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


G20
A group of 19 countries and the European Union which replaced the G7 and includes the larger emerging economies such as China and South Africa. Its objectives include promoting growth of the... read more
 
G30
An international group 24 of academics, financial leaders and econimists that aims to imporve the world economy through a better understanding of economic impacts and decisions. It also has 16... read more
 
G7

This was a group of 7 countries - America, Canada, United Kingdom, France, Germany, Italy and Japan. It was established in in 1975 and was formed from the "Group... read more

 
GAAP
Section 19 of the Financial Advisory and Intermediary Services Act (FAIS) requires that "the financial statements be prepared in conformity with generally accepted accounting practice". The auditor... read more
 
GAMMA
The degree by which the delta changes with respect to changes in the underlying instrument's price.
 
GANN THEORY
Various analytical techniques developed by legendary trader W.D. Gann. His first prophecy is believed to have happened during World War I when he predicted the Nov 9, 1918, abdication of the... read more
 
GANN WILLIAM
An American trader of securities who developed a complex system of charts using astrology, geometry and archaic maths. He died in 1955, but left a substantial following who still use his methods... read more
 
GANN'S SQUARE OF 9
A trading tool that relates numbers, such as a stock price, to degrees on a circle. The Square of 9 is basically a spiral of numbers. The initial value can be found in the centre of the spiral.... read more
 
GAP
A day in which the daily range is completely above or below the previous day's daily range. This term normally refers to a bar chart where the low for one day is considerably above the high for... read more
 
GARNISHEE
A court order which obliges an employer to deduct money from an employee's salary or wage for payment to a creditor. In South Africa a garnishee order cannot be more than 25% of the employee's... read more
 
GAS
Natural gas is a clean burning hydrocarbon, producing far less carbon dioxide and air pollutants compared to coal, when used to generate electricity. It is abundant, there are estimated... read more
 
GAUSSIAN
A Chinese actuary and quatitative analyst who is best known for his application of gaussian copulas for securitised mortgage bonds leading to the "sub-prime" crisis of 2007/8. Li's formulae justified... read more
 
GAZETTE
A web site where the government publishes all official notices. Certain legal notices must also be published on this site to be legally binding.
 
GCI
The global competitiveness index (GCI) is prepared by the World Economic Forum (WEF) annually and it ranks 141 countries on how competitive they are. To do this it uses 12 areas which indicate... read more
 
GDI
An economics concept which is the total income created by the production of final goods and services within the economy.
 
GDP

The GDP of a country is defined as the market value of all final goods and services produced within a country in a given period of time. It... read more

 
GEARING
The relationship of a company's borrowings or debt to ordinary shareholders' funds. The American term for gearing is "leverage". A company can obtain the finance it needs... read more
 
GEMSTONE
A cut and polished semi-precious stone used in the making of jewellery. Gemstones can include amber, and pearls which are not stones but organic in origin. On the JSE, the company Gemfields... read more
 
GENERAL EQUITY UNIT TRUST
A unit trust which focuse on listed shares - as opposed to fixed interest investments or other types of investments. The performance of these funds can be expected to be more-or-less in line... read more
 
GENERAL FUEL LEVY
A general tax changed per litre of petrol sold. This tax is administered by the National Treasury, and despite most people thinking it is used to maintain the roads, it is a general tax included... read more
 
GENERAL MEETING

This is a meeting of the shareholders of a company, which is required in terms of section 61 of the Companies Act (71 of 2008). The AGM must... read more

 
GENERAL MINING

The extraction and exploitation of metals and minerals from the ground. This activity in South Africa is controlled by the Mineral and Petroleum Resource... read more

 
GENERAL OFFER
An offer made to all shareholders of a company for the purchase of their shares. The purchase price could be in cash or in shares of a predator company or a combination of both.
 
GENERALLY ACCEPTED ACCOUNTING PRACTICE
Section 19 of the Financial Advisory and Intermediary Services Act (FAIS) requires that "the financial statements be prepared in conformity with generally accepted accounting practice". The auditor... read more
 
GENERIC SCORECARD
In terms of the BBBEE (Braod Based Black Economic Empowerment) Act, companies over a certain size are required to maintain a scorecard in which black ownership, black management, black employment... read more
 
GEPF
A pension fund for government employees, the GEPF is the single largest investor on the JSE owning about 12,5% of its market capitalisation and with about R1,8 trillion rand invested. The GEPF... read more
 
GIC
A single lump-sum deposit that earns a guaranteed interest until a known maturity date. GICs are issued by insurance companies.
 
GILT
Any fixed interest security which has very low risk and relatively low return. Government bonds are considered to be gilts, and especially US Treasury bills. The originally only applied to government... read more
 
GIVE-UP
When a broker executes an order for another broker's client and the two brokers split the commission; the client pays nothing extra.
 
