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


IASB
In March 2001, the International Accounting Standards Committee (IASC) Foundation was formed as a not-for-profit corporation incorporated in the State of Delaware, US. The IASC Foundation is... read more
 
ICB
A classification system for industries launched by Dow Jones in 2005 and which has gained inetrnational acceptance. The system has 11 industries broken down into 20 super-sectors, 45 sectors... read more
 
IDC
A development bank established by the Industrial Development Corporation Act (22 of 1940) and owned by the government. The IDC implements government's industrial policies as laid out in the various... read more
 
IDQ
16 - 04 - 2020
Indequity (IDQ) is a short-term insurance company which writes personal line business insurance on behalf of larger insurance companies. The company targets the professional... read more
 
IDT
This is a state owned entity which implements and manages social infrastructure programs for the government. The organisation commenced in 1990 with a R2bn grant to invest in health, education... read more
 
IDX
International derivatives exchange allows investors to invest in single stock futures in internationally listed blue chip companies. Contracts are settled in rands and traders do not require... read more
 
IDZ
These are special business zones which enjoy tax and other benefits to encourage rapid industrialisation. They are often located in areas where business is depressed in order to encourage growth... read more
 
IFRS
These are a set of standards established by the International Accounting Standards Board which is the standard-setting body formed by a non-profit organisation called the International Financial... read more
 
ILE
12- 08 - 2019
Imbalie (ILE) is a beauty franchisor which operates through 150 salons and retailers. It sells its own health and beauty brands. It has 3 types of franchises - Placecol, Dream... read more
 
ILLEGAL MINERS
These are informal miners who attempt to extract ore from a disused mine - usually at great risk to themselves. Known as "Zama-zama" (which means "people who try"), these miners have inadequate... read more
 
ILLEGAL STRIKE
A labour strike which takes place outside the ambit of the Labour Relations Act. Such wildcat strikes entitle the employer to fire those who are involved. In South Africa, however, such strikes... read more
 
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
 
ILU
18 - 09 - 2020
Indluplace (ILU) is a real estate investment trust (REIT) which specialises in residential property and which is 66,24% owned by Arrowhead Properties. It owns residential... read more
 
IMAGE
The way in which the public perceives a company. This can be very important to the company's marketing and to its share price. Companies with a bad corporate image usually have declining share... read more
 
IMF
An organisation with over 185 member countries that aims to maintain international currency stability and maximise economic growth. The IMF regularly reports on world growth and economic developments.... read more
 
IMMUNISATION
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
 
IMP
05 - 09 - 2020
Impala Platinum Holdings (IMP), or Implats, is the world's third largest platinum group metals (PGM) producer. It has been suffering over the past 7 years from aggressive... read more
 
IMPAIRED ASSETS
Assets whose book value has been reduced by the board in order to reflect their true market value more accurately. Impairments result in a reduction in the profit of the company in the period... read more
 
IMPAIRMENT
Assets whose book value has been reduced by the board in order to reflect their true market value more accurately. Impairments result in a reduction in the profit of the company in the period... read more
 
IMPLIED ALPHA
The excess return expected from a stock to justify its current weighting in the portfolio.
 
IMPLIED VOLATILITY
The volatility computed using the actual market prices of an option contract and one of a number of pricing models. For example, if the market price of an option rises without a change in the... read more
 
IMPORT
A product or service which was produced in another country and brought into this country. The opposite of an export. South Africa mainly exports raw materials and imports finnished goods. There... read more
 
IMPORT COVER RATIO
A ratio which assesses the level of the country's reserves in terms of how many months worth of imports they could cover. A healthy import cover ratio would be around 15 to 20 and South Africa... read more
 
IMPULSE WAVE
A wave or cycle of waves that carries the current trend further in the same direction.
 
IN PLAY
A stock that is the focus of a public bidding contest, as in a takeover or bear raid.
 
