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


M0
The total amount of money in the country. There are various methods for measuring the money supply, itemised and defined as "M0, M1, M2 and M3". Thus the broadest measure of the money supply... read more
 
M1
The total amount of money in the country. There are various methods for measuring the money supply, itemised and defined as "M0, M1, M2 and M3". Thus the broadest measure of the money supply... read more
 
M2
The total amount of money in the country. There are various methods for measuring the money supply, itemised and defined as "M0, M1, M2 and M3". Thus the broadest measure of the money supply... read more
 
M3
The total amount of money in the country. There are various methods for measuring the money supply, itemised and defined as "M0, M1, M2 and M3". Thus the broadest measure of the money supply... read more
 
MA
An average of the most recent prices of a share progressed each trading day such that the same number of days remain in the average. The moving average is the most commonly-used technical indicator... read more
 
MAC
A material adverse change clause is included in most major contracts and allows parties to exit the contract or modify it if a something happens which significantly changes the value of the assets... read more
 
MACD
The crossing of two exponentially smoothed moving averages that are plotted above and below a zero line. The crossover, movement through the zero line, and divergences generate buy and sell signals.... read more
 
MACROECONOMICS
That part of economics which looks at the economy as a whole and how it functions both internally and externally, in its relationhships with other economies. This is as opposed to microeconomics... read more
 
MAIDEN DIVIDEND
The first dividend paid by a company after listing on the JSE. A company's first dividend is typically the subject of much speculation. The prospectus will give a five year projection of how... read more
 
MAIN BOARD
To be listed on the main board of the JSE a company must have at least R1m in subscribed capital in the form of at least 1 m shares. It must have a satisfactory profit history over the past 3... read more
 
MAINTENANCE MARGIN
A set minimum margin (per outstanding futures contract) that a customer must maintain in his margin account to retain the futures position. See also Margin.
 
MAIZE
A cereal crop widely cultivated and used for a multitude of food products either directly (as with sweet corn) or indirectly as feed for other animals like chickens or cattle. Maize meal is the... read more
 
MAJOR AUCTION
The overall trend of the market such as might be observed on a bar chart.
 
MAJOR SHAREHOLDER
A shareholder with a dominant shareholding, but insufficient to give them control of a company. When a shareholder acquires more than 35% of a listed company they are required to make an offer... read more
 
MAJORITY SHAREHOLDER
The shareholder or group of shareholders who own a controlling interest in the company - usually 50% of the voting shares plus 1 share. Obviously, the identity of the controlling shareholder... read more
 
MANAGED ACCOUNT
An account opened with a stockbroker where the client has entered into an arrangement with the stockbroker that authorises the stockbroker to conduct transactions on the client's behalf with... read more
 
MANAGED FUND
A managed fund is similar to a collective investment scheme (CIS) in the sense that investors' funds are pooled and managed by a professional fund manager for a fee. Most stockbroking firms offer... read more
 
MANAGED FUTURES
A fund that uses the futures market as its primary asset.
 
MANAGEMENT
This refers to the people who manage a company, including the board of directors. The quality of management of a company is obviously critical to its success. Management can best be assessed... read more
 
MANAGEMENT ACCOUNTS
Management accounts tell the management and board of directors whether their individual products are profitable by breaking down all the company's costs and allocating them to individual products.... read more
 
MANAGEMENT BUY-OUT
The acquisition of all or part of the share capital of a company by its directors and senior executives. The management is usually assisted by loans from an institution.
 
MANAGEMENT RATIOS
Financial ratios which are used to assess the management of a company's working capital. These ratios include the stock turn ratio and the debtors collection period ratio each of which measure... read more
 
MANAGING DIRECTOR
The leader of a company's board of directors. The CEO is in charge of and responsible for everything that happens in the company. However, to the Companies Act, he is just another director and... read more
 
MANDATE
When you open a stockbroking account you will be required to sign a mandate - which is an agreement between you and your broker which determines the extent of his control over your account. A... read more
 
MANDATORY CORPORATE ACTION
An event which results from a decision of the company's board of directors and which does not require shareholder compliance. For example, the declaration of a dividend is a corporate action... read more
 
MANDATORY OFFER
When one shareholder acquires more than 35% of a listed company, he is obliged by the Securities Regulation Panel to make an offer to all the shareholders of the company to acquire their shares.... read more
 
