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


L2D
28- 07- 2020
Liberty Two Degrees (L2D) is a real estate investment trust (REIT) which contains the properties spun out of Liberty - most notably, it owns a share in the Sandton shopping... read more
 
L4L
03 - 07 - 2020
Long 4 Life (L4L) is an investment company which listed on the JSE on 7th April 2017. It raised R2bn on listing mainly because its CEO was Brian Joffe, who is very well known... read more
 
LAB
13 - 05 - 2020
Labat (LAB) is a 57% black-owned investment holding company which listed on the JSE in 1999. The company buys and improves subsidiaries and then sells them for a profit. At... read more
 
LABAT AFRICA LIMITED
13 - 05 - 2020
Labat (LAB) is a 57% black-owned investment holding company which listed on the JSE in 1999. The company buys and improves subsidiaries and then sells them for a profit. At... read more
 
LABOUR
In economic terms, a factor of poduction which involves people exchanging their labour for money. Entrepreneurs are regarded as a separate factor of production - "entrepreneurial ability". In... read more
 
LABOUR BROKER
A person or organisation that specialises in placing short-term workers. The union movement is strongly opposed to the existence of labour brokers, because, obviously, they make it possible for... read more
 
LABOUR INTENSIVE
A term used to describe those industries like the mining industry which traditionally have a large unskilled and semi-skilled work force. Such industries are often the subject of strikes and... read more
 
LABOUR MARKET
An informal market place where people exchange their labour for wages, salaries and other benefits. The flexibility of the labour market is an important element of the general efficiency of the... read more
 
LABOUR RELATIONS
A field of commercial activity which seeks to optimize the relationship between business and the labour force so as to ensure a minimum number of days work lost to strike action through contented... read more
 
LAG
The number of data points that a filter, such as a moving average, follows or trails the input price data. So, for example, you can have a 65-day exponentially smoothed moving average which is... read more
 
LAGGING INDICATOR
Certain economic indicators regularly lag behind the business cycle because of the nature of their business. For example, large construction contracts normally have a duration of three to five... read more
 
LAGGING MOVING AVERAGE
This is a moving average which is calculated in exactly the same way as a simple moving average, but then it is shifted back several days (user definable) usually with the objective of avoiding... read more
 
LAISSEZ-FAIRE
This is the policy of leaving things to run their own course, without any interference. In economics, this refers to the non-interference by the government, in the free-market. It is a French... read more
 
LAND BANK
An agricultural bank owned by the South African government that specialises in providing loans for the purchase of land, agriculutral equipment and other farming needs. The Land Bank carries... read more
 
LAND REFORM
Part of South Africa's constitution is to remedy the imbalances of the past and part of this process is to restore land claims to those who were dispossessed during the colonial and apartheid... read more
 
LAPSE RATE
An insurance term which is a percentage of renewal notices for insurance policies that are not then renewed. A high level of lapses can indicate that consumer disposable income is reduced and... read more
 
LARGE MERGER
A large merger is one where the combined turnovers of the two companies merging is more than R6,6bn or the turnover of the company that is being acquired is more than R190m. Such mergers must... read more
 
LAST DAY TO REGISTER
The date by which you must be registered as a shareholder in order to participate in a corporate action such as the paying of a dividend or a rights issue. The last day to register is three days... read more
 
LAST DAY TO TRADE
The last day to trade (LDT) in securities, which are subject to a corporate action (such as a rights issue or a dividend), in order to ensure settlement on record date (RD) and qualify for the... read more
 
LAST IN FIRST OUT
In accounting, a method of valuing closing stock which assumes that the most recently-purchased stock is the first stock to be used - which leaves the oldest and usually the less-expensive stock... read more
 
LAST TRANSACTION PRICE
The price at which a certain share was last traded. This information is normally reported on the price page of your newspaper in a column headed "last". It is sometimes called the "closing" or... read more
 
LATEST QUARTERLY EARNINGS
The percentage change from the latest earnings reported compared with the same quarter a year earlier.
 