GLASS STEAGAL
These are four provisions of the US Banking Act which were sponsored by Senator Glass and Representative Steagall. These provisions separated commercial banking from other financial activities,... read more
 
GLOBAL COMPETITIVENESS INDEX
The global competitiveness index (GCI) is prepared by the World Economic Forum (WEF) annually and it ranks 141 countries on how competitive they are. To do this it uses 12 areas which indicate... read more
 
GLOBAL DOW
An index created and maintained by the Dow Jones company which tracks the average movement of 150 blue chip shares from around the world. The objective is to track the performance of all world... read more
 
GLOBAL ECONOMIC SYSTEM

The combined economies of all the countries of the world also called the global economic system. It is important for the private investor... read more

 
GLOBAL INFLATION
This is the  average inflation rate of the world tracked by the International Monetary Fund (IMF). The global inflation rate has been falling since the 1980's primarily because central banks,... read more
 
GLOBE TRADE CENTRE S.A
21 - 08 - 2020
GTC is a property group operating in central and Eastern Europe. The company has properties in Poland, Bucharest, Budapest, Belgrade, Sophia and Zagreb. It manages 46 buildings... read more
 
GLOBEX
The Chicago Mercantile Exchange's electronic trading platform. Some futures contracts are available for trading on Globex only during the U.S. evening hours, while others -- such as the very... read more
 
GOING CONCERN
A profitable business which is expected to be able to continue in business because it has sufficient cash-flow to meet its commitments.
 
GOING PUBLIC
A term used to describe the sale of shares of a privately-held company to the public for the first time.
 
GOING SHORT
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
 
GOLD

A precious metal that has been known and kept for thousands of years as a currency and a way to store value. All the gold ever mined throughout history... read more

 
GOLD 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
 
GOLD SHARES
South Africa has traditionally been a gold-producing country and gold shares used to make a large proportion of the JSE, but today, the gold industry has shrunk substantially and gold shares... read more
 
GOLD STANDARD
A past financial discipline whereby a country's currency was directly linked to that country's gold reserves. Form 1989 until 1933 America was on the gold standard which acted as a limitation... read more
 
GOLDEN MEAN
The ratio of any two consecutive numbers in the Fibonacci sequence, known as phi and equal to 0.618; a proportion that is an important phenomenon in music, art, architecture and biology. The... read more
 
GOLDEN RATIO
The ratio of any two consecutive numbers in the Fibonacci sequence, known as phi and equal to 0.618; a proportion that is an important phenomenon in music, art, architecture and biology. The... read more
 
GOLDEN SECTION
Any length divided so that the ratio of the smaller to the larger part is equivalent to the ratio between the larger part and the whole and is always 0.618. See also the Fibonacci Sequence.
 
GOOD
An economic term meaning a product with value. Economists talk about the "goods" and services in the economy. A good can be anything from a raw material to a finished... read more
 
GOOD THRU DATE
Good Thru Date order. This order works until executed or cancelled, or until the end of the trading session on the date specified by the trader.
 
GOOD TILL CANCELLED
Good Till Cancelled order. This order works until executed or cancelled, unlike a Day order, which, if not filled, expires automatically at the end of the trading session on the day it was entered.... read more
 
GOODWILL
An intangible asset which arises when a holding company pays more for a subsidiary than its book value. Goodwill is also called a "premium arising on acquisition" and is normally written off... read more
 
GOVERNMENT BONDS

Instruments for short-term borrowing employed by governments. The bills are issued by tender to the money market. Usually, when economists refer... read more

 
GOVERNMENT BORROWING

This is the difference between government revenue and expenditure. Typically, governments spend more than they receive from taxes and other types... read more

 
GOVERNMENT DEBT

This is the difference between government revenue and expenditure. Typically, governments spend more than they receive from taxes and other types... read more

 
GOVERNMENT EMPLOYEES PENSION FUND
A pension fund for government employees, the GEPF is the single largest investor on the JSE owning about 12,5% of its market capitalisation and with about R1,8 trillion rand invested. The GEPF... read more
 
GOVERNMENT GUARANTEED DEBT
The government is constantly trying to balance the books. This means that they are always looking for additional sources of money to accommodate competing needs. To do this they have a number... read more
 
GOVERNMENT INSTITUTIONS

State Owed Enterprises (SOE) are corporations owned and controlled by the government. In South Africa there are about 200 SOE's which deal with everything... read more

 
GRADE
The number of grams per ton of ore milled, usually in a gold mine or other precious metals mine. Mines are categorised by their average grade and it is a key component of their results. Low grade... read more
 
GRAHAM BENJAMIN
Benjamin Graham is the author of "Security Analysis" and "The Intelligent Investor", two books which Warren Buffett said had a great influence over his approach to share market investing. Graham... read more
 
GRAMM RUDMAN
An American Act, "The Balanced and Emergency Budget Deficit Control Act" was designed to bring the American budget into balance by 1991 or a series of budget cuts would come into effect. The... read more
 
GRAND SUPER CYCLE
First proposed by Russian economist Nicolai Kondratiev in his 1926 book, a very long cycle of around 54 years in commodity prices was identified. This was subsequently re-iterated by R. N. Elliott... read more
 
GRANTOR
A person who sells an option and assumes the obligation to sell (in the case of a call) or buy (in the case of a put) the underlying futures contract at the exercise price. Also referred to as... read more
 
