularly gold, from mined ore. The ore is crushed and heaped on a waterproof surfacethat the leaching solution can be applied to. The solution dissolves the gold.... read more
 
HEAVILY TRADED
A share which has significant volume traded every trading day. The opposite of thinly traded. We recommend that as a private investor you only consider shares which trade at least three times... read more
 
HEAVYWEIGHT
A large blue chip share which has a long history of growth and generating profits. This type of share is also sometimes called a "blue chip" or an institutional stock (because the big institutions... read more
 
HEDGE
Action taken by an investor or speculator to protect his business or assets against a change in prices. For example, if an investor holds a large number of listed securities in a particular company... read more
 
HEDGE AGAINST INFLATION
Any tangible or hard asset which can be used to protect the investor against depreciation in the value of paper currencies. Gold and other precious metals are typically the most popular hedges... read more
 
HEDGE BOOK
Mining companies often have a portfolio of hedges for the commodity that they deal in. A hedge enables them to lock in the current price of their commodity and so protects them against a fall... read more
 
HEDGE FUND
A mutual fund involving speculative investing in stocks and options.
 
HEPS
The earnings of a company derived from its normal core business divided by the company's average number of shares in issue during the accounting period. This figure excludes exceptional and once-off... read more
 
HERFINDAHL HIRSHMAN INDEX
(HHI) A formula for calculating market concentration. The index is calculated by adding together the squares of the companies' percentage market shares. The highest reading would be at or close... read more
 
HERIOT REIT LIMITED
01 - 10 - 2020
Heriot (HET) is a real estate investment trust (REIT) which owns a diverse portfolio of 43 properties worth R4,47bn in retail, industrial, commercial and specialist property.... read more
 
HERRICK PAYOFF INDEX
An index requiring two inputs, one of which is a smoothing factor known as the multiplying factor and the other of which is the value of a one-cent move.
 
HEURISTIC METHOD
Problem solving approached by trying out several different methods and comparing which provides the best solution.
 
HFT
High frequency trading (HFT) consists of making large numbers of trades through a very fast computer that is connected directly to the stock exchange. These are program trades which are designed... read more
 
HIGH
 
HIGH FREQUENCY TRADING
High frequency trading (HFT) consists of making large numbers of trades through a very fast computer that is connected directly to the stock exchange. These are program trades which are designed... read more
 
HIGH QUALITY
A term used to describe a share which is highly rated by investors. High quality shares are usually large companies which have a long track record of generating growing profits and paying out... read more
 
HIGH-TICKING
To pay the offered price.
 
HIGHLY ILLIQUID
Illiquid shares are those which trade less than R200 000 worth of shares every day on average. Such shares can be traded by private investors, but the big institutions (like pension funds, unit... read more
 
HIGHLY LIQUID
A term to describe a share which has a large number of shares changing hands each trading day. A good example is Sasol which has an average of 1,3 million shares at roughly R500 each trading... read more
 
HIGHLY RATED
This term describes the share of a company with a reputation for consistently growing its earnings. The rating of a company is dependent on the consistency with which it can grow headline earnings... read more
 
HIL
01 - 09- 2020
Homechoice (HIL) is South Africa's largest home shopping retailer operating through two divisions - retail and financial services. It offers a broad range of home appliances,... read more
 
HISTORIC VOLATILITY
How much a contract price has fluctuated over a period of time in the past; usually calculated by taking a standard deviation of price changes over a time period.
 
HISTORICAL COST
The original cost of an asset when it was first purchased, less depreciation to date, unless revalued. This is a conservative approach to financial accounting. Some assets like land can appreciate,... read more
 
HISTORICAL DATA
A series of past daily, weekly or monthly market prices (open, high, low, close, volume, open interest).
 
HISTORICALLY DISADVANTAGED SOUTH AFRICAN
The laws of South Africa are based on the constitutional requirement to remedy the imbalances of the past by benefiting historically disadvantaged South Africans. This generally means that the... read more
 
HLM
15 - 10- 2020
Hulamin (HLM) is a producer and supplier of aluminum products in South Africa and trades in more than 50 countries internationally. It supplies foil, heat-treated plate as... read more
 
HMN
07 - 08 - 2020
Hammerson (HMN) is a massive international property company that has listed on the JSE to take advantage of South African investors who want exposure to off-shore property... read more
 
HOLDER
The purchaser of either a call or put option. Option buyers receive the right, but not the obligation, to assume a futures position. The opposite of a Grantor. Also referred to as the Option... read more
 
HOLDING COMPANY
Any company which owns more than 50% of the voting capital of another company, or can be said to have effective control over the appointment of its directors.
 
HOMOGENOUS SECURITY
Homogeneity means "sameness". In the investment world it refers to the fact that every ordinary share of Sasol or any listed company is exactly the same as every other ordinary share - which... read more
 
HOOK DAY
A trading day in which the open is above/below the previous day's high/low and the close is below/above the previous day's close with narrow range.
 