LAZY BALANCE SHEET
Occasionally, you will come across a listed company which is said to have a "lazy balance sheet" because they are carrying a lot of cash and cash equivalents - which could be used for profitable... read more
 
LBH
06- 08- 2020
Liberty (LBH) is a financial services, asset management and insurance company which is a 54% subsidiary of Standard Bank. It is Standard Bank's "bancassurance" partner and the... read more
 
LBR
18 - 08 - 2020
Libstar (LBR) is a recently-listed decentralised food and beverage company producing "consumer packaged goods" which raised R3bn in an initial public offer (IPO) in May 2018.... read more
 
LEAD
The number of data points that a filter, much as a moving average, precedes the input price data.
 
LEADING INDICATORS
(1) These are indicators which tend to anticipate movements in other indicators. For example, the paper and packaging industry tends to start experiencing better conditions before the rest of... read more
 
LEADING MOVING AVERAGE
The opposite of a lagging moving average, this is a moving average that has been advanced by a few days on the chart. Advancing a moving average in this way moves it away from the price chart... read more
 
LEADING SECTOR
This is a sector which moves ahead of the business cycle. A good example is the packaging sector. As the economy turns and moves into an expansionary phase, manufacturers see that they need to... read more
 
LEAKAGE
An economics term which refers to money which is taken out of the normal circular flow of money within the economy. Savings is a good example, but also imports result in funds leaving the economy.... read more
 
LEAPS
Acronym for long-term equity anticipation securities, which are long-term listed options, with maturities that can be as long as two and a half years.
 
LEASE ADJUSTED NET LEVERAGE
The ratio of a company's net debt (or interest-bearing liabilities) to it earnings before interest, taxation, depreciation and amortisation (EBITDA). A ratio above 3 can indicate that the company... read more
 
LEAST DEVELOPED COUNTRIES
A list of countries which have an annual gross national income per capita of less than $1025 for at least 3 years. In addition, they are countries with poor health, education, nutrition and literacy.... read more
 
LEDGER
A "book" or more commonly today, a computer file into which transactions are entered from the journals. There are three types of ledger accounts - purchases, sales and general. Information from... read more
 
LEG
One side of a spread.
 
LEG OUT
In rolling forward in futures, a method that would result in liquidating a position.
 
LEGAL PERSONA
This is a legal term that refers to the fact that, in addition to natural persons, companies are also considered by law to be persons independent of their owners or managers. Legal persona gives... read more
 
LETTER OF ALLOCATION
A letter informing an applicant of how many shares he/she has been given in a share issue. Issue of shares, such as an initial public offer (IPO), are often over-subscribed which means that at... read more
 
LETTER OF ALLOTMENT
A letter informing an applicant of how many shares he/she has been given in a share issue. Issue of shares, such as an initial public offer (IPO), are often over-subscribed which means that at... read more
 
LEVERAGE
  1. The American term for "gearing" on the balance sheet where debts exceed equity.
  2. The ability to control large dollar amounts of a commodity with a comparatively small amount... read more
 
LEVERAGED BUYOUT
The acquisition of a company using a considerable amount of borrowed capital - often with the assets of company that is to be bought acting as collateral. Obviously leveraged buyouts can saddle... read more
 
LEW
26 - 08 - 2020
Lewis (LEW) is a retailer of furniture and electrical appliances operating through 779 stores under the Lewis (494 stores), Beares (119 stores), Best Home (133 stores), and... read more
 
LEWIS GROUP LIMITED
26 - 08 - 2020
Lewis (LEW) is a retailer of furniture and electrical appliances operating through 779 stores under the Lewis (494 stores), Beares (119 stores), Best Home (133 stores), and... read more
 
LHC
01 - 09 - 2020
Life Healthcare (LHC) is the second-largest, JSE main-board listed, healthcare company with private hospitals, same-day clinics and surgeries and healthcare companies in South... read more
 
LI DAVID
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
 
LIABILITY
An accounting term, which records monies owed by the company to outsiders. The most common forms of liabilities are share capital and reserves (which are money "owed" to the shareholders), long-term... read more
 
LIBERTY HOLDINGS LIMITED
06- 08- 2020
Liberty (LBH) is a financial services, asset management and insurance company which is a 54% subsidiary of Standard Bank. It is Standard Bank's "bancassurance" partner and the... read more
 
LIBERTY TWO DEGREES
28- 07- 2020
Liberty Two Degrees (L2D) is a real estate investment trust (REIT) which contains the properties spun out of Liberty - most notably, it owns a share in the Sandton shopping... read more
 
LIBOR
The rate at which banks in the UK lend money to each other. This rate, usually known as "libor" is similar to the Johannesburg offer rate or "jibor" in South Africa. Banks frequently lend money... read more
 
LIBSTAR HOLDINGS LTD
18 - 08 - 2020
Libstar (LBR) is a recently-listed decentralised food and beverage company producing "consumer packaged goods" which raised R3bn in an initial public offer (IPO) in May 2018.... read more
 
LIEN
A form of security or collateral for a loan - usually over movable property. A lien entitles the creditor to retain possession of the asset until the debt is paid. 
 
