List of Glossary Terms

The PDSnet Glossary of Terms contains definitions and explanations for over 2600 financial market terms. These definitions are constantly kept up-to-date with current topical examples from the markets. They are also updated for changes in legislation and current events like COVID19 and the July 2021 civil unrest.

The terms in the Glossary are directly linked to all PDSnet articles, confidential reports, lecture modules and other material. This means that a client reading one of our publications can immediately see which terms are defined in the Glossary and click through to read the definition. Terms within the definitions in the glossary are similarly linked, which gives the Glossary an enormous educational depth share market investors.

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 Latest


FLAG

This is a fairly rare charting formation which can occur in a upward trend, downward trend or horizontal where the market enters... read more

 
ACQUISITION

This is when one company acquires more than 50% of the shares of another or obtains a controlling interest in its shares. The company acquiring the... read more

 
MANDATORY OFFER

When one shareholder acquires more than 35% of a listed company, he/it is obliged by section 123 of the Companies Act (71 of 2008) to make... read more

 
PETROL PRICE

Fuel costs are a key factor in the inflation rate, both directly through increased transport costs and  indirectly through their role in production... read more

 
POORLY RATED

Companies which have an erratic flow of profits are usually "poorly-rated" by investors. This means that their shares will trade on... read more

 
POOR QUALITY EARNINGS

The quality of a company's earnings is a direct function of how sustainable they are. If the profits of a company rise every year by 15% and... read more

 
PONZI

An illegal investment scheme which aims to steal money from members of the public by persuading them that they will make an above average return... read more

 
POLITICAL STABILITY

A major factor in emerging economies like South Africa which directly affects their ratings by the international ratings agencies (Fitch,... read more

 
POLITICAL RISK

Risk, which is political rather than economic, financial or managerial. This kind of risk is very difficult to determine and can cause tremendous... read more

 
POLICY UNCERTAINTY INDEX

An index, which was started in February 2023, (the PUI) to measure policy uncertainty in South Africa by surveying articles from the top 20 media publications... read more

 
POISON PILL

A defensive tactic used by a company which is the subject of a hostile takeover to make it more difficult for the predatory company to gain control.... read more

 
POINT AND FIGURE CHART
A price-only chart (i.e. without a date axis) that plots up prices as Xs and down prices as Os. The minimum price recorded is called the box size which is often 100c. Typically,... read more
 
POINT

One hundredth of one percent. This term is often used in the debt markets to refer to slight changes in the effective yield on debt instruments... read more

 
PLATINUM GROUP METALS

These are platinum itself and rhodium, palladium, iridium, osmium and ruthenium. Normally these metals are all found in the same deposits and so... read more

 
BUSHVELD IGNEOUS COMPLEX (BIC)

This is the largest layered igneous intrusion in the world. It was thrust up from the earth's core about 2,1 billion years ago and it is contains a vast wealth... read more

 
PLATINUM

A precious metal predominantly produced in South Africa. This metal is used primarily in auto catalysts together with other platinum group metals... read more

 
PIVOT POINT

A technical indicator used with the purpose of identifying the overall trend over different time periods. Used as a price indicator to determine... read more

 
PIT
The area on the trading floor where trading in futures or options contracts is conducted by open outcry.
 
PIPS
Slang forex reference to digits added to or subtracted from the fourth decimal place in a quoted currency rate, i.e. 0.0001. See also Points.
 
PILLAR

A mining term which refers to a body of ore which is left in place to support the roof. Normally when the mine is worked out, the last action would be to... read more

 
PIGS

An acronym for the countries of Portugal, Italy, Greece and Spain, often used derogatorily. It refers to the economies of these countries, that during the... read more

 
PIERCING PATTERN

A bullish candlestick formation consisting of two candles at the bottom of a trend. The formation begins at the end of a downtrend... read more

 
PHILIDELPHIA FEDERAL RESERVE BANK'S MANUFACTURING ACTIVITY INDEX

The Philly Fed Manufacturing Activity Index measures changes in business growth covering the Pennsylvania, New Jersey, and Delaware region. A value greater than... read more

 
PESSIMISTIC RATE OF RETURN

A statistic that adjusts the usual wins/losses statistic to estimate the worst return from trading results. It reduces the number of wins by the... read more

 
PERSONAL LIABILITY COMPANY

A private company, used mostly by professionals such as doctors, engineers, lawyers or accountants, in which the directors and previous directors... read more

 
PERSONAL CONSUMPTION EXPENDITURES

Personal consumption expenditure (PCE) measures how much consumers spend on goods and services. Goods are divided into two categories, durable goods... read more

 
PERSISTENCY RATE
The persistency rate is an insurance industry ratio which refers to the percentage of policy holders that hold their policy through to maturity. Obviously, this is very important... read more
 
PERMANENT CAPITAL

Capital which is tied up in the company permanently like share capital - as opposed to capital which is there temporarily - like loan capital... read more

 
PRESCRIBED ASSET

An asset which must be held by a retirement fund in terms of the law. This idea was introduced by the National Party, to ensure that they had sufficient... read more

 
CHAIRMAN OF THE BOARD OF DIRECTORS

The chairman of the board of directors of a company is usually appointed by the directors. His position is in no way different from the other... read more