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.
HAMMER FORMATION |
A bullish reversal candlestick pattern implying that an upward trend is likely to begin. The hammer consists of a candle which... read more |
HANDBOOK |
A regularly updated hard-copy book which gives details of all the listed companies on the JSE. This book is updated three times a year and... 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... 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... 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... read more |
HARAMI CROSS |
A top or bottom candlestick reversal pattern, very similar to the harami, comprising of two candles, one situated within the... 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... 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,... 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 investments at the expense of other... 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... 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".... 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.... 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.... read more |
HEADLINE EARNINGS |
The earnings of a company which are directly associated with its continuing operational activities. Profits or losses from discontinued... 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... 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... 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... read more |
HEAP LEACHING |
A method of extracting, particularly gold, from mined ore. The ore is crushed and heaped on a waterproof surface that the leaching solution can be applied... 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... 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"... 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... 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... 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... read more |
HEDGE FUND |
A mutual fund involving speculative investing in shares 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... 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... 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 |
... read more |
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... read more |
HIGH |
The highest point in a price pattern over a specific period. For example, each day each listed share which is traded makes a "high"... read more |
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... 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... read more |
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,... 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 Naspers which had an average... 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... 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... read more |
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... 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.... 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.... 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... read more |
HOME LOANS |
A loan which is secured against fixed property - as opposed to a lien which is secured against movable property. The interest rate on mortgage... read more |
HOMOGENOUS SECURITY |
Homogeneity means "sameness". In the investment world it refers to the fact that every ordinary share of Sasol or any listed company... 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... read more |
HORIZONTAL COUNT |
A part of Point & Figure charting (P&F) used to calculate a share's (or other indicator) upside target after an extended sideways... read more |
HOSTILE TAKEOVER |
A takeover which is opposed by the board of directors. The acquiring company approaches the shareholder directly despite the... read more |
HOUSEHOLD |
In economics, the household is the basic unit of consumer spending and production. Households often own and supply labour and entrepreneurial... 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).... read more |
HYBRID INSTRUMENT |
An investment instrument which has some characteristics of debt and some of equity. For example, convertible debentures, which... 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... read more |
HYPERINFLATION |
Rapid and excessive inflation within an economy. Where... read more |