HORIZONTAL COUNT
A part of Point & Figure charting (P&F) used to calculate share's (or other indicator) upside target after an extended sideways market and a upside breakout. Essentially, the longer that... read more
 
HOSTILE TAKEOVER
A takeover which is opposed by the board of directors. The acquiring company approaches the shareholder directly despite the fact that the directors oppose the takeover. The only grounds on which... read more
 
HOUSEHOLD
In economics, the household is the basic unit of consumer spending and production. Households often own and supply labour and entrepreneurial ability to businesses. Through their savings they... read more
 
HPB
04 - 06 - 2020
The Hospitality Property Group (HPB) is a real estate investment trust (REIT) which specialises in owning hotels and leisure activities. Tsogo injected all its hotels into... read more
 
HUG
06 - 06 - 2020
Huge (HUG) is a telecommunications, media and software company. It has operations in South Africa, Mozambique, Namibia, Lesotho, Swaziland, Botswana, Zambia and Zimbabwe.... read more
 
HUL
06 - 06 - 20220
Hulisani (HUL) is an energy start-up that intends investing in coal, gas, solar power, wind and hydro. The company was incorporated in 2015 and listed in April 2016. The... read more
 
HURDLE RATE
This is the required return on investment for an international investor who is considering investing into this country (or another country). The hurdle rate increases as the perceived political... read more
 
HWA
06 - 10 - 2020
Hwange (HWA) is a coal mining and processing company with a mine in the North West province of Zimbabwe and is 37% owned by the Zimbabwean government. This company has a primary... read more
 
HYBRID INSTRUMENT
An investment instrument which has some characteristics of debt and some of equity. For example, convertible debentures, which are convertible into equity... read more
 
HYBRID SECURITY
A security which incorporates both equity and fixed interest elements. A good example is a convertible debenture which converts to equity on a fixed date. As it approaches that conversion date... read more
 
HYP
25 - 09 - 2020
Hyprop (HYP) is a leading property real estate investment trust (REIT) that specialises in high-quality shopping malls in South Africa and some interests in Eastern Europe... read more
 
HYPERINFLATION
Rapid and excessive inflation within an economy. Where normal inflation is measured over... read more
 
IASB
In March 2001, the International Accounting Standards Committee (IASC) Foundation was formed as a not-for-profit corporation incorporated in the State of Delaware, US. The IASC Foundation is... read more
 
ICB
A classification system for industries launched by Dow Jones in 2005 and which has gained inetrnational acceptance. The system has 11 industries broken down into 20 super-sectors, 45 sectors... read more
 
IDC
A development bank established by the Industrial Development Corporation Act (22 of 1940) and owned by the government. The IDC implements government's industrial policies as laid out in the various... read more
 
IDQ
16 - 04 - 2020
Indequity (IDQ) is a short-term insurance company which writes personal line business insurance on behalf of larger insurance companies. The company targets the professional... read more
 
IDT
This is a state owned entity which implements and manages social infrastructure programs for the government. The organisation commenced in 1990 with a R2bn grant to invest in health, education... read more
 
IDX
International derivatives exchange allows investors to invest in single stock futures in internationally listed blue chip companies. Contracts are settled in rands and traders do not require... read more
 
IDZ
These are special business zones which enjoy tax and other benefits to encourage rapid industrialisation. They are often located in areas where business is depressed in order to encourage growth... read more
 
IFRS
These are a set of standards established by the International Accounting Standards Board which is the standard-setting body formed by a non-profit organisation called the International Financial... read more
 
ILE
12- 08 - 2019
Imbalie (ILE) is a beauty franchisor which operates through 150 salons and retailers. It sells its own health and beauty brands. It has 3 types of franchises - Placecol, Dream... read more
 
ILLEGAL MINERS
These are informal miners who attempt to extract ore from a disused mine - usually at great risk to themselves. Known as "Zama-zama" (which means "people who try"), these miners have inadequate... read more
 
ILLEGAL STRIKE
A labour strike which takes place outside the ambit of the Labour Relations Act. Such wildcat strikes entitle the employer to fire those who are involved. In South Africa, however, such strikes... read more
 
ILLIQUID
Illiquid shares are those which trade less than R200 000 worth of shares every day on average. Such shares can be traded by private investors, but the big institutions (like pension funds, unit... read more
 
ILU
18 - 09 - 2020
Indluplace (ILU) is a real estate investment trust (REIT) which specialises in residential property and which is 66,24% owned by Arrowhead Properties. It owns residential... read more
 
IMAGE
The way in which the public perceives a company. This can be very important to the company's marketing and to its share price. Companies with a bad corporate image usually have declining share... read more
 
IMF
An organisation with over 185 member countries that aims to maintain international currency stability and maximise economic growth. The IMF regularly reports on world growth and economic developments.... read more
 
IMMUNISATION
Action taken by an investor or speculator to protect his business or assets against a change in prices. For example, if an investor holds a large number of listed securities in a particular company... read more
 
IMP
05 - 09 - 2020
Impala Platinum Holdings (IMP), or Implats, is the world's third largest platinum group metals (PGM) producer. It has been suffering over the past 7 years from aggressive... 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 in a reduction in the profit of the company in the period... read more
 
IMPAIRMENT
Assets whose book value has been reduced by the board in order to reflect their true market value more accurately. Impairments result in a reduction in the profit of the company in the period... read more
 
IMPLIED ALPHA
The excess return expected from a stock to justify its current weighting in the portfolio.
 