LIFE HEALTHCARE GROUP HOLDINGS LIMITED
01 - 09 - 2020
Life Healthcare (LHC) is the second-largest, JSE main-board listed, healthcare company with private hospitals, same-day clinics and surgeries and healthcare companies in South... read more
 
LIFESTYLE TAX AUDIT
The Receiver of Revenue sometimes undertakes a lifestyle audit of an individual who appears to be living beyond his taxed income and stated assets. The Income Tax Act allows for SARS to investigate... read more
 
LIFO
In accounting, a method of valuing closing stock which assumes that the most recently-purchased stock is the first stock to be used - which leaves the oldest and usually the less-expensive stock... read more
 
LIGHTHOUSE CAPITAL LIMITED
17 - 08- 2020
Lighthouse Capital (LTE) (previously Greenbay) was one of the Resilient group of REITs (real estate investment trusts) along with Resilient itself, Rockcastle and Fortress.... read more
 
LIMIT (UP OR DOWN)
The maximum price advance or decline from the previous day's settlement price permitted during one trading session, as fixed by the rules of an exchange. The purpose of limit up or limit down... read more
 
LIMIT MOVE
A change in price that exceeds the limits set by the exchange on which the contract is traded.
 
LIMIT ORDER
Limit order types are orders that stipulate both a volume to be bought or sold and a limit price. Limit orders will always execute at the specified limit or better. With on-line trading, all... read more
 
LIMITED LIABILITY
Corporate entities are juristic persons who have full legal persona. This means that they are responsible for their own debts separately from the people who own their shares. This is not true... read more
 
LINE CHART
Technical Analysis, or charting as it is called, has three primary divisions - Formations, Line Charts and Wave and Cycle Theories. Line charts start with a simple chart of the closing price... read more
 
LINE INDICATOR
This is a mathematical formula which is applied to a continuous stream of financial data with the objective of improving its predictability. Most line indicators have standard trading strategies... read more
 
LINEAR WEIGHTING
The even weighting of a moving average so that older data has proportionately less impact than more recent data. In a standard moving average every price from the most recent to the oldest in... read more
 
LINKED INVESTMENT SERVICE PROVIDER
This is a company which offers the investor a single platform from which he/she can invest in a broad range of collective investment schemes (CIS) such as unit trusts and insurance options. Linked... read more
 
LINKED UNIT
A security which combines an equity share with a debt instrument. These securities were typically employed in property companies and still exist in some of them. The debt instrument offers a... read more
 
LIQUID
A liquid share is one which typically trades more than R5 million but less than R500 million worth of shares every trading day. A good example of this would be a share like Dischem or Coronation.... read more
 
LIQUID ASSETS
Assets that can be readily converted into cash. Normally, these are current assets such as debtors, stock and obviously cash or bank balances. The "liquidity" of an asset is the speed and ease... read more
 
LIQUID MARKET
A security or commodity market with enough units outstanding to allow large transactions without a substantial change in price.
 
LIQUIDATE
To settle the affairs of a company/firm by selling assets in order to pay creditors. When a company is liquidated, ordinary shareholders are entitled to receive their portion of remaining assets... read more
 
LIQUIDATING VALUE
A money balance figure calculated by beginning with adjusted total equity, subtracting short option value, and adding long option value. This figure provides a critical snapshot of the financial... read more
 
LIQUIDATION
The process whereby a company is dissolved. The court, the company itself, a shareholder, the Master of the court, the business rescue practitioner, a creditor, or the minister may initiate such... read more
 
LIQUIDITY
The ability of a company (or person) to raise cash on short notice, usually with a view to meeting debts, unexpected expenses, or to take advantage of opportunities. It is wise to keep a portion... read more
 