MANGANESE
Manganese is a chemical element, used as an alloy, especially in stainless steel. South Africa has 22 operating manganese mines, (September 2020) and has the largest manganese reserves in the... read more
 
MANUFACTURING PRODUCTION
This refers to the production of the manufacturing sector of the economy. It production excludes mining production and agricultural production and it accounts for approximately 11% of gross national... read more
 
MANUFACTURING PRODUCTION
An economic indicator which measures the output from manufacturing. Manufacturing production is measured and published monthly. Following the COVID-19 pandemic, manufacturing production in South... read more
 
MANUFACTURING SECTOR
That sector of the economy which is engaged in processing raw materials and other materials into saleable products. Not all manufactured products are finished goods. Some of them are intermediate... read more
 
MAP
Master Plastics (MAP) is an Alt-X listed company that was spun out of Astrapak and separately listed on 24th May 2017. It is involved in manufacturing a variety of plastics for the agricultural,... read more
 
MARGIN
1. In stock trading, an account in which a purchase of stock may be financed with borrowed money; in futures trading, the deposit placed with the clearinghouse to assure fulfilment of the contract.... read more
 
MARGIN CALL
A call from a broker or firm to a customer, to bring margin deposits up to a required minimum level. A margin call essentially means that a customer's account equity is no longer sufficient to... read more
 
MARGINAL COST
This is the cost of producing one additional unit of a product. This is a variable cost which excludes the fixed overheads involved in production and looks at the materials cost of the additional... read more
 
MARGINAL PRODUCER
A term usually applied to gold-mining companies with a very high cost of extraction and therefore a low margin. If their cost of extraction is close to the gold price, then very small fluctuations... read more
 
MARGINAL PROPENSITY TO CONSUME
This is an economics concept which indicates how much of their income people in the economy as a whole will spend. Whatever is left is saved. The savings rate is critical to the economy because... read more
 
MARGINAL PROPENSITY TO SAVE
A economics concept which refers to the average proportion of a person's salary which he/she will save in the economy. In South Africa, the marginal propensity to save is mostly less than 2%... read more
 
MARGINAL RATE OF TAX
The tax bracket which individuals in South Africa with the highest incomes pay. In the tax year which ends on 28th February 2018, the marginal tax bracket for individuals resident in South Africa... read more
 
MARGINAL TAX BRACKET
The tax bracket which individuals in South Africa with the highest incomes pay. In the tax year which ends on 28th February 2018, the marginal tax bracket for individuals resident in South Africa... read more
 
MARGINAL TAX RATE
The tax bracket which individuals in South Africa with the highest incomes pay. In the tax year which ends on 28th February 2018, the marginal tax bracket for individuals resident in South Africa... read more
 
MARK MOBIUS
An international fund manager who is the chairman of Templeton Emerging Markets Group with more than $50bn under management, Mobius has also served on the World Bank's Corporate Governance Forum.... read more
 
MARK TO MARKET
Calculation of the difference between the contract price and the market price.
 
MARKED TO MARKET
Calculation of the difference between the contract price and the market price.
 
MARKET
A securities exchange that is properly formulated and run in accordance with an Act of Parliament. The Johannesburg Securities Exchange (JSE) is an organised exchange and there are many others... read more
 
MARKET ACTION
The price of trades and the volumes changing hands during the trading day. The best way to see this is to look at either a candlestick or a bar chart together with a volume histogram. These will... read more
 
MARKET APPRECIATION
The difference between what was paid for a share and its current market price. This is distinct from the realised profit, which can only occur if the share is actually sold and the money is in... read more
 
MARKET BREADTH
The extent or scope of change in share prices. Market breadth is most often measured by analysing the number of shares that advanced or declined during the period or by counting the number of... read more
 
MARKET BUBBLE
An asset bubble is a period where the price of a particular asset reaches unsustainable levels due to investor enthusiasm. Over the centuries there have been a number of famous... read more
 
MARKET CAPITALISATION
The current market price of a share multiplied by the number of shares that the company has in issue. The market capitalisation of a company is the value which the market gives it at any point... read more
 
MARKET CARPETS
A feature in your Software which allows you to view the entire JSE, sector by sector, in the form of a matrix of squares with each sector represented by a square. The colour of the square indicates... read more
 