IN-THE-MONEY
An investment term used to describe a situation in which a particular security can be sold for a profit. This is calculated by taking into consideration the purchase price of the security, the... read more
 
IN-THE-MONEY OPTION
An option that has intrinsic value. A call option is in-the-money if its strike price is below the current price of the underlying futures contract. A put option is in-the-money if its strike... read more
 
INAV
The value of a company based on its future earnings potential. Sometimes a company's net asset value (NAV) which is based on subtracting its liabilities from its assets... read more
 
INCLUSION RATE
In Capital Gains Tax (CGT), the percentage of a capital gain which is included in taxable income. For companies and trusts this is 66% while for individuals it is 40%. Thus, if you are in the... read more
 
INCOME
In accounting terms, this refers to all revenues received by a company, both as a result of its sales and other sources such as interest, dividends or rent. This figure is often called "turnover"... read more
 
INCOME DIVIDENDS
Payments to mutual fund shareholders consisting of dividends, interest and short-term capital gains earned on the fund's portfolio securities after deduction of operating expenses.
 
INCOME STATEMENT
A requirement of the Companies Act and Generally Accepted Accounting Practice (GAAP), the income statement must disclose the turnover of the company during the accounting period and certain,... read more
 
INCOME TAX ACT
The Income Tax Act 58 of 1962 has had numerous amendments. Its basic purpose is to consolidate the law relating to the taxation of incomes and donations, to provide for the recovery of taxes... read more
 
INCORPORATION DATE
The date on which a company was granted its certificate of incorporation by the Companies and Intellectual Property Commission (CIPC). Every company must register a Memorandum of Incorporation... read more
 
INCORPORATOR
Under the old Companies Act, the people who started a company were known as the subscribers, because they "subscribed" to the memorandum and articles of association. The new Companies Act which... read more
 
INDEPENDENT ACCOUNTING PROFESSIONAL
A type of accountant who is not necessarily a chartered accountant, but who is sufficiently qualified to undertake an independent review on behalf of a smaller company. In order to reduce costs... read more
 
INDEPENDENT DEVELOPMENT TRUST
This is a state owned entity which implements and manages social infrastructure programs for the government. The organisation commenced in 1990 with a R2bn grant to invest in health, education... read more
 
INDEPENDENT POWER PRODUCER
An independent power producer (IPP) is a private organisation that produces power, usually from renewable sources which is then sold to Escom on contract. With the advances in particularly solar... read more
 
INDEPENDENT REGULATORY BOARD FOR AUDITORS
This organisation established in terms of the Auditing Professions Act (26 of 2005) maintains rules and guidelines for auditors to create and ethical value-driven financial sector. Its objective... read more
 
INDEPENDENT REVIEW
An independent review is a lower level check of a company's financial statements which can be conducted by an independent accounting professional. This type of check is open only to smaller companies... read more
 
INDEPENDENT SYSTEM AND MARKET OPERATOR
A new electricity distribution entity that will buy electricity both from Escom and independent power producers (IPP) and then sell it to distributors. This is part of the government's plan to... read more
 
INDEX
A weighted or unweighted average of the prices or market cap of a group of shares. There are many types of indices for sectors, sub-sectors and entire markets. There are also a number of ways... read more
 
INDEX FUND

An index fund is a unit trust (collective investment scheme) which tracks a specific index - usually on the JSE.... read more

 
INDEX POINTS
A measurement term for market indices. An index is an aggregate of the listed companies on an exchange, for example, the JSE Top 40 is an average of the top 40 companies trading on the JSE by... read more
 
INDICATOR
A mathematical formula which is applied to a continuous stream of financial data which the objective of identifying buying and selling points. With the advent of computers there has been an explosion... read more
 
INDICE
A weighted or unweighted average of the prices or market cap of a group of shares. There are many types of indices for sectors, sub-sectors and entire markets. There are also a number of ways... read more
 
INDIRECT
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 is as opposed to "variable costs" which go up and down... read more
 
INDIRECT COST
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 is as opposed to "variable costs" which go up and down... read more
 
INDUSTRIAL DEVELOPMENT CORPORATION
A development bank established by the Industrial Development Corporation Act (22 of 1940) and owned by the government. The IDC implements government's industrial policies as laid out in the various... read more
 
