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

4SIGHT HOLDINGS LIMITED
09 - 04 - 2020
Sight (4SI) is a Mauritius company which specialises in investing in "4th Industrial Revolution" companies and technologies. The first industrial revolution is seen as that... read more
 
A PRIORI
A Latin phrase meaning "known ahead of time" or more precisely, known without any empirical evidence or experience. The classical example would be a mathematical truism like 1 + 1 = 2. This truth... read more
 
ABANDON
An option contract which is not enforced because it is out-of-the-money. Options confer a right to either buy (call) or sell (put) a certain quantity of shares (or other instruments) at a fixed... read more
 
ABANDONED BABY
A rare candlestick pattern which can indicate either a new bullish or a new bearish trend. A bullish abandoned baby pattern occurs where there is a long red candle, representing bearish sentiment,... read more
 
ABC
Elliott wave terminology for a three-wave countertrend (or downtrend) price movement in an Elliott cycle. Wave "a" is the first down-wave against the trend of the market. Wave "b" is a corrective... read more
 
ABNORMAL ITEM
An income or expense which may be part of the company's normal business but which is abnormal in amount. So, an unusually high expense or income might be considered abnormal. This is to distinguish... read more
 
ABOVE-THE-LINE
Any normal expense or income which has been included in the calculation of a company's gross profit and which is a part of its normal business (such as cost-of- sales or sales). This is as opposed... read more
 
ABSA GROUP LTD
29 - 05 - 2020
ABSA (ABG) is one of the largest banking groups operating in Africa. It has well-established branches in 12 African countries and representative offices in at least 6 more.... read more
 
ACCELERATE PROPERTY FUND LIMITED
26 - 03 - 2020
Accelerate Property (APF) is a real estate investment trust (REIT) which is split 70% retail, 15% office and 15% industrial across six South African provinces. Its flagship... read more
 
ACCELERATED BOOKBUILD
An offering of new shares in the short term which is non-promoted to institutional investors in order to raise capital. An accelerated bookbuild is an immediate means of financing for a company... read more
 
ACCENTUATE LIMITED
08 - 05 - 2020
Accentuate (ACE) is a supplier of materials to the flooring, chemical blending, commercial cleaning, water treatment and maintenance industries. It has 5 regional offices... read more
 
ACCEPTANCE
Where a bank "accepts" some kind of debt instrument usually at a discount. Debt instruments are basically IOU's written by one organisation in favour of another. If the company that is owed the... read more
 
ACCEPTANCE DATE
The date on which the right acquired by a shareholder as a result of a rights issue must be exercised. Listed companies often raise additional capital from their existing shareholders by undertaking... read more
 
ACCOMMODATION
The extension of credit by the Reserve Bank to commercial banks. The central bank acts as a banker to the commercial banks, lending them money as they need it through what is known as the "discount... read more
 
ACCOUNTANCY
A set of conventions for recording and gathering financial transactions in an organisation. The academic discipline which is accountancy has established a set of conventions for totaling the... read more
 
ACCOUNTING CONSERVATISM
Accountants are notoriously conservative people. Conservatism applies to incomes, expenses, liabilities and assets of unknown amounts. To be conservative means generally expecting incomes to... read more
 
ACCOUNTING CONVENTION
These are conventions developed by the accounting profession to ensure that the financial statements display a clear and accurate picture of the progress of the business during the accounting.... read more
 
ACCOUNTING PERIOD
The period of time over which the financial affairs of a company are being accounted for in the financial statements. The matching principle ensures that the incomes for the accounting period... read more
 
ACCOUNTING POLICY
A policy established by the board of directors for the allocation of transaction entries into the books of account. For public, listed companies, the accounting policies are normally set out... read more
 
ACCOUNTS PAYABLE
Amounts owing to the company's creditors in the balance sheet. These appear under current liabilities. These amounts are owed by the company in the short term (normal commercial periods of 30,... read more
 
ACCOUNTS RECEIVABLE
Amounts owing to the company, usually by customers who have bought products on credit. This is another term for "debtors" and appears in the balance sheet under current assets. This indicates... read more
 
ACCRUAL
A balance sheet item that consists of an expense or income which has not yet been paid or received. So, for example, if a company owes rent on the date of the balance sheet then it would be shown... read more
 
ACCUMULATION
When the volumes traded in a share start to pick up while the share price moves sideways or upwards, this is known as an "accumulation phase". It indicates that the share is becoming stronger.... read more
 
ACID TEST RATIO
An accounting ratio used to determine whether a company's current assets excluding its stock (i.e. just its debtors book and cash balance) is sufficient to pay off its current liabilities. The... read more
 
ACQUISITION
This is when one company acquires more than 50% of the shares of another. The company acquiring the shares then becomes the "holding company" and the acquired company becomes a "subsidiary".... read more
 
ACSION LIMITED
01-06-2020
Acsion (ACS) is a real estate investment trust (REIT) with properties mainly in the retail sector. The portfolio is worth R8,3bn with a gross lettable area (GLA) of 257321 square... read more
 
ACT OF GOD
A completely unpredictable event or "black swan" (see The Black Swan" by Nasssim Talbert) event, usually but not always occurring as a result of some natural phenomenon such as a hurricane, flood... read more
 
ACTUALS
(1) Refers to actual physical commodities, as distinguished from the futures on those commodities. So, for example, there is a "spot" market for gold which shows the actual trading of gold day-to-day... read more
 
ACTUARIES INDEX
Most stock market indexes, except for the very simplest are calculated by actuaries. This is because the calculation must take into account the minute-to-minute trading in the market and accommodate... read more
 
ACTUARY
An actuary is an expert in mathematics and statistics who is capable of calculating the probability of key commercial events or of calculating the changing weightings in a stock market index.... read more
 
ADAM SMITH
The first person to study and write about economics. Adam Smith (1723 - 1790) is regarded as the father of the discipline of economics. His book "An Inquiry into the Nature and Causes of the... read more
 
ADAPTIT HOLDINGS LTD
27 - 02 - 2020
Adapt IT (ADI) is an IT company, similar to EOH, but smaller. It has activities in the hospitality, manufacturing, energy, education and financial services sectors. It has... read more
 
ADCOCK INGRAM HOLDINGS LTD
24 - 02 - 2020
Adcock (AIP) is a leading supplier of pharmaceuticals to both the private and public sector in South Africa. It has also diversified to India and other sub-Saharan countries.... read more
 
ADCORP HOLDINGS LIMITED
14 - 05 - 2020
Adcorp (ADR) is an employment company with subsidiaries operating in South Africa and Australia. Its 2017 and 2018 years were bad with a loss per share of 149,5c and 517c... read more
 
ADJUSTED TOTAL EQUITY
This is also known as "adjusted shareholders' equity" and refers to the total amount of money which the shareholders have in a business - the adjustment made is that it excludes any unrealised... read more
 
ADMINISTERED PRICE
Prices of certain products in South Africa are determined, not by the forces of supply and demand, but by various government departments and institutions. For example, water, paraffin, electricity... read more
 
ADRENNA PROPERTY GROUP LIMITED
26 - 08 - 2019 Adrenna (ANA) is a very thinly traded small real estate investment trust (REIT) with a market capitalisation of R53m which concentrates on property in the Western Cape. It owns... read more
 
ADVANCE/DECLINE RATIO
This is a refinement of the net advance/decline line (Net A/D), calculated by dividing the difference between the total number of shares up and the total number of shares down by the total number... read more
 
ADVANCED HEALTH LTD
22 - 05 - 2020
Advanced Health (AVL) is a small Alt-X listed company in the healthcare industry that specialises in day clinics in South Africa and Australia. The company listed in April... read more
 
ADVERSE EXCURSION
The loss attributable to price movement against the position in any one trade from the time that the trade began. So, for example, if XYZ shares were bought for 1000c each and the share has fallen... read more
 
ADVICE

Investment advice has become a big industry in South Africa and world-wide. Lay people with surplus cash obviously... read more

 
ADVTECH EDUCATION LTD
01-06-2020
Advtech (ADH) is one of three listed commercial educational companies on the JSE (the others are Curro and its recently spun off sister company, Stadio). Advtech has two divisions... read more
 
AECI LIMITED
09 - 04 - 2020
AECI (AFE) is a leading producer of chemicals and explosives in South Africa. It supplies products for the mining industry, water treatment, animal health, food and beverages,... read more
 
AEP ENERGY AFRICA LIMITED
12 - 02 - 2020
Afenergy (AEY) was listed on the JSE on 30th June 2017 as a special purpose acquisition company (SPAC) with the idea of pursuing acquisitions in the energy sector and commercial... read more
 
AFFECTED TRANSACTION
A transaction defined in the Companies Act (71 of 2008) as one which will result in a change in the control of the company. This could be any type of merger, acquisition or even a share buy-back.... read more
 
AFRICA BOARD
A division of the JSE which was abandoned in June 2012. The Africa board was originally supposed to attract companies from the rest of Africa to list on the JSE. Only two shares were eventually... read more
 
AFRICAN AND OVERSEAS
09 - 04 - 2020
This is the holding company of Rex Truform (RTO) which is also listed on the JSE. Rex Trueform (RTO) is an extremely thinly-traded company listed on the JSE - which makes... read more
 
AFRICAN DAWN CAPITAL
06 - 12 - 2019
This is a small micro-lending company, listed on the Alt-X in 2004. Its share price rose as high as 550c in November 2007, but has since fallen back to 34c. The company is... read more
 
AFRICAN EQUITY EMPOWERMENT INVESTMENTS LTD
07 - 05 - 2020
This is a black-owned investment holding company which is itself a subsidiary of Sekunjalo, a company controlled by Iqbal Surve and his family. Surve is a medical doctor who... read more
 
AFRICAN GROWTH AND OPPORTUNITY ACT
An American Act which allows certain African countries to export to America duty free. Altogether, 37 countries in Africa benefit from this piece of American legislation, but South Africa, because... read more
 
AFRICAN MEDIA ENTERTAINMENT LIMITED
02 - 12 - 2019
African Media Entertainment (AME) is a company which specialises in running radio stations and whose revenue comes principally from advertising on those stations. It has four... read more
 
AFRICAN OXYGEN LTD
09 - 04 - 2020
Afrox (AFX) is the largest company supplying liquid petroleum gas (LPG) and atmospheric gases to the mining and manufacturing industries in South Africa and 7 other African... read more
 
AFRICAN PHOENIX INVESTMENTS LIMITED
06 - 03 - 2020
Phoenix (AXL) is a black-controlled investment holding company whose principal asset is its 100% subsidiary, Standard General Insurance (Stangen). African Bank Investments... read more
 
AFRICAN RAINBOW CAPITAL INV
26 - 03 - 2020
African Rainbow Capital (AIL) is a BEE investment company that was formed in 2015 and listed on the JSE in September 2017. Since it was formed, AIL has invested in more than... read more
 
AFRICAN RAINBOW MINERALS LTD
03 - 04 - 2020
African Rainbow Minerals (ARM) (ARI) is a diversified mining company controlled by Patrice Motsepe, involved in a variety of mining ventures. Its interests include platinum... read more
 
AFRICAN STOCK EXCHANGE

A stock exchange located somewhere in Africa. The largest stock exchange in Africa is the JSE with a market capitalisation... read more

 
AFRIMAT LIMITED
29 - 05 - 2020
Afrimat (AFT) is an open-pit mining company that supplies composites, construction materials and other commodities to a range of industries in Southern Africa. Until the end... read more
 
AFROCENTRIC INVESTMENT CORP LTD
18 - 03 - 2020
Afrocentric (ACT) is a black-owned investment holding company which focuses on health administration and insurance. Sanlam recently acquired 28,7% of the company which will... read more
 
AFTER-TAX PROFIT
The profit of the company after taxation has been deducted. This figure is shown in the income statement and is used for calculating the return on shareholders' funds. The company tax rate in... read more
 
AGENT
A natural or juristic person who cats on behalf of another such person in a commercial transaction. When a stockbroker acts on behalf of his/her clients and has no personal interest in their... read more
 
AGRICULTURAL PRODUCTS DIVISION
A division of the JSE that runs spot and derivatives markets in agricultural grain products. The main products are soya beans, wheat, sunflower and maize (yellow and white). In the spot market... read more
 
AH VEST LIMITED
09 - 04 - 2020
AH Vest (AHL) produces a range of sauces under the All-Joy brand and seeks to diversify into ready meals, soups and canned vegetables. It is the second largest producer of... read more
 
ALARIS HOLDINGS LIMITED
26 - 05 - 2020
Alaris Holdings (ALH) is a designer, manufacturer and marketer of RF antennas and related equipment. Its products are used in communication, frequency spectrum monitoring,... read more
 
ALEXANDER FORBES GROUP HOLDINGS
01 - 06 - 2020
Alexander Forbes (AFH) is a financial services company offering asset management, insurance, healthcare, retirement, consulting and wealth management to both corporate and... read more
 
ALLIED ELECTRONICS CORP LTD
09 - 04 - 2020
Allied Electronics Corp, or Altron (AEL), is an information and communications technology company which was started by Bill Venter in 1965. It has recently been re-focusing... read more
 
ALLOCATION
The number of shares actually sold to a person who has applied to participate in a new issue. Where the shares of an initial public offer (IPO) are very popular and in great demand it may become... read more
 
ALPHA
Premium that an investment portfolio earns above a given point of reference; a measure of stock performance independent of the market. Unit trusts and other collective investment schemes (CIS)... read more
 
ALPHAMIN RESOURCES CORPORATION
06 - 02 - 2020
Alphamin (APH) is a tin mining and exploration company operating out of Mauritius. Its primary asset is just over 80% of Alphamin Bisie Mining which has a tin mine in the... read more
 
ALSI 40 INDEX
An index of the 40 biggest companies trading on the JSE. This index is weighted for the market capitalisation of the companies it includes and also their "free float". It is one of five "headline"... read more
 
ALTERNATIVE INVESTMENT MARKET
A part of the London Stock Exchange which caters for smaller companies - in a similar way to the JSE's Alt-X. Some South African companies are listed on both the AIM and the JSE - with either... read more
 
ALVIVA HOLDINGS LIMITED
09 - 03 - 2020
Alviva Holdings (AVV) is "one of Africa's largest providers of information and communication technology products and services". It has three operating divisions - ICT Distribution... read more
 
AMERICAN DEPOSITORY RECEIPT
Certificates that are issued by a bank of US origin and traded in the U.S. as domestic shares. The certificates represent the foreign securities that the bank holds in that security's country... read more
 
AMERICAN STOCK EXCHANGE
Originally an overflow of companies that were too small to list on the New York Stock Exchange, the "Amex" used to trade on the street outside the NYSE with brokers making markets next to specific... read more
 
AMEX COMPOSITE INDEX
This is an index of approximately 250 shares trading on the NYSE Amex exchange. The NYSE Amex exchange started life as the "curb" exchange because it consisted of trade in shares which were too... read more
 
AMORTISATION
Accounting method in which an asset's cost is spread out over a period of time. For example, a vehicle costing R100 000 might be amortised or "depreciated" over five years at a rate of R20 000... read more
 
ANAUME
Candlestick formation. An exceptional exhaustion pattern (meaning "gap filling") composed of five candles. The anaume occurs when the gap is filled in after a market price has changed directions.... read more
 
ANCHOR GROUP LIMITED
11 - 05 - 2020
Anchor (ACG) is a local and off-shore financial services holding company with primarily three businesses - asset management, private clients and stockbroking. It listed on... read more
 
ANDREWS METHOD
This is a technical analysis technique (also known as "Andrews pitchfork" because of its shape) for establishing upper and lower support and resistance lines.� A median line is drawn connecting... read more
 
ANDULELA INVESTMENT HOLDINGS LIMITED
09 - 04 - 2020
Andulela (AND) is an investment holding company listed on the main board. It has two subsidiaries - 83,6% of Kilken Platinum, a producer of low cost PGMs (palladium, platinum,... read more
 