MARKET CONDUCT REGULATOR
Previously known as the Financial Services Board (FSB). The Financial Sector Conduct Authority (FSCA), newly named with the advent of the Twin Peaks mechanism, introduced on 1st April 2018, is... read more
 
MARKET CRASH
A sudden fall in stock market prices, sometimes in a single trading day, and which is usually followed by a bear trend.  This happens generally because market prices have risen to unrealistically... read more
 
MARKET FORCES
The sentiment in the market at any given time - which can be either bullish or bearish. Investors as a group tend to respond to the algebraic sum of a multitude of economic factors such as the... read more
 
MARKET MAKER
A broker or bank continually prepared to make a two-way price to purchase or sell for a security or currency.
 
MARKET NOISE
An incorrect interpretation of the market due to daily price and volume fluctuations. Volatility in the market can be smoothed out with a moving average. Usually the smaller the time period under... read more
 
MARKET ORDER
An order given to a broker with no price limitation. The broker is instructed to obtain or sell a specific number of shares "at best" - as opposed to a limit order, where the instruction is only... read more
 
MARKET PERCEPTION
The way in which the investing public in general feel about a share,  an industry or the market as a whole.  In other words, do they see a share as highly-rated or poorly-rated? Are they expecting... read more
 
MARKET PRESSURE
The constraint on a share price brought about by either buying or selling pressure. Market pressure can be either bullish or bearish, depending on whether there is more buying or selling pressure.... read more
 
MARKET PRICE
The price of a share in the market. This is the result of continuous trading - an interaction of supply and demand. The price of a share in the market is determined by the average perception... read more
 
MARKET RATING
The value which the market places on a share. The price of a share in relation to its most recent earnings per share are reflected in the P:E ratio and it's reciprocal, the earnings yield. Highly... read more
 
MARKET RISK
The uncertainty of returns attributable to fluctuation of the entire market as opposed to a specific share. The risk in the market as a whole is usually known as "systematic risk" while the risk... read more
 
MARKET SENTIMENT
Crowd psychology, typically a measurement of bullish or bearish attitudes among investors and traders. There is a definite "herd" effect in market sentiment where bullish or bearish sentiment,... read more
 
MARKET SHARE
The percentage of a particular market which a company controls. Companies, especially in the retail sector are constantly fighting to maintain or increase their market share. The goal is to have... read more
 
MARKET STRATEGY
An approach to investment or a set of rules for investment which has a specific objective. For example, a portfolio can be high risk or low risk in its orientation, or it can favour commodities... read more
 
MARKET TIMING
Using analytical tools to devise "buy" and "sell" signals. Market timing is the realm of technical analysis while fundamental analysis is better for share selection.
 
MARKET VALUE
Company value determined by investors, obtained by multiplying the current price of company stock by the common shares outstanding - in other words, the market capitalisation of the share. The... read more
 
MARKET-IF-TOUCHED ORDER
An order placed much like a Limit order (buy orders should be placed below the current market price; sell orders above the current market price), but when the market touches the specified price,... read more
 
MARKET-ON-CLOSE ORDER
An order to buy or sell a futures or options contract at the prevailing market price during the closing range (usually, the last 30-60 seconds of trading). Similar to a market order in that no... read more
 
MARKETABLE LOT
Also called a "round lot", this is the number of shares which is normally traded. On the JSE the marketable lot is 100 shares - as it is for most markets around the world. A few markets have... read more
 
MARKETABLE SECURITY
A security which is traded on an organised exchange. This is a broad term which incorporates all types of securities such as equities, bonds and derivatives. If a security is marketable, it can... read more
 
MARKITWIRE
 
MATCHING
The off-setting of a buy order against a sell order in the market. Matching is done automatically by the JSE computer as soon as the price of a buy order (a bid) is the same as the price of a... read more
 
MATCHING PRINCIPLE
The accounting principle which requires that the expenses of a period are subtracted from the incomes of the same period in order to arrive at the profit or loss for that period. For example,... read more
 
MATERIAL ADVERSE CHANGE
A material adverse change clause is included in most major contracts and allows parties to exit the contract or modify it if a something happens which significantly changes the value of the assets... read more
 
MATIF
The Marche A Terme Des Instruments Financiers exchange in Paris. MATIF SA is France's futures exchange, absorbed in the merger of the Paris Bourse with Euronext NV to form Euronext Paris. Derivatives... read more
 