INDUSTRIAL DEVELOPMENT ZONE
These are special business zones which enjoy tax and other benefits to encourage rapid industrialisation. They are often located in areas where business is depressed in order to encourage growth... read more
 
INDUSTRIAL POLICY ACTION PLAN
A plan that was first produced by government following the 2008 sub-prime crisis and which has gone through at least 10 iterations since then. Essentially, the plan aims to stimulate growth in... read more
 
INDUSTRIAL SHARE
 
INDUSTRY
A grouping of all shares in the same industry, usually represented by a sector index. If you look at the price page of your newspaper, you will see that the share market is divided into sectors.... read more
 
INDUSTRY
A grouping of all shares in the same industry, usually represented by a sector index. If you look at the price page of your newspaper, you will see that the share market is divided into sectors.... read more
 
INDUSTRY CLASSIFICATION
A grouping of all shares in the same industry, usually represented by a sector index. If you look at the price page of your newspaper, you will see that the share market is divided into sectors.... read more
 
INDUSTRY CLASSIFICATION BENCHMARK
A classification system for industries launched by Dow Jones in 2005 and which has gained inetrnational acceptance. The system has 11 industries broken down into 20 super-sectors, 45 sectors... read more
 
INEFFICIENT MARKETS
Behavioural finance. Driven by frame dependence and heuristic bias, when market prices stray from fundamental values. In simple terms, new and important information which affects the profitability... read more
 
INELASTIC
A microeconomics terms which indicates that the demand or supply for a particular good or serive is not reponsive to changes in price. In a supply and demand graph showing price on the Y-axis,... read more
 
INFLATION
Inflation is the degree to which a country's currency loses purchasing power over one year - expressed as a percentage. This is usually measured by the consumer price index (CPI), but it can... read more
 
INFLATION TARGET
The Reserve Bank, through its Monetary Policy Committee (MPC) strives to keep the inflation rate between 3% and 6%. They target the CPI-X which is the CPI without the effect of interest rates.... read more
 
INFLATION TARGETING
The Reserve Bank, through its Monetary Policy Committee (MPC) strives to keep the inflation rate between 3% and 6%. They target the CPI-X which is the CPI without the effect of interest rates.... read more
 
INFORMAL SECTOR
A large sector of the economy that operates (mostly illegally, depending on their size) substantially in cash, thus avoiding their tax obligations. It is estimated that about three quarters of... read more
 
INFOWIZ
An electronic information system operated by the London Stock Exchange (LSE) to provide information on LSE-listed companies to investors and the media. This system is similar to the Stock Exchange... read more
 
INFRASTRUCTURE
The roads, bridges, electricity distribution network, water supply and sewerage and other civil work usually funded by taxes or rates and provided by the government or municipality. The provision... read more
 
ING
Ingenuity (ING) is a property development company which focuses on properties in the Western Cape. The company was listed on the JSE in 2007 with the objective of developing properties in the... read more
 
INITIAL MARGIN
The amount a futures market participant must deposit into a margin account at the time an order is placed to buy or sell a futures contract.
 
INITIAL PUBLIC OFFERING
Usually coinciding with a listing, this is the first offer of shares to the investing public by a company.
 
INJECTION
An amount of cash inserted into an economy from outside. A good example would be the $4,3bn loan which South Africa obtained from the International Monetary Fund (IMF) to help it manage the COVID-19... read more
 
INL
26 - 05 - 2020
Investec (INL) does specialist banking and asset management in South Africa, Australia, Europe, the UK and a few other countries. The surprise Brexit vote in the UK has put... read more
 
INPUT
A material or product which is used to make another product. Inputs in South Africa are deductible for value-added tax (VAT) purposes. If a business buys something and VAT is charged on that... read more
 
INSIDE DAY
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
 
INSIDER
The illegal dealing in shares by people who, because of their privileged position, have information that materially impacts on the value of the shares, before that information has been made public.... read more
 