LIQUIDITY COVERAGE RATIO
This is a ratio used in the banking industry to ensure that a commercial bank has sufficient liquidity to meet its short-term cash outflows over the next 30 days. In general, banks aim to have... read more
 
LISP
This is a company which offers the investor a single platform from which he/she can invest in a broad range of collective investment schemes (CIS) such as unit trusts and insurance options. Linked... read more
 
LISTED INVESTMENT
An investment which can be traded on an organised exchange. The investment can be a debt instrument, equity or one of a number of other instruments. To have its securities listed on the JSE,... read more
 
LISTING
The right to trade a particular security on an organised exchange. The JSE has stringent requirements for companies seeking to have their shares and other instruments listed. Securities may be... read more
 
LISTING DATE
The date on which a company was listed on the JSE. Most listing are accompanied by an initial public offer (IPO) whereby the company raises capital from the public to fund its business. One of... read more
 
LISTING REQUIREMENTS
For a company to list on the main board of the Johannesburg Stock Exchange it must have: " (1) a subscribed capital (including reserves but excluding minority interests, and revaluations of assets... read more
 
LISTINGS BOOM
This describes a surge in companies lising on the JSE over a period of time. As a company executive, having your company listed on the JSE is attractive, as capital can be generated to grow the... read more
 
LIVE PRICES
Share and other asset prices which are received directly from the JSE in the form of a "trickle feed". A feed of live prices is very expensive and can generally only be justified by institutional... read more
 
LIVING STANDARDS MEASUREMENT
A categorisation of living standards in South Africa with 1 representing the poorest category of citizen and 10 representing the richest. The measure is based on a list of questions about how... read more
 
LJUNG-BOX STATISTIC
A chi-square test of significance of higher order correlation existence. The marginal significance level is the probability that a no more higher order correlation exists. There are a large number... read more
 
LNF
22 - 09 - 2020
London Finance and Investment Group (LNF) is a British company involved in management and finance in the UK, America and Europe. It is listed on the London Stock Exchange... read more
 
LOAD
Commission and fees taken out of investment capital; that is, the situation in which a front-loaded mutual fund takes commission and fees out of investment capital before the money is put to... read more
 
LOAN LEVY
A levy imposed on citizens to help finance government expenditure. Usually the levy is compulsory and repaid by the government when they have funds available, usually by a reduction in tax. In... read more
 
LOAN STOCK
Shares in a company which are put up as collateral for a loan. In general, a bank will lend about 50% of the current market value of listed shares given to it as collateral. Unlisted shares would... read more
 
LOAN TO VALUE
This is the amount of debt which a real estate investment trust (REIT) or property company has as a proportion of the value of the properties which it owns. In general an LTV of above 40% is... read more
 
LOCAL COUNTER-PARTY TRANSACTION
A transaction where a member firm trades as a principal with a person in South Africa, other than a member firm in South Africa.
 
LOCKED IN
A special arrangement whereby certain shareholders are prevented from selling their shares for a defined period of time. This is typically a condition of an acquisition where the major shareholders... read more
 
LOCKED LIMIT
A market that, if not restricted, would seek price equilibrium outside the limit but, instead, moves to the limit and ceases to trade.
 
LOG CHARTS
Long-term standard charts, especially of indexes, have the disadvantage that the older data cannot be compared with the most recent data. For example, the 40% collapse of the JSE Overall index... read more
 
LOGARITHMIC CHART
There are a number of ways to display the data on a chart. A linear chart is just like the charts that you used to draw at school with both the X and the Y axis showing one unit for each interval.... read more
 
LON
10 - 06 - 2019
Lonmin (LON) is the world's third largest producer of platinum group metals (PGMs). These include platinum, rhodium, palladium, iridium, ruthenium and gold. The company sold... read more
 
LONDON FINANCE AND INVESTMENT GROUP PLC
22 - 09 - 2020
London Finance and Investment Group (LNF) is a British company involved in management and finance in the UK, America and Europe. It is listed on the London Stock Exchange... read more
 
LONDON INTERBANK OFFERED RATE
The rate at which banks in the UK lend money to each other. This rate, usually known as "libor" is similar to the Johannesburg offer rate or "jibor" in South Africa. Banks frequently lend money... read more
 