ANGLO AMERICAN PLATINUM LTD
29 - 04 - 2020
Anglo American Platinum (AMS), or Amplats, is the second largest platinum producing company in the world (after Sibanye), producing approximately 40% of the world's platinum.... read more
 
ANGLO AMERICAN PLC
18 - 05 - 2020
With Anglo American (AGL), the risk normally associated with commodity stocks is mitigated in two ways. Firstly, the company has diversity of different minerals which reduces... read more
 
ANGLOGOLD ASHANTI LTD
14 - 05 - 2020
Anglogold Ashanti (ANG) is an international gold producer with operations in South Africa (the last of which has now been sold), the DRC, Tanzania, Ghana, Mali and the US.... read more
 
ANGLOVAAL INDUSTRIES LTD
12 - 03 - 2020
Anglovaal Industries (AVI) is a generalised producer of consumer products in the food, cosmetics and apparel sectors. It has a diverse range of very well-known South African... read more
 
ANHEUSER-BUSCH SA LTD
12 - 05 - 2020
Anheuser-Busch, or AB-Inbev (ANH), is the world's largest brewer of beer, operating in both first world countries and emerging markets. On 10th October 2016, AB-Inbev bought... read more
 
ANNUAL EARNINGS CHANGE
The historical earnings change between the most recently reported fiscal year's earnings and the preceding or a forecast. Paragraph 3.4(b) of the JSE's Listing Requirements states that if a company's... read more
 
ANNUAL FINANCIAL STATEMENTS
Sometimes known as an Annual Report or just the "financial statements", this is a document required by the Companies Act (71 of 2008) to be produced once a year for presentation to the Annual... read more
 
ANNUAL GENERAL MEETING
This is a meeting of the shareholders of a company, which is required in terms of section 61 of the Companies Act (71 of 2008). The AGM must be held within six months of the end of the company's... read more
 
ANNUAL NET PROFIT MARGIN
The percentage that the company earned from gross sales (also called "turnover") for the most recently reported fiscal year. In other words, the after-tax profit expressed as a percentage of... read more
 
ANNUAL SALES CHANGE
The percentage change in sales (turnover) between the most recently reported financial year and the preceding. You should note that unless the increase in sales is more than the going inflation... read more
 
ANNUALISE
The process of adjusting performance or return which has been made over a period of less than or more than a year so that it can be compared with the annual results of other entities. For example,... read more
 
ANNUITY INCOME
An income which comes in regularly, usually as the result of a contractual obligation and a pre-arranged bank debit order. When analysing a share, it is always good to determine how much of its... read more
 
APPLICANT
An investor who applies for shares in a company's new issue. Sometimes, if the company is seen to be a very good investment, the shares will be heavily "over-subscribed". In this situation, the... read more
 
APPRAISAL RIGHTS
Where a minority shareholder does not agree with a fundamental transaction (i.e. one which will change the control of the company, such as a merger or acquisition, or dispose of its main business)... read more
 
ARB HOLDINGS LTD
17 - 02 - 2020
ARB Holdings (ARH) is an electrical contracting company that owns property and is involved in vehicle leasing. It owns 74% of ARB Electrical Wholesalers which has 23 branches... read more
 
ARBITRAGE
Simultaneous trading in assets, currency or bills of exchange in different international markets, to take advantage of the different rates of return ruling in each. For example, Anglo American... read more
 
ARCELORMITTAL SA LTD
09 - 04 - 2020
ArcelorMittal (ACL) is South Africa's largest steel producing company. It has survived where companies like Highveld Steel disappeared. Arguably, ArcelorMittal felt the impact... read more
 
ARDEN CAPITAL LIMITED
01 - 06 - 2020
Arden Capital (ACZ) is an investment holding company registered in Mauritius which specialises in running tourist-orientated businesses in Zimbabwe, particularly hotels, game... read more
 
ARGENT INDUSTRIAL LIMITED
19 - 11 - 2019
Argent (ART) is a manufacturer and beneficiator of steel and aluminium products supplying a wide range of businesses in South Africa. It also has operations in the US and... read more
 
ARMS INDEX
Also known as TRading INdex (TRIN): An advance/decline stock market indicator. A reading of less than 1.0 indicates bullish demand, while greater than 1.0 is bearish. The index is often smoothed... read more
 
ARROWHEAD
Arrowhead (AWA) is a real estate investment trust (REIT) which owns a diversified South African portfolio and shares in a number of other property companies worth in total R5,7bn. Its portfolio... read more
 
ARROWHEAD PROPERTY LIMITED
23 - 04 - 2020
Arrowhead (AWA) is a real estate investment trust (REIT) which owns a diversified South African portfolio and shares in a number of other property companies worth in total... read more
 
ARTICLES OF ASSOCIATION
Prior to the Companies Act (71 of 2008), this was a document, drawn up by the subscribers of a company at its inception, which governed the internal affairs and management of the company. The... read more
 
ASCENDING FORMATION
A formation, which is part of an uptrend, where the share price forms a triangle bounded by a horizontal resistance line at the top and characterised by a pattern of rising bottoms. Consider... read more
 
ASCENDIS HEALTH LIMITED
20 - 04 - 2020
Ascendis Health (ASC) is a South African company which manufactures brands aimed at health in animals, plants and people. The company has recently sold off its sports nutrition... read more
 
ASK
The price at which a investor who is holding a share (or other security) is willing to sell. Also referred to as the "offer price." The JSE's computer system will automatically execute a transaction... read more
 
ASPEN PHARMACARE HOLDINGS LTD
18 - 05 - 2020
Aspen (APN) is a pharmaceutical company which trades in 150 countries in a wide range of specialty and branded products aimed at a range of acute and chronic medical conditions.... read more
 
ASSET
An item on the balance sheet that means the possessions of a company, an organisation or an individual. Assets can be tangible (e.g. a vehicle), or intangible (e.g. goodwill). Assets can be fixed... read more
 
ASSET BACKING
A strong asset backing indicates that a company has large resources of assets. These may reside in a parent company, or they may belong to the company itself. As a private investor, you need... read more
 
ASSET BASE
A concept which came from the previous Companies Act and its doctrine of Capital Preservation. Money raised by a company as a result of issuing shares to the public was protected by the Companies... read more
 
ASSET 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 asset bubbles.... read more
 
ASSET MANAGEMENT
The management of listed or unlisted assets (equities, options etc.).
 
ASSET MARKET
An asset market is the spot market for a particular asset. Thus, the gold market or the oil market or the market for pork bellies in America. Financial assets like shares and bonds are also asset... read more
 
ASSET STRIPPING
This occurs where a company is purchased because the market price of its shares is less than the value of its assets. Assets are then sold and a profit is realised.
 
ASSIGNMENT
When a trader sells short an option, he may be assigned in the event that the purchaser exercises the option. A trader with a short call position is assigned a short futures position. A trader... read more
 
ASSOCIATED COMPANY
A company in which between 20% and 50% of the share capital is held. Where less than 20% is held then the shares would be considered an "investment" and where more than 50% is held it would be... read more
 
ASSORE LTD
09 - 04 - 2020
Assore (ASR) is a miner of base metals, especially iron ore, manganese and chrome. It has 50% of Associated Manganese (Assmang) with partner African Rainbow Minerals. The... read more
 
ASTORIA INVESTMENTS LIMITED
11 - 05 - 2020
Astoria (ARA) was an investment company which was formed to give investors exposure to an international selection of equities in developed economies. Among its investments... read more
 
ASTRAL FOOD LIMITED
21 - 05 - 2020
Astral Foods (ARL) is a leading poultry producer in South Africa. The company’s activities include integrated broiler operations, where they have a processing capacity... read more
 
ASTROPHYSICAL CYCLE
Any earthly cycle, such as a market cycle, that has been scientifically related to the physics of the planetary system.
 
AT BEST
An instruction given to a stockbroker by his clients to sell or buy "at best" would give the broker freedom to purchase or sell the shares concerned at the price most advantageous to his client... read more
 
AT MARKET
An order to be transacted immediately against the best opposite order in the book at the time of making such entry.
 
AT-THE-MONEY
An option whose strike price is nearest the current price of the underlying deliverable.
 
ATLANTIC LEAF PROPERTIES LIMITED
28 - 05 - 2020
Atlantic Leaf Properties (ALP) is a property company, listed on the JSE and the Mauritian Stock Exchange, which has become a real estate investment trust (REIT) and intends... read more
 
ATLATSA RESOURCES CORP
Atlatsa (ATL) is a BEE company involved in platinum group metals (PGM) in the Bushveld Complex. It has a primary listing on the Toronto Stock Exchange (TSE) and a secondary listing on the Alt-X... read more
 
ATTACQ LTD
20 - 05 - 2020
Attacq (ATT) is a BEE level 2 property developer that converted to a real estate investment trust (REIT) in May 2018 and has been listed on the JSE in 2013. It is the owner... read more
 
ATTRIBUTABLE EARNINGS
That part of a company's profit which is "attributable" to the ordinary shareholders. In other words, after the normal operating expenses have been deducted, together with finance costs, extraordinary... read more
 
AUDITORS' REPORT
A part of the annual financial statements required by the Companies Act where the auditors state that they have examined the financials and that in their opinion they represent a fair picture... read more
 
AUTHORISED SHARES
The number of shares in each class which a company is authorised to issue to the public or in exchange for assets. The authorised shares must be stated in the Memorandum of Incorporation, but... read more
 
AUTOMATED TRADING SYSTEM
ATS (see SETS). In 1996 the open outcry trading floor was closed on 7 June and replaced by an order driven, centralised, automated trading system known as the Johannesburg Equities Trading (JET)... read more
 
AUTOREGRESSIVE INTEGRATED MOVING AVERAGE (ARIMA)
A linear stochastic model forecasting methodology described by Box and Jenkins in their book "Time Series Analysis, Forecasting and Control".
 
AVENG LTD
18 - 05 - 2020
The once-massive construction company, Aveng (AEG), which traded at R69 a share in 2008, has been reduced to a 2c penny stock. This sad demise has been brought about by a... read more
 
AVERAGE
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 in its various forms (simple, exponential,... read more
 
AVERAGE COST
A method of valuing shares in a portfolio at the average of what they cost. For example, if 100 shares are bought for 100 cents each and then a further 100 of the same shares are bought for 150... read more
 
AVERAGE DIRECTIONAL MOVEMENT INDEX
Indicator developed by J. Welles Wilder to measure market trend intensity. Average Directional Movement Index Technical Indicator (ADX) helps to determine if there is a price trend. It was developed... read more
 
AVERAGE NUMBER OF SHARES IN ISSUE
Certain statistics for listed companies on the JSE are given in the form of "per share" data - such as earnings per share and dividends per share. These ratios rely on the number of shares in... read more
 
AVERAGE TRUE RANGE
A moving average of the true range. Developed by J. Welles Wilder and introduced in his book, New Concepts in Technical Trading Systems (1978), the Average True Range (ATR) indicator measures... read more
 
AVIOR CAPITAL MARKETS HOLDINGS LIMITED
05 - 02 - 2020
Avior (AVR) is a capital markets research and trading firm covering equities, fixed interest and derivative markets in Southern Africa. The company claims to have 200 institutional... read more
 
AYO TECH SOLUTIONS LTD
28 - 05 - 2020
This is a black-owned technology company that was spun out of AEEI and in which AEEI still holds 49,4%. There were suspicious circumstances with a massive R4,3bn investment... read more
 
BA RATE
The annualised interest rate at which financial institutions (typically banks) accept or discount bills of exchange. Often in business a company in need of short-term cash will sell a bill of... read more
 
BACK MONTHS
Those futures delivery months with expiration or delivery dates furthest into the future; in other words, futures delivery months other than the spot, or nearby, delivery month.
 
BACK OFFICE
This is the department in a stockbroking firm, which deals with settlement procedures, such as controlling electronic settlements on behalf of clients and the maintenance of accounts.
 
BACK-TESTING
A strategy is tested or optimized on historical data and then the strategy is applied to new data to see if the results are consistent. For example, you may believe that a 200-day moving average... read more
 
BACKWARD BENDING CURVE
An economics concept used to describe a phenomenon which occurs in the labour market. As employees are paid more per hour they will tend to work longer hours up to the point where their leisure... read more
 
BACKWARDATION
A futures market phenomena in which the relationship between two delivery months of the same commodity is abnormal. The opposite of "contango".
 
BAD DEBT
This is a debt which cannot be recovered - thus forcing the company to write it off against profits. Most companies make provision for bad debts, a figure that is adjusted annually. When the... read more
 
BALANCE OF PAYMENTS
The combined net position on the capital and current accounts of the country. The current account indicates whether South Africa is spending more foreign currency on imports than it is receiving... read more
 
BALANCE OF TRADE
This forms part of the balance of payments calculation, but refers only to the difference between the value of exports offset against imports. While the balance of trade will reflect the level... read more
 
BALANCE SHEET
A list of all balances taken from a company's ledger after incomes and expenses have been offset to arrive at a profit or loss. These balances are combined in carefully prescribed ways to form... read more
 
BALANCED MUTUAL FUND
A mutual fund that seeks a return that is a combination of capital appreciation and current income, generally by building a portfolio of bonds, preferred stocks and common stocks.
 
BALTIC DRY INDEX
The Baltic Dry Index (BDI) is a composite index calculated by the Baltic exchange in London and made up of the Capesize, Panamax and Supramax averages. This is a measure of ship sizes. Capesize... read more
 
BALWIN PROPERTIES LIMITED
21 - 05 - 2020
Balwin Properties (BWN) is a developer of secure sectional title properties in South Africa. The company is now turning its attention to renting out some of the properties... read more
 
BANCASSURANCE
The working together of a bank and an insurance company to exchange their customer lists and thereby increase business. This usually involves a merger, acquisition or some other equity relationship... read more
 
BANDPASS FILTER
An oscillator that accentuates only the frequencies in an intermediate range and rejects high and low frequencies. Implemented by first applying a low pass filter to the data and then a high... read more
 
BANK INVESTMENT CONTRACTS
A negotiated-term deposit issued by a commercial bank. See Guaranteed Investment Contracts (GICs).
 
BANK OF ENGLAND (BOE)
The central bank of the United Kingdom, located on Threadneedle street. Like all central banks, the BOE is engaged in monetary policy which includes controlling inflation and striving to maximise... read more
 
BAR CHART
A bar chart shows the range of trade for the previous day, week or month by connecting the highest price reached during the day to the lowest price with a vertical bar. The opening and closing... read more
 
BARLOWORLD LIMITED
29 - 04 - 2020
Barloworld (BAW) is an international supplier of heavy earth-moving equipment and vehicles to the mining, agriculture, infrastructure, power, automotive and logistics sectors.... read more
 
BASE CURRENCY
In general terms, the base currency is the currency in which an investor or issuer maintains its book of accounts. In the FX market, the U.S. Dollar is normally considered the "base" currency... read more
 
BASE EFFECT
Most economic statistics are measured over the most recent full year, but updated monthly. This means that the latest month's figures will have as much impact as the oldest month - which is now... read more
 
BASEL AGREEMENT
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
 
BASIL READ HOLDINGS LTD
14 - 10 - 2019
Basil Read (BSR) was one of South Africa's leading construction companies involved in mining, civil engineering, road construction, housing and other areas. Like other construction... read more
 
BASIS POINTS
The measure of yields on bonds, notes and interest rates; one basis point equals 0.01% of yield. For example if the Governor of the Reserve Bank announces that the "repo" rate is to increase... read more
 
BASKET TRADES
Large transactions made up of a number of different stocks.
 
