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


N SHARES
These are shares which rank in all respects equally to other ordinary shares except that they have an extremely low par value. Since the voting right of a share is in proportion to its par value,... read more
 
NAKED PUT
The writer of a put option contract who is not short the underlying security.
 
NAMPAK LIMITED
04 - 06 - 2020
Nampak (NPK) is Africa's largest packaging company with interests in South Africa and 10 other African countries. About 60% of its turnover comes from South Africa, but only... read more
 
NARROW RANGE DAY
A trading day with a smaller price range relative to the previous day's price range.
 
NARROW-BASED STOCK INDEX
Broad-based stock indices, such as the S&P 500, are defined as a basket of securities where the weight of any single constituent cannot be greater than 30% and the weight of the five largest... read more
 
NASDAQ
National Association of Securities Dealers Automated Quotation System. This is an over-the-counter equity market in America. It provides a trading platform where mostly technology and communications... read more
 
NASPERS LTD
12 - 08 - 2020
Naspers (NPN), Africa's largest company, is a massive international social media, gaming and IT company whose main asset is 73% of Prosus (PRX) which in turn owns 31% of Tencent... read more
 
NATIONAL CREDIT ACT
This Act legislates the finding and providing of credit facilities to the public. It covers all aspects of the extension of credit including insurances, penalties, interest compounding. Essentially... read more
 
NATIONAL EMPOWERMENT FUND
A state owned enterprise (SOE) established in terms of the National Empowerment Act (105 of 1998) for the express purpose of promoting and facilitating black economic participation in the economy... read more
 
NATIONAL ENERGY REGULATOR
The national Energy Regulator of South Africa (NERSA) is responsible for overseeing the various energy sources in the South African economy. This means that NERSA has to approve price increases... read more
 
NATIONAL FUTURES ASSOCIATION
Authorized by the US Congress in 1974 and designated by the CFTC in 1982 as a "registered futures association," NFA is the industry-wide self-regulatory organization of the futures industry in... read more
 
NATIONAL HEALTH INSURANCE
The NHI is based on the constitutional right of every person to have a basic minimum level of health care, irrespective of their ability to pay for it. At the moment, about 16% of South Africans... read more
 
NATIONAL TREASURY
This is another term for the national treasury which controls the finances of the country. The national treasury is part of the Ministry of Finance and it is instrumental in producing the budget... read more
 
NATIONALISATION

The taking over of privately owned assets, especially corporations, by the government. In a mixed capitalist... read more

 
NATURAL PERSON
The law distinguishes between natural and juristic persons. A natural person is an individual of flesh and blood, while a juristic person is a corporation established in terms of the Companies... read more
 
NATURAL RESOURCES
The natural resources of a country are those resources which exist in nature - its minerals and agricultural potential. Some countries are richly endowed with both agricultural resources and... read more
 
NATURE OF BUSINESS
The type of business which a company conducts. The JSE divides listed companies into sectors and sub-sectors, but in truth it is difficult to categorise certain companies because they have a... read more
 
NAV
The company's assets minus its liabilities divided by the total number of shares in issue. Investors like to compare the current share price with the net asset value (NAV), but this approach... read more
 
NCD
A commercial "I.O.U", usually issued by a commercial bank. It is a certificate representing a deposit usually of at least R100 000 which entitles the holder to a rate of annual interest and the... read more
 
NCS
14 - 09 - 2020
Nictus (NCS) is a furniture and electrical appliance retailer with three stores in South Africa. It also sells short-term insurance through Corporate Guarantee. In its results... read more
 
NEAR EQUITIES
These are classes of securities which share some of the characteristics of ordinary or equity shares. For example, a participating preference share shares to some extent in the ordinary dividend... read more
 
NEAR MONOPOLY
A company which has almost 100% of a particular market. True monopolies almost never exist in capitalist economies. There are always competitors and substitutes which prevent companies from gaining... read more
 
NEAR-MONTH CONTRACT/FAR-MONTH CONTRACT
A futures contract whose expiration is near/far.
 
NEAR-THE-MONEY
An option with a strike price close to the current price of the underlying tradable.
 