MATURITY
U.S. Treasury Bills reach their face value on the maturity date. T-Bills are issued at a discount to face value and gradually increase in value until reaching the full face value on the maturity... read more
 
MATURITY DATE
U.S. Treasury Bills reach their face value on the maturity date. T-Bills are issued at a discount to face value and gradually increase in value until reaching the full face value on the maturity... read more
 
MAXIMUM ADVERSE EXCURSION
A historical measurement of the closed losing trades versus the closed profitable trades of a trading system. Used to determine the stop-loss level that can be used that will allow winning trades... read more
 
MAXIMUM ENTROPY METHOD
More flexible than Fourier analysis, the maximum entropy method is both a tool for spectrum analysis and a method of adaptive filtering and trend forecasting. As a tool for spectrum analysis,... read more
 
MCG
06 - 10  - 2020
Multichoice (MCG) is a leading entertainment company in Africa and one of the fastest-growing pay-TV broadcast providers in the world with 13,9m subscribers in 50 countries.... read more
 
MCSA
Previously known as the Chamber of Mines, this organisation represents employers in the mining industry in South Africa. Its objective is to support and promote mining in this country. It was... read more
 
MCZ
01 - 10 - 2020
MC Mining (previously "Coal of Africa") (MCZ) is a small metallurgical coal-mining company with a single producing mine (Uitkomst). Aside from Uitkomst, the company is developing... read more
 
MDI
26 - 08 - 2020
Master Drilling (MDI) is a South African company that specialises in drilling exploration and other holes for the mining industry and which has diversified into drilling for... read more
 
MEAN
The mean of a set of numbers. Averages are used extensively in the share market for the determination of market indexes and economic data. The moving average... read more
 
MEAN DEVIATION
The average absolute value of the difference between the population of numbers and the mean.
 
MEAN RETURN
The average monthly total return of a stock. The total return is price change added to dividends.
 
MEAN REVERTING
The term adopted in academic literature for one possible state of a price series: that state when price is oscillating randomly about some (unknown) mean value. That is, it is not trending.
 
MEDIAN LINE
The line that is drawn from an extreme that bisects a line drawn through the next corrective phase after the pivot point. See Andrews Method.
 
MEDIUM TERM BUDGET POLICY STATEMENT
Better known as the MTBPS or the "mini-budget" this is a statement by the Treasury given by the Minister of Finance at the end of October each year. It considers the medium term economic outlook... read more
 
MEGAPHONE
A technical analysis formation which is the opposite of an asymmetrical triangle. The broadening formation occurs when there is uncertainty and high volatility in the market. The formation takes... read more
 
MEI
16 - 10 - 2020
Mediclinic International (MEI) has its primary listing on the London Stock Exchange (LSE) with secondary listings on the JSE and the Namibian Stock Exchange. It has operations... read more
 
MEMBER FIRM
A stockbroking firm which has at least one employee who is a qualified stockbroker. Membership of the JSE takes three forms (1) a trading service provider (TSP) who can perform trades on behalf... read more
 
MEMORANDUM AND ARTICLES OF ASSOCIATION
A document required in terms of the old Companies Act which was lodged with the Registrar of Companies and which set out the relationship of a company with the outside world. In terms of the... read more
 
MEMORANDUM OF INCORPORATION
Introduced in May 2011, the Memorandum is a single document that, in terms of the new Companies Act, replaces the old memorandum and articles of association. The MOI includes details of the relationship... read more
 
MENTAL POSTURE
Mental Posture is your emotional response to the share market in general and to your shares in particular. Objectively, investing in shares should be a very scientific process. The reality is... read more
 
MERGER
This occurs where two or more companies come under the control of one, whose shareholders then become the shareholders of the companies that were merged. The Companies Act (71 of 2008) uses the... read more
 
METASTOCK
MetaStock has been providing award-winning charting and analysis tools for the self-directed trader for over 30 years. Capitalising on technical analysis, the MetaStock line of trading software... read more
 
MEZZANINE DEBT
Debt in a company which ranks below senior debt, but above equity in the distribution of net assets on liquidation. On liquidation the liquidators first sell the assets of the company and then... read more
 
MFL
15 - 09 - 2020
Metrofile (MFL) is a company which specialises in records storage and management, image processing and backup. The company has been listed since 1995 and has a 57,4% black... read more
 