INSIDER TRADING
The illegal dealing in shares by people who, because of their privileged position, have information that materially impacts on the value of the shares, before that information has been made public.... read more
 
INSIDERS
The illegal dealing in shares by people who, because of their privileged position, have information that materially impacts on the value of the shares, before that information has been made public.... read more
 
INSOLVENCY
A legal status which is applied by the court to a person who is unable to pay his/her debts. An insolvent person is restricted in terms of being able to obtain further credit. In law a person... read more
 
INSTITUTIONAL INVESTOR
A collective investment scheme (as opposed to an individual), that invests funds arising from deposits, premiums, contributions etc.. Examples are insurance companies, unit trusts and pension... read more
 
INSTITUTIONAL SHARE
A share which is followed by the big institutions and held by them in their portfolios. A listed share which is patronised by the large institutional investors on the JSE. In South Africa there... read more
 
INSTRUMENT
A very generalised term for any sort of security or debt claim. Thus instruments can include shares, debentures, bonds, derivative contracts and so on.
 
INSURANCE ACT (18 0F 2017)
This is a new act which came into effect on the 1st of July 2018 and which seeks "To provide for a legal framework for the prudential regulation and supervision of insurance business in the Republic... read more
 
INSURANCE COMPANY
A company which is established in terms of the Insurance Companies Act (18 of 2017) to provide insurance policies to protect members of the public, both natural and juristic, against risks that... read more
 
INTANGIBLE
Any asset which is not concrete. For example, goodwill or patents, which belong to the company, are not represented by any physical object, but refer to the company's rights to something or the... read more
 
INTANGIBLE ASSETS
Any asset which is not concrete. For example, goodwill or patents, which belong to the company, are not represented by any physical object, but refer to the company's rights to something or the... read more
 
INTEGRATED REPORT
The King 3 report on corporate governance requires that companies produce an integrated report which includes a "sustainability report". Listed companies are required by the JSE Rules to adhere... read more
 
INTEGRATED RESOURCE PLAN
A government plan which maps out the supply of electricity going forward. The IRP was first produced in 2010 and promulgated in March 2011. The plan is supposed to be updated every 2 years, but... read more
 
INTELLECTUAL PROPERTY
The product of creative effort. Intellectual property can take the form of an invention, a piece of art work, a piece of writing, a symbol, a name or a design. Intellectual property is the subject... read more
 
INTERBANK RATES
The foreign exchange rates at which large international banks quote other large international banks. Because of the size of such transactions and creditworthiness of the counterparties, such... read more
 
INTEREST
Interest is the price of money. When one peson or company lends money to another then interest is charged at a percentage of the capital lent over a period of time. Interest rates are typically... read more
 
INTEREST BEARING DEBT
That portion of a company's debt which bears interest. In some cases the founders of a company will inject capital into the company which is interest-free and usually the money owed to a company's... read more
 
INTEREST COVER RATIO
The ratio of a company's interest expense to its earnings before interest and taxation (EBIT). In general, a company's EBIT should be sufficient to cover its interest bill at least 3 times. The... read more
 
INTEREST RATE
The price of money. Money behaves in much the same way as a commodity, in the sense that when it is in short supply, it becomes more expensive and vice versa. The interest rate is the cost of... read more
 
INTEREST RATE SWAPS
An arrangement that requires both sides of the transaction to make payments to each other based on two different interest rates. The most commonly traded requires one side to pay a fixed rate... read more
 
INTERIM DIVIDEND
 
INTERIM FINANCIAL RESULTS
In terms of the Companies Act, all public companies are required to produce interim financial statements covering the first six months of their financial year. These "interims" are published... read more
 
INTERMARKET ANALYSIS
Observing the price movement of one market for the purpose of evaluating a different market.
 
