List of Glossary Terms

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Numeric


HAMMER FORMATION
A bullish reversal candlestick pattern implying the start of an upward trend is likely to begin. The hammer consists of a candle which has a lower shadow at least twice the length of the candle's... read more
 
HANDBOOK
A regurlarly updated hard-copy book which gives details of all the listed companies on the JSE. This book is updated three times a year and contains abbreviated financials going back five years... read more
 
HANG SENG
An index of the 50 largest companies trading on the Honk Kong Stock Exchange. The companies represent about 60% of the market capitalisation of the market. The index is weighted for the free-float... read more
 
HANGING MAN
A top reversal candlestick formation which signals the end of an upward trend, consisting of a candle with a small body and long lower shadow. This formation implies that the bulls are losing... read more
 
HAR
16 - 09 - 2020
Harmony (HAR) is probably South Africa's most marginal gold mine. A marginal gold mine is one which has a cost of extraction which is relatively close to the current gold... read more
 
HARAMI
Also called an inside day, the harami is a top or bottom candlestick reversal pattern which comprises of a small candle situated within the body of it's preceding candle. Harami means pregnant... read more
 
HARAMI CROSS
A top or bottom candlestick reversal pattern, very similar to the harami, comprising of two candles, one situated within the body of the other. The first candle has a large body. The second candle... read more
 
HARD ASSET
A commodity such as a metal or mineral. Most paper assets reflect some sort of claim to or against a hard asset, either directly or indirectly. The ultimate hard asset is gold, but all hard assets... read more
 
HARD COMMODITY
Hard commodities are mostly the product of mining - base metals and minerals as well as precious metals. This is as opposed to soft commodities which are the product of agriculture - such as... read more
 
HARD CURRENCY
A first-world currency which is relatively stable and serves as a good store of value. The hard currencies of the world include the US dollar, the euro, the British pound, the Japanese yen, the... read more
 
HARMFUL TAX PRACTICES
A harmful tax practice occurs when a country offers a lower than normal tax rate and other tax incentives which attract investment at the expense of other countries. The OECD created a forum... read more
 
HAULAGE
In underground mining a large diameter tunnel which connects the central vertical shaft to the mine's working area. The working area is usually accessed by "stopes" which lead off the haulage... read more
 
HAWK
An individual on the Monetary Policy Committee (MPC) who is against reducing interest rates to stimulate the economy - the opposite of a "dove". The Central Bank... read more
 
HCI
18- 06 - 2020
Hosken Consolidated Investments (HCI) is a BEE investment holding company owned by the South African Clothing and Textile Workers' Union. It has investments in gaming, hotels,... read more
 
HDC
26- 06 - 2020
Hudaco (HDC) is an importer and supplier of "automotive, industrial and consumer products" mostly in Southern Africa. Its business has two sides (1) supplying automotive security,... read more
 
HDSA
The laws of South Africa are based on the constitutional requirement to remedy the imbalances of the past by benefiting historically disadvantaged South Africans. This generally means that the... read more
 
HEAD AND SHOULDERS FORMATION
A charting formation at the top of a cycle. The price chart forms three peaks the middle one of which is the highest. The "left shoulder" is generally reckoned to be where the "smart" money sells... read more
 
HEADLINE EARNINGS
The earnings of a company which are directly associated with its continuing operational activities. Profits or losses from discontinued operations are excluded as are profits and losses on the... read more
 
HEADLINE EARNINGS PER SHARE
The earnings of a company derived from its normal core business divided by the company's average number of shares in issue during the accounting period. This figure excludes exceptional and once-off... read more
 
HEADLINE INDEXES
The JSE has seven headline indexes - they are the All Share Index (J203), the Top 40 index (J200), the Large cap index (J205), the Large and mid cap index (J206), the Mid-cap index (J201), the... read more
 
HEADROOM
This is the amount of financial space that a company has in terms of surplus available funds. Most companies have cash assets as well as pre-arranged financial facilities which are available... read more
 
HEAP LEACHING
A method of extracting, particularly gold, from mined ore. The ore is crushed and heaped on a waterproof surfacethat the leaching solution can be applied to. The solution dissolves the gold.... read more
 
HEAVILY TRADED
A share which has significant volume traded every trading day. The opposite of thinly traded. We recommend that as a private investor you only consider shares which trade at least three times... read more
 
HEAVYWEIGHT
A large blue chip share which has a long history of growth and generating profits. This type of share is also sometimes called a "blue chip" or an institutional stock (because the big institutions... read more
 
HEDGE
Action taken by an investor or speculator to protect his business or assets against a change in prices. For example, if an investor holds a large number of listed securities in a particular company... read more
 
HEDGE AGAINST INFLATION
Any tangible or hard asset which can be used to protect the investor against depreciation in the value of paper currencies. Gold and other precious metals are typically the most popular hedges... read more
 
HEDGE BOOK
Mining companies often have a portfolio of hedges for the commodity that they deal in. A hedge enables them to lock in the current price of their commodity and so protects them against a fall... read more
 
HEDGE FUND
A mutual fund involving speculative investing in stocks and options.
 
HEPS
The earnings of a company derived from its normal core business divided by the company's average number of shares in issue during the accounting period. This figure excludes exceptional and once-off... read more
 
HERFINDAHL HIRSHMAN INDEX
(HHI) A formula for calculating market concentration. The index is calculated by adding together the squares of the companies' percentage market shares. The highest reading would be at or close... read more
 
HERIOT REIT LIMITED
01 - 10 - 2020
Heriot (HET) is a real estate investment trust (REIT) which owns a diverse portfolio of 43 properties worth R4,47bn in retail, industrial, commercial and specialist property.... read more
 
HERRICK PAYOFF INDEX
An index requiring two inputs, one of which is a smoothing factor known as the multiplying factor and the other of which is the value of a one-cent move.
 