IMPLIED VOLATILITY
The volatility computed using the actual market prices of an option contract and one of a number of pricing models. For example, if the market price of an option rises without a change in the... read more
 
IMPORT
A product or service which was produced in another country and brought into this country. The opposite of an export. South Africa mainly exports raw materials and imports finnished goods. There... read more
 
IMPORT COVER RATIO
A ratio which assesses the level of the country's reserves in terms of how many months worth of imports they could cover. A healthy import cover ratio would be around 15 to 20 and South Africa... read more
 
IMPULSE WAVE
A wave or cycle of waves that carries the current trend further in the same direction.
 
IN PLAY
A stock that is the focus of a public bidding contest, as in a takeover or bear raid.
 
IN-THE-MONEY
An investment term used to describe a situation in which a particular security can be sold for a profit. This is calculated by taking into consideration the purchase price of the security, the... read more
 
IN-THE-MONEY OPTION
An option that has intrinsic value. A call option is in-the-money if its strike price is below the current price of the underlying futures contract. A put option is in-the-money if its strike... read more
 
INAV
The value of a company based on its future earnings potential. Sometimes a company's net asset value (NAV) which is based on subtracting its liabilities from its assets... read more
 
INCLUSION RATE
In Capital Gains Tax (CGT), the percentage of a capital gain which is included in taxable income. For companies and trusts this is 66% while for individuals it is 40%. Thus, if you are in the... read more
 
INCOME
In accounting terms, this refers to all revenues received by a company, both as a result of its sales and other sources such as interest, dividends or rent. This figure is often called "turnover"... read more
 
INCOME DIVIDENDS
Payments to mutual fund shareholders consisting of dividends, interest and short-term capital gains earned on the fund's portfolio securities after deduction of operating expenses.
 
INCOME STATEMENT
A requirement of the Companies Act and Generally Accepted Accounting Practice (GAAP), the income statement must disclose the turnover of the company during the accounting period and certain,... read more
 
INCOME TAX ACT
The Income Tax Act 58 of 1962 has had numerous amendments. Its basic purpose is to consolidate the law relating to the taxation of incomes and donations, to provide for the recovery of taxes... read more
 
INCORPORATION DATE
The date on which a company was granted its certificate of incorporation by the Companies and Intellectual Property Commission (CIPC). Every company must register a Memorandum of Incorporation... read more
 
INCORPORATOR
Under the old Companies Act, the people who started a company were known as the subscribers, because they "subscribed" to the memorandum and articles of association. The new Companies Act which... read more
 
INDEPENDENT ACCOUNTING PROFESSIONAL
A type of accountant who is not necessarily a chartered accountant, but who is sufficiently qualified to undertake an independent review on behalf of a smaller company. In order to reduce costs... read more
 
INDEPENDENT DEVELOPMENT TRUST
This is a state owned entity which implements and manages social infrastructure programs for the government. The organisation commenced in 1990 with a R2bn grant to invest in health, education... read more
 
INDEPENDENT POWER PRODUCER
An independent power producer (IPP) is a private organisation that produces power, usually from renewable sources which is then sold to Escom on contract. With the advances in particularly solar... read more
 
INDEPENDENT REGULATORY BOARD FOR AUDITORS
This organisation established in terms of the Auditing Professions Act (26 of 2005) maintains rules and guidelines for auditors to create and ethical value-driven financial sector. Its objective... read more
 
INDEPENDENT REVIEW
An independent review is a lower level check of a company's financial statements which can be conducted by an independent accounting professional. This type of check is open only to smaller companies... read more
 
INDEPENDENT SYSTEM AND MARKET OPERATOR
A new electricity distribution entity that will buy electricity both from Escom and independent power producers (IPP) and then sell it to distributors. This is part of the government's plan to... read more
 
INDEX
A weighted or unweighted average of the prices or market cap of a group of shares. There are many types of indices for sectors, sub-sectors and entire markets. There are also a number of ways... read more
 
INDEX FUND

An index fund is a unit trust (collective investment scheme) which tracks a specific index - usually on the JSE.... read more

 
INDEX POINTS
A measurement term for market indices. An index is an aggregate of the listed companies on an exchange, for example, the JSE Top 40 is an average of the top 40 companies trading on the JSE by... read more
 
INDICATOR
A mathematical formula which is applied to a continuous stream of financial data which the objective of identifying buying and selling points. With the advent of computers there has been an explosion... read more
 
INDICE
A weighted or unweighted average of the prices or market cap of a group of shares. There are many types of indices for sectors, sub-sectors and entire markets. There are also a number of ways... read more
 
INDIRECT
These are costs which a company has to pay whether or not they sell anything. So expenses like rent, telephone, salaries and so on. This is as opposed to "variable costs" which go up and down... read more
 
INDIRECT COST
These are costs which a company has to pay whether or not they sell anything. So expenses like rent, telephone, salaries and so on. This is as opposed to "variable costs" which go up and down... read more
 
INDUSTRIAL DEVELOPMENT CORPORATION
A development bank established by the Industrial Development Corporation Act (22 of 1940) and owned by the government. The IDC implements government's industrial policies as laid out in the various... read more
 
INDUSTRIAL DEVELOPMENT ZONE
These are special business zones which enjoy tax and other benefits to encourage rapid industrialisation. They are often located in areas where business is depressed in order to encourage growth... read more
 
INDUSTRIAL POLICY ACTION PLAN
A plan that was first produced by government following the 2008 sub-prime crisis and which has gone through at least 10 iterations since then. Essentially, the plan aims to stimulate growth in... read more
 
