List of Glossary Terms
| 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 real estate investment... 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 date. For example,... 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 sell a bill of... 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, or nearby, delivery month. |
| BACK OFFICE |
This is the department in a stockbroking firm, which deals with settlement procedures, such as controlling electronic settlements on behalf of clients and the maintenance of accounts. |
| 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 a person can afford... 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 their leisure... 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 and is... 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 annually. When the... read more |
| BAIL OUT |
A bail out occurs where the government of a country or another large company injects funds to save a commercial organisation (usually a bank) from failure. The justification for this is usually... read more |
| BALANCE OF PAYMENTS |
The combined net position on the capital and current accounts of the country. The current account indicates whether South Africa is spending more foreign currency on imports than it is receiving... 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 will reflect the level... 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 in carefully prescribed ways to form... 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 common stocks. |
| BALOPAY |
The combined net position on the capital and current accounts of the country. The current account indicates whether South Africa is spending more foreign currency on imports than it is receiving... read more |
| BALTIC DRY INDEX |
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. Capesize... read more |
| BALWIN PROPERTIES LIMITED |
13 - 09 - 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 |
| 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 or some other equity relationship... 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 and the US to... 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 and striving to maximise... 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 feasibility... 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 date. For example,... 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 a good... read more |
| BAR |
... 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 opening and closing... read more |
| BARLOWORLD LIMITED |
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 |
| 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 the "base" currency... 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 - which is now... 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 or "noble" metal such as gold, silver or platinum. Base metals also corrode, rust or tarnish relatively easily... 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 deductions.... 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 on the... 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 |
| BASIL READ HOLDINGS LTD |
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 |
| 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 the "repo" rate is to increase... 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 price is $1725. To hedge out the... 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 |
| BAUBA PLATINUM LIMITED |
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 obective the empowerment of black people in South Africa. In order to achieve this it rates comanies 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. Capesize... 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 to dominate. When there are... 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 last for between 18 months... read more |
| BEAR RAID |
... 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. It describes a situation... read more |
| BEAR SALE |
Here you can see that since the collapse of the oil price in the second half of 2014, the Sasol share price has been moving sideways between a support line at around R360 per share and strong... 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-sale (also called a "bear sale")... 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 by periods of sideways movement. Bear trends are... 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 upward trend; the second is... 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 bullish... 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 shares, increase... 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 which listed... 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 the spectators... read more |
| BELL EQUIPMENT LIMITED |
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 |
| 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 an interest of 5% or a unit... 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 of raw materials... 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 to the... 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 historical returns of the stock... 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 a good... 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 off... read more |
| BHP BILLITON PLC |
19- 08 - 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 |
| BICS |
A negotiated-term deposit issued by a commercial bank. See Guaranteed Investment Contracts (GICs). |
| BID |
An expression of willingness to buy a commodity or share at a given price; the opposite of "offer" or "ask". |
| 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 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 for which it could... read more |
| BID CORPORATION LTD |
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 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 the bid and the offer... 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, the "open outcry" market... 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 purchasing... read more |
| BIK |
23 - 07 - 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 |
19- 08 - 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 date. For example,... 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 and is... 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 by daily... 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 shares, increase... read more |
| 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 1987. black... 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 to plunge.... 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 Sharpville 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 Liberty Life.... 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 |
| BLUE LABEL TELECOMS LTD |
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 |
| 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 and current accounts of the country. The current account indicates whether South Africa is spending more foreign currency on imports than it is receiving... 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. |
| BOWLER METCALF LIMITED |
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 |
| 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. |
| BRAINWORKS LIMITED |
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 |
| BRAIT SA |
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 |
| 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 |
| 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. |
| BRIKOR LIMITED |
23 - 07 - 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 |
| BRIMSTONE INVESTMENT CORP LTD |
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 |
| BRITISH AMERICAN TOBACCO PLC |
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 |
| 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 |
| BUFFALO COAL CORPORATION |
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 |
| 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 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 - 09 - 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 |