HEURISTIC METHOD
Problem solving approached by trying out several different methods and comparing which provides the best solution.
 
HFT
High frequency trading (HFT) consists of making large numbers of trades through a very fast computer that is connected directly to the stock exchange. These are program trades which are designed... read more
 
HIGH
 
HIGH FREQUENCY TRADING
High frequency trading (HFT) consists of making large numbers of trades through a very fast computer that is connected directly to the stock exchange. These are program trades which are designed... read more
 
HIGH QUALITY
A term used to describe a share which is highly rated by investors. High quality shares are usually large companies which have a long track record of generating growing profits and paying out... read more
 
HIGH-TICKING
To pay the offered price.
 
HIGHLY ILLIQUID
Illiquid shares are those which trade less than R200 000 worth of shares every day on average. Such shares can be traded by private investors, but the big institutions (like pension funds, unit... read more
 
HIGHLY LIQUID
A term to describe a share which has a large number of shares changing hands each trading day. A good example is Sasol which has an average of 1,3 million shares at roughly R500 each trading... read more
 
HIGHLY RATED
This term describes the share of a company with a reputation for consistently growing its earnings. The rating of a company is dependent on the consistency with which it can grow headline earnings... read more
 
HIL
01 - 09- 2020
Homechoice (HIL) is South Africa's largest home shopping retailer operating through two divisions - retail and financial services. It offers a broad range of home appliances,... read more
 
HISTORIC VOLATILITY
How much a contract price has fluctuated over a period of time in the past; usually calculated by taking a standard deviation of price changes over a time period.
 
HISTORICAL COST
The original cost of an asset when it was first purchased, less depreciation to date, unless revalued. This is a conservative approach to financial accounting. Some assets like land can appreciate,... read more
 
HISTORICAL DATA
A series of past daily, weekly or monthly market prices (open, high, low, close, volume, open interest).
 
HISTORICALLY DISADVANTAGED SOUTH AFRICAN
The laws of South Africa are based on the constitutional requirement to remedy the imbalances of the past by benefiting historically disadvantaged South Africans. This generally means that the... read more
 
HLM
15 - 10- 2020
Hulamin (HLM) is a producer and supplier of aluminum products in South Africa and trades in more than 50 countries internationally. It supplies foil, heat-treated plate as... read more
 
HMN
07 - 08 - 2020
Hammerson (HMN) is a massive international property company that has listed on the JSE to take advantage of South African investors who want exposure to off-shore property... read more
 
HOLDER
The purchaser of either a call or put option. Option buyers receive the right, but not the obligation, to assume a futures position. The opposite of a Grantor. Also referred to as the Option... read more
 
HOLDING COMPANY
Any company which owns more than 50% of the voting capital of another company, or can be said to have effective control over the appointment of its directors.
 
HOMOGENOUS SECURITY
Homogeneity means "sameness". In the investment world it refers to the fact that every ordinary share of Sasol or any listed company is exactly the same as every other ordinary share - which... read more
 
HOOK DAY
A trading day in which the open is above/below the previous day's high/low and the close is below/above the previous day's close with narrow range.
 
HORIZONTAL COUNT
A part of Point & Figure charting (P&F) used to calculate share's (or other indicator) upside target after an extended sideways market and a upside breakout. Essentially, the longer that... read more
 
HOSTILE TAKEOVER
A takeover which is opposed by the board of directors. The acquiring company approaches the shareholder directly despite the fact that the directors oppose the takeover. The only grounds on which... read more
 
HOUSEHOLD
In economics, the household is the basic unit of consumer spending and production. Households often own and supply labour and entrepreneurial ability to businesses. Through their savings they... read more
 
HPB
04 - 06 - 2020
The Hospitality Property Group (HPB) is a real estate investment trust (REIT) which specialises in owning hotels and leisure activities. Tsogo injected all its hotels into... read more
 
HUG
06 - 06 - 2020
Huge (HUG) is a telecommunications, media and software company. It has operations in South Africa, Mozambique, Namibia, Lesotho, Swaziland, Botswana, Zambia and Zimbabwe.... read more
 
HUL
06 - 06 - 20220
Hulisani (HUL) is an energy start-up that intends investing in coal, gas, solar power, wind and hydro. The company was incorporated in 2015 and listed in April 2016. The... read more
 
HURDLE RATE
This is the required return on investment for an international investor who is considering investing into this country (or another country). The hurdle rate increases as the perceived political... read more
 
HWA
06 - 10 - 2020
Hwange (HWA) is a coal mining and processing company with a mine in the North West province of Zimbabwe and is 37% owned by the Zimbabwean government. This company has a primary... read more
 
HYBRID INSTRUMENT
An investment instrument which has some characteristics of debt and some of equity. For example, convertible debentures, which are convertible into equity... read more
 
HYBRID SECURITY
A security which incorporates both equity and fixed interest elements. A good example is a convertible debenture which converts to equity on a fixed date. As it approaches that conversion date... read more
 
HYP
25 - 09 - 2020
Hyprop (HYP) is a leading property real estate investment trust (REIT) that specialises in high-quality shopping malls in South Africa and some interests in Eastern Europe... read more
 
HYPERINFLATION
Rapid and excessive inflation within an economy. Where normal inflation is measured over... read more