NEARBY DELIVERY MONTH
The futures contract month closest to expiration. Also referred to as the Spot Month. There are four futures close-outs each year - at the end of March, June, September and December. The nearest... read more
 
NECKLINE
A trendline drawn along the support or resistance points of various reversal and consolidation pattern (i.e., head and shoulder, double and triple top/bottom formations). A break down through... read more
 
NED
27 - 08 - 2020
Nedbank (NED) is the smallest of South Africa's four “big banks” with a client base of just over 8 million. It has recently (10-10-18) separated from Old Mutual... read more
 
NEDBANK GROUP LTD
27 - 08 - 2020
Nedbank (NED) is the smallest of South Africa's four “big banks” with a client base of just over 8 million. It has recently (10-10-18) separated from Old Mutual... read more
 
NEGATIVE AMORTISATION
This means that a payment of the stated size is insufficient to repay even the interest on the debt, meaning the total debt actually increases each month instead of falling.
 
NEGATIVE DIVERGENCE
When two or more averages, indices or indicators fail to show confirming trends.
 
NEGOTIABLE CERTIFICATE OF DEPOSIT (NCD)
A commercial "I.O.U", usually issued by a commercial bank. It is a certificate representing a deposit usually of at least R100 000 which entitles the holder to a rate of annual interest and the... read more
 
NEPAD
This is an agency of the African Union which aims to, "a) Coordinate and Execute priority regional and continental projects to promote regional integration towards the accelerated realisation... read more
 
NEPI ROCKCASTLE PLC
24 - 08 - 2020
Nepi-Rockcastle (NRP) is a R74bn real estate investment trust (REIT) which operates more than 50 shopping malls in 9 central and eastern European countries, mostly in Poland... read more
 
NERSA
The national Energy Regulator of South Africa (NERSA) is responsible for overseeing the various energy sources in the South African economy. This means that NERSA has to approve price increases... read more
 
NET 1 UEPS TECHNOLOGIES INC
14- 09 - 2020
Net1 (NT1) is a provider of payments solutions and related financial products in South Africa and South Korea. It also then sells insurance and other financial products such... read more
 
NET ADVANCE/DECLINE
Your software includes 10 net advance/decline lines (sometimes called "breadth indicators") for various sectors and the market as a whole. The Net Over shows the number of shares in the overall... read more
 
NET ASSET VALUE
The company's assets minus its liabilities divided by the total number of shares in issue. Investors like to compare the current share price with the net asset value (NAV), but this approach... read more
 
NET CURRENT ASSETS
The difference between current assets and current liabilities. In most healthy companies, this difference will be positive, so that the company is always able to meet its short-term creditors... read more
 
NET DEBT/EBITDA RATIO
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
 
NET FOREIGN ASSETS
Assets held outside of a country minus its foreign liabilities. In South Africa, most foreign assets are held by companies which are required to disclose them by law. The value of South Africa'... read more
 
NET INCOME
The earnings of an organisation after deducting taxation and all other expenses. This is obviously an important measure of a company's performance, but one should remember to allow for the inflation... read more
 
NET OPEN FORWARD POSITION
This is the state of the Reserve Bank's forward book in the foreign currency market. In the past, the Reserve Bank ran a substantial deficit on the forward book which reached as much as US$25bn... read more
 
NET OPERATING INCOME
Used to measure real estate investments, this calculation is done by subtracting all operating expenses from revenue generated from property. Revenue generated may include rental income, income... read more
 
NET PRESENT VALUE
The current value of a future sum of money or stream of incomes. Thus if you are looking at share and after some analysis you decide that it will pay a dividend of 100c in a year's time, then... read more
 
NET PROFIT MARGIN
This is the ratio of net income to revenue in a company. Obviously, you want this "margin" to be as high as possible. Clearly, you dont want to see this margin declining over time in the shares... read more
 
NET WORTH
The value of the assets of a company less the value of its liabilities. It is common to hear investors saying, "A particular share is trading at 20% below net worth". What they mean is that if... read more
 
NETCARE LIMITED
26 - 05 - 2020
The Netcare Group (NTC) operates hospitals and medical response teams throughout South Africa and Lesotho. It has 59 hospitals, 4 of which are public/private partnerships,... read more
 
NEW CAPITAL FRAMEWORK
An agreement between the major countries of the world on the standards to be applied to their major banks so as to minimise the risk of a bank collapse which could have knock-on effects on the... read more
 