BAUBA PLATINUM LIMITED
25 - 09 - 2019
Bauba (BAU) is a black-empowered junior mining company which has recently moved away from platinum group metals (PGM) production because of low prices to concentrate on chrome... read more
 
BDA SYSTEM
Broker Deal Accounting system provided for member firms by the JSE information technology division. The system keeps the securities records and books of account for individual member firms in... read more
 
BEAR
An investor who believes that the market or a particular share is going to decline from its current position. In the share market, bulls and bears constantly tussle to dominate. When there are... read more
 
BEAR MARKET
A market where the average of all shares is falling so that each high is lower than the previous high and each low is lower than the previous low. Bear markets usually last for between 18 months... read more
 
BEAR RAID
 
BEAR SALE
A sale of shares before they are purchased. A bear sale (or short sale) is the sale of an undertaking to supply a certain number of shares at a specified date in the future. It describes a situation... read more
 
BEAR TREND
A long downward trend in a share's price, a sector's index, the all-market index or other indicator. Bear trends and bull trends are interrupted by periods of sideways movement. Bear trends are... read more
 
BEARISH COUNTER ATTACK
The counter part of the bullish counter attack candlestick formation, this is a top reversal signal consisting of two candles: the first is a green candle within a upward trend; the second is... read more
 
BEARISH ENGULFING PATTERN
A top reversal candlestick formation consisting of a small green candle followed by a large red candle which engulfs the previous green candle. This formation is the counter part of the bullish... read more
 
BEE BOARD
A section of the JSE which is devoted to the trade of black empowerment shares. These shares can only be bought and sold by black people. The need for this arises from the problem which listed... read more
 
BELL CURVE
A statistical concept which seeks to reduce a population to its average and then show the positive and negative departures from that average. So, for example, you could take all the spectators... read more
 
BELL EQUIPMENT LIMITED
04 - 06 - 2020
Bell (BEL) is a manufacturer and distributor of heavy equipment, mainly earth-moving equipment to the mining construction, agriculture and waste management industries. As... read more
 
BELOW THE LINE
Those expenses and incomes which are not included in the calculation of headline earnings because they are not part of the company's normal business.
 
BENEFICIAL INTEREST
An interest of 5% or more in a company. Section 121 (1) of the Companies Act (71 of 2008) states that any investor (natural or juristic) acquiring or disposing of an interest of 5% or a unit... read more
 
BETA (COEFFICIENT)
A measure of the market/non-diversifiable risk associated with any given security in the market. A ratio of an individual stock's historical returns to the average historical returns of the stock... read more
 
BETWEEN THE CHAINS
The stock market in Johannesburg overflowed onto the street outside the old stock exchange building on the corner of Simmonds Street and Commissioner. After a time the authorities closed off... read more
 
BHP BILLITON PLC
23 - 04 - 2020
BHP is a world-wide commodities company with its headquarters in Melbourne Australia. It processes minerals, oil and gas and it has 62000 employees, mostly in the Americas... read more
 
BID
An expression of willingness to buy a commodity or share at a given price; the opposite of "offer" or "ask".
 
BID AND ASK
Highest price and lowest price that an investor will pay or receive for a trade. For example, this is the highest price at which a share could be sold and the lowest price for which it could... read more
 
BID CORPORATION LTD
17 - 04 - 2020
Bidcorp (BID) is a diversified international food company which operates in 34 countries around the world. It was spun out of Bidvest in June 2017 to release shareholder value.... read more
 
BID PRICE
The price offered by a buyer for a share.
 
BID SIZE
The number of futures or options contracts bid at a certain price.
 
BID/OFFER SPREAD
This is the difference between the price at which buyers will buy shares and sellers will sell shares. For smaller, thinly-traded shares the percentage difference between the bid and the offer... read more
 
BIG BANG
The term coined to denote the deregulation of the London Stock Exchange in 1986. It introduced dual capacity and the dematerialisation of shares. After the big bang, the "open outcry" market... read more
 
BLACK BOX
A proprietary, computerized trading system whose rules are not disclosed or readily accessible. Black boxes usually take the form of a computer program which receives share market data by daily... read more
 
BLACK CHIP
A listed company whose management consists mainly of Black shareholders.
 
BLACK ECONOMIC EMPOWERMENT
The Black Economic Empowerment Act (53 of 2002) aims to empower black people through providing private sector companies with an incentive to increase the black ownership of their shares, increase... read more
 
BLACK MONDAY
Monday, 19th October 1987 when the New York Stock Exchange fell by almost 23% in a single trading day. On the JSE, the fall happened the next day, 20th October 1987. black... read more
 
BLOCK
A large amount of stock sold as a single unit. This term is most often used to describe a unit of 1000 shares or more.
 
BLOW-OFF TOP
A steep and rapid increase in price followed by a steep and rapid drop in price. Also called a "V-top".
 
BLUE CHIP
A very safe share that has a long history of sound management and steady dividends. Examples of such shares are Sasol, Bidvest, First National Bank, Pick n Pay, Standard Bank and Liberty Life.... read more
 
BLUE LABEL TELECOMS LTD
06 - 03 - 2020
Blue Label Telecoms (BLT) is a company which has interests in selling secure tokens of value - such as airtime, starter packs and electricity. It bought 45% of Cell-C in September... read more
 
BOARD
The collective term for the directors of a company. Directors, appointed by the shareholders, are tasked with the management of the company. They have a responsibility to act in the best interests... read more
 
BOLLINGER BANDS
An envelope indicator that draws two lines 2 standard deviations above and two standard deviations below a moving average of the share's price. The idea is that 95% of prices will occur between... read more
 
BOND
A long-term debt security with a stated interest rate and fixed due dates, issued by a corporation or a government, when interest and principal must be paid. The South African government regularly... read more
 
BONUS ISSUE
A term synonymous with scrip issue and capitalisation issue which describes shares given without charge to existing shareholders in proportion to the shares already held.
 
BOOK BUILD
When a listed company wishes to raise a large amount of capital from the public by selling shares or bonds, they normally do so through a book build. The CEO of the company and some of his directors... read more
 
BOOK VALUE
This is the value at which an asset appears in the books or accounts of a company. Very often, book values are higher or lower than the real values of the assets, and can be misleading when considering... read more
 
BOOKBUILD
A scenario in the share market where a company, or even an individual, sells a large amount of shares, called "the book", off market to institutional investors. In the case of a company, a bookbuild... read more
 
BOOM
This describes a stage in the business cycle when economic activity is increasing.
 
BORROWINGS
This is a term used by share market analysts to refer to a company's long-term indebtedness. It excludes those current liabilities which arise as the result of normal business practice.
 
BOTTOM
The lowest point in a share's price cycle. Beginners get excited when a share is going up - smart investors get excited when it is going down, especially if it is a high-quality blue chip. Their... read more
 
BOTTOM REVERSAL SIGNAL
A term used in technical analysis to describe a formation at the bottom of a trend which signals that the trend is likely to change and become a upward trend. Examples of such formations include... read more
 
BOURSE
A European term for a stock market. For example, the Paris Bourse, or the Frankfurt Bourse.
 
BOWLER METCALF LIMITED
17 - 02 - 2020
Bowler Metcalf (BCF) is a plastics manufacturing company that began in 1972 and listed on the JSE in 1987. The company's products include tube manufacture, printing, injection... read more
 
BOX SIZE
An element of point and figure charting. Point and figure is a one-dimensional chart which has no consistent x-axis showing the passage of time (unlike a line chart). The idea is to identify... read more
 
BOZU
Literally "bald" or "monk" in Japanese; in candlestick terminology refers to a situation during which a trading cycle opens or closes on a high or low, indicating a victory for the bulls or the... read more
 
BRACKETING
A trading range market or a price region that is non-trending. This means a market, share or index that is moving back and forth between two horizontal trendlines.
 
BRAINWORKS LIMITED
04 - 10 - 2019
Brainworks (BWZ) is an exclusively Zimbabwean company with investments in the hotel and leisure industry there. It owns an array of hotels like the Monomotapa hotel and the... read more
 
BRAIT SA
30 - 03 - 2020
Brait (BAT) is an investment holding company which owns 57% of Iceland Foods, 78% of Virgin Active, 93,7% of Premier and 18,5% of New Look (a clothing retailer in the UK).... read more
 
BREAK
Where a share, index or other instrument's price moves outside the trading range which has constrained it, breaking a trendline and so establishing a new trend or direction.
 
BREAK AWAY GAP
A visible gap between the highest price of one day and the lowest price of the next. When a share has been trending down for some time it often reaches a point where the buyers and sellers are... read more
 
BREAK FEE
A fee usually payable by a company seeking to make an acquisition, to the target company in the event that the acquisition for whatever reason does not go through. This acts as an incentive for... read more
 
BREAK OUT
A technical term which indicates that a share price has moved clearly up or down after a period of relative indecisiveness or stagnation. A break-out is often a buy/sell signal, especially in... read more
 
BREAK-EVEN
A term used by accountants to indicate that a company has reached the point where it is neither making a loss nor a profit. The expenses at a company are divided into fixed (those which are not... read more
 
BRETTON WOODS AGREEMENT OF 1944
An agreement that established fixed foreign exchange rates for major currencies, provided for central bank intervention in the currency markets, and pegged the price of gold at U.S. $35 per ounce.... read more
 
BRICS
Brazil, Russia, India, China and South Africa have formed an economic alliance as emerging economies to promote economic growth and co-operation. The BRICS block is seen as opposing the European... read more
 
BRIDGING FINANCE
This is a loan obtained by a company to tide it over a short temporary cash flow problem.
 
BRIKOR LIMITED
18 - 05 - 2020
Brikor (BIK) is a company that manufactures bricks, roof tiles and clay pipes. It was listed on the Alt-X in August 2007 and describes itself as "a diverse manufacturer and... read more
 
BRIMSTONE INVESTMENT CORP LTD
16 - 03 - 2020
Brimstone (BRT) is a black-controlled investment holding company with a diverse portfolio of holdings. It owns:
1. 54,2% of Sea Harvest, which is a listed fishing company... read more
 
BRITISH AMERICAN TOBACCO PLC
03 - 04 - 2019
British American Tobacco (BTI) describes itself as a "leading consumer goods company" - which is a euphemistic way of saying that they produce and sell an enormous number... read more
 
BROADENING FORMATION
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
 
BROKER'S DECK
Orders physically held by the floor broker in the trading pit. Today, with the advent of computerised trading the stock exchange's computer system shows the best bids and offers as soon as stockbroking... read more
 
BROKER'S NOTE
A contract document sent to the buyer or seller of shares by his stockbroker to act as confirmation of the transaction. It shows the name of the client, the share or stock in question, the dealing... read more
 
BROKER-DEALER
A firm that handles transactions for its customers and also purchases securities for its own account, selling them to customers.
 
BROKERAGE
The stockbroker's fee for completing a share transaction. Brokerage is usually calculated on a sliding scale depending on the total value of the transaction. Since deregulation of the JSE in... read more
 
BROWNFIELD OPERATIONS
A mining term which refers to the development and exploitation of known and proven deposits of minerals. This type of mining operation is clearly less risky than "greenfields operations" where... read more
 
BUDGET
Every year, at the end of February, the Minister of Finance presents the budget to parliament. In the budget he puts forward an estimate of how much money will be raised through taxes, customs... read more
 
BUFFALO COAL CORPORATION
11 - 05 - 2020
Buffalo (BUC) mines high-quality bituminous coal and anthracite in Dundee Natal. It has two operating mines - Magdalena and Aviemore which have substantial resources of thermal... read more
 
BULL
This term describes an investor who believes that market trends are rising or that a particular share is rising. In the share market the bulls and bears (people who think that the share or market... read more
 
BULL MARKET
A market where the average of all shares is rising such that each high is higher than the previous high and each low is higher than the previous low. Bull markets generally last for between 3... read more
 
BULL TRAP
A situation where bullish investors buy into a security too early, before all the bad news has been published and digested by the market. Bear trends typically have an "A-B-C" structure where... read more
 
BULL TREND
A long period of consistently rising share prices, or index levels. Usually such trends last from 2 to 4 years. During a bull trend you should be 100% invested in the share market, because about... read more
 
BULLION
Any precious metal (most commonly gold), which has not been processed into jewellery, coins, or used for any other manufacture. It is normally kept in bulk form in bars known as ingots. Most... read more
 
BULLISH COUNTER ATTACK
A bottom reversal candlestick pattern comprising of two candlesticks: first a red candle, then a green candle opening well below the close of the preceding red candle and closing at near the... read more
 
BULLISH ENGULFING PATTERN
A bottom candlestick reversal signal, this is a two candlestick pattern consisting of a large green candle enveloping a preceding red candle. This pattern implies that the trend is likely to... read more
 
BUSINESS CYCLE
The overall upward-peak-downward-trough pattern that is followed by business activity. There are a number of theories about the causes of these cycles, but no real explanation for this. The share... read more
 
BUSINESS RESCUE
This is a state which can be invoked by the directors of a company if the company is in extreme stress and cannot meet its immediate debt obligations. The concept replaced the old idea of “judicial... read more
 
BUST
This describes a stage in the business cycle when economic activity is low. A bust in the economy results in lower inflation, or even deflation, high unemployment, lower income and a lower general... read more
 
BUY AND HOLD
A strategy of buying a tradable such as a share for the long term rather than buying it with the idea of making a quick profit.
 
BUY LINE
A horizontal line drawn on a line indicator (such as the OB/OS, Momentum or MACD) below which there is historically a much lower probability of being wrong in buying than elsewhere on the chart.... read more
 
BUYER'S PRICE
The price at which someone is prepared to buy the shares at a certain time. On the price page of your daily newspaper this is shown at the close of the session reported on, usually under the... read more
 
BUYING PRESSURE
A high demand for a particular share or class of shares which exceeds the supply and so causes the price to rise.
 
BUYING SIGNAL
A technical term which refers to a specific event or occurrence which signals to a chartist that it is the correct time to go long (i.e to buy in). The simplest example of a buying signal is... read more
 
CAFCA LIMITED
26 - 05 - 2020
Cafca (CAC) is a cable manufacturer that produces over 900 cable and transmission products. Most of its business is conducted in Southern Africa. The company is 70% owned... read more
 
CALGRO M3 HOLDINGS LIMITED
21 - 05 - 2020
Calgro (CGR) is a developer of large-scale integrated properties, rental units and memorials. It was established in 1995 and listed on the JSE in November 2007. It acquires... read more
 
CALL OPTIONS
The purchased right to buy (call) specified securities at a specified price (strike price) within a specified period (American) or on a specified date (European). By the payment of a premium... read more
 
CALMAR RATIO
The average rate of return for the last 36 months divided by the maximum drawdown for the same period. It is usually calculated on a monthly basis. A negative value for the Calmar ratio means... read more
 
CANCEL ORDER
To abort a pending or working order. Occasionally, a trader may attempt to cancel an order that has already been executed but not yet reported as having been filled. In such a case, when the... read more
 
CANDLE VOLUME CHART
A candlestick chart where the width of the candles is determined by the volume traded during the day. Obviously this leads to an irregular X-axis which can create some problems with the application... read more
 
CANDLESTICK
An individual display of the high, low, open and close of a specific security over a period of time. A candlestick chart is composed of multiple candles, each of which represent the sentiment... read more
 
CANDLESTICK CHARTING
A charting method which offers an alternative to the bar chart method of displaying daily weekly or monthly data. This method originated in Japan. The price range between the open and the close... read more
 
CAPEX
 
CAPITAL
Money which is used to supply "working" capital or to purchase capital goods, which are to be used to generate the income of the company. Capital can also include the reserves of undistributed... read more
 
CAPITAL & REGIONAL PLC
09 - 04 - 2020
Capital and Regional (CRP) is a UK real estate investment trust (REIT) which owns and manages in-town community centers in England. Obviously, both the UK consumer and property... read more
 
CAPITAL ACCOUNT
An element of the Balance of Payments (BOP) which shows the movement of capital into and out of a country. For example, it shows overseas investors investing into and disinvesting out of South... read more
 
CAPITAL APPRECIATION LIMITED
18 - 05 - 2020
Caprec (CTA) is a fintech company offering payments and payment infrastructure as well as software and services. It is owned by Patrice Motsepe's African Rainbow Capital (ARC).... read more
 
CAPITAL COUNTIES PROPERTIES PLC
03 - 04 - 2020
Capital Counties Properties (CCO), Capco, is a real estate investment trust (REIT) with a primary listing on the London Stock Exchange (LSE) and a secondary listing on the... read more
 
CAPITAL GAIN
When a gain is made when an investment is sold for more than its purchase price, it is called a capital gain. This must not be confused with the definition of Capital Gains Tax (CGT), as certain... read more
 
CAPITAL GAINS DISTRIBUTION
A distribution to investment company shareholders from net long-term capital gains realised by a regulated investment company on the sale of portfolio securities.
 