INDUSTRIAL SHARE
 
INDUSTRY
A grouping of all shares in the same industry, usually represented by a sector index. If you look at the price page of your newspaper, you will see that the share market is divided into sectors.... read more
 
INDUSTRY
A grouping of all shares in the same industry, usually represented by a sector index. If you look at the price page of your newspaper, you will see that the share market is divided into sectors.... read more
 
INDUSTRY CLASSIFICATION
A grouping of all shares in the same industry, usually represented by a sector index. If you look at the price page of your newspaper, you will see that the share market is divided into sectors.... read more
 
INDUSTRY CLASSIFICATION BENCHMARK
A classification system for industries launched by Dow Jones in 2005 and which has gained inetrnational acceptance. The system has 11 industries broken down into 20 super-sectors, 45 sectors... read more
 
INEFFICIENT MARKETS
Behavioural finance. Driven by frame dependence and heuristic bias, when market prices stray from fundamental values. In simple terms, new and important information which affects the profitability... read more
 
INELASTIC
A microeconomics terms which indicates that the demand or supply for a particular good or serive is not reponsive to changes in price. In a supply and demand graph showing price on the Y-axis,... read more
 
INFLATION
Inflation is the degree to which a country's currency loses purchasing power over one year - expressed as a percentage. This is usually measured by the consumer price index (CPI), but it can... read more
 
INFLATION TARGET
The Reserve Bank, through its Monetary Policy Committee (MPC) strives to keep the inflation rate between 3% and 6%. They target the CPI-X which is the CPI without the effect of interest rates.... read more
 
INFLATION TARGETING
The Reserve Bank, through its Monetary Policy Committee (MPC) strives to keep the inflation rate between 3% and 6%. They target the CPI-X which is the CPI without the effect of interest rates.... read more
 
INFORMAL SECTOR
A large sector of the economy that operates (mostly illegally, depending on their size) substantially in cash, thus avoiding their tax obligations. It is estimated that about three quarters of... read more
 
INFOWIZ
An electronic information system operated by the London Stock Exchange (LSE) to provide information on LSE-listed companies to investors and the media. This system is similar to the Stock Exchange... read more
 
INFRASTRUCTURE
The roads, bridges, electricity distribution network, water supply and sewerage and other civil work usually funded by taxes or rates and provided by the government or municipality. The provision... read more
 
ING
Ingenuity (ING) is a property development company which focuses on properties in the Western Cape. The company was listed on the JSE in 2007 with the objective of developing properties in the... read more
 
INITIAL MARGIN
The amount a futures market participant must deposit into a margin account at the time an order is placed to buy or sell a futures contract.
 
INITIAL PUBLIC OFFERING
Usually coinciding with a listing, this is the first offer of shares to the investing public by a company.
 
INJECTION
An amount of cash inserted into an economy from outside. A good example would be the $4,3bn loan which South Africa obtained from the International Monetary Fund (IMF) to help it manage the COVID-19... read more
 
INL
26 - 05 - 2020
Investec (INL) does specialist banking and asset management in South Africa, Australia, Europe, the UK and a few other countries. The surprise Brexit vote in the UK has put... read more
 
INPUT
A material or product which is used to make another product. Inputs in South Africa are deductible for value-added tax (VAT) purposes. If a business buys something and VAT is charged on that... read more
 
INSIDE DAY
Also called an inside day, the harami is a top or bottom candlestick reversal pattern which comprises of a small candle situated within the body of it's preceding candle. Harami means pregnant... read more
 
INSIDER
The illegal dealing in shares by people who, because of their privileged position, have information that materially impacts on the value of the shares, before that information has been made public.... read more
 
INSIDER TRADING
The illegal dealing in shares by people who, because of their privileged position, have information that materially impacts on the value of the shares, before that information has been made public.... read more
 
INSIDERS
The illegal dealing in shares by people who, because of their privileged position, have information that materially impacts on the value of the shares, before that information has been made public.... read more
 
INSOLVENCY
A legal status which is applied by the court to a person who is unable to pay his/her debts. An insolvent person is restricted in terms of being able to obtain further credit. In law a person... read more
 
INSTITUTIONAL INVESTOR
A collective investment scheme (as opposed to an individual), that invests funds arising from deposits, premiums, contributions etc.. Examples are insurance companies, unit trusts and pension... read more
 
INSTITUTIONAL SHARE
A share which is followed by the big institutions and held by them in their portfolios. A listed share which is patronised by the large institutional investors on the JSE. In South Africa there... read more
 
INSTRUMENT
A very generalised term for any sort of security or debt claim. Thus instruments can include shares, debentures, bonds, derivative contracts and so on.
 
