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.
| 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... read more |
| RECORD HIGH |
The highest point that an index (or other financial indicator) has reached since it was first recorded. Thus the S&P500 index reached... read more |
| SAVINGS |
That portion of an individual's income which he/she saves. The national savings rate is important because those savings can be used by businesses to expand... read more |
| SUBSISTENCE FARMER |
A form of farming where nearly all crops or livestock raised are used to maintain the farmer and the farmer's family, leaving little for sale or trade. |
| OSCILLATOR |
A statistical term which refers to an indicator which moves above and below a set level - usually zero. Many line indicators are oscillators - like... read more |
| TARIFF |
A tax or levy which is added to the cost of imports by a country, usually to protect its local industry. Tariffs increase the cost of imported goods making... 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... read more |
| PUBLIC FINANCE MANAGEMENT ACT |
An Act which governs the management of public funds in the hands of government departments, provinces and municipalities. It establishes procedures for... read more |
| BUSINESS CONFIDENCE INDEX |
There are two indices of business confidence in South Africa - the Rand Merchant Bank (RMB)/Bureau for Economic Research (BER) index and the South African... read more |
| SHRINKFLATION |
Reducing the size of products while leaving the price unchanged. This process is usually found in the food and beverage sectors. When the manufacturer of a food... read more |
| ASSESSED LOSS |
A loss made by a business which has been accepted as valid by the Receiver of Revenue. Until 2022 100% of assessed losses could be carried forward... read more |
| GOING CONCERN |
A profitable business which is expected to be able to continue in business because it has sufficient cash-flow to meet its commitments. It is not... read more |
| SHARE CAPITAL |
A figure on the balance sheet representing the amount of money raised by the company through the issue of shares to the public. A company... 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... read more |
| CONTROLLING SHAREHOLDER |
A shareholder who owns more than 50% of a company's voting share capital and can therefore control the company's activities. |
| REVERSE TAKE OVER |
Where one company buys another company, but the value greatly exceeds its net asset value (NAV) and pay for it with shares - so that the company... read more |
| CAUTIONARY ANNOUNCEMENT |
This is a publicly advertised announcement made by a listed company to urge shareholders to exercise caution when trading in its shares.... read more |
| PRICE RANGE |
The difference between the highest and lowest prices at which a particular share has traded over a certain time period - such as one trading... read more |
| DOT PLOT |
A chart which shows the opinion/forecast of each member of the US Federal Open Market Committee (FOMC) concerning the future of the federal funds... read more |
| FEDERAL OPEN MARKET COMMITTEE |
The monetary policy making committee of the US Federal Reserve Bank. The Federal Open Market Committee (FOMC) consists of twelve members--the seven members... read more |
| PUBLIC ANNOUNCEMENT |
An announcement made by a listed company about an event within the company which may have an impact on its shareholders or the price... read more |
| GOLD AND FOREIGN EXCHANGE CONTINGENCY RESERVE ACCOUNT |
The gross gold and foreign exchange contingency reserves account (GFECRA) of the government is published every month. For example, in January 2024... read more |
| RISK PROFILE |
The degree of risk that an investor is willing to take for a given potential return. The rule in investment is that risk and return... read more |
| SURPLUS |
An economics concept which refers to an excess of government revenue over expenses. Surpluses are very rare among the governments of the world. Most governments... read more |
| CAPITULATION |
This is a charting term which refers to the lowest point in a bear trend. It is the point where even the most optimistic of the bulls... read more |
| 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 |