CAPITAL GAINS TAX
A tax levied on the sale of an asset at a profit. For example, if you buy a piece of land and then later sell it for R100 000 more than you paid for it, you will have to pay tax on that gain.... read more
 
CAPITAL INTENSIVE
A term which describes those businesses which use huge amounts of capital to make a profit. Maybe they have plant, machinery and land tied up in their production process. Obviously, having all... read more
 
CAPITAL LOSS
Losses resulting from selling at a loss.
 
CAPITAL STRUCTURE
This is the way in which a company has raised the capital needed to establish and expand its business activities or, more specifically, the number of shares and long-term loans in each class... read more
 
CAPITALISATION ISSUE
Also called ‘bonus issues", these do not involve transfer of cash between the company and its members. They occur when a company feels it desirable to convert part of its reserves (profits... read more
 
CAPITALISING LOANS/INTEREST
This is the process when loans or interest payable are converted to capital. This alters the gearing or borrowing ratio of the company by shifting loans into permanent capital. It also improves... read more
 
CAPITEC BANK HOLDINGS LTD
04 - 05 - 2020
Capitec Bank (CPI), launched by PSG, has been a major disrupter in the South African banking system. It has steadily taken retail market share from the other banks by offering... read more
 
CAPPED INDEX
An index where the influence of components of the index is limited to a specific percentage of the total. For example, the JSE Top 40 index has a 10% "cap" which means that no single share in... read more
 
CARRY TRADE
The movement of cash from a low interest country or area to a high interest country. Emerging economies typically have considerably higher interest rates than first world countries. This offers... read more
 
CARRYING BROKER
A member of a futures exchange, usually a clearinghouse member, through which another firm, broker or customer chooses to clear all or some trades.
 
CARRYING CHARGE
The cost of storing a physical commodity, such as grain or metals, over a period of time. The carrying charge includes insurance, storage and interest on the invested funds as well as other incidental... read more
 
CARTEL
A group of companies that together have a sufficiently large share of a particular product or industry so that they can force prices up by not competing with each other. An agreement is reached... read more
 
CARTRACK HOLDINGS LIMITED
18 - 05 - 2020
Cartrack (CTK) is a vehicle recovery, insurance, telematics and fleet management company operating in 24 countries around the world. It has a 92% recovery rate which it claims... read more
 
CASH ASSET / SHELL
A company which has cash or near-cash as its only asset. Besides the income derived from investing this cash, these companies have no income-producing assets and are not conducting normal business... read more
 
CASH COMMODITY
The actual physical commodity as distinguished from the futures contract based on the physical commodity. Also referred to as Actuals.
 
CASH CONVERSION RATIO
The ratio of operating cash flow to EBITDA (earnings before interest, taxation, depreciation and amortisation). This ratio shows how effective a company is at converting its profits into cash.... read more
 
CASH FLOW
This is the amount of cash coming into a company less the amount going out. Cash flow is important because a profitable company can easily go bankrupt if its profits are tied up in stock or debtors,... read more
 
CASH MARKET
 
CASH SETTLEMENT
A method of settling certain futures or options contracts whereby the market participants settle in cash (rather than delivery of the commodity). This is typical of a financial future where there... read more
 
CASHBUILD LTD
24 - 04 - 2020
Cashbuild (CSB) is the largest retailer in Southern Africa of building materials and related hardware, concentrating on the home improvements market. In the currently depressed... read more
 
CASTLEVIEW PROPERTY FUND LIMITED
11 - 11 - 2019
Castleview (CVW) is a real estate investment trust that owns a single property - a shopping mall in Port Elisabeth in the Eastern Cape. That is "Pier 14" which 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. These announcements appear on SENS (Stock Exchange News... read more
 
CAXTON CTP PUBLISHERS AND PRINTERS
27 - 03 - 2020
Caxton (CAT) is a South African printer and publisher. It publishes 13 well-known South African magazines such as Bona and Farmers Weekly. It employs 5500 people. In its results... read more
 
CBOT
Chicago Board of Trade. The CBOT is a global commodity futures exchange trading treasury bonds, corn, soybean, wheat, mini-sized Dow, gold, silver and more. The CBOT was founded in 1848 by a... read more
 
CENSURE
The JSE has very strict rules about what listed companies can and cannot do. If these rules are ignored or broken the JSE sometimes issues a public censure. Sometimes, a director of a listed... read more
 
CENTRAL BANK
A government or quasi-governmental organization that manages a country's monetary policy. For example, the U.S. central bank is the Federal Reserve, and the ECB (European Central Bank) manages... read more
 
CENTRAL SECURITIES DEPOSITORY
The role of a central depository is to maintain records of all purchases and sales of securities on organised exchanges within the country. In South Africa, this function is performed by STRATE... read more
 
CHAIKIN OSCILLATOR
An oscillator created by subtracting a 10-day EMA from a three-day EMA of the accumulation /distribution line. This technical analysis tool compares the day's closing price to the intraday high... 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 directors unless he is given a special mandate in... read more
 
CHAIRMAN'S REPORT
Most annual financial statements contain a Chairman's report, although this is not a requirement of the Companies Act. It is worth reading the chairman's report, especially for South Africa's... read more
 
CHANNEL
A technical analysis term which refers to a period during which a data stream oscillates between upper and lower parallel channel lines. You will often find when looking at charts that there... read more
 
CHART
In the context of the share market, this is a display or picture of a security that plots price and/or volume (the number of shares changing hands) over time. These days this mostly takes the... read more
 
CHEAP
The meaning of the word "cheap" in the share market is not the same as it is in common parlance. When a share is regarded as cheap, then it is perceived to be trading in the market for less than... read more
 
CHICAGO MERCANTILE EXCHANGE
The Chicago Mercantile Exchange (CME). The CME is the largest futures exchange in the United States and also owns and operates the largest futures Clearing House in the world. CME products fall... read more
 
CHIEF EXECUTIVE OFFICER
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
 
CHINESE WALL
A communications barrier between members or departments of a financial institution to prevent the transfer of price sensitive information. Chinese walls are imaginary but are taken seriously... read more
 
CHOPPIES ENTERPRISES LIMITED
26 - 05 - 2020
Choppies (CHP) is a Botswana-based grocery retailer previously with 212 stores which operated in South Africa, Botswana, Zimbabwe, Zambia and Kenya. The company has a primary... read more
 
CHROMETCO LIMITED
10 - 12 - 2019
Chrometco (CMO) is a company involved in the exploration and mining of chrome. In its results for the year to 28th February 2019, the company reported, "Although marred by... read more
 
CIRCUIT BREAKER
A system of limiting trading highs and price limits on equities and derivatives markets designed to provide a cooling-off period during large, intraday market declines. Thus when a market falls... read more
 
CITY LODGE HOTELS LTD
03 - 04 - 2020
City Lodge (CLH) runs a group of about 63 hotels in six African countries, with most of its business in South Africa. It is primarily aimed at the business traveler and hence... read more
 
CLASS
Some listed companies may issue a variety of different shares with different risk profiles to entice investors to support them. For example, there are ordinary and preference shares - two different... read more
 
CLEAR
The process by which a clearinghouse maintains records of all trades and settles margin flow on a daily mark-to-market basis for its clearing members.
 
CLEARING MEMBER
A member of an exchange clearinghouse responsible for the financial commitments of its customers. All trades of a non-clearing member must be registered and eventually settled through a clearing... read more
 
CLEARINGHOUSE
An agency or separate corporation of a futures exchange that is responsible for settling trading accounts, collecting and maintaining margin monies, regulating delivery and reporting trade data.... read more
 
CLICKS GROUP LIMITED
29 - 04 - 2020
Clicks (CLS) describes itself as a retail-led healthcare group. It incorporates Clicks, Musica, GNC and The Body Shop. Clicks has 704 stores of which 545 include pharmacies... read more
 
CLIENTELE LIMITED
28 - 02 - 2020
Clientele Life (CLI) is a small insurance company selling short- and long-term policies and underwriting insurance products. Their products are sold through agents and brokers... read more
 
CLOSE OF TRADE
When the share market stops trading at the end of each trading day.
 
CLOSED PERIOD
The time between the end of a company's financial year and the publication of its audited financial statements. For JSE companies, this period cannot be more than three months and is usually... read more
 
CLOSED TRADES
Positions that have been either liquidated or offset.
 
CLOSED-END FUNDS
A mutual fund that does not sell unlimited shares; one with a specific number of outstanding shares.
 
CLOSING DAY OF OFFER
Last day on which an offer made by a company to its shareholders may be accepted (e.g. in the case of a rights offer or an offer to purchase a shareholder's shares in a take-over bid).
 
CLOSING PRICE
This is the price at which the last transaction of a particular share took place during the trading session being reported on. The uncrossing prices calculated during the closing auction call... read more
 
CLOSING RANGE
A range of prices at which futures transactions took place during the close of the market.
 
CLOSING STOCK
At the end of the accounting period, stock (also called "inventory") must be valued to determine the company's "cost of sales". The usual calculation for cost of sales is: Opening Stock plus... read more
 
CLOVER INDUSTRIES LTD
23 - 07 - 2019 Clover (CLR) is the leading supplier of dairy products in South Africa. In the past year it has been moving towards branded high-margin products and away from bulk products.... read more
 
CM42
The form which must be completed and signed by both the purchaser and seller of shares for a transfer of shares to take place. In practice, since shares on the JSE were dematerialised, stockbroking... read more
 
CODES
An abbreviation for securities traded on an organised exchange. Share codes on the JSE are between 3 and 6 letters long - so, for example, the code for Sasol is "sol". Most stockbroking trading... read more
 
COGNITION HOLDINGS LIMITED
16 - 03 - 2020
Cognition (CGN) is a group of companies which specialise in agency-based payment systems, fax to e-mail services, knowledge creation and management. Cognition describes itself... read more
 
COINCIDENCE
In Gann theory, a projected reversal point.
 
COINCIDING INDICATOR
An economic indicator that moves directly in line with the business cycle. In other words, it turns when the economy as a whole turns, either up or down. The most obvious example is the country's... read more
 
COLLECTIVE BARGAINING
The process whereby employers negotiate with organised labour on issues such as wages, conditions of employment and other benefits. Both parties have a direct interest in settling negotiations... read more
 
COLLECTIVE INVESTMENT SCHEMES CONTROL ACT
This Act replaces the Unit Trust Control Act and the Participation Bonds Act and it came into effect in 2003. It regulates any scheme where members of the public invest in a portfolio and share... read more
 
COMAIR LTD
26 - 05 - 2020
Comair (COM) is South Africa's only listed airline. It operates for British Airways in South Africa and also runs the discount airline, Kulula. It is 27,2% owned by Bidvest.... read more
 
COMBINED FORECAST
The weighted average of two or more forecasts.
 
COMBINED MOTOR HOLDINGS LIMITED
20 - 04 - 2020
Combined Motor Holdings (CMH) runs car dealerships in Nissan, Volvo, Toyota, Opel, Subaru, Lexus, Mazda, Isuzu and Ford - selling both new and used vehicles. The motor industry... read more
 
COMMERCIAL
An entity involved in the production, processing, or merchandising of a commodity.
 
COMMISSION
A fee charged by a broker or agent to a customer for executing a transaction.
 
COMMODITY
Basically these are raw materials such as gold, silver, soya beans, sugar, coffee, steel, etc. Many commodities (such as gold) are traded in markets around the world. The gold price is set in... read more
 
COMMODITY CYCLE
Commodity prices tend to move in cycles lasting several years. For example, the aluminium price bottomed at $1100 a ton in late 1993 and peaked at $2000 a ton in early 1995, before declining... read more
 
COMMODITY POOL OPERATOR
An individual or organisation which operates or solicits funds for a commodity pool. A CPO is generally required to be registered with the CFTC.
 
COMMODITY RESEARCH BUREAU INDEX
This is the Commodity Research Bureau's spot index of commodities. The index includes 19 commodities and is weighted 39% to energy products, especially oil, 41% to agricultural products, 7% to... read more
 
COMMODITY SHARES
Shares of companies in the resource sector. Commodity shares are shares of those companies which manufacture, extract or sell commodities of various types. These shares are usually very volatile... read more
 
COMMODITY TRADING ADVISOR
A person who, for compensation or profit, directly or indirectly advises others as to the advisability of buying or selling futures or commodity options. Providing advice includes exercising... read more
 
COMMON STOCK
A term used in America to describe their equivalent of ordinary shares.
 
COMPAGNIE FINANCIERE RICHEMONT SA
19 - 05 - 2020
Richemont (CFR) is the world's second-largest supplier of luxury goods controlled by the Rupert family in Stellenbosch. Its sales are entirely located overseas so it is an... read more
 
COMPANIES ACT
The Companies Act (71 of 2008) contains the law concerning the formation and management of companies in South Africa. It can be viewed at http://www.cipc.co.za/files/2413/9452/7679/CompaniesAct71_2008.pdf.... read more
 
COMPANIES AND INTELLECTUAL PROPERTY COMMISSION
Established by the Companies Act, this commission is responsible for registering companies in South Africa and maintaining a register of all companies. It has the power to issue "compliance notices... read more
 
COMPANY WEBSITE
These are an immensely valuable source of information for private investors. Almost every listed company maintains a website on which it posts all useful information about the company. Usually... read more
 
COMPARATIVE RELATIVE STRENGTH INDICATOR
A technical indicator which compares the price movement of a stock with that of its competitors, industry group or the entire market. This technique enables you to determine whether a share is... read more
 
COMPETITION
The capitalist economic system is based on competition. Manufacturers produce a product which they perceive to be in demand and they compete with each other on quality, price and service. This... read more
 
COMPETITION ACT
This Act sets up the Competition Tribunal, Appeal Court and Commission. Together these three organisations prosecute breaches of the Act and require notification from all companies making acquisitions... read more
 
COMPLIANCE OFFICER
These days, companies, and especially listed companies have a host of rules and regulations that they must comply with - from the Companies Act to the JSE Rules and the King 3 report on corporate... read more
 
COMPOUNDING
Compounding occurs where the return from an investment is added to the original capital and then itself earns a further return which is further added to the capital and so on. Over time the compounding... read more
 
CONDITIONAL OFFER
An offer made to the shareholders of a company conditional to the occurrence of some event. Typically, where a take-over bid is being made, the predator will make an offer to shareholders conditional... read more
 
CONDUIT CAPITAL LIMITED
03 - 04 - 2020
Conduit Capital (CND) is a small financial services company, mainly in the insurance industry. It has two operating divisions - Investments and Insurance & risk. Through... read more
 
CONFIRMATION
A charting pattern giving credibility to a formation which has taken place.  Typically, it is advised to wait for at least three days which consist of data points confirming the trend or... read more
 
CONFIRMATION SIGNAL
The next candle in a candlestick formation which confirms the previous reversal signal, confirming that a change in the direction of the trend is likely and giving confidence to the dominating... read more
 
CONGESTION AREA OR PATTERN
A series of trading days in which there is no visible progress in price either upwards or downwards. This is also known as a "sideways" market or a period of "consolidation".
 
CONGLOMERATE
These are massive, sometimes multi-national, holding companies involved in a wide variety of industries.
 
CONSOLIDATED INFRASTRUCTURE GROUP LTD
06 - 03 - 2020
Consolidated Infrastructure Group (CIL) is an African infrastructure company which listed on the JSE in 2007. The company has four divisions - Power, Rail, Building Materials... read more
 
CONSOLIDATION
1. Technically, where a chart moves up and down within a narrow range, bounded by a support and resistance level. This is called a sideways market of a period of consolidation. A period of consolidation... read more
 
CONSUMER GOODS
Anything which is normally bought by consumers as the end user. This differs from industrial goods, which are bought with the objective of producing some other product or service.
 