LONDON STOCK EXCHANGE
The London Stock Exchange is one of the world's oldest stock exchanges and can trace its history back more than 300 years. Starting life in the coffee houses of 17th century London, the Exchange... read more
 
LONG
Establishing ownership of the responsibilities of a buyer of a tradable; holding securities in anticipation of a price increase in that security. An investor who is "long of a stock" is a person... read more
 
LONG 4 LIFE LTD
03 - 07 - 2020
Long 4 Life (L4L) is an investment company which listed on the JSE on 7th April 2017. It raised R2bn on listing mainly because its CEO was Brian Joffe, who is very well known... read more
 
LONG LEGGED DOJI
A candlestick formation which comprises of a very small or non-existent body and very long upper and lower shadows. The body of the candle is exactly in between the two shadows. The Rickshawman... read more
 
LONG NAME
Companies which are listed on the JSE have three "names" - their long name, their short name and their code. Thus, for example, Pick 'n Pay Stores Limited is the company's long name. Its short... read more
 
LONG OPTION VALUE
The current market value of all long options in a trading account. This amount of cash would flow into the account (less any commissions and fees) in the event that the options were offset (sold)... read more
 
LONG POSITION
A holding of securities that benefits if the market goes up. A purchase of shares on the JSE is a long position - as opposed to a short or bear sale of the same the shares - which would be a... read more
 
LONG TERM TREND
A trend which lasts for at least two years and usually much longer. The current upward trend on the S&P500 index has been in progress, with corrections, since March 2009 - over 11 years -... read more
 
LONG-TERM LIABILITY
A debt, which is to be repaid over years rather than months. A good example of this would be debentures, which carry a fixed percentage return and are redeemable by the company at some future... read more
 
LONMIN PLC
10 - 06 - 2019
Lonmin (LON) is the world's third largest producer of platinum group metals (PGMs). These include platinum, rhodium, palladium, iridium, ruthenium and gold. The company sold... read more
 
LOOKBACK INTERVAL
The number of periods of historical data used for observation and calculation. For example, a 50-day moving average has a lookback interval of 50 trading days.
 
LOOP STRUCTURE
An illegal structure where a person resident in South Africa for tax purposes owns a company or trust overseas which then, in turn, owns assets in South Africa. Certain loop structures can be... read more
 
LOOSELY HELD
This expression refers to shares which are held by people who are not familiar with the inner workings of the company. They will sell their shares easily, especially if the price rises a little.... read more
 
LOSS
A loss occurs where a company's expenses exceed its incomes in a particular accounting period. The loss can be because of a once-off expense (such as an impairment of assets or the writing off... read more
 
LOT
A unit of trading. In the futures market, one lot refers to one futures or options contract. In the forex market, one lot is equivalent to 100,000 units of a particular foreign currency. Originally... read more
 
LOW
The lowest point in a price pattern over a specific period.
 
LOW PASS FREQUENCY FILTER
A data smoother or filter that lets pass low frequency trend sinusoids and rejects high frequency noise (see SMA).
 
LOW-TICKING
To sell at the bid price.
 
LOWER SHADOW
A candlestick charting term which refers to the extent to which a share's price trades below its open, in a green candle or its close in a red candle. In candlestick charting the candle is coloured... read more
 
LSE
The London Stock Exchange is one of the world's oldest stock exchanges and can trace its history back more than 300 years. Starting life in the coffee houses of 17th century London, the Exchange... read more
 
LTE
17 - 08- 2020
Lighthouse Capital (LTE) (previously Greenbay) was one of the Resilient group of REITs (real estate investment trusts) along with Resilient itself, Rockcastle and Fortress.... read more
 
LTV
This is the amount of debt which a real estate investment trust (REIT) or property company has as a proportion of the value of the properties which it owns. In general an LTV of above 40% is... read more
 
LUX
21 - 09 - 2020
Luxe (Previously called Taste Holdings) consists of two businesses - a food franchisor and a luxury goods retailer. It had master franchises in Southern Africa for Starbucks... read more
 
LUXE HOLDINGS LIMITED
21 - 09 - 2020
Luxe (Previously called Taste Holdings) consists of two businesses - a food franchisor and a luxury goods retailer. It had master franchises in Southern Africa for Starbucks... read more