INTERMEDIATE GOODS
These are goods or services which are used in the production of the final goods which are sold to the consumer. Intermediate goods are also sometimes called "semi-finished goods". The demand... read more
 
INTERNAL RATE OF RETURN
The rate of interest which an individual, or, more commonly, an investment company is willing to accept. To determine your IRR, you need to ask yourself what amount of money received in a year's... read more
 
INTERNATIONAL ACCOUNTING STANDARDS BOARD
In March 2001, the International Accounting Standards Committee (IASC) Foundation was formed as a not-for-profit corporation incorporated in the State of Delaware, US. The IASC Foundation is... read more
 
INTERNATIONAL DERIVATIVES EXCHANGE
International derivatives exchange allows investors to invest in single stock futures in internationally listed blue chip companies. Contracts are settled in rands and traders do not require... read more
 
INTERNATIONAL FINANCIAL REPORTING STANDARDS
These are a set of standards established by the International Accounting Standards Board which is the standard-setting body formed by a non-profit organisation called the International Financial... read more
 
INTERNATIONAL MONETARY FUND
An organisation with over 185 member countries that aims to maintain international currency stability and maximise economic growth. The IMF regularly reports on world growth and economic developments.... read more
 
INTERNATIONAL SECURITIES IDENTIFICATION NUMBER
 
INTERNATIONAL TRADE
The buying and selling of products and services between countries. It is generally recongised that countries benefit directly from trade with other countries. This is because each country has... read more
 
INTRADAY
Literally, "within the day" as opposed to inter-day. Intraday trades are those that occur during the trading day - i.e. where a security is both bought and sold on the same day. This is mostly... read more
 
INTRINSIC NET ASSET VALUE
The value of a company based on its future earnings potential. Sometimes a company's net asset value (NAV) which is based on subtracting its liabilities from its assets... read more
 
INTRINSIC VALUE
 
INTRODUCING BROKER
A firm or individual that solicits and accepts futures orders from customers but does not accept money, securities, or property from the customer. An IB must be registered with the Commodity... read more
 
INVENTORY
Another word for stocks of raw material, work in progress, consumable stores and finished goods. The valuation of the inventory is critical to the balance sheet.
 
INVERTED HAMMER
The counterpart of the hammer, this is also a bullish bottom reversal candlestick formation which derives its significance from it's shadow and implies that an upward trend is imminent. The inverted... read more
 
INVERTED THREE BUDDHA
The opposite of a head-and-shoulders formation, this formation normally comes at the bottom of a long down-trend and signals the end of that down-trend. The market makes a left shoulder with... read more
 
INVESTABLE 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 market capitalisation. This is used in the construction... read more
 
INVESTEC AUSTRALIA PROPERTY FUND
04 - 11 - 2019
Investec Australia Property Fund (IAP) is a real estate investment trust (REIT) which concentrates on property investments in Australia and New Zealand. It is owned 23% by... read more
 
INVESTMENT
  1. An asset on the balance sheet that refers to the shares held in a company or loans granted to other companies, which do not amount to or confer a controlling interest. The Act requires... read more
 
INVESTMENT ANALYST
An investment analyst does research on listed shares in order to provide information to a fund manager to enable him to allocate funds to specific investments. Investment analysts have to have... read more
 
INVESTMENT BANK
A bank which is focused on helping companies with their corporate actions - especially the raising of additional capital through an initial public offer (IPO), a rights issue or the issue and... read more
 
INVESTMENT CLUBS
Small, private organisations in which a group of investors, usually novices, pool their time and resources to learn more than they could on their own about various forms of investments and then... read more
 
INVESTMENT HOLDING COMPANY
A company which holds shares in other companies as subsidiary or associate companies.
 
INVESTOR
A person, either natural or juristic, that purchases and holds any investment in a security. On the JSE, most of the investors are institutions (pension funds, unit trusts and insurance companies)... read more
 
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
 
INVESTOR PROTECTION LEVY
A levy charged by the JSE on all trades on the JSE consisting of 0,0002% of the value of the trade. This pays for insider trading investigations and prevents market manipulation.
 