MICROECONOMICS
That part of economics which deals with the individual firm or consumer. This is as opposed to macroeconomics which deals with the economy as a whole. Microeconomis considers the equilibrating... read more
 
MICROLENDER
A person or organisation that specialises in making small, short-term, unsecured loans usually at very high interest rates. Following the end of the apartheid era and the advent of the... read more
 
MID-TERM BUDGET POLICY STATEMENT
The mid-term budget policy statement (MTBPS) is usually tabled by the Minister of Finance at the end of October each year with the objective of updating the annual budget which is traditionally... read more
 
MILLENNIUM EXCHANGE
A trading platform adopted by the JSE for the trading of equities and derivatives in equities and currencies. This platform was developed and produced by the London Stock Exchange Group (LSEG).... read more
 
MILTON FRIEDMAN
Friedman was a Nobel prize winning American economist who developed the economic school of thought known as "monetarism". This school rejected the Keynesian approach in the mid-1970s. The major... read more
 
MINE REHABILITATION
Mines are required by law in South Africa to set aside funds so that at the end of the mine's life the ground where the mine was can be returned as far as reasonably possible to its original... read more
 
MINERAL AND PETROLEUM RESOURCES DEVELOPMENT ACT
The Mineral and Petroleum Resources Development Act (MPRDA - 28 of 2002) recognises that these natural resources belong to the South African Nation are not renewable and places the government... read more
 
MINERAL RESERVES
These are the minerals belonging to a mining company which can be extracted profitably. All mining companies try to extend their mineral reserves by drilling exploratory cores to establish exactly... read more
 
MINI-BUDGET
The mid-term budget policy statement (MTBPS) is usually tabled by the Minister of Finance at the end of October each year with the objective of updating the annual budget which is traditionally... read more
 
MINI-BUDGET
Better known as the MTBPS or the "mini-budget" this is a statement by the Treasury given by the Minister of Finance at the end of October each year. It considers the medium term economic outlook... read more
 
MINIMUM SUBSCRIPTION
Section 108 (2) of the Companies Act requires the directors of a company intent on raising capital from the public by a sale of shares to determine the minimum amount of capital necessary for... read more
 
MINIMUM WAGES
These are set by the Minister of Labour in terms of the Basic Conditions of Employment Act for each industry in the economy. The problem with setting a minimum wage is that often it makes a particular... read more
 
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 Development Act (MPRDA - 28 of 2002)... read more
 
MINING CHARTER
The constitution seeks to redress the racial imbalances of the past and in the mining industry this is achieved by the mining charter. The charter aims to have at least 26% of mining companies'... read more
 
MINING HOUSE
A large multi-national company which specialises in the exploitation of minerals. There are several very large mining houses world-wide and most of them are invested to a greater or lesser extent... read more
 
MINOR AUCTION
The latest trend of the market, i.e., what it is doing now.
 
MINORITY INTEREST
A shareholding of less than 50% of the total issued share capital of a company. Companies work on the principle of majority rule - decisions are made by the majority of votes in the company.... read more
 
MISMATCH FACTOR
This is the gross profit margin which banks make on lending money to the commercial sector. It is the difference between the prime overdraft rate and the repo rate which the Reserve Bank charges... read more
 
MISTRADE
A trade which deviates significantly from the price of the last transaction because of a capturing mistake. Since the JSE moved over to a completely electronic trading platform and moved away... read more
 
MIT
An order placed much like a Limit order (buy orders should be placed below the current market price; sell orders above the current market price), but when the market touches the specified price,... read more
 
MIX
01 - 06 - 2020
Mix Telematics (MIX) is a company which specialises in vehicle tracking technology and has operations in South Africa, Australia, the UK, the US, Brazil, Thailand, and Romania.... read more
 
MIXED CAPITALISM
Mixed capitalism is an economic system which combines elements of capitalism and socialism. This means that consumers are given a singificant amount of freedom in the labour market and the retail... read more
 
MIXED CAPITALIST SYSTEM
Mixed capitalism is an economic system which combines elements of capitalism and socialism. This means that consumers are given a singificant amount of freedom in the labour market and the retail... read more
 
MLE
05 - 10 - 2020
Mettle Investments (MLE) is an Alt-X listed financial services group that was spun out of Tradehold and unbundled into a separately listed company on 23rd May 2018. Tradehold... read more
 