INSURANCE ACT (18 0F 2017)
This is a new act which came into effect on the 1st of July 2018 and which seeks "To provide for a legal framework for the prudential regulation and supervision of insurance business in the Republic... read more
 
INSURANCE COMPANY
A company which is established in terms of the Insurance Companies Act (18 of 2017) to provide insurance policies to protect members of the public, both natural and juristic, against risks that... read more
 
INTANGIBLE
Any asset which is not concrete. For example, goodwill or patents, which belong to the company, are not represented by any physical object, but refer to the company's rights to something or the... read more
 
INTANGIBLE ASSETS
Any asset which is not concrete. For example, goodwill or patents, which belong to the company, are not represented by any physical object, but refer to the company's rights to something or the... read more
 
INTEGRATED REPORT
The King 3 report on corporate governance requires that companies produce an integrated report which includes a "sustainability report". Listed companies are required by the JSE Rules to adhere... read more
 
INTEGRATED RESOURCE PLAN
A government plan which maps out the supply of electricity going forward. The IRP was first produced in 2010 and promulgated in March 2011. The plan is supposed to be updated every 2 years, but... read more
 
INTELLECTUAL PROPERTY
The product of creative effort. Intellectual property can take the form of an invention, a piece of art work, a piece of writing, a symbol, a name or a design. Intellectual property is the subject... read more
 
INTERBANK RATES
The foreign exchange rates at which large international banks quote other large international banks. Because of the size of such transactions and creditworthiness of the counterparties, such... read more
 
INTEREST
Interest is the price of money. When one peson or company lends money to another then interest is charged at a percentage of the capital lent over a period of time. Interest rates are typically... read more
 
INTEREST BEARING DEBT
That portion of a company's debt which bears interest. In some cases the founders of a company will inject capital into the company which is interest-free and usually the money owed to a company's... read more
 
INTEREST COVER RATIO
The ratio of a company's interest expense to its earnings before interest and taxation (EBIT). In general, a company's EBIT should be sufficient to cover its interest bill at least 3 times. The... read more
 
INTEREST RATE
The price of money. Money behaves in much the same way as a commodity, in the sense that when it is in short supply, it becomes more expensive and vice versa. The interest rate is the cost of... read more
 
INTEREST RATE SWAPS
An arrangement that requires both sides of the transaction to make payments to each other based on two different interest rates. The most commonly traded requires one side to pay a fixed rate... read more
 
INTERIM DIVIDEND
 
INTERIM FINANCIAL RESULTS
In terms of the Companies Act, all public companies are required to produce interim financial statements covering the first six months of their financial year. These "interims" are published... read more
 
INTERMARKET ANALYSIS
Observing the price movement of one market for the purpose of evaluating a different market.
 
INTERMEDIATE GOODS
These are goods or services which are used in the production of the final goods which are sold to the consumer. Intermediate goods are also sometimes called "semi-finished goods". The demand... read more
 
INTERNAL RATE OF RETURN
The rate of interest which an individual, or, more commonly, an investment company is willing to accept. To determine your IRR, you need to ask yourself what amount of money received in a year's... read more
 
INTERNATIONAL ACCOUNTING STANDARDS BOARD
In March 2001, the International Accounting Standards Committee (IASC) Foundation was formed as a not-for-profit corporation incorporated in the State of Delaware, US. The IASC Foundation is... read more
 
INTERNATIONAL DERIVATIVES EXCHANGE
International derivatives exchange allows investors to invest in single stock futures in internationally listed blue chip companies. Contracts are settled in rands and traders do not require... read more
 
INTERNATIONAL FINANCIAL REPORTING STANDARDS
These are a set of standards established by the International Accounting Standards Board which is the standard-setting body formed by a non-profit organisation called the International Financial... read more
 
INTERNATIONAL MONETARY FUND
An organisation with over 185 member countries that aims to maintain international currency stability and maximise economic growth. The IMF regularly reports on world growth and economic developments.... read more
 
INTERNATIONAL SECURITIES IDENTIFICATION NUMBER
 
INTERNATIONAL TRADE
The buying and selling of products and services between countries. It is generally recongised that countries benefit directly from trade with other countries. This is because each country has... read more
 
INTRADAY
Literally, "within the day" as opposed to inter-day. Intraday trades are those that occur during the trading day - i.e. where a security is both bought and sold on the same day. This is mostly... read more
 
INTRINSIC NET ASSET VALUE
The value of a company based on its future earnings potential. Sometimes a company's net asset value (NAV) which is based on subtracting its liabilities from its assets... read more
 
INTRINSIC VALUE
 
INTRODUCING BROKER
A firm or individual that solicits and accepts futures orders from customers but does not accept money, securities, or property from the customer. An IB must be registered with the Commodity... read more
 
INVENTORY
Another word for stocks of raw material, work in progress, consumable stores and finished goods. The valuation of the inventory is critical to the balance sheet.
 
INVERTED HAMMER
The counterpart of the hammer, this is also a bullish bottom reversal candlestick formation which derives its significance from it's shadow and implies that an upward trend is imminent. The inverted... read more
 
INVERTED THREE BUDDHA
The opposite of a head-and-shoulders formation, this formation normally comes at the bottom of a long down-trend and signals the end of that down-trend. The market makes a left shoulder with... read more
 
INVESTABLE MARKET CAPITALISATION
The free float of a company's shares multiplied by their current market price. Also known as the free float market cap., or the investable market capitalisation. This is used in the construction... read more
 
INVESTEC AUSTRALIA PROPERTY FUND
04 - 11 - 2019
Investec Australia Property Fund (IAP) is a real estate investment trust (REIT) which concentrates on property investments in Australia and New Zealand. It is owned 23% by... read more
 
INVESTMENT
  1. An asset on the balance sheet that refers to the shares held in a company or loans granted to other companies, which do not amount to or confer a controlling interest. The Act requires... read more
 
INVESTMENT ANALYST
An investment analyst does research on listed shares in order to provide information to a fund manager to enable him to allocate funds to specific investments. Investment analysts have to have... read more
 
INVESTMENT BANK
A bank which is focused on helping companies with their corporate actions - especially the raising of additional capital through an initial public offer (IPO), a rights issue or the issue and... read more
 
INVESTMENT CLUBS
Small, private organisations in which a group of investors, usually novices, pool their time and resources to learn more than they could on their own about various forms of investments and then... read more
 
INVESTMENT HOLDING COMPANY
A company which holds shares in other companies as subsidiary or associate companies.
 