NEW FRONTIER PROPERTY LIMITED
24 - 08 - 2020
New Frontier Properties (NFP) is listed on the Mauritius Stock Exchange and on the Alt-X of the JSE. It is, however, taxed in the UK. It is a property company which aims to... read more
 
NEW ISSUE
A listing of a new security or an issue of more shares in an already listed security. Usually, if a company wants to raise additional capital they will do so by way of a right issue to their... read more
 
NEW LISTING
The acceptance of a company's shares for trading on the Johannesburg Stock Exchange (JSE). New listings usually occur when the economy and the market are buoyant. In recessionary times, investors... read more
 
NEW ORDER MINING RIGHTS
The Minerals and Petroleum Resources Development Act (MPRDA - 28 of 2002) makes the state the custodian of mineral rights in South Africa. Anyone who wishes to exploit those minerals (including... read more
 
NEW PARTNERSHIP FOR AFRICAN DEVELOPMENT
This is an agency of the African Union which aims to, "a) Coordinate and Execute priority regional and continental projects to promote regional integration towards the accelerated realisation... read more
 
NEW YORK STOCK EXCHANGE
The biggest stock exchange in the world, located in New York City with a market capitalisation of about $18 trillion. The S&P500 index shows an average of the 500 largest companies trading... read more
 
NEWGOLD
The is an ABSA EFT which tracks the rand price of gold. It is the equivalent of buying krugerrands, but with the advantage that there is no security risk and the ETFs can be easily sold and bought.... read more
 
NEWPARK REIT LIMITED
26 - 05 - 2020
This is a South African real estate investment trust (REIT) which has commercial and industrial properties worth R1,41bn and with a gross lettable area (GLA) of 57249 square... read more
 
NEWRAND
This is an ABSA ETF which includes the major rand-hedge shares traded on the JSE. The fund is being closed because it is no longer viable due to insufficient investment.
 
NEXT IN FIRST OUT
A method of valuing stock at its replacement cost. So existing stock is valued at what it would cost to replace rather than the the price paid for it. This method of stock valuation is usually... read more
 
NFA
Authorized by the US Congress in 1974 and designated by the CFTC in 1982 as a "registered futures association," NFA is the industry-wide self-regulatory organization of the futures industry in... read more
 
NFP
24 - 08 - 2020
New Frontier Properties (NFP) is listed on the Mauritius Stock Exchange and on the Alt-X of the JSE. It is, however, taxed in the UK. It is a property company which aims to... read more
 
NHI
The NHI is based on the constitutional right of every person to have a basic minimum level of health care, irrespective of their ability to pay for it. At the moment, about 16% of South Africans... read more
 
NHM
31 - 08 - 2020
Northam (NHM) is a fully empowered platinum mining company which operates in the Bushveld complex. In the current difficult legislative environment where the 3rd mining charter... read more
 
NICKEL
A mineral with the chemical symbol "Ni". Nickel oxidises slowly and only very small quantities are found in nature and is most commonly found in iron pentladite and with sulphur. Australia and... read more
 
NICTUS BEPERK LIMITED
14 - 09 - 2020
Nictus (NCS) is a furniture and electrical appliance retailer with three stores in South Africa. It also sells short-term insurance through Corporate Guarantee. In its results... read more
 
NIKKEI INDEX
The main stock exchange index from Tokyo in Japan. The Nikkei is an average of the 225 largest companies trading on the Tokyo stock exchange - weighted for their market capitalisations in yen.... read more
 
NIL-PAID LETTERS
A security which is temporarily listed on the stock exchange and which represents the right to take up the shares of a certain company at a certain price and on a certain date. Nil-paid letters... read more
 
NINETY ONE LIMITED
20 - 07 - 2020
Ninety-One is an asset management company spun out of Investec and separately listed on Monday 16th March 2020. The listing occurred just as the corona epidemic was causing... read more
 
NINJA BOND
This is a term coined for home loans that were granted, mostly in America, where the bond-holder had almost no credit rating at all. The term stands for "No Income, No Job and No Assets". After... read more
 
NIV
05 - 12 - 2019
Niveus (NIV) is an investment holding company which is owned 52,3% by HCI (also listed on the JSE). It holds three main investments - 43,75% of Alphawave Golf, 57,39% of La... read more
 