MMI
MMI is an investment and insurance financial services company, created by the merger of Momentum and Metropolitan in 2010, which focuses on the lower end of the market. The company has been performing... read more
 
MMP
30 - 06 - 2020
This is an investment holding company with investments in the UK, Europe, USA, the far East and South Africa. In South Africa it is invested in food processing and logistics.... read more
 
MND
19 - 10 - 2020
Mondi (MNP) is a massive international paper and packaging company that started in South Africa, but now has interests in 30 countries and employs 26000 people. It has businesses... read more
 
MNK
13 - 08 - 2020
Montauk (MNK) is an American company that specialises in extracting methane from landfills, mostly in America. In December 2014, the share was trading for 200c and it is now... read more
 
MOBILE VIRTUAL NETWORK OPERATOR
A company that rents network infrastructure from a network owner (like MTN, Vodacom, Cell-C and Telkom) and then sells its data and voice services to its customer base. There... read more
 
MOBIUS MARK
An international fund manager who is the chairman of Templeton Emerging Markets Group with more than $50bn under management, Mobius has also served on the World Bank's Corporate Governance Forum.... read more
 
MOC
An order to buy or sell a futures or options contract at the prevailing market price during the closing range (usually, the last 30-60 seconds of trading). Similar to a market order in that no... read more
 
MODERN PORTFOLIO THEORY
Investing theory in which portfolio managers estimate and manage risk and return. Modern Portfolio Theory (MPT) is based on the "random walk hypothesis" which basically maintains that it is impossible... read more
 
MODIFIED ENDOWMENT CONTRACT
Life insurance in which funds such as policy loans, assignments, pledges, and partial surrenders are considered gross income and subject to income tax.
 
MOI
Introduced in May 2011, the Memorandum is a single document that, in terms of the new Companies Act, replaces the old memorandum and articles of association. The MOI includes details of the relationship... read more
 
MOMENTUM FILTER
A measure of change, derivative or slope of the underlying trend in a time series. Implemented by first applying a low pass filter to the data and then applying a differencing operation to the... read more
 
MOMENTUM INDICATOR
A market indicator utilising price and volume statistics for predicting the strength or weakness of a current market and any overbought or oversold conditions, and to note turning points within... read more
 
MOMENTUM METROPOLITAN HOLDINGS LIMITED
10 - 09 - 2020
Momentum Metropolitan (MTM) is an insurance company listed on the JSE and the Namibian stock exchanges. It was formed by the merger of Momentum and Metropolitan in December... read more
 
MONETARISM
An approach to economics developed by Milton Friedman in which he proposes that increases in the money supply have an almost direct impact on the inflation rate because the velocity of circulation... read more
 
MONETARY POLICY
Monetary policy is the control of the economy by changes in the money supply, as a result of changes in the level of interest rates, and the percentage of money that banks are required to lodge... read more
 
MONETARY POLICY COMMITTEE
A committee formed by the Reserve Bank of South Africa which meets regularly to discuss and decide on interest changes within the country. This committee is chaired by the Governor of the Reserve... read more
 
MONETARY STIMULATION
A policy implemented by the Monetary Policy Committee (MPC) of the Reserve Bank to encourage economic growth through the money supply of a country. Stimulation can be done in four principal ways... read more
 
MONEY BILLS AMENDMENT PROCEDURE AND RELATED MATTERS ACT
This Act (13 of 2018) deals with the oversight role which Parliament has over government's taxes, the allocation of funds and its borrowings. It includes the process by which the budget is approved... read more
 
MONEY FLOW
A number of technical indicators that incorporate volume and price action to measure buying or selling pressure.
 
MONEY MANAGER
The JSE is dominated by institutional investors which account for as much as 90% of all trades. These institutions are pension funds, insurance companies and unit trusts. The funds which they... read more
 
MONEY MARKET
The money market does not take place at a central place; it is really a communications network which allows banks, money brokers, businesses, discount houses, the government and the Reserve Bank... read more
 
MONEY MARKET ACCOUNT
 
MONEY MARKET FUND
A mutual fund made up of money market instruments that are short term in nature.
 