INVESTOR
A person, either natural or juristic, that purchases and holds any investment in a security. On the JSE, most of the investors are institutions (pension funds, unit trusts and insurance companies)... read more
 
INVESTOR BEHAVIOUR
The behaviour of investors as a group. Group investor behaviour creates observable patterns in share prices, indexes and other financial information. This is the basis for technical analysis.... read more
 
INVESTOR PROTECTION LEVY
A levy charged by the JSE on all trades on the JSE consisting of 0,0002% of the value of the trade. This pays for insider trading investigations and prevents market manipulation.
 
INVISIBLE
Any asset which is not concrete. For example, goodwill or patents, which belong to the company, are not represented by any physical object, but refer to the company's rights to something or the... read more
 
INVISIBLE EXPORTS
Those exports which are for the sale overseas of services such as insurance and intangible products. "Invisibles" as they are known form part of the income of the country and part of its export... read more
 
INWARD LISTING
A foreign company, listed on the JSE and classified by the South African Reserve Bank (SARB) as foreign for index purposes. These companies can be included in the indices, but at a reduced weight.... read more
 
IPAP
A plan that was first produced by government following the 2008 sub-prime crisis and which has gone through at least 10 iterations since then. Essentially, the plan aims to stimulate growth in... read more
 
IPF
30 - 09 - 2020
Investec Property Fund (IPF) is a diversified South African real estate investment trust (REIT) with a R24bn portfolio of which R16bn is in South Africa. Like most REITs,... read more
 
IPL
26 - 08 - 2020
Imperial (IPL) was a massive logistics and motor business. It operated in 32 European and African countries and employed 27 000 people. The company split off and separately... read more
 
IPO
Usually coinciding with a listing, this is the first offer of shares to the investing public by a company.
 
IRA
An American retirement vehicle called an Individual Retirement Account (IRA). An employer's retirement plan that, as specified by tax law, allows employees to elect to have their federal taxable... read more
 
IRBA
This organisation established in terms of the Auditing Professions Act (26 of 2005) maintains rules and guidelines for auditors to create and ethical value-driven financial sector. Its objective... read more
 
IRON
A metal with the chemical symbol "fe". Iron oxidises (rusts) very quickly and so is not often found naturally. However, the world has abundant supplies of iron ore from which iron can be obtained... read more
 
IRP
A government plan which maps out the supply of electricity going forward. The IRP was first produced in 2010 and promulgated in March 2011. The plan is supposed to be updated every 2 years, but... read more
 
IRR
The rate of interest which an individual, or, more commonly, an investment company is willing to accept. To determine your IRR, you need to ask yourself what amount of money received in a year's... read more
 
IRREGULAR FLAT
A type of Elliott wave correction that has a 3-3-5 wave pattern, where the B wave terminates beyond the start of wave A. A "flat" is in progress, implying that a larger pattern is developing.... read more
 
ISA
15 - 09 - 2020
ISA Holdings (ISA) is a small Alt-X listed IT company offering network, internet and information security in sub-Saharan Africa. The company claims to employ some of the leading... read more
 
ISB
19 - 10 - 2020
Insimbi (ISB) is a group which manufactures and supplies specialist products to the industrial sector. They source, buy, package and process ferrous and non-ferrous alloys,... read more
 
ISIN
 
ISLAND FORMATION
A period of sideways movement after a substantial fall, where the share moves up and down within a relatively narrow trading range. Eventually, there should be an up-side break-out from the island,... read more
 
ISMO
A new electricity distribution entity that will buy electricity both from Escom and independent power producers (IPP) and then sell it to distributors. This is part of the government's plan to... read more
 
ISSUED CAPITAL
The value of the company’s authorised shares which have been sold to shareholders. Companies issue shares to the public to raise capital in what is known as the "primary market". This is... read more
 
ISSUED SHARES
The number of shares which a company has sold to the public to raise capital for its establishment or expansion. A company must obtain authorisation from the Companies and Intellectual Property... read more
 
ISSUED SHARES
The value of the company’s authorised shares which have been sold to shareholders. Companies issue shares to the public to raise capital in what is known as the "primary market". This is... read more
 
ITE
26 - 08 - 2020
Italtile (ITE) is a franchisor of tiles, sanitary ware, flooring and home finishing products - which it manufactures and wholesales itself. The company is controlled by the... read more
 
ITRIX
A joint initiative by the JSE and Deutsche Bank to offer South African investors a method of investing in overseas markets using rands on the JSE. There are five Itrix ETF's trading on the JSE: ... read more
 
ITU
06 - 08 - 2020
Intu (ITU) is a UK-based real estate investment trust (REIT) which is part of the FTSE 100 index. It was founded by the late Donald Gordon in 2010. It specialises in retail... read more
 
IVT
28 - 07 - 2020
Invicta (IVT) has two divisions - Engineering Solutions Group (ESG), which is a supplier of engineering consumables, components and spare parts, and Capital Equipment Group... read more
 
J150
This is a weighted average of all gold shares traded on the JSE. The South African economy has been built on the exploitation of its mineral wealth - and gold was predominant until about 1970.... read more
 
JANUARY EFFECT
An American phenomena which means the tendency for securities prices to recover in January after tax-related selling is completed before the year-end.
 
