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.
| PRIVATE PLACEMENT |
A private placement is the sale of equity securities directly to a select group of investors—such as institutional funds, accredited individuals, or strategic partners—without... read more |
| LOAN TO VALUE |
This is the amount of debt which a real estate investment trust (REIT) or property company has as a proportion of the value of the... read more |
| SHOPRITE FOOD SECURITY INDEX |
The Shoprite Food Security Index is an annual metric developed by the Shoprite Group to assess food security across South Africa. It tracks progress in reducing hunger and improving access... read more |
| NON-FERROUS METAL |
A non-ferrous metal is any metal or alloy that contains little to no iron. These metals are prized for properties such as light weight, high conductivity,... 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... read more |
| CIRCULAR TRANSACTION |
A circular transaction refers to a financial arrangement in which money or assets move through a series of steps or entities only to return to the original... read more |
| RARE EARTH ELEMENTS |
A group of 17 chemically similar metallic elements—including the 15 lanthanides plus scandium and yttrium—known for their unique magnetic, luminescent,... 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... read more |
| N SHARES |
These are shares which rank in all respects equally to other ordinary shares except that they have an extremely low par value. Since the voting... read more |
| CREDIT RATING |
A credit rating is an independent evaluation of a borrower's ability and willingness to repay debt, typically expressed as a letter grade (e.g., AAA, BB,... read more |
| S&P500 INDEX |
An index of the 500 largest companies trading on Wall Street, weighted for their market capitalisation. The S&P is more... read more |
| US MONTHLY JOBS REPORT |
The Monthly Jobs Report (also called the Employment Situation Summary) is the broad economic report released by the U.S. Bureau of Labor Statistics (BLS)... 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 |
| JSE/FTSE ALL-SHARE INDEX |
The FTSE/JSE All Share Index is the primary benchmark of the South African stock market. It includes approximately 99% of the market capitalisation... 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... read more |
| MAGNIFICENT SEVEN |
The magnificent seven are seven technology companies listed on the New York Stock Exchange (NYSE) which have been driving the bull trend in... read more |
| FOOTPRINT |
A company's footprint refers to the geographical scope or physical presence of its operations, services, or... 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... read more |
| GEOPOLITICAL RISK |
Geopolitical risk refers to the potential for political, economic, or social instability arising from international relations,... 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... read more |
| NATIONALISATION |
The taking over of privately owned assets, especially companies, by the government.... read more |
| GOVERNMENT GUARANTEE |
A formal assurance issued by the South African government—typically through the National Treasury—that it will assume... read more |
| PLATINUM |
A precious metal predominantly produced in South Africa. This metal is used primarily in auto catalysts together with other platinum group metals... 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 company.... read more |
| TAKE-HOME PAY INDEX |
An index prepared by Bankserv Africa which incorporates just over one third of salary and wage payments, mostly from large corporates but... 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 company's debtors (accounts receivable)... 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 |
| CASH CONVERSION RATIO |
The ratio of operating cash flow to EBITDA (earnings before interest, taxation, depreciation and amortisation).... read more |
| WORLD INFLATION |
An average inflation rate for the world economy - which is an aggregate of all the economies of the world. World inflation is found by calculating... read more |
| WORLD GOLD COUNCIL |
A marketing organisation of the 28 largest gold mining companies in the world operating in 45 countries. The organisations objective is to promote... read more |