CONSUMER PRICE INDEX
The measure of the degree to which the currency of a country is losing purchasing power over time through inflation. In South Africa, the Reserve Bank has chosen the CPIX as its target measure... read more
 
CONTANGO
A futures market in which prices in succeeding delivery months are progressively higher. The opposite of "backwardation".
 
CONTINUATION CHART
A derivatives chart in which the price scale for the data for the end of a given contract and the data for the beginning of the next contract are merged in order to ease the transition of one... read more
 
CONTINUATION SIGNAL
A pattern in technical analysis which suggests that a chart is diverging slightly from it's trend however will eventually continue in the general direction as seen before. These patterns, recognised... read more
 
CONTRACT FOR DIFFERENCE
A derivative contract that is not guaranteed by any organised exchange - which means that the counter-party risk is carried by the person buying or selling the contract. CFD's are a kind of bet... read more
 
CONTRACT MONTH
The month in which delivery is to be made in accordance with the terms of the futures contract. Also referred to as Delivery Month.
 
CONTRARIAN
An investor who believes that to beat the market you have to be right when the market is on average wrong. Contrarians delight in buying when everyone else is selling and vice versa. They take... read more
 
CONTROL PREMIUM
The additional cost which an acquiring company must pay in order to obtain control of a subsidiary. This cost is incurred because control is seen as conferring an added benefit.
 
CONTROLLING SHAREHOLDER
A shareholder who owns more than 50% of a company's voting share capital and can therefore control the company's activities.
 
CONVARIANCE
 
CONVERGENCE
When futures prices and spot prices come together at the futures expiration. Futures contracts expire at the end of each quarter - in other words at the end of March, June, September, and December.... read more
 
CONVERSION ARBITRAGE
Traders buy and sell two different securities (or synthetic securities), forcing equivalent prices for equivalent securities.
 
CONVERTIBLE PREFERENCE SHARES
This is a preference share which can be converted into an ordinary share on a specified future date.  This gives a higher degree of security than buying ordinary shares directly because the... read more
 
CONVERTIBLE SECURITIES
These are shares, debentures or other securities which are convertible either voluntarily or compulsorily into ordinary shares at some future specified date. Most commonly, preference shares... read more
 
COPPOCK CURVE
A long-term price momentum indicator. For example, a 10-month weighted moving average of the sum of the 14-month rate of change and the 11-month rate of change for the Dow Jones Industrial Average... read more
 
CORE BUSINESS
The primary business of any company. You will often hear of companies selling off their non-core businesses in order to focus on their most profitable core businesses. The board of directors... read more
 
CORNER
This is when a share, which has been short -sold, falls into the hands of a few investors who are unwilling to sell and who thus cause a bear squeeze. Also where one or a group of investors gain... read more
 
CORONATION FUND MANAGERS LIMITED
29 - 05 - 2020
Coronation (CML) is one of South Africa's largest asset managers and the only one listed on the JSE. Founded in 1993, the company grew very well until 2015. At that point... read more
 
CORPORATE ACTION
Any action taken by a company that has a major effect on its shareholders. Corporate actions are divided into those which require the shareholder to do something (like take up a right) and those... read more
 
CORRECTION
 
CORRECTION WAVE
A wave or cycle of waves moving against the current impulse trend's direction.
 
CORRELATION COEFFICIENT
This is the degree to which two continuous data streams (such as two share price graphs or currencies) are the same - i.e. the degree to which they "correlate". When two random variables X and... read more
 
COST BASIS
The cost of a given share or group of stock shares. This is used as a bench-mark to establish whether the investment is profitable or not and by what percentage.
 
COST OF SALES
An accounting measure which endeavours to measure the cost the goods sold during the accounting period. The method is to value the stock at the start of the period (the opening stock) and at... read more
 
COUNTER-PARTY RISK
The risk that the other party to a securities transaction will not fulfil their obligations. In other words, if you are buying and the seller will not supply the scrip or if you are selling and... read more
 
COUNTERMOVE
A price bar showing movement opposite to the direction of the prior time period. Also called a "retracement".
 
COUNTERPARTY
One of the participants in a financial transaction. This term is typically used when speaking of foreign exchange (FX) transactions.
 
COVER
Purchasing back a contract sold earlier. For example, if a share is sold short, the short seller is exposed until he buys back sufficient shares to "cover" his short sale delivery.
 
COVERED OPTION
A short call or put option position which is covered by the sale or purchase of the underlying futures contract or physical commodity.
 
COVERED WRITE
Writing a call option against a long position in the underlying stock. By receiving a premium, the writer intends to realize additional return on the underlying common stock or gain some element... read more
 
CPI-X
The consumer price index excluding the effect of interest rate changes. This is the number that the Reserve Bank uses in their inflation targeting. They strive to keep this rate between 3% and... read more
 
CREDITORS
This is an item on the balance sheet, which is part of current liabilities. Creditors (more often called accounts payable) are all people and organisations to which the company owes money which... read more
 
CROOKES BROTHERS LIMITED
06 - 12 - 2019
Crookes Brothers (CKS) is an agricultural and property company which was formed in 1913 and listed on the JSE in 1948. The company produces sugar cane, bananas, macadamia... read more
 
CROSS RATE
The exchange rate between any two currencies that are considered non-standard in the country where the currency pair is quoted. For example, in the United States, a GBP/JPY (British pound against... read more
 
CROSSED MARKET
Where a quoted bid price is higher than the offer price for a security.
 
CRYPTOCURRENCY
A digital or virtual currency used as a medium of exchange using cryptography for security, transactional accuracy, creation and verification. These currencies are extremely difficult to counterfeit... read more
 
CSG HOLDINGS LIMITED
02 - 12 - 2019
CSG Holdings (CSG) is an outsource business, supplying staffing solutions, facility management and, recently, security services. In its results for the six months to 30th... read more
 
CUM DIV
Shares are said to be "cum div" in the period between declaration of the dividend and the last day to trade. A sale of shares while they are "cum div" passes on the right to the next dividend... read more
 
CUMULATIVE PREFERENCE SHARE
A preference share accumulates its dividend in the event of the preferential dividend being passed for one or more years. Preferential dividends are paid out before ordinary dividends, but sometimes,... read more
 
CUP AND HANDLE
An accumulation pattern observed on bar charts. The pattern lasts from seven to 65 weeks; the cup is in the shape of a "U" and the handle is usually more than one or two weeks in duration. The... read more
 
CURRENCY
A medium of exchange used as a store of value or in the commercial exchange of value between persons or organisations. Historically, currencies were physical commodities that actually had the... read more
 
CURRENCY BACKING
A hard asset, usually gold, that is used to back a national currency. Originally when paper money was first used, these were certificates certifying a deposit of gold at what were to become banks.... read more
 
CURRENT ASSET
An item on a balance sheet which includes any assets which can easily be turned into cash (have high liquidity) and which will only be held for a short time. Most commonly, these are stock, debtors... read more
 
CURRENT LIABILITY
Any liability that must be paid within a year from the date of the balance sheet. These are mainly amounts owed by the company, which must be repaid within the normal commercial periods (30,... read more
 
CURRENT RATIO
The ratio of current assets to current liabilities. The objective of this ratio is to determine whether the company can meet its short-term obligations out of its short-term assets (as these... read more
 
CURRO HOLDINGS LTD
09 - 04 - 2020
Curro (COH) is a private education group that concentrates on building and running schools for children up to matric. Their tertiary division was unbundled with effect from... read more
 
CUSIP
The number assigned by the Committee of Uniform Security Identification Procedure that appears on all securities documents. Each security is given a number so that it is easily identifiable.... read more
 
CUTOFF FREQUENCY
A point where higher frequency cycles will not pass through a filter (e.g., a 10-day SMA will eliminate cycles of 20 days or less).
 
CYCLE
Shares, industries and markets move in cycles. There are three types of cycles: primary, secondary and daily fluctuations. Primary trends last from 2 to 5 years, secondary trends from 2 to 6... read more
 
CYCLICAL SHARES
A cyclical share is one which is heavily impacted by the business cycle. When the economy is going through a slow growth period (a recession) then consumers tend to put off buying big-ticket... read more
 
DAILY FLUCTUATIONS
Charles Dow in his "Dow Thoery" proposed that share prices, and especially indexes, move in three distinct patterns - bull and bear trends which can last from about 18 months to five years or... read more
 
DAILY RANGE
The difference between the high and low price during one trading day. This range shows the degree of uncertainty prevailing among the investors interested in a particular share. A large range... read more
 
DARK CLOUD COVER
A top reversal candlestick formation which consists of a long green candle followed by a red candle. Confirmation to this signal would be the appearance of another red candle with an open that... read more
 
DATA MINING
The process of using super-computers to sift through the massive quantities of data produced every day by the securities markets to establish potentially profitable correlations. This process... read more
 
DATA PREPROCESSING
Altering data to some extent to be more accurately analysed; smoothing, reducing unwanted data, removing trend. Processing data is mathematically transforming the data from one form into another... read more
 
DATA STREAM
A data stream is any continuous flow of end-of-day financial data. The most common form of this is the end-of-day high, low, open, close and volume for each listed equity share. But there are... read more
 
DATATEC LIMITED
01-06-2020
Datatec (DTC) is an international IT and telecommunications company operating in more than 50 countries. It operates in the United States, South America, Europe, Africa, the Middle... read more
 
DATE OF DECLARATION
The date on which a dividend is declared by a company's board of directors once they have seen the results from the interim or final accounting period. This date is usually followed by the last... read more
 
DAY ORDER
An order that if not executed expires automatically at the end of the last trading session on the day it was entered.
 
DAY'S MOVE
The extent to which a share moves during the course of the trading day on the Stock Exchange. You will find the day's move quoted as a separate column in the newspapers, both in cents and as... read more
 
DE-LISTING
The removal of a security from an organised exchange - after which it can no longer be traded. This typically happens in the share market when a company has been taken over by another company... read more
 
DEAD CAT BOUNCE
A rebound in a market that sees prices recover from a very sharp fall and come back up somewhat. Usually this occurs at the start of a bear market where the extent of the initial fall is beyond... read more
 
DEALER
An individual or firm acting as a principal or counterparty to a transaction. Principals take one side of a position, hoping to earn a spread (profit) by closing out the position in a subsequent... read more
 
DEALING COSTS
The costs of trading in shares are brokerage - which varies according to the stockbroker you are dealing through, STRATE settlement costs (0,005% of the value of the transaction) and securities... read more
 
DEBENTURE
This is a form of long-term loan. A company issues debentures, usually at R1000 each, at a fixed percentage return. Debentures are then redeemable at a certain specified date, but in some cases... read more
 
DEBIT BALANCE
A stockbroking account with no positions and a negative adjusted total equity. A debit balance typically arises as a result of a trader losing more money in the marketplace than was available... read more
 
DEBT/EQUITY RATIO
The ratio of shareholders' equity in the company (share capital and reserves) to the company's borrowing. The company has two primary sources of capital: shareholders' equity (consisting of the... read more
 
DEBTOR
An item on the balance sheet which shows the amount the company is owed, and which is to be paid over the short term. It is common for companies to allow their customers credit of 30 days, or... read more
 
DEBTORS DAYS OUTSTANDING RATIO
The average number of days that it takes for a company to collect its debts. This can be calculated by dividing the debtors figure and then multiplying by 365 (the number of days in the year).... read more
 
DECLARATION DATE
The date on which the board of directors declare their dividend. This date is worth noting for the shares which you are following.
 
DEEP-IN-THE-MONEY
A deep-in-the-money call option has the strike price of the option well below the current price of the underlying instrument. A deep-in-the-money put option has the strike price of the option... read more
 
DEFAULT
The failure to perform on a futures contract as required by exchange rules, such as a failure to meet a margin call or to make or take delivery.
 
DEFENSIVE SHARES
Some JSE-listed companies perform well even in a recession and they are known as "defensive shares". Typically they are in sectors which the consumer cannot do without - like medical care. Even... read more
 
DEFERRED DELIVERY MONTH
The distant delivery months in which futures trading is taking place, as distinguished from the "nearby" futures delivery month which refers to the next futures contract to mature.
 
DEFERRED TAXATION
When a company computes income tax expense, it bases that computation on taxable income per the Income Statement. The income taxes payable, a current liability account, reflects only the amount... read more
 
DEFLATION
The opposite of inflation. A period where the purchasing power of money increases in terms of a basket of goods and services.
 
DELAYED QUOTES
Market quotations which are delayed by the various futures exchange's required time period, usually 10-20 minutes.
 
DELINQUENT DIRECTOR
This refers to a director of a company that has done something in contradiction of the Companies Act. Directors are expected to act in the "utmost good faith" and to act in the best interests... read more
 
DELIVERY
The transfer of the cash commodity from the seller of a futures contract to the buyer of a futures contract. Each futures exchange has specific procedures for delivery of a cash commodity. Most... read more
 
DELTA
The amount by which the price of an option changes for every dollar move in the underlying instrument.
 
DELTA EMD LIMITED
This share has been delisted.
Click here to go to the company's website.
 
DELTA PROPERTY FUND LIMITED
19 - 05 - 2020
Delta Property (DLT) was a level 2 black empowered real estate investment trust (REIT) with a portfolio valued at R11,3bn and a loan-to-value ratio of 44,3%. Roughly 80% of... read more
 
DEMAND INDEX
An index that shows the buying and selling power of markets and stocks from mathematical calculations of volume and price ratios.
 
DEMATERIALISATION
The replacement of physical share certificates with an electronic record. In South Africa this record is maintained by STRATE (Share TRAnsactions Totally Electronic). STRATE is the South African... read more
 
DEMATERIALISED SCRIP
The elimination of certificates or documents of title which represent ownership of securities, so that securities exist only as electronic records.
 
DENEB INVESTMENTS LIMITED
25 - 11 - 2019
Deneb (DNB) is a 67,8% subsidiary of Hosken Consolidated Investments (HCI), listed on the JSE under specialty financial services. Deneb is an investment holding company with... read more
 
DEPENDENCE
In modern portfolio theory the central concept is that share prices are impossible to predict because there is no "dependence" between today's price and yesterday's price. In other words share... read more
 
DEPRECIATION
The process of charging the value of a fixed asset against the company's profits at the same rate at which it is expected to wear out or become obsolete. It would not be reasonable to charge... read more
 
DEPTH OF THE MARKET
The depth of the market for a particular share is a display of the best three bids and the best three offers for that share which have not yet been fulfilled. Stockbrokers, on their trading platforms,... read more
 
DERIVATIVE
A financial instrument, traded on or off an exchange, the price of which is directly dependent upon the value of one or more underlying securities, equity indices, debt instruments, commodities,... read more
 
DESIGNATED ADVISOR
When a company wishes to list on the Alt-X market it must appoint a designated advisor. The main role of a Designated Adviser is to competently, professionally and impartially advise the applicant... read more
 
DETREND
To remove the general drift, tendency, or bent of a set of statistical data as related to time.
 
DEVELOPMENT BANK OF SOUTH AFRICA
This is a state owned enterprise which focuses on supporting projects which will enhance the standard of living and infrastructure of South Africa and the rest of Africa. It is engaged in a wide... read more
 
DEVELOPMENT CAPITAL MARKET
 
DIAGONAL SHARE
A share whose price chart goes from the bottom left-hand corner to the top right-hand corner. There are very few shares which can be described as "diagonals", especially over the long term. If... read more
 
DIFFERENCE-IN-MEANS TEST
A statistical test that indicates the likelihood of observing the difference if the true difference were zero. A large value of this statistic leads to non-acceptance of the null hypothesis that... read more
 
DIFFERENCING
Subtracting previous from current values to obtain a stationary (detrended) time series: P stationary = Pt - Pt-1.
 
DIFFUSION EQUATION
A partial differential equation, used in solving a random walk problem.
 