JBL
13 - 10 - 2020
Jubilee Metals Group (JBL) is a diversified metals recovery company which re-processes mine waste and surface materials. It is listed both on the London AIM market and on... read more
 
JET SYSTEM
A stock market trading system which was used by the Johannesburg Stock Exchange until 13th May 2002. It was replaced by the SETS system.
 
JIBAR
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 institutions in the country.
 
JOB CREATION
The opening of opportunities to for paid work, mainly to the unemployed. Job creation has been a key objective of the ANC and the government for many years, but the reality is that unemployment... read more
 
JOBBER
Originally, a stock jobber was a market maker on the London Stock Exchange (LSE), prior to the dematerialisation of shares and the advent of electronic trading in 1986. In South Africa the term... 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 institutions in the country.
 
JOHANNESBURG SECURITIES EXCHANGE
The primary securities exchange in South Africa. The Johannesburg Stock Exchange, the futures and options markets and the bond market are all part of the Johannesburg Securities Exchange. There... read more
 
JOHN MAYNARD KEYNES
Keynes was a British economist who devloped the "monetarist" school of thought in economics. He is well known for publishing a book, "The General Theory of Employment Interest and Money" in which... read more
 
JOINT STOCK COMPANY
An old term for a the first companies developed mostly in the UK and Europe. Companies have the advantage of limited liability which means their shareholders cannot lose more than the value of... read more
 
JOSEPH GRANVILLE
A financial public speaker and writer from America, Joseph Granville championed the the idea of using volumes as a key technical indicator. He developed the On Balance Volume technique (OBV)... read more
 
JOSEPH GRANVILLE'S
A financial public speaker and writer from America, Joseph Granville championed the the idea of using volumes as a key technical indicator. He developed the On Balance Volume technique (OBV)... read more
 
JSC
04 - 06 - 2020
Jasco (JSC) is a technology and electronics group that produces and markets products mainly in South Africa but also in East Africa. It serves a wide range of customers from... read more
 
JSE
The primary securities exchange in South Africa. The Johannesburg Stock Exchange, the futures and options markets and the bond market are all part of the Johannesburg Securities Exchange. There... read more
 
JSE ALTERNATIVE EXCHANGE (ALT-X)
The Alt-X is part of the JSE. It is a board which is available to those companies which cannot qualify to list on the "main board". The listing requirements... read more
 
JSE CODE
An abbreviation for securities traded on an organised exchange. Share codes on the JSE are between 3 and 6 letters long - so, for example, the code for Sasol is "sol". Most stockbroking trading... read more
 
JSE GOLD MINING INDEX
This is a weighted average of all gold shares traded on the JSE. The South African economy has been built on the exploitation of its mineral wealth - and gold was predominant until about 1970.... read more
 
JSE GUARANTEE FUND
The JSE maintains a fund called the "guarantee fund" which protects investors up to a certain limit against the failure of a member firm (i.e. a stockbroker) to recover securities or funds due... read more
 
JSE HANDBOOK
A regurlarly updated hard-copy book which gives details of all the listed companies on the JSE. This book is updated three times a year and contains abbreviated financials going back five years... read more
 
JSE MAGAZINE
A quarterly online publication produced by the JSE containing topical articles on the economy, individual listed companies and the investment environment generally. We would advise private investors... read more
 
JSE MEMBER FIRM
To buy and sell shares on the Johannesburg Securities Exchange, you will need to open an account with a stockbroking firm. Stockbroking firms employ stockbrokers who have passed the necessary... read more
 
JSE OVERALL INDEX
All stock exchanges have indexes which provide averages of the prices of their listed shares. These averages are normally "weighted" so that larger companies are more important and smaller companies... read more
 
JSE QUARTERLY MAGAZINE
A three-monthly magazine sent to stockbrokers, fund managers and various other financial professionals. It is available at: https://www.jsemagazine.co.za
 
JSE RULES AND DIRECTIVES
Rules and directives established by the JSE to govern all the workings of the exchange in terms of the Stock Exchanges Control Act (SECA). The rules are an extensive document which is available... read more
 
JSE SETS
The London Stock Exchange's "Stock Exchange Trading Service" (SETS) electronic order book. The London Stock Exchange sold its Sets order-driven trading system to the JSE Securities Exchange South... read more
 
JSE TOP 40
An index of the 40 biggest companies trading on the JSE. This is a weighted index for the market capitalisation of the companies it includes and their "free... read more
 
JSE TOP 40 INDEX
An index of the 40 biggest companies trading on the JSE. This is a weighted index for the market capitalisation of the companies it includes and their "free... read more
 
JSE TRUSTEES (PTY) LTD
A company formed by the JSE to hold, invest and safeguard the surplus funds belonging to a client and held by a broker who is operating a controlled account on behalf of the client. The investors... read more
 
JSE TRUSTEES RATE
Stock Broking firms open accounts for their customers so that they can invest on the JSE. Any funds deposited into such accounts and not used to buy shares must be transferred to the JSE Trustees... read more
 
JSE-FIN30
An index prepared by the JSE actuaries which is a weighted average of the 30 largest financial and industrial shares trading on the Johannesburg Stock Exchange. The Financial and Industrial 30... read more
 
JSE-IND25
The Industrial 25 index contains the largest 25 shares in the industrial sector weighted for their free-float market capitalisation. This index is again dominated by Naspers (over 44% weighting... read more
 
JUDICIAL MANAGEMENT
A term from the previous Companies Act to allow for a company to be wound up for financial reasons. It is sometimes the case that a company can be saved with good management. Judicial management... read more
 
JUMBO CERTIFICATE OF DEPOSIT
A CD worth at least $100,000.
 
