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List of Glossary Terms
The PDSnet Glossary of Terms contains definitions and explanations for over 2600 financial market terms. These definitions are constantly kept up-to-date with current topical examples from the markets. They are also updated for changes in legislation and current events like COVID19 and the July 2021 civil unrest.
The terms in the Glossary are directly linked to all PDSnet articles, confidential reports, lecture modules and other material. This means that a client reading one of our publications can immediately see which terms are defined in the Glossary and click through to read the definition. Terms within the definitions in the glossary are similarly linked, which gives the Glossary an enormous educational depth share market investors.
| JOHANNESBURG SECURITIES EXCHANGE |
The primary securities exchange in South Africa. The Johannesburg Stock Exchange, the futures and options markets and the bond... read more |
| CYCLE |
Shares, industries and markets move in cycles. According to Charles Dow, there are three types of cycles: primary, secondary and daily fluctuations.... read more |
| CONSUMER FINANCIAL VULNERABILITY INDEX |
This is an index produced by Unisa in conjunction with Momentum which measures the ability of consumers to cope financially. The index is compiled from... read more |
| BEAR TREND |
A long downward trend in a share's price, a sector's index, the all-market index or other indicator. In general,... read more |
| OVERBOUGHT/OVERSOLD INDICATOR |
An indicator that attempts to define when prices have moved too far and too fast in either direction and thus are vulnerable to a reaction. The OB/OS... read more |
| OSCILLATOR |
A statistical term which refers to an indicator which moves above and below a set level - usually zero. Many line indicators are oscillators - like... read more |
| SELL SIGNAL |
A technical analysis concept meaning the point at which a technical indicator or range of indicators gives the investor a signal to sell the... read more |
| INVESTOR BEHAVIOUR |
The behaviour of investors as a group. Group investor behaviour creates observable patterns in share prices, indexes and other... read more |
| PROVISION |
An item on the balance sheet that falls under liabilities. A provision is "raised" when the company has an expense or potential expense... read more |
| NATIONAL ENERGY REGULATOR |
The national Energy Regulator of South Africa (NERSA) is responsible for overseeing the various energy sources in the South African economy. This means that NERSA... 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... 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,... read more |
| LAGGING INDICATOR |
Certain economic indicators regularly lag behind the business cycle because of the nature of their business. For example, large construction contracts... read more |
| LEADING SECTOR |
This is a sector which moves ahead of the business cycle. A good example is the packaging sector. As the economy turns and moves into an expansionary... read more |
| MAJOR SHAREHOLDER |
A shareholder with a dominant shareholding, but insufficient to give them control of a company. When a shareholder acquires more than... read more |
| SERVICES |
The service sector includes a number of services, like education, banking, cell phones, office cleaning, professional services, health care and entertainment.... read more |
| PRODUCTION |
The act of producing a product. This can take many forms such as harvesting, mining or manufacturing. Th effciency with which goods and services... read more |
| NATIONAL CREDIT REGULATOR |
An impartial body established in terms section 12 of the National Credit Act (34 of 2005) whose function (in terms of section 13) is to "promote and support... read more |
| OPENING STOCK |
The stock which is in a company's warehouse at the beginning of the accounting period - which should be the same as the closing stock... read more |
| WORK IN PROGRESS |
That part of a company's stock which has been partly manufactured. It lies between raw materials and finished goods. Most manufacturers... read more |
| PURCHASES |
In financial accounts, that part of the ledger where the company's purchases of goods are recorded. Purchases of assets are consumables, in... read more |
| VALUE ADDED TAX |
A tax which is applied to the value added by an organisation to a product. The value added is measured by the difference between what a company paid for... read more |
| SAVINGS |
That portion of an individual's income which he/she saves.The national savings rate is important because those savings can be used by businesses to expand... read more |
| MARGIN |
1. In stock trading, an account in which a purchase of stock may be financed with borrowed money; in futures trading, the deposit placed with the clearinghouse to assure fulfilment of the contract.... read more |
| LIABILITY |
An accounting term, which records monies owed by the company to outsiders. The most common forms of liabilities are share capital and reserves... read more |
| OVERDRAFT |
A facility offered by commercial banks to their credit-worthy clients. Most companies finance their working capital requirements with an overdraft,... read more |
| STATISTICS |
The collection, study and analysis of large quantities of data in order to facilitate interpretation and forecasting. In the context of the share market,... read more |
| NON-FARM PAYROLL |
An economic statistic from America which includes all employees in America except for farm workers, employees of non-profit organisations (like charities)... read more |
| INTEREST |
Interest is the price of money. When one person or company lends money to another then interest is charged at a percentage of the capital lent over... 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... read more |