NIVEUS INVESTMENTS LIMITED
05 - 12 - 2019
Niveus (NIV) is an investment holding company which is owned 52,3% by HCI (also listed on the JSE). It holds three main investments - 43,75% of Alphawave Golf, 57,39% of La... read more
 
NOI
Used to measure real estate investments, this calculation is done by subtracting all operating expenses from revenue generated from property. Revenue generated may include rental income, income... read more
 
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
 
NOMAD
This term (abbreviated to "nomad") refers to a person or firm that is appointed to assist a company that has recently listed onto the London Stock Exchange's Alternative Investment Market (AIM).... read more
 
NOMINAL RETURN
The return on an investment before taking the effect of inflation into account. Thus, if an investment is purchased for 1000c and sold a year later for 1100c with a 50c dividend, the return is... read more
 
NOMINAL VALUE
The nominal value of an investment is its value "on paper". Usually, investments over any period of time are evaluated on their "nominal" and their "real" return. The real return is the nominal... read more
 
NOMINATED ADVISOR
This term (abbreviated to "nomad") refers to a person or firm that is appointed to assist a company that has recently listed onto the London Stock Exchange's Alternative Investment Market (AIM).... read more
 
NOMINEE
A person or company nominated to perform some function on behalf of a principal. In the share market, the nominee typically registers shares in its name on behalf of the principal. Usually the... read more
 
NON CONFIRMATION
Today, there are literally hundreds of line technical indicators each of which represents a different mathematical formulae and trading idea. Technicians usually use several indicators, looking... read more
 
NON DISCRETIONARY STOCKBROKING ACCOUNT
A stockbroking account where the client must make all the decisions about what to buy and sell and when to do it. A discretionary account allows the stockbroker complete control of the portfolio.... read more
 
NON-CONTROLLED CLIENT
This is a person who decides to invest directly without going through a stockbroker. Such a person must appoint a a Central Securities Depository Participant (CSDP) to act for them. Most people... read more
 
NON-CONTROLLING INTEREST
This is a significant shareholding (usually above 5%) which does not allow the shareholder to control the company but which affords him/her influence and often a position on the board of directors.... read more
 
NON-CORE
A division or subsidiary of a company is regarded as non-core if it does not contribute to the main business of the company. Such subsidiaries or divisions are usually either closed down or sold... read more
 
NON-CURRENT LIABILITIES
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
 
NON-DISTRIBUTABLE RESERVE
A concept from the old Companies Act which referred to that portion of accumulated shareholders' equity which could not be distributed in the form of dividends. The new Companies Act (71 of 2008)... read more
 
NON-EXECUTIVE DIRECTOR
A director who is not employed by the company and has no employment contract. An executive director has an employment contract and works directly for the company. The Companies Act makes no distinction... read more
 
NON-FARM PAYROLL
An economic statistic from America which includes all employees in America except for farm workers, employees of non-profit organisations (like charities) and household employees. The increase... read more
 
NON-FUNGIBLE
The tradability of an asset, usually on an organised exchange. The ability to easily sell an asset can have a significant impact on its value. For example, the shares of companies listed on the... read more
 
NON-RESIDENT SHAREHOLDER
This is an entity outside of South Africa who holds shares in a company which is resident in South Africa. Such share certificates must, within 30 days of their acquisition be endorsed "non-resident"... read more
 
NON-RESIDENT SHAREHOLDERS' TAX 
This is an entity outside of South Africa who holds shares in a company which is resident in South Africa. Such share certificates must, within 30 days of their acquisition be endorsed "non-resident"... read more
 
NON-TREND DAY
A narrow range day lacking any discernible movement in either direction.
 
NON-VOTING SHARES
Shares which cannot vote at shareholder meetings. In general, the people who contribute capital to a business have the right to vote in direct proportion to the amount of capital contributed.... read more
 
NONLINEAR STATISTICS
Statistics theory that attempts to define probability distribution from disorder to either a more orderly state or a sharp trend reversal, such as stock market fluctuations.
 