JUNIOR DEBT
Also called "junior debt" this is a category of debt instruments which have a lower priority than senior debt on liquidation. So in the event of a default, the senior debt will be paid out first... read more
 
JUNK BOND
A bond which has less than investment grade - usually a bond issued by a company rather than a government or quasi-government organisation.
 
JUNK STATUS
There are three major ratings agencies which have made a business out of assessing the credit risk of companies, parastatals and governments worldwide. They are Fitch, Moody's and Standard &... read more
 
JURISTIC PERSON
An organisation which has a legal personality such as a company. This implies that it is responsible for its own management and debts (and not the investors who own the shares).... read more
 
KAGI
One of three types of Japanese candlestick charts that does not have time on the horizontal axis.
 
KAL
27 - 07 - 2020
Kaap Agri (KAL) is an agricultural company owned 40,9% by Zeder, which is, in turn, 43,7% held by PSG. The company operates through over 190 retail outlets offering a wide... read more
 
KALMAN FILTERS
A linear system in which the mean squared error between the desired and the actual output is minimised when the input is a random signal. The filter is named after Rudolf E. Kalman, though Thorvald... read more
 
KAP
17 - 09- 2020
KAP International Holdings (KAP) is a diversified industrial company which produces and markets timber, chemicals (PET and related chemicals), bedding and car parts. It also... read more
 
KBO
26 - 09 - 2020
Kibo (KBO) is an African-orientated energy exploration company listed on the AIM (Alternative Investment Market) on the London Stock Exchange and on the Alt-X (Alternative... read more
 
KDV
18 - 09 - 2020
Kaydav (KDV) sells compressed wood-based panelling to the construction industry through outlets in Gauteng, Western Cape and Natal. It also sells packaging materials and machinery... read more
 
KEY REVERSAL DAY
A day with a much wider range of trade than usual which occurs at the top or bottom of a cycle. When a key reversal day occurs at the top of a cycle, prices open in new highs and then close below... read more
 
KEYNES JOHN MAYNARD
Keynes was a British economist who devloped the "monetarist" school of thought in economics. He is well known for publishing a book, "The General Theory of Employment Interest and Money" in which... read more
 
KIMBERLEY PROCESS CERTIFICATION SCHEME
This is a scheme which was launched at a conference held in Kimberley in 2000 and was subsequently the subject of a United Nations resolution to certify rough diamonds. The objective was to stop... read more
 
KING 3 REPORT
A report on corporate governance and the duties of directors which has been accepted by the JSE as applying to all listed companies. The king report is now in its 3rd version and the... read more
 
KIO
29 - 07 - 2020
Kumba (KIO) is a highly successful iron mining operation which is owned (79%) and controlled by Anglo American. The share price doubled from R250 in December 2018 to levels... read more
 
KONDRATIEV, NIKOLAI
Developer of a wave theory. The Kondratieff Cycle is a theory based on a study of nineteenth century price behaviour which included wages, interest rates, raw material prices, foreign trade,... read more
 
KRUGERRAND
A gold coin containing exactly one ounce of gold in the form of "royal gold" which is 8.3% copper. The copper is added to make the coin harder so that it cannot easily be "sweated" or "clipped".... read more
 
KST
Indicator developed by Martin Pring. A weighted summed rate of change oscillator. Four different rates of change are calculated, smoothed, multiplied by weights and then summed to form one indicator.... read more
 
KST
09 - 10 - 2020
PSG Konsult (KST) is a well-established financial services group which grew out of PSG's stockbroking business and which now offers a wide range of financial services including... read more
 
KURTOSIS
Descriptive measure of how flat or pointed a distribution is. In probability theory and statistics, kurtosis is a measure of the "peakedness" of the probability distribution of a real-valued... read more
 
L2D
29- 09- 2020
Liberty Two Degrees (L2D) is a real estate investment trust (REIT) which contains the properties spun out of Liberty - most notably, it owns a share in the Sandton shopping... read more
 
L4L
09 - 10 - 2020
Long 4 Life (L4L) is an investment company which listed on the JSE on 7th April 2017. It raised R2bn on listing mainly because its CEO was Brian Joffe, who is very well known... read more
 
LAB
13 - 05 - 2020
Labat (LAB) is a 57% black-owned investment holding company which listed on the JSE in 1999. The company buys and improves subsidiaries and then sells them for a profit. At... read more
 
LABOUR
In economic terms, a factor of poduction which involves people exchanging their labour for money. Entrepreneurs are regarded as a separate factor of production - "entrepreneurial ability". In... read more
 
LABOUR BROKER
A person or organisation that specialises in placing short-term workers. The union movement is strongly opposed to the existence of labour brokers, because, obviously, they make it possible for... read more