DIFFUSION INDEX
 
DIPULA INCOME FUND LIMITED
21 - 05 - 2020
Dipula "A" shares (DIA) receive a preferred income of 5% while the "B" share (DIB) receives the balance. So the "A" share is more stable and less risky. Dipula is a real estate... read more
 
DIRECTIONAL MOVEMENT INDEX (DMI)
Developed by J. Welles Wilder, DMI measures market trend. The concept of Directional Movement is based on the assumption that in an upward trend today's highest price is higher than yesterday's... read more
 
DIRECTOR
All public companies are required to have at least two directors and all private companies at least one. The directors are appointed (and confirmed by their consent on a signed CM27 form lodged... read more
 
DIRECTOR DEALINGS
The directors of a company are allowed to deal in the shares of their company, but in terms of the JSE rules, they must disclose the details of their transactions on the Stock Exchange News Service... read more
 
DIRECTORS' REPORT
The Companies Act requires companies to put before the Annual General Meeting (AGM) a directors' report with respect to the state of affairs, the business and profitability of the company. The... read more
 
DIS-CHEM PHARMACIES LTD
26 - 05 - 2020
Dis-Chem Pharmacies (DCP) listed in November 2016 and competes directly with Clicks (CLS) in the pharmaceutical, medicine and beauty products markets. It is a family business... read more
 
DISCLOSURE
The concept of disclosure is entrenched in the Companies Act. The Act is concerned to ensure that shareholders are properly informed of all the information that they need to make good investment... read more
 
DISCOUNTING
The price of a share is the average of all investors' discounted cash flows of the future dividends of the company. If the profits and hence the dividends of a company are expected to fall then... read more
 
DISCOVERY LTD
25 - 02 - 2020
Discovery (DSY), developed and built by Adrian Gore over the past 25 years, offers the A/B income group of people a matrix of financial services which are inter-linked and... read more
 
DISCRETIONARY STOCKBROKING 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
 
DISSENTING SHAREHOLDER
In terms of the Companies Act, a dissenting shareholder is one who disagrees with a fundamental transaction being contemplated by the majority shareholders. A fundamental transaction is a major... read more
 
DISTELL GROUP HOLDINGS LTD
28 - 05 - 2020
Distell (DGH) is a Remgro (REM) subsidiary which produces a variety of alcoholic beverages which are well-known brands in South Africa and elsewhere. Their brands include... read more
 
DISTRIBUTABLE RESERVES
A concept from the old Companies Act which aimed to preserve the capital of companies. In terms of that Act, dividends could only be paid out of a company's profits and not out of its asset base.... read more
 
DISTRIBUTED LEDGER TECHNOLOGY
Distributed Ledger Technology (DLT) is a computer technique which is used to create a completely reliable and and 'unhackable' database. The most common use is for the "blockchain" directories... read more
 
DISTRIBUTION
  1. The payment of a dividend.
  2. Any set of related values described by an average (that is, mean), which identifies its midpoint, a measure of spread (that is, standard distribution)... read more
 
DISTRIBUTION & WAREHOUSING NETWORK LTD
Dawn (DAW) is a manufacturer and retailer of bathroom fittings, sanitary ware and related products in Southern Africa. The company has been battling with the depressed consumer environment in... read more
 
DISTRIBUTION AREA
A sideways to downward market, usually at the top of a bull trend where shares are being sold off by the "smart money" in anticipation of a downward trend.
 
DIVERGENCE
When two or more averages or indices fail to show confirming trends.
 
DIVERSIFICATION
The process whereby a company (or individual) spreads its investments among a number of different enterprises so as to reduce its exposure through one of them. Research conducted in America has... read more
 
DIVIDEND
That portion of a company's earnings which is paid out to shareholders - also sometimes called a "distribution". Most blue chip companies have a dividend policy in terms of which they pay out... read more
 
DIVIDEND COVER
The number of times the dividend could be taken out of the earnings. For example, if a company has earnings (profits) of R50 000 and pays out a dividend of R5 000 then the dividend cover is 10... read more
 
DIVIDEND EQUALISATION RESERVE
A distributable reserve which is specifically set up to ensure that dividends remain stable despite changes in earnings. If a company normally pays a dividend of 10 cents per share, the directors... read more
 
DIVIDEND POLICY
Most of the larger listed blue chip companies pay two dividends each financial year - an interim and final. They also usually have a dividend policy - which means that they pay out a set percentage... read more
 
DIVIDEND REINVESTMENT PLAN
A program offered by a publicly held company in which dividends are used to buy more shares of the company. This process reduces the number of shares in issue since the shares which are bought... read more
 
DIVIDEND WITHHOLDING TAX
A 20% tax (as per the 2017 budget speech) on dividends paid by all South African taxpayers, but withheld by the company paying the dividend. DWT obviously reduces the returns which you will get... read more
 
DIVIDEND YIELD
Dividends per share expressed as a percentage of the current market price. For example, if a company pays a dividend of R10 000 and it has 10 000 ordinary shares in issue (sold to the public)... read more
 
DIVIDENDS PER SHARE
The ordinary dividend of a company for the most recent financial year divided by the number of shares in issue. The DPS is calculated from the most recent year's dividends paid - so that means... read more
 
DOJI
A candlestick charting term which describes a trading session in which the opening price and closing price for a share are the same (or almost the same). Different varieties of doji lines (such... read more
 
DOJI STAR
A Doji Star is a trend reversal pattern which is composed of a long black body followed by a doji (a pattern with the same opening and closing price). It may be recognized because it consists... read more
 
DOT COM
Technology shares, specifically those which deal with internet based products or telecommunications. From 1997 to 1998, these shares did particularly well during the hype and excitement over... read more
 
DOUBLE BOTTOM
The price action of a security or market average where it has declined twice to the same approximate level, indicating the existence of a support level and a possibility that the downward trend... read more
 
DOUBLE SMOOTHING
Double smoothing in the context of the share market and technical analysis simply means making a moving average of a moving average. This has the effect of smoothing the trend even further. The... read more
 
DOUBLE TOP FORMATION
A price pattern seen on a chart at the top of a trend. The pattern occurs when prices rise to a resistance level on significant volume, retreat to a support level, and subsequently return to... read more
 
DOUBLE-SMOOTHED
A price series that has been smoothed by a mathematical technique such as a moving average. This first series of smoothed price data is then smoothed a second time.
 
DOW JONES INDUSTRIAL AVERAGE
Charles Dow was the first person to construct an index. His first index was the "transportation average" which he constructed in 1884 and then maintained as a director of the Dow Jones Company.... read more
 
DOW THEORY
The Dow Theory was the first technical analysis idea to be invented in Western markets (the Japanese invented candlestick charts much earlier). Charles Dow, working in the later 1800's made an... read more
 
DRAGONFLY DOJI
A candlestick charting term used to describe a type of doji which signifies indecision. The dragonfly doji has a long lower shadow with no upper shadow, signifying either bullish or bearish sentiment... read more
 
DRAWDOWN
The reduction in account equity as a result of a trade or series of trades.
 
DRD GOLD LTD
12 - 05 - 2020
DRDGOLD (DRD) is a gold surface treatment operation which is at an all-in sustaining cost of extraction of just over R517219 per kilogram which compares to the average received... read more
 
DUAL CAPACITY TRADING
Dual capacity trading was introduced following the deregulation of the JSE in 1995. It means that a stockbroker may act as a principal and as an agent in share dealing activities. In terms of... read more
 
E-MEDIA HOLDINGS LIMITED
26 - 05 - 2020
E-Media Holdings (EMH) owns 67,7% of E-Media Investments which in turn runs ETV and E-News as well as other smaller operations. This company is investing heavily into multi-channel... read more
 
EARLY ENTRY
A large price movement in one direction within the first 15 minutes after the open of the daily session.
 
EARNINGS ESTIMATES
The estimated earnings projected for a company for a fiscal year. Estimating future earnings is an art. It depends on both internal factors within the company such as working capital management,... read more
 
EARNINGS PER SHARE
A company's earnings (profit) divided by the number of ordinary shares usually expressed as a number of cents per share. The earnings per share (EPS) includes all the companies incomes and expenses... read more
 
EARNINGS YIELD
Earnings per share expressed as a percentage of the current market price of the share. For example, a company with 25 cents earnings per share and a market price of 250 cents would have an earnings... read more
 
EASTERN PLATINUM LIMITED
11 - 05 - 2020
East Plats (EPS) is a mining exploration and development company engaged in the platinum group metals (PGM) and chrome markets in South Africa. The company is listed on the... read more
 
EBITDA
Earnings Before Interest, Taxation, Depreciation and Amortisation. This is a figure used by accountants to assess the performance of a company at the operational level. Because it leaves out... read more
 
ECONOMIES OF SCALE
Achieving economies of scale is the objective of every manufacturing business, because it substantially reduces costs and increases profitability. There is a distinct advantage to size in manufacturing,... read more
 
ECONOMY
The economy of a country is the aggregate of all economic activity within that country. It is measured in various ways to determine whether it is growing or shrinking. The most commonly used... read more
 
ECSPONENT LIMITED
21 - 04 - 2020
Ecsponent (ECS) is a penny stock, listed in the venture capital fledgling sector of the JSE with a market capitalisation of just R32m. The company presents itself as a financial... read more
 
EFFICIENT MARKET THEORY
The basis of modern portfolio theory, the efficient market hypothesis, maintains that all information is already discounted by the market and reflected in share prices due to market participants... read more
 
EFORA ENERGY LIMITED
02 - 12 - 2019
Efora Energy (EEL) is an African oil and gas company incorporated in 1993 and listed on the JSE in October 1994. The company is involved in numerous projects from oil production... read more
 
ELASTICITY
  1. The ability to recover an original configuration.
  2. The elasticity of demand or supply refers to the degree to which demand or supply responds to changes in price. For example,... read more
 
ELB GROUP LIMITED
15 - 04 - 2020
The Elb Group Limited (ELR), formally Edward L Bateman, is an engineering and construction company that is involved in materials handling, minerals separation, power solutions... read more
 
ELECTRONIC ORDER
An order placed electronically (without the use of a broker) either via the Internet or an electronic trading system.
 
ELECTRONIC SETTLEMENT
Settlement of securities transactions on a T+3 rolling contractual settlement cycle through STRATE, the electronic settlement system.
 
ELECTRONIC TRADING HOURS
The U.S. after-hours markets during the evenings. Futures contracts trading during ETH do so on electronic trade matching platforms such as Globex or A/C/E.
 
ELECTRONIC TRADING SYSTEMS
Systems that allow participating exchanges to list their products for trading after the close of the exchange's open outcry trading hours (i.e., Chicago Board of Trade's A/C/E, Chicago Mercantile... read more
 
ELLIES HOLDINGS LTD
09 - 03 - 2020
Ellies (ELI) is a fledgling electronics company which imports and distributes electrical products and supplies solar power solutions. From its heyday in 2013 when the share... read more
 
ELLIOT IMPULSE WAVE
The strong moves in Elliot Wave theory which move in the direction of the larger degree wave. In Elliot Wave theory there ware two types of waves: impulse and corrective. Impulse waves are the... read more
 
ELLIOTT WAVE THEORY
A pattern-recognition technique published by Ralph Nelson Elliott in 1939, which holds that the stock market follows a rhythm or pattern of five waves up and three waves down to form a complete... read more
 
EMERGING MARKET
An economy which is in a development phase - as opposed to a first-world economy which is said to be fully developed. Emerging economies generally enjoy more rapid growth than first world economies,... read more
 
EMIRA PROPERTY FUND
25 - 02 - 2020
Emira Property (EMI) is a real estate investment trust (REIT) which has substantial exposure to the South African economy through its office properties. It owns 81 properties... read more
 
EMOLUMENTS ATTACHMENTS ORDER
This is an order handed down by a court in terms of which an amount may be deducted from an employee's income for the repayment of a creditor. Thousands of salary-earners have EAOs against their... read more
 
EMPHASIS OF MATTER
An audit opinion which is specifically meant to draw attention to a particular point in the financials. Listed companies which have an emphasis of matter are marked with the letter "E" by the... read more
 
EMPLOYEE SHARE INCENTIVE SCHEME
Most listed companies use their shares to motivate their employees through an employee share option scheme. This usually involves the employee getting options to buy a certain quantity of shares... read more
 
EMPLOYMENT EQUITY ACT
This Act is aimed at redressing the wrongs of the Apartheid era and ensuring that employment is not racially based. It does this by trying to ensure that companies above a certain size (with... read more
 
ENCUMBERED
The word "encumbered" is applied to assets which are bonded or otherwise used as security to cover a loan.
 
ENDOWMENT
An endowment insurance policy is a type of savings/investment. A pure endowment offers no risk or term insurance. The problem with these policies is that they generally give a very low return... read more
 
ENGULFING PATTERN
In candlestick terminology, a multiple candlestick line pattern; a major reversal signal with two opposing-color real bodies making up the pattern (also referred to as a tsutsumi). An engulfing... read more
 
ENTERPRISE OUTSOURCING HOLDINGS LTD
09 - 04 - 2020
EOH was Africa’s largest information technology company with involvement in almost every aspect of computer applications. The company had 11000 staff members and 2500... read more
 
ENTREPRENEUR
This is a "go-getter" who establishes and runs a business for his own account and shares in the risks and profits.
 
ENTRY
The point at which a trader gets into a position in the market.
 
ENVELOPE
Lines surrounding an index or indicator - that is, trading bands.
 
ENX GROUP LIMITED
01 - 06 - 2020
The enX Group (ENX) is a "diversified industrial group that provides branded products and services to the petrochemical, fleet management, logistics and industrial sectors.”... read more
 
EPE CAPITAL PARTNERS LIMITED
Ethos Capital Partners (EPE) is a private equity fund (PEF), incorporated in Mauritius, which invests into unlisted companies for long-term capital appreciation on behalf of its investors. It... read more
 
EPP NV REIT
28 - 05 - 2020
EPP is a dutch-based real estate investment trust (REIT), listed on both the JSE and the Luxembourg Stock Exchange, and is owned 39% by Redefine. It owns 25 retail centers... read more
 
EQUILIBRIUM MARKET
A price region that represents a balance between demand and supply.
 
EQUITES PROPERTY FUND LTD
11 - 05 - 2020
Equites (EQU) is the only real estate investment trust (REIT) on the JSE which specialises in industrial logistics and distribution properties in South Africa and the UK.... read more
 
EQUITY
That portion of share capital which carries risk, and shares in profits through dividends that are dependent on profitability. Ordinary shares are often called equity shares, and other types... read more
 
EQUITY ACCOUNTING
When a company owns more than 20% of another company, then in terms of IAS 28, that company is an associate company and it must be valued at its cost plus any increase in net asset value. Investments... read more
 
EQUIVOLUME CHART
Created by Richard W. Arms in 1963, a chart in which the vertical axis is the high-low range for each day, while the horizontal axis represents the volume of shares of stock or the number of... read more
 
ERIN ENERGY CORPORATION
29 - 05 - 2019 This is a bankrupt oil and gas exploration company which was listed in New York and on the JSE in 2014. The company is 56,7% held by Camac Energy Holdings, which is a company... read more
 
ESOR LTD
This was one of South Africa's large listed construction and engineering companies involved in sanitation, pipelines, building and housing. Esor (ESR) recently went into business rescue in August... read more
 
ESTIMATED EPS CHANGE
Change in estimated mean earnings per share for the current fiscal year from the last month, last three months and last six months to the current month.
 
ETION LIMITED
09 - 04 - 2020
Etion (ETO), previously Ansys, is an Alt-X listed technology company that started 31 years ago and listed on the JSE in June 2007. It seeks to capitalise on the digital revolution... read more
 
EURODOLLAR
Dollars deposited in foreign banks, with the futures contract reflecting the rates offered between London branches of top US banks and foreign banks.
 
EUROPA METALS LIMITED
09 - 04 - 2020
Europa (EUZ) is a European metals developer which operates primarily in Spain where it mines lead, zinc and silver. They own 100% of the Toral project in Leon Province which... read more
 
EUROPEAN CENTRAL BANK
The Central Bank for the European Union.
 
