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


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, 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
 
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
 
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
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
 
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
 
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