INVISIBLE
Any asset which is not concrete. For example, goodwill or patents, which belong to the company, are not represented by any physical object, but refer to the company's rights to something or the... read more
 
INVISIBLE EXPORTS
Those exports which are for the sale overseas of services such as insurance and intangible products. "Invisibles" as they are known form part of the income of the country and part of its export... read more
 
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 can be included in the indices, but at a reduced weight.... read more
 
IPAP
A plan that was first produced by government following the 2008 sub-prime crisis and which has gone through at least 10 iterations since then. Essentially, the plan aims to stimulate growth in... read more
 
IPF
30 - 09 - 2020
Investec Property Fund (IPF) is a diversified South African real estate investment trust (REIT) with a R24bn portfolio of which R16bn is in South Africa. Like most REITs,... read more
 
IPL
26 - 08 - 2020
Imperial (IPL) was a massive logistics and motor business. It operated in 32 European and African countries and employed 27 000 people. The company split off and separately... read more
 
IPO
Usually coinciding with a listing, this is the first offer of shares to the investing public by a company.
 
IRA
An American retirement vehicle called an Individual Retirement Account (IRA). An employer's retirement plan that, as specified by tax law, allows employees to elect to have their federal taxable... read more
 
IRBA
This organisation established in terms of the Auditing Professions Act (26 of 2005) maintains rules and guidelines for auditors to create and ethical value-driven financial sector. Its objective... read more
 
IRON
A metal with the chemical symbol "fe". Iron oxidises (rusts) very quickly and so is not often found naturally. However, the world has abundant supplies of iron ore from which iron can be obtained... read more
 
IRP
A government plan which maps out the supply of electricity going forward. The IRP was first produced in 2010 and promulgated in March 2011. The plan is supposed to be updated every 2 years, but... read more
 
IRR
The rate of interest which an individual, or, more commonly, an investment company is willing to accept. To determine your IRR, you need to ask yourself what amount of money received in a year's... read more
 
IRREGULAR FLAT
A type of Elliott wave correction that has a 3-3-5 wave pattern, where the B wave terminates beyond the start of wave A. A "flat" is in progress, implying that a larger pattern is developing.... read more
 
ISA
15 - 09 - 2020
ISA Holdings (ISA) is a small Alt-X listed IT company offering network, internet and information security in sub-Saharan Africa. The company claims to employ some of the leading... read more
 
ISB
19 - 10 - 2020
Insimbi (ISB) is a group which manufactures and supplies specialist products to the industrial sector. They source, buy, package and process ferrous and non-ferrous alloys,... read more
 
ISIN
 
ISLAND FORMATION
A period of sideways movement after a substantial fall, where the share moves up and down within a relatively narrow trading range. Eventually, there should be an up-side break-out from the island,... read more
 
ISMO
A new electricity distribution entity that will buy electricity both from Escom and independent power producers (IPP) and then sell it to distributors. This is part of the government's plan to... read more
 
ISSUED CAPITAL
The value of the company’s authorised shares which have been sold to shareholders. Companies issue shares to the public to raise capital in what is known as the "primary market". This is... read more
 
ISSUED SHARES
The value of the company’s authorised shares which have been sold to shareholders. Companies issue shares to the public to raise capital in what is known as the "primary market". This is... read more
 
ISSUED SHARES
The number of shares which a company has sold to the public to raise capital for its establishment or expansion. A company must obtain authorisation from the Companies and Intellectual Property... read more
 
ITE
26 - 08 - 2020
Italtile (ITE) is a franchisor of tiles, sanitary ware, flooring and home finishing products - which it manufactures and wholesales itself. The company is controlled by the... read more
 
ITRIX
A joint initiative by the JSE and Deutsche Bank to offer South African investors a method of investing in overseas markets using rands on the JSE. There are five Itrix ETF's trading on the JSE: ... read more
 
ITU
06 - 08 - 2020
Intu (ITU) is a UK-based real estate investment trust (REIT) which is part of the FTSE 100 index. It was founded by the late Donald Gordon in 2010. It specialises in retail... read more
 
IVT
28 - 07 - 2020
Invicta (IVT) has two divisions - Engineering Solutions Group (ESG), which is a supplier of engineering consumables, components and spare parts, and Capital Equipment Group... read more