EUROPEAN UNION (EU)
The principal goal of the EU has been to establish a single European currency called the Euro, to officially replace the national currencies of the member EU countries. On January 1, 1999, the... read more
 
EUROSTOXX
The Eurostoxx 50 index is an index (weighted average) of the 50 largest and most liquid stocks trading in the Eurozone. It is just one of the indexes offered by Stoxx - which is owned by the... read more
 
EVENING STAR
A candlestick formation which is the bearish counterpart of the morning star pattern; a top reversal, it should be acted on if it arises after an uptrend. The morning star and evening star formations... read more
 
EX-DIV
A share is "ex div" once the last day to trade has passed. Any sales after the last day to trade are done on the basis that the dividend accrues to the buyer, even if it has not yet been actually... read more
 
EX-DIVIDEND DATE
The day on which the right to receive a current dividend is not automatically transferred to a buyer. This is usually the Monday after the last day to register for the dividend. On this day the... read more
 
EXCHANGE RATE
An exchange rate is the rate at which one currency can be traded for another. Thus, for example, the rand trades against the US dollar at rates which fluctuate throughout the day. The same is... read more
 
EXCHANGE TRADED FUND
Collections of securities that are bought and sold as a package on an exchange. Essentially, buying an ETF means tracking a group or "basket" of shares, bonds or commodities, and sometimes an... read more
 
EXCHANGE TRADED NOTE
A debt security traded on a stock exchange. An exchange trade note (ETN) is similar to an exchange traded fund (ETF) in that they both track underlying assets and both are traded on a stock exchange... read more
 
EXEMPLAR RETAIL LIMITED
29 - 05 - 2020
Exemplar (EXP) is a real estate investment trust (REIT) which specialises in developing rural shopping centres through its relationship with McCormick Property Development.... read more
 
EXEMPT SUPPLIES
South Africa has Value Added Tax of 15% which is levied on all products except  for what are known as "exempt supplies" - which include education, after-care for children, rentals, and certain... read more
 
EXERCISE
The process by which the holder of an option makes or receives delivery of shares of the underlying security.
 
EXHAUSTION GAP
When a share's price has been rising for some time and quickly, it will sometimes have a day where the lowest price is far above the previous day's high price - this shows on the chart as a gap... read more
 
EXIT
The point at which a trader closes out of a trade.
 
EXPANSIONARY POLICY
A policy of the Reserve Bank's Monetary Policy Committee (MPC) to stimulate the economy by reducing interest rates and other expansionary monetary policies such as buying back government bonds... read more
 
EXPENSIVE
A term used by analysts and investors to describe a share which is trading above what they perceive to be its real value. Obviously, this is a value judgement and each analyst and investor will... read more
 
EXPIRATION DATE
Generally the last date on which an option may be exercised. It is not uncommon for an option to expire on a specified date during the month prior to the delivery month for the underlying futures... read more
 
EXPONENTIAL MOVING AVERAGE
An exponential moving average (EMA) is one in which the latest prices in the moving average are weighted much more heavily than the oldest prices. The weighting varies over the period of the... read more
 
EXPONENTIAL SMOOTHING
A mathematical-statistical method of forecasting that assumes future price action is a weighted average of past periods; a mathematic series in which greater weight is given to more recent price... read more
 
EXPONENTIAL WEIGHTING
Moving averages are the most basic form of line chart in technical analysis. They are more commonly used in conjunction with other indicators than as indicators in their own right. One of the... read more
 
EXPORT LED
A term used by economists to explain the fact that economic booms in South Africa are generally caused by a strong recovery in commodity exports and prices. This is because South Africa is primarily... read more
 
EXPOSURE
The degree to which a portfolio or other investment is susceptible to risk from certain factors. For example, a share in a company whose main business is importing would be highly "exposed" to... read more
 
EXPROPRIATION OF LAND

The compulsory taking over of land by the government of a country. In most capitalist countries the right of... read more

 
EXTRACT GROUP LIMITED
Extract (EXG) has only one operating division and that is MCC Contract and Mining Services which offers services to open cast mines including drilling, blasting, load hauling and rehabilitation.... read more
 
EXTRAORDINARY ITEM
An Income Statement item which shows an expense or income which is not part of the company's normal business. For example, if a supermarket chain sells a piece of land and makes a profit, then... read more
 
EXXARO RESOURCES LTD
16 - 03 - 2020
Exxaro (EXX) is South Africa's BEE coal company with interests in iron and heavy minerals. It has interests in Australia, America and Europe. It is a provider of coal to Eskom's... read more
 
FACE OF THE ACCOUNTS
The actual income statement and balance sheet - as opposed to the notes to those accounts. Certain information is always shown on the face of the accounts - like fixed assets or turnover - while... read more
 
FACE VALUE
The dollar value of a U.S. Treasury Bill at maturity. T-Bills are issued at a discount to face value and gradually increase in value until reaching the full face value on the maturity date.
 
FADE
Selling a rising price or buying a falling price. A trader fading an up opening would be short, for example.
 
FAILED TRADE
With the advent of dematerialisation and the guarantees provided by most organised exchanges, failed trades where one of the parties to a trade fails to honour his/her side of the trade are almost... read more
 
FAILURE
 
FAILURE SWINGS
The inability of price to reaffirm a new high in an uptrend or a new low in a downtrend.
 
FAIR VALUES
The theoretical prices generated by an option pricing model (i.e. the Black-Scholes option pricing model).
 
FAIRVEST PROPERTY HOLDINGS LTD
11 - 05 - 2020
Fairvest (FVT) is a real estate investment trust which specialises in investing in smaller rural and non-urban shopping centers which are focused on lower living standard... read more
 
FALLING THREE METHODS
A candlestick formation which occurs in an established bear trend and which is used to predict the continuation of that trend. This formation begins with a long red candle within a downtrend.... read more
 
FAMOUS BRANDS LTD
29 - 05 - 2020
Famous Brands (FBR) is Africa's largest branded fast-food retail franchisor with 27 brands and more than 2900 restaurants. The company owns well-known South African brands... read more
 
FANG
The four new high-tech companies which are dominating the New York Stock Exchange. They are Facebook, Amazon, Netflix and Google. All four companies are growing quickly and are deeply invested... read more
 
FAST MARKET
A declaration that market conditions in the futures pit are so disorderly temporarily to the extent that floor brokers are not held responsible for the execution of orders.
 
FAST MOVING CONSUMER GOODS
This is a category of retailers which sell products that have a relatively short sales cycle - like groceries, clothing and small appliances. Typical examples would be Pick 'n Pay, Woolies, Shoprite,... read more
 
FEDERAL DEPOSIT INSURANCE CORPORATION
A self-sustaining, independent executive agency established to insure deposits of all US banks entitled to federal deposit insurance, as stated by the Federal Reserve Act.
 
FEDERAL OPEN MARKET COMMITTEE
The policy making committee of the Federal Reserve Bank. They meet on a regular basis, every other Monday to make decisions on US economic policy. These meetings are open to the public. Specifically... read more
 
FEDERAL RESERVE BANK
The governing central bank of the US. There are twelve regional federal reserve banks in America, located in Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St Louis, Minneapolis,... read more
 
FIAT CURRENCY
All currencies were originally commodity currencies - which means that they had the value inherent in the commodity which they were made of. Thus, a gold coin was worth the value of its gold... read more
 
FIBONACCI RATIO
The ratio between any two successive numbers in the Fibonacci sequence, known as phi (f). The ratio of any number to the next higher number is approximately 0.618 (known as the Golden Mean or... read more
 
FIBONACCI SEQUENCE
The sequence of numbers (0, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233...), discovered by the Italian mathematician Leonardo de Pisa in the 13th century and the mathematical basis of the Elliott... read more
 
FIFO
The "first in first out" method of valuing stocks. The assumption is made that the oldest stock is sold first when valuating what remains at the end of the accounting period.
 
FILL
An executed order; sometimes the term refers to the price at which an order is executed.
 
FILL OR KILL
(FK) means the full order must be executed immediately or otherwise cancelled.
 
FILL ORDER
An order that must be filled immediately (or cancelled).
 
FILTER
A device or program that separates data, signal or information in accordance with specified criteria. So a charting program typically contains a filter of some sort which allows the user to search... read more
 
FILTER POINT
The time at which a portfolio insurance program makes an adjusting trade.
 
FINAL DIVIDEND
The dividend paid when the directors know what the final profit for the year will be. Added to the interim dividend, this gives the total dividend for the year.
 
FINANCIAL ADVISORY AND INTERMEDIARY SERVICES ACT
This Act (37 of 2002) tries to protect the public from financial advisors and those who sell financial/investment products. It substantially increases the accountability and disclosure of financial... read more
 
FINANCIAL DIRECTOR
One of the directors of a company who is responsible for the company's finances. The Companies Act makes no distinction between the various directors of a company - they all have the same responsibilities... read more
 
FINANCIAL INDEPENDENCE
Obviously, every private investor's goal is to reach a point of financial independence, where they no longer have to "work for a living", but can live off the return from their investments. The... read more
 
FINANCIAL INSTITUTION
A financial institution is one which makes its profits by dealing with other people's money. Perhaps the best example is a commercial bank, but there are many other types - like insurance companies... read more
 
FINANCIAL MARKETS ACT
This Act which came into force in the middle of 2014 brings our legislation into line with international norms. Its objective is to tighten up control over the financial markets and it aligns... read more
 
FINANCIAL SECTOR CONDUCT AUTHORITY
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
 
FINANCIAL SECTOR REGULATION ACT 2017
Brought into effect on 22 August 2017, the Financial Sector Regulation Act No.9 of 2017 introduces the Twin Peak model, which is a new regulatory environment for the banking and financial... read more
 
FINANCIAL SERVICES CHARTER

The major sectors of the South African economy are governed by sets of rules known as charters which establish... read more

 
FINANCIAL SERVICES PROVIDER
The Financial Advisory and Intermediary Act provides for the registration of persons (natural or corporate) to give investment advice to investors. The Act requires that such persons are people... read more
 
FINANCIAL TIMES INDUSTRIAL INDEX
A share price index calculated hourly during business hours from an unweighted average of thirty leading blue chips listed on the London Stock Exchange. Until recently this index was the best... read more
 
FINANCIAL YEAR-END
In terms of section 27 of the Companies Act (71 of 2008), every company is required to have a financial year-end which is the end of its accounting period. By paying a fee and lodging the prescribed... read more
 
FINBOND PROPERTY FINANCIAL LIMITED
29 - 05 - 2020
Finbond (FGL) is a micro-lending and insurance operation which operates in South Africa and America. This company wants to expand in the US to the point where 70% to 80% of... read more
 
FIRST NOTICE DAY
The first day on which notice of intent to deliver a commodity in fulfilment of an expiring futures contract can be given to the clearinghouse by a seller and assigned by the clearinghouse to... read more
 
FIRST WORLD ECONOMY
These are the larger and better established economies that have substantial capital bases and a long track record of effective management. Their currencies are generally far more stable than... read more
 
FIRST-IN-FIRST-OUT
This is a method of valuing stock which assumes that the oldest stock in the warehouse is used before the more recently purchased stock. Since the price of stock purchased will usually go up... read more
 
FIRSTRAND LIMITED
13 - 03 - 2020
FirstRand (FSR) has five divisions - First National Bank (FNB), Rand Merchant Bank (RMH), Wesbank, Ashburton (in the UK) and Aldermore. It operates in 10 African countries,... read more
 
FISCAL CONSOLIDATION
Concrete policies undertaken by government to stem debt accumulation and reduce the fiscal deficit. This can be achieved by an increase in revenue, or taxation, and a reduction in government... read more
 
FISCAL POLICY
Every government spends money and levies taxes to finance its expenditure. Every government must therefore regularly decide how much to spend, what to spend it on and how to finance its expenditure.... read more
 
FISCUS
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
 
FITCH
One of the three internationally recognised rating agencies (along with Standard and Poors and Moodys). Ratings agencies rate governments, companies and para-statals - anyone who issues and sells... read more
 
FIXED ASSET
An asset which is expected to last and be useful for a number of years, and which is held for use in the production or supply of goods or services, for rental to others or for administrative... read more
 
FIXED COSTS
These are costs which a company has to pay whether or not they sell anything. So expenses like rent, telephone, salaries and so on. This is as opposed to "variable costs" which go up and down... read more
 
FIXED INCOME
These are investments which give a set return, such as preference shares, bonds, debentures and savings accounts.
 
FLAG
This is a fairly rare charting formation which can occur either in a upward or a downward trend where the market enters a period of uncertainty and moves sideways for a period before the trend... read more
 
FLASH FILL
Order filled immediately by hand signal on an "open outcry" trading floor.
 
FLEDGLING
Consisting of ordinary shares which comply with all listing requirements, but are too small to be included in the All Share Index and which are not tested for liquidity. There are five JSE indices... read more
 
FLIGHT TO QUALITY
The movements of capital in the international investment world are dominated by the perceptions of large investors about the level of risk or the lack of it in the world economy. Thus, when the... read more
 
FLOAT
The number of shares currently available for trading.
 
FLOOR BROKER
An individual who executes orders on the trading floor of an "open outcry" exchange for any other person. They are independent members of the various futures exchanges who typically handle customer... read more
 
FLOOR TRADER
An individual who is a member of an exchange and trades for his own account on the floor of the exchange.
 
FLOW OF FUNDS STATEMENT
Today, this statement is more commonly called a "Flow of Funds Statement" but is also known as the "Cash Flow Statement". It aims to show where the cash in the business came from and how it was... read more
 
FLYERS
Speculative or high-risk trades.
 
FORECAST ORIGIN
The most recent historical period for which data is used to build a forecasting model. The next time period is the first forecast period.
 
FOREIGN DIRECT INVESTMENT
All investment into South Africa by foreigners. FDI is a very important factor in the South African economy. We have some tremendous successes and some dismal failures. The successes include... read more
 
FOREIGN EXCHANGE
The foreign exchange market. This is the cash or "spot" market for foreign currencies. Trade does not occur on centralized contract markets but rather, over-the-counter in an international network... read more
 
FOREIGN INWARD LISTING
A foreign company, listed on the JSE and classified by the South African Reserve Bank (SARB) as foreign for index purposes. These companies can be included in the indices, but at a reduced weight.... read more
 
FOREIGN RESERVES
A reserve of precious metals and foreign currencies kept by the Reserve Bank.
 
FORMATION
The discipline of "technical analysis" or "charting", as it is sometimes called, consists of studying chart patterns with a view to establishing patterns that can be used to improve prediction... read more
 
FORMATION ANALYSIS
The study of technical analysis can be divided into three primary areas - Formation Analysis, Line charts and Wave and Cycle Theories. Formation analysis is the study of the various patterns... read more
 
FORTRESS-A REIT LTD
21 - 04 - 2020
Fortress (FFA and FFB) is a real estate investment trust (REIT) with properties held in its own name and shareholdings in other REITs. Principally, it owns shares in Nepi... read more
 
FORTRESS-B REIT LTD
21 - 04 - 2020
Fortress (FFA and FFB) is a real estate investment trust (REIT) with properties held in its own name and shareholdings in other REITs. Principally, it owns shares in Nepi... read more
 
FORWARD (CASH) CONTRACT
A contract which requires a seller to agree to deliver a specified cash commodity to a buyer sometime in the future. All terms of the contract are customised, in contrast to futures contracts... read more
 
FORWARD BOOK
An account in the derivatives market that the Reserve Bank maintains to execute transactions in the currency market. There is always a temptation for the Reserve Bank to try to protect the rand... read more
 
FRAMING OR FRAME DEPENDENCE
Behavioural finance. The tendency to evaluate current decisions within the framework in which they have been presented. Making decisions based on perceptions of risk/return rather than pure risk... read more
 
FREE CASH FLOW
The cash generated by a company from its sales (revenue) less its operating expenses and any capital expenditure that it may have to make. Free cash flow is used to determine the company's cash... read more
 
FREE DEALING
A term used to describe listed shares which trade in large volumes regularly and can be bought or sold freely on the Securities Exchange. You should be careful of shares which are "tightly held"... read more
 
FREE FLOAT
The proportion of a company's shares which are held by the public at large. This excludes shares which are part of a lock-in or which are destined for the company's employee share option scheme.... read more
 
FREE FLOAT MARKET CAPITALISATION
The free float of a company's shares multiplied by their current market price. Also known as the free float market cap., or the investable market capitalisation. This is used in the construction... read more
 
FREEDOM PROPERTY FUND LIMITED
19 - 05 - 2020
Freedom Property Fund (FDP) is a property share that listed on the JSE on 12th June 2014 with a portfolio of R1,5bn worth of properties. The properties are commercial, industrial... read more
 
FRONT MONTH
The first expiration month in a series of expiration months. Futures contracts typically expire at the end of March, June, September and December.
 