MONEY MARKET UNIT TRUST
A unit trust which only invests in fixed interest investments on the money market, sometimes also called a "fixed interest unit trust". These unit trusts offer much greater security that unit... read more
 
MONEY STOP
A fixed amount of money that a market participant would lose if a stop were hit.
 
MONEY SUPPLY
The total amount of money in the country. There are various methods for measuring the money supply, itemised and defined as "M0, M1, M2 and M3". Thus the broadest measure of the money supply... read more
 
MONOPOLISTIC COMPETITION
A market which has many competitors, but there is sufficient product differentiation to avoid easy substitition of one product for another. On a scale with monoploy on one end and perfect competition... read more
 
MONOPOLISTIC PROFIT
The additional profits which a monopoly can generate because there are no close substitutes for its product and no competitors. Monopolist profits are rare and usually occur because of a geographic... read more
 
MONOPOLY
The situation where one business controls enough of the supply of a product or service to be able to force the price up by being the only supplier. A good example of this is De Beers, which has... read more
 
MONOWAVE
In Elliott wave theory, a single wave within a range of waves.
 
MOODYS
This is one of the three major world-wide ratings agencies involved in rating bonds - both government and corporate. Generally, they will do an assessment of South Africa as an issuer of debt... read more
 
MOODYS INVESTORS SERVICES
This is one of the three major world-wide ratings agencies involved in rating bonds - both government and corporate. Generally, they will do an assessment of South Africa as an issuer of debt... read more
 
MORAL HAZARD
This is a term from the insurance industry which refers to the situation where an insured person may take greater than normal risks because they know that they are insured against the consequences.... read more
 
MORATORIUM
A period of grace on the repayment of debt and the interest due on it. If a company is placed underr business rescue, then it is immune to any attempt to pursue its debts at law until the business... read more
 
MORGAN STANLEY CAPITAL INTERNATIONAL
MSCI is an American producer and calculator of international indexes for the share market and fixed income securities. Their indexes go back to 1969. The most important of these for South African... read more
 
MORNING FIX
A fixing of the gold price in London at a fixing session. This is done by five leading bullion houses, by matching supply and demand to equalise at a certain price. There is also an afternoon... read more
 
MORNING STAR
A bottom reversal pattern in candlestick charting. According to Steve Nison, a signal that the bulls have seized control. This formation occurs where a lower candle comes between to higher candles.... read more
 
MORTGAGE ADVANCE
An additional loan which is secured by the mortgage on a property. For people who have a mortgage it is usually fairly easy to obtain an additional mortgage or to extend their existing mortgage.... read more
 
MORTGAGE BOND
A loan which is secured against fixed property - as opposed to a lien which is secured against movable property. The interest rate on mortgage bonds is generally better than can be obtained on... read more
 
MOTOR VEHICLE SALES
A monthly economic indicator showing the number and value of motor vehicles sold in South Africa. The National Association of Automobile Manufacturers of South Africa (NAAMSA) produces the figures... read more
 
MOVING AVERAGE
An average of the most recent prices of a share progressed each trading day such that the same number of days remain in the average. The moving average is the most commonly-used technical indicator... read more
 
MOVING AVERAGE CONVERGENCE/DIVERGENCE
The crossing of two exponentially smoothed moving averages that are plotted above and below a zero line. The crossover, movement through the zero line, and divergences generate buy and sell signals.... read more
 
MOVING AVERAGE CROSSOVERS
 
MPC
A committee formed by the Reserve Bank of South Africa which meets regularly to discuss and decide on interest changes within the country. This committee is chaired by the Governor of the Reserve... read more
 
MPRDA
The Mineral and Petroleum Resources Development Act (MPRDA - 28 of 2002) recognises that these natural resources belong to the South African Nation are not renewable and places the government... read more
 
MPT
Investing theory in which portfolio managers estimate and manage risk and return. Modern Portfolio Theory (MPT) is based on the "random walk hypothesis" which basically maintains that it is impossible... read more
 
MRI
04 - 05 - 2020
Mine Restoration (MRI) has not traded on the JSE since July 2016. It was originally in the coal business and then it became a cash shell. More recently it has been involved... read more
 
MRP
24 - 08 - 2020
Mr Price (MRP) is a retailer of clothing, household goods and sportswear through shop fronts and online in Africa and Australia. Unlike most retailers, Mr. Price receives... read more
 
