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.

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


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... read more

 
FACE VALUE

The dollar value of a US Treasury Bill at maturity. T-Bills are issued at a discount to face value and gradually increase in value until reaching the full... read more

 
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... 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... 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... 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,... read more

 
FACTORY OUTPUT

An economic indicator which measures the output from manufacturing. Manufacturing production is measured and published monthly. Following... read more

 
FADE
Selling a rising price or buying a falling price. A trader fading on 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... 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... read more

 
FAILURE

In Elliott wave theory, a five-wave pattern of movement in which the fifth impulse wave fails to move above the end of the third, or in which the... read more

 
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... 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... 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... 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... read more

 
FAST MARKET

A temporary situation in open outcry markets where market conditions in the stockmarket and other markets are volatile and excessively heavily... read more

 
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... 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... read more

 
FED

The governing central bank of the US also known as "the Fed". There are twelve regional federal reserve banks in America, located in Boston, New York, Philadelphia,... 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... read more

 
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.... read more

 
FEDERAL RESERVE BANK

The governing central bank of the US also known as "the Fed". There are twelve regional federal reserve banks in America, located in Boston, New York, Philadelphia,... read more

 
FENCE STRATEGY

An options strategy which uses three contracts to establish a range around a security or commodity. It locks in the value of a position... read more

 
FERRO-CHROME

A metal alloy of chromium and iron, mostly used in the production of stainless steel. Ferro-chrome produced in South Africa has a very low... 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,... 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... 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... 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 laundering... 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... read more

 
FIFO

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... read more

 
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... 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... read more

 
FINAL CONSUMPTION EXPENDITURE

A national accounts figure which includes that expenditure which is undertaken by individuals and companies within a country or whose main business is inside... read more

 
FINAL DIVIDEND
 
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... 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... read more

 
FINAL 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... read more

 
FINALS

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... read more

 
FINANCE COSTS

A disclosable expense which comes about as a result of a company having interest-bearing debt. Finance costs are usually disclosed... 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... 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... 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... 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... 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,... 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... 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... 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 laundering... 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... 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... 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... 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... 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,... 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... 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,... read more

 
FINANCIAL SERVICES CHARTER

The major sectors of the South African economy are governed by sets of rules... 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.... 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... read more

 
FINANCIAL STABILITY REVIEW

A publication produced by the Reserve Bank twice a year with the aim "to identify and analyse potential risks to financial system stability, communicate... 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... 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... 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... 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... 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... 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... 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... 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",... read more

 
FINANCIALS

These are share in the financials sector of the JSE. They are mainly involved in banking, asset management or insurance. Financial... read more

 
FINISHED GOODS

Products which are ready for sale. Usually a manufacturing company will divide its inventory (stock) into 3 categories - raw materials, work-in-progress... read more

 
FINTECH COMPANY

A fintech company is one which has developed a financial product which is offered through the internet. The banks are heavily into fintech these... read more

 
FIRM INTENTION

This is an offer to buy some or all of the shares of another company which takes the form of an announcement on the Stock Exchange News Service... 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... 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 clearing house... 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... 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... 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... 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... 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,... 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... 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... 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... 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... 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... read more

 
FISCUS

The National Treasury falls under the Ministry of Finance and is established in terms of section 13 of the Constitution to manage the government's finances. Through... read more

 
FITCH

One of the three internationally recognised rating agencies (along with Standard and Poors and Moodys). Ratings agencies rate governments,... 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... 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... 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... 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 trend or a downward trend where the market enters... 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... read more

 
FLASH FILL
Order filled immediately by hand signal on an "open outcry" trading floor.
 
FLEDGLING

These are ordinary shares which comply with all listing requirements, but are too small to be included in the All Share Index and which are... 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)... 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... read more
 
FLOATING
  1.  The number of shares currently available for trading.

  2.  As a verb, meaning to list... read more
 
FLOOR BROKER

An individual who executes orders on the trading floor of an "open outcry" exchange for any other person. They are independent members... 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... 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... 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... read more

 
FOLLOWING YOUR RIGHTS

When a company decides to raise additional capital by offering its existing shareholders additional shares in proportion to the number... 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.... 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... 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... 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,... 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... 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... 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... 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... 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... read more

 
FOREIGN INVESTMENT ALLOWANCE

A limit on the amount 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... read more

 
FOREIGN INVESTOR

THis refers to any non-South African who brings money into South Africa. The government is at pains to encourage foreign investors into Sotuh Africa to... 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... 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... 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... 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.... 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.... 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... 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... 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,... 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... 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... 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... 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... 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... 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... 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... 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.... 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... 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... 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... 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... 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... 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... 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... 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... 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... 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... 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,... read more

 
FSP

The Financial Advisory and Intermediary Act provides for the registration of persons (natural or corporate) to give investment advice to investors.... 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... 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... 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
 
FTSE100

A market capitalisation weighted index of the 100 largest companies trading on the London Stock Exchange (LSE). This index is... read more

 
FULL EMPLOYMENT

Full employment is defined by the International Labour Organisation as the level of employment  where all those available and actively seeking work are able... 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... 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... 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... 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... 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... 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