NORMALISED EARNINGS
The profit of a company adjusted to eliminate the effect of seasonality. Some company's are very seasonal and get most of their income in one period during the calendar year. A good example is... read more
 
NORTH SEA BRENT OIL
North Sea oil controlled by the UK and Norway. This type of oil is generally traded at a slight premium to West Texas light sweet crude. The price of brent - minute-to-minute can be seen at: https://www.euroinvestor.com/exchanges/gtis-energy/brent-oil/2327059/chart.... read more
 
NORTHAM PLATINUM LTD
31 - 08 - 2020
Northam (NHM) is a fully empowered platinum mining company which operates in the Bushveld complex. In the current difficult legislative environment where the 3rd mining charter... read more
 
NOT HELD
An order submitted to a brokerage firm with the understanding that it will use its best efforts to execute the order according to the customer's instructions, but the broker may not be held responsible... read more
 
NOTES TO THE ACCOUNTS
These form part of the annual financial statements of a company. They supply more information on the figures contained in the financial accounts, according to the requirements of the Companies... read more
 
NOTICE DAY
The day that a notice of intent to deliver is issued to a futures contract holder.
 
NOTICE OF INCORPORATION
A form (CoR14.1) which must be completed and submitted to the Companies and Intellectual Property Commission (CIPC) when applying for a company to be registered. The form must be accompanied... read more
 
NOVUS HOLDINGS LIMITED
03 - 08- 2020
Novus (NVS) is South Africa's largest printing company with 11 printing plants. Until recently, it had the monopoly contract to do all of Media24's printing. With effect from... read more
 
NO–LOAD
Without any sales charge. For mutual funds, shares sold at net asset value.
 
NPK
04 - 06 - 2020
Nampak (NPK) is Africa's largest packaging company with interests in South Africa and 10 other African countries. About 60% of its turnover comes from South Africa, but only... read more
 
NPN
12 - 08 - 2020
Naspers (NPN), Africa's largest company, is a massive international social media, gaming and IT company whose main asset is 73% of Prosus (PRX) which in turn owns 31% of Tencent... read more
 
NRL
26 - 05 - 2020
This is a South African real estate investment trust (REIT) which has commercial and industrial properties worth R1,41bn and with a gross lettable area (GLA) of 57249 square... read more
 
NRP
24 - 08 - 2020
Nepi-Rockcastle (NRP) is a R74bn real estate investment trust (REIT) which operates more than 50 shopping malls in 9 central and eastern European countries, mostly in Poland... read more
 
NT1
14- 09 - 2020
Net1 (NT1) is a provider of payments solutions and related financial products in South Africa and South Korea. It also then sells insurance and other financial products such... read more
 
NTC
26 - 05 - 2020
The Netcare Group (NTC) operates hospitals and medical response teams throughout South Africa and Lesotho. It has 59 hospitals, 4 of which are public/private partnerships,... read more
 
NU WORLD HOLDINGS LIMITED
24 - 04 - 2020
NuWorld (NWL) is an importer and exporter of a range of Consumer goods, especially, consumer electronics, appliances and consumer durables. Its product range includes agencies... read more
 
NUMBER OF DEALS
One of the pieces of information supplied by the JSE for each listed company after each trading day. There are no indicators which utilise this piece of information, but it can be useful to distinguish... read more
 
NUMISMATIC
The study of coins, paper money and medals and the subsequent value that results from their rarity. In other words, coins which have numismatic value are worth more than the metal which they... read more
 
NUT
10 - 09 - 2020
Imuniti Holdings (NUT), or Nutrition, is a manufacturer and marketer of dried foods and water purification which it supplies to the lower LSM and mass feeding markets. It... read more
 
NVS
03 - 08- 2020
Novus (NVS) is South Africa's largest printing company with 11 printing plants. Until recently, it had the monopoly contract to do all of Media24's printing. With effect from... read more
 
NWL
24 - 04 - 2020
NuWorld (NWL) is an importer and exporter of a range of Consumer goods, especially, consumer electronics, appliances and consumer durables. Its product range includes agencies... read more
 
NY1
20 - 07 - 2020
Ninety-One is an asset management company spun out of Investec and separately listed on Monday 16th March 2020. The listing occurred just as the corona epidemic was causing... read more
 
NYSE
The biggest stock exchange in the world, located in New York City with a market capitalisation of about $18 trillion. The S&P500 index shows an average of the 500 largest companies trading... read more
 
NYSE AMERICAN
Originally an overflow of companies that were too small to list on the New York Stock Exchange, the "Amex" or "the curb" as it was known used to trade on the street outside the NYSE (literally... read more