MSCI
MSCI is an American producer and calculator of international indexes for the share market and fixed income securities. Their indexes go back to 1969. The most important of these for South African... read more
 
MSCI
An average index of the stock markets of emerging economies produced and maintained by Morgan Stanley Capital International (MSCI). It is weighted 40,95% China, 12,28% Taiwan, 11,61% Korea, 8,02%... read more
 
MSCI EMERGING MARKETS INDEX
This is an index produced by Morgan Stanley Capital International covering 23 emerging markets overall indexes. Those countries are: Egypt, South Africa, Peru, Turkey, Brazil, India, Thailand,... read more
 
MSM
29 - 08 - 2020
Massmart (MSM), 51% of which was bought by the international grocery chain Walmart in June 2011 for $2,5bn at a price of R148 per share, consists of Massmart itself, Massdiscounters,... read more
 
MSP
31 - 08 - 2020
MAS (MSP) is a real estate investment trust (REIT) which invests in office, commercial, logistics, retail, and hospitality properties in Europe and the UK. This REIT was started... read more
 
MST
09 - 09 - 2020
Mustek (MST) is South Africa's largest assembler of personal computers under its brand name Mercer. It also imports a variety of computer products such as Samsung, Acer and... read more
 
MTA
20 - 08 - 2020
Metair (MTA) produces energy solutions (batteries) and components for the vehicle manufacturing business. It has operations in Africa and in various European and Middle East... read more
 
MTBPS
The mid-term budget policy statement (MTBPS) is usually tabled by the Minister of Finance at the end of October each year with the objective of updating the annual budget which is traditionally... read more
 
MTBPS
Better known as the MTBPS or the "mini-budget" this is a statement by the Treasury given by the Minister of Finance at the end of October each year. It considers the medium term economic outlook... read more
 
MTF
A European platform on which financial instruments of various types can be traded. The instruments could be over-the counter equities, commodities or more unusual items. The platform offers investment... read more
 
MTH
17 - 09 - 2020
Motus (MTH) was unbundled from Imperial (IPL) and separately listed on the JSE on 22-11-2018. It is a company that owns motor dealerships in South Africa, the UK and Australia.... read more
 
MTN
20 - 08 - 2020
MTN is a leading emerging market mobile operator, serving 261 million people (including 29m in South Africa) in 21 countries across Africa and the Middle East. MTN's three... read more
 
MULTI-NATIONAL COMPANY
A company which has offices and businesses in many different countries. These are generally very big well-known names like Microsoft, Coca Cola, Nestle and Sony, but South Africa has spawned... read more
 
MULTI-YEAR PRICE DETERMINATION
A system employed by the National Energy regulator of South Africa (NERSA) to establish the price which Escom can charge for electricity. Escom submits an application to NERSA for evaluation... read more
 
MULTILATERAL TRADING FACILITY
A European platform on which financial instruments of various types can be traded. The instruments could be over-the counter equities, commodities or more unusual items. The platform offers investment... read more
 
MULTIPLE
The market price of a share divided by its most recent average annual earnings per share. This gives the reciprocal of the "earnings yield", and is used by some investors to compare shares with... read more
 
MULTIPLIER EFFECT
An economics term which refers to the fact that an injection of money into the economy becomes income for many different organisations and individuals and ultimately increases national income... read more
 
MUNICIPALITY
A mechanism for providing governance over a local area. In South Africa there are 8 metropolitan municipalities, 44 district municipalities and 205 local municipalities - making a total of 257.... read more
 
MUR
27 - 08- 2020
Murray and Roberts (MUR) is a large South African construction company which has suffered from the sub-prime crisis and then the slump in construction spending following the... read more
 
MUTUAL FUND
A company which employs professional fund managers to invest the funds of investors in a variety of assets (such as bonds, equities and property) with the objective maximising the shareholders'... read more
 
MVNO
A company that rents network infrastructure from a network owner (like MTN, Vodacom, Cell-C and Telkom) and then sells its data and voice services to its customer base. There... read more
 
MYPD
A system employed by the National Energy regulator of South Africa (NERSA) to establish the price which Escom can charge for electricity. Escom submits an application to NERSA for evaluation... read more
 
MZR
29 - 07 - 2020
Mazor (MZR) is a construction company which also supplies windows and glass. The company is based in Cape Town and does structural steelworks and aluminum facades. It has... read more