GRANVILLE JOSEPH
A financial public speaker and writer from America, Joseph Granville championed the the idea of using volumes as a key technical indicator. He developed the On Balance Volume technique (OBV)... read more
 
GRAPH

In the context of the share market, this is a display or picture of a security that plots price and/or volume (the number of shares... read more

 
GRAVESTONE DOJI
A candlestick pattern with a long upper shadow and where the open and close for the day occur at the low for the day. This candlestick pattern signifies uncertainty in the market and can signify... read more
 
GREEN BONDS
 A debt instrument with a fixed coupon where the money raised is used for climate and environmental projects. Green bonds can be listed on the JSE provided they comply with the listing requirements... read more
 
GREEN CHIP
Environmentally friendly companies which are usually in the JSE's Socially Responsible Index.
 
GREEN 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... read more
 
GREEN FIELDS OPERATIONS
A business activity, usually in the mining industry, which is a completely new start-up. This is a high-risk, potentially high return undertaking compared to a "brownfields" operation where an... read more
 
GREEN TAX

A tax introduced by President Cyril Ramaphosa from 1st June 2020 in terms of the Carbon Tax Act (15 of 2019). In terms of this Act, companies will be taxed... read more

 
GREENHOUSE GAS EMISSIONS
Those gaseous emissions which contribute to global warming and climate change by trapping solar energy inside the atmosphere. The burning of fossil fuels is the main contributor to these emissions.... read more
 
GREENSPAN ALAN

The Chairman of the Federal Reserve Bank of America (Fed) from 1987 to 2006. Alan Greenspan is notable because he ushered in the idea of stimulating... read more

 
GROSS DOMESTIC EXPENDITURE
This is an economics term which refers to the total expenditure within the economy. It is a method of calculating gross domestic product. The formula is:
Gross Domestic Product = Consumer... read more
 
GROSS DOMESTIC INCOME
An economics concept which is the total income created by the production of final goods and services within the economy.
 
GROSS DOMESTIC PRODUCT

The GDP of a country is defined as the market value of all final goods and services produced within a country in a given period of time. It... read more

 
GROSS FIXED CAPITAL FORMATION
The net increase in fixed capital in the economy, usually over the fiscal year. Basically this includes all new assets in the economy plus improvements to existing assets. So this is everything... read more
 
GROSS LETTABLE AREA
The area which a property company has available for rent. Real estate investment trusts (REIT) and property companies typically quote this statistic with the interim results... read more
 
GROSS NATIONAL PRODUCT
Gross National Product or GNP is the value of all final goods and services produced within the economy during a specified period. It usually includes all domestic consumption expenditure, domestic... read more
 
GROSS PROFIT
A company's profit after its direct or variable costs have been deducted. Typically, the gross profit is the final figure in the company's trading account which begins... read more
 
GROSS SALES

A figure in the income statement of a company's financial statements which consists of the company's total sales or income figure.... read more

 
GROUP
The holding company of a number of subsidiaries. Such companies produce group consolidated accounts once per annum, showing the consolidated position and performance of the holding company and... read more
 
GROUP FINANCIAL STATEMENTS
In terms of section 30 of the Companies Act, a company is obliged to produce group consolidated financial statements in such a way that inter-company loans are eliminated, the minority or outsider... read more
 
GROUP INVESTOR BEHAVIOUR
The behaviour of investors as a group. Group investor behaviour creates observable patterns in share prices, indexes and other financial information. This is the basis for technical analysis.... read more
 
GROUP OF THIRTY
An international group 24 of academics, financial leaders and econimists that aims to imporve the world economy through a better understanding of economic impacts and decisions. It also has 16... read more
 
GROWTH

In the context of economics, this refers to the increase in a country's gross domestic product (GDP). GDP growth is impacted by many things, but mainly... read more

 
GROWTH FUND
A more speculative mutual fund made up primarily of the growth or performance stocks that are expected to appreciate in price more than the broad market over an extended time period.
 
GROWTH SHARES
A growth share is a share in a listed company which is expected to grow rapidly. This term is normally applied to companies which have recently listed on the JSE,... read more
 
GTC
21 - 08 - 2020
GTC is a property group operating in central and Eastern Europe. The company has properties in Poland, Bucharest, Budapest, Belgrade, Sophia and Zagreb. It manages 46 buildings... read more
 
GTC
Good Till Cancelled order. This order works until executed or cancelled, unlike a Day order, which, if not filled, expires automatically at the end of the trading session on the day it was entered.... read more
 
GTD
Good Thru Date order. This order works until executed or cancelled, or until the end of the trading session on the date specified by the trader.
 
GUARANTEE FUND
A fund which is built and sustained by the stock exchange to cover any counter party risks which may exist in securities trading. For example, the risk that a stockbroking firm... read more
 
GUARANTEED INVESTMENT CONTRACTS
A single lump-sum deposit that earns a guaranteed interest until a known maturity date. GICs are issued by insurance companies.
 
GURU
A person who is thought to be an expert on predicting the future course of the market. At any point in time there are always experts who are called upon to predict the future of the stock market.... read more