FRONT-LOADED
Commission and fees taken out of investment capital by an asset manager before the balance of the money is put to work.
 
FRONT-RUNNING
The practice of trading ahead of large orders to take advantage of favourable price movements. Brokers are prohibited from this practice.
 
FTSE/JSE INDICES
Financial Times Stock Exchange.� This is a company which specializes in calculating indexes on the London Stock Exchange (LSE). It has produced a group of indices which are developed and... read more
 
FUND 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
 
FUNDAMENTAL ANALYSIS
The study of all factors which will impact the profitability of a company. Typically, the fundamental analyst is asking the question, "How good will this company be as a generator of dividends... read more
 
FUNDAMENTAL RISK
This is the risk which is inherent in a particular company. It can be assessed by considering the company's financials or visiting it. The more you know about a company and the people who run... read more
 
FUNDAMENTALIST
A person who uses fundamental analysis, (rather than technical analysis) to select shares and time their transactions in the stock market. Fundamentalists are concerned with establishing the... read more
 
FUNDAMENTALS
All those factors which will tend to influence the future profits of a company. The most important of these is its past profitability - which is best discovered by a careful examination of the... read more
 
FUNGIBLE INSTRUMENT
Fungible instruments are securities which can be easily traded because they are homogenous (i.e. all the same). Organised exchanges deal in and guarantee trades in fungible instruments. Instruments... read more
 
FUTURE VOLATILITY
A prediction of what volatility may be like in the future. The volatility of a share's price is determined by the degree to which it departs from its average. Obviously a straight line is the... read more
 
FUTURES CONTRACT
A legally binding, standardised agreement to buy or sell a commodity or financial instrument at a future date. Futures contracts are standardised according to the quality, quantity and delivery... read more
 
FUTURES INDUSTRY ASSOCIATION
The US national trade association for Futures Commission Merchants. The FIA is the only association representative of all organisations that have an interest in the futures market in the US.... read more
 
G7
This was a group of 7 countries - America, Canada, United Kingdom, France, Germany, Italy and Japan. It was established in in 1975 and was formed from the "Group of 6" which excluded Canada.... read more
 
GAIA INFRASTRUCTURE CAPITAL LIMITED
12 - 12 - 2019
Gaia (GAI) is an infrastructure investment company. It has three divisions - (1) Infrastructure Partners, which invests in large projects in energy, transport, water and sanitation;... read more
 
GAMMA
The degree by which the delta changes with respect to changes in the underlying instrument's price.
 
GANN THEORY
Various analytical techniques developed by legendary trader W.D. Gann. His first prophecy is believed to have happened during World War I when he predicted the Nov 9, 1918, abdication of the... read more
 
GANN'S SQUARE OF 9
A trading tool that relates numbers, such as a stock price, to degrees on a circle. The Square of 9 is basically a spiral of numbers. The initial value can be found in the centre of the spiral.... read more
 
GAP
A day in which the daily range is completely above or below the previous day's daily range. This term normally refers to a bar chart where the low for one day is considerably above the high for... read more
 
GEARING
The relationship of a company's borrowings or debt to ordinary shareholders' funds. A company can obtain the finance it needs to conduct its operations from two sources: by the issuing of its... read more
 
GEMFIELDS GROUP LIMITED
24 - 04 - 2020
The Gemfields Group (GML) (previously Palinghurst Group) is a mining group that has two major projects: (1) Kagem, the world's largest producer of emeralds (in Zambia) and... read more
 
GEMGROW PROPERTIES LIMITED
15 - 07 - 2019 On 10th April 2019, Arrowhead announced its intention to merge with Gemgrow. Arrowhead owns 53,3% of Gemgrow. The deal will be structured so that Gemgrow buys all of Arrowhead's... read more
 
GENERAL FUEL LEVY
A general tax changed per litre of petrol sold. This tax is administered by the National Treasury, and despite most people thinking it is used to maintain the roads, it is a general tax included... read more
 
GENERAL OFFER
An offer made to all shareholders of a company for the purchase of their shares. The purchase price could be in cash or in shares of a predator company or a combination of both.
 
GENERALLY ACCEPTED ACCOUNTING PRACTICE
Section 19 of the Financial Advisory and Intermediary Services Act (FAIS) requires that "the financial statements be prepared in conformity with generally accepted accounting practice". The auditor... read more
 
GENERIC SCORECARD
In terms of the BBBEE (Braod Based Black Economic Empowerment) Act, companies over a certain size are required to maintain a scorecard in which black ownership, black management, black employment... read more
 
GERMANY DAX INDEX
This is a simple index of the thirty largest shares trading on the German stock exchange. The DAX is a Paasche index which began on 30-12-1987 at a base value of 1000. The DAX generally follows... read more
 
GIVE-UP
When a broker executes an order for another broker's client and the two brokers split the commission; the client pays nothing extra.
 
GLENCORE PLC
17 - 04 - 2020
Glencore (GLN) describes itself as, "one of the world’s largest global diversified natural resource companies and a major producer and marketer of more than 90 commodities.... read more
 
GLOBAL ASSET MANAGEMENT LIMITED
Global Asset Management (GAM) is a small asset management and energy company that is extremely thinly traded and is about to be de-listed from the JSE. It is therefore of no interest to private... read more
 
GLOBEX
The Chicago Mercantile Exchange's electronic trading platform. Some futures contracts are available for trading on Globex only during the U.S. evening hours, while others -- such as the very... read more
 
GO LIFE INTERNATIONAL LTD
19 - 03 - 2020
Go Life International (GLI) is a company listed in Mauritius with a secondary listing on the JSE's Alt-X market. Its focus is in "nutraceuticals" which are products associated... 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.
 
GOING PUBLIC
A term used to describe the sale of shares of a privately-held company to the public for the first time.
 
GOLD
A precious metal that has been known and kept for thousands of years as a currency and a way to store value. In the past, South Africa has been the largest supplier of gold in the world. In 1970,... read more
 
GOLD 1000Z GC COMEX
The Comex, which was previously the commodities exchange, is a division of the New York Mercantile Exchange (NYMEX). It trades futures and options in a variety of precious and base metals. This... read more
 
GOLD FIELDS LTD
30 - 04 - 2020
Gold Fields (GFI) is a high-cost international gold mining house with a single mine in South Africa - South Deep. South Deep was bought by Gold Fields in 2006 and it has struggled... read more
 
GOLD SHARES
South Africa has traditionally been a gold-producing country and gold shares used to make a large proportion of the JSE, but today, the gold industry has shrunk substantially and gold shares... read more
 
GOLDEN MEAN
The ratio of any two consecutive numbers in the Fibonacci sequence, known as phi and equal to 0.618; a proportion that is an important phenomenon in music, art, architecture and biology. The... read more
 
GOLDEN SECTION
Any length divided so that the ratio of the smaller to the larger part is equivalent to the ratio between the larger part and the whole and is always 0.618. See also the Fibonacci Sequence.
 
GOOD THRU DATE
Good Thru Date order. This order works until executed or cancelled, or until the end of the trading session on the date specified by the trader.
 
GOOD TILL CANCELLED
Good Till Cancelled order. This order works until executed or cancelled, unlike a Day order, which, if not filled, expires automatically at the end of the trading session on the day it was entered.... read more
 
GOODWILL
An intangible asset which arises when a holding company pays more for a subsidiary than its book value. Goodwill is also called a "premium arising on acquisition" and is normally written off... read more
 
GOVERNMENT EMPLOYEES PENSION FUND
A pension fund for government employees, the GEPF is the single largest investor on the JSE owning about 12,5% of its market capitalisation and with about R1,8 trillion rand invested. The GEPF... read more
 
GOVERNMENT GUARANTEED DEBT
The government is constantly trying to balance the books. This means that they are always looking for additional sources of money to accommodate competing needs. To do this they have a number... read more
 
GRAND PARADE INVESTMENTS LTD
27 - 03 - 2020
Grand Parade Investments (GPL) is an investment holding company with interests in the gaming industry and the fast food industry. The company is a BEE company which was listed... read more
 
GRAND SUPER CYCLE
First proposed by Russian economist Nicolai Kondratiev in his 1926 book, a very long cycle of around 54 years in commodity prices was identified. This was subsequently re-iterated by R. N. Elliott... read more
 
GRANTOR
A person who sells an option and assumes the obligation to sell (in the case of a call) or buy (in the case of a put) the underlying futures contract at the exercise price. Also referred to as... read more
 
GRAVESTONE DOJI
A candlestick pattern with a long upper shadow and where the open and close for the day occur at the low for the day. This candlestick pattern signifies uncertainty in the market and can signify... read more
 
GREEN CHIP
Environmentally friendly companies which are usually in the JSE's Socially Responsible Index.
 
GREEN FIELDS OPERATIONS
A business activity, usually in the mining industry, which is a completely new start-up. This is a high-risk, potentially high return undertaking compared to a "brownfields" operation where an... read more
 
GREENBAY PROPERTIES LTD
Greenbay (GRP) is an Alt-X listed share which is one of the Resilient group of REITs (real estate investment trusts) along with Resilient itself, Rockcastle and Fortress. These companies were... read more
 
GRINDROD LTD
15 - 04 - 2020
Grindrod (GND) is an international freight and financial services company which operates in 28 countries. In mid-June 2018, Grindrod unbundled and separately listed its loss-making... read more
 
GRINDROD SHIPPING HOLDINGS LIMITED
09 - 09 - 2019
Grindrod Shipping (GSH) originated in South Africa as far back as 1910. The company is now based in Singapore with offices in Cape Town, Durban, London, Tokyo and Rotterdam.... read more
 
GRIT REAL ESTATE INC
08 - 04 - 2020
Grit (GTR) is a “pan-African” real estate company - which means that it invests in property on the African continent, but not in South Africa. It has a focus on... read more
 
GROSS DOMESTIC PRODUCT
The GDP of a country is defined as the market value of all final goods and services produced within a country in a given period of time. It is also considered the sum of value added at every... read more
 
GROSS LETTABLE AREA
The area which a property company has available for rent. Real estate investment trusts (REIT) and property companies typically quote this statistic with the interim and final results. It shows... read more
 
GROSS PROFIT
A company's profit after its direct or variable costs have been deducted. Typically, the gross profit is the final figure in the company's trading account which begins with sales and subtracts... read more
 
GROUP
The holding company of a number of subsidiaries. Such companies produce group consolidated accounts once per annum, showing the consolidated position and performance of the holding company and... read more
 
GROUP FINANCIAL STATEMENTS
In terms of section 30 of the Companies Act, a company is obliged to produce group consolidated financial statements in such a way that inter-company loans are eliminated, the minority or outsider... read more
 
GROUP FIVE LTD
13 - 05 - 2020
Group 5 (GRF) is one of South Africa's iconic construction and engineering groups which has taken enormous strain over the past 10 years because of the fall-off in government... read more
 
GROWTH FUND
A more speculative mutual fund made up primarily of the growth or performance stocks that are expected to appreciate in price more than the broad market over an extended time period.
 
GROWTH SHARES
A growth share is a share in a listed company which is expected to grow rapidly. This term is normally applied to companies which have recently listed on the JSE, have raised capital and intend... read more
 
GROWTHPOINT PROPERTY LTD
22 - 05 - 2020
Growthpoint (GRT) is South Africa's largest real estate investment trust (REIT) with a primary listing on the JSE. It has consistently grown its dividends 3% above the inflation... read more
 
GUARANTEE FUND
A fund which is built and sustained by the stock exchange to cover any counter party risks which may exist in securities trading. For example, the risk that a stockbroking firm might go into... read more
 
GUARANTEED INVESTMENT CONTRACTS
A single lump-sum deposit that earns a guaranteed interest until a known maturity date. GICs are issued by insurance companies.
 
HAMMER FORMATION
A bullish reversal candlestick pattern implying the start of an upward trend is likely to begin. The hammer consists of a candle which has a lower shadow at least twice the length of the candle's... read more
 
HAMMERSON PLC
08 - 04 - 2020
Hammerson (HMN) is a massive international property company that has listed on the JSE to take advantage of South African investors who want exposure to off-shore property... read more
 
HANGING MAN
A top reversal candlestick formation which signals the end of an upward trend, consisting of a candle with a small body and long lower shadow. This formation implies that the bulls are losing... read more
 
HARAMI
Also called an inside day, the harami is a top or bottom candlestick reversal pattern which comprises of a small candle situated within the body of it's preceding candle. Harami means pregnant... read more
 
HARAMI CROSS
A top or bottom candlestick reversal pattern, very similar to the harami, comprising of two candles, one situated within the body of the other. The first candle has a large body. The second candle... read more
 
HARD ASSET
A commodity such as a metal or mineral. Most paper assets reflect some sort of claim to or against a hard asset, either directly or indirectly. The ultimate hard asset is gold, but all hard assets... read more
 
HARD CURRENCIES
First world currencies, like the US dollar, the British pound, the Japanese yen or the Euro. Currencies from third world or emerging countries tend to carry considerable political risk and thus... read more
 
HARD CURRENCY
A first-world currency which is relatively stable and serves as a good store of value. The hard currencies of the world include the US dollar, the euro, the British pound, the Japanese yen, the... read more
 
HARKISH POLICY
The Central Bank of a country is tasked with maintaining price stability while simultaneously ensuring growth. Unfortunately, these two objectives are mutually exclusive because when there is... read more
 
HARMONY GOLD MINING CO LTD
11 - 05 - 2020
Harmony (HAR) is South Africa's most marginal gold mine. A marginal gold mine is one which has a cost of extraction which is very close to the current gold price. This means... read more
 
HEAD AND SHOULDERS FORMATION
A charting formation at the top of a cycle. The price chart forms three peaks the middle one of which is the highest. The "left shoulder" is generally reckoned to be where the "smart" money sells... read more
 
HEADLINE EARNINGS PER SHARE
The earnings of a company derived from its normal core business divided by the company's average number of shares in issue during the accounting period. This figure excludes exceptional and once-off... read more
 
HEADROOM
This is the amount of financial space that a company has in terms of surplus available funds. Most companies have cash assets as well as pre-arranged financial facilities which are available... read more
 
HEDGE
Action taken by an investor or speculator to protect his business or assets against a change in prices. For example, if an investor holds a large number of listed securities in a particular company... read more
 
HEDGE AGAINST INFLATION
Any tangible or hard asset which can be used to protect the investor against depreciation in the value of paper currencies. Gold and other precious metals are typically the most popular hedges... read more
 
HEDGE FUND
A mutual fund involving speculative investing in stocks and options.
 
HERIOT REIT LIMITED
26 - 02 - 2020
Heriot (HET) is a real estate investment trust (REIT) which owns a diverse portfolio of properties worth R4,75bn in retail, industrial, commercial and specialist property.... read more
 
HERRICK PAYOFF INDEX
An index requiring two inputs, one of which is a smoothing factor known as the multiplying factor and the other of which is the value of a one-cent move.
 
HEURISTIC METHOD
Problem solving approached by trying out several different methods and comparing which provides the best solution.
 
HIGH
 
HIGH-TICKING
To pay the offered price.
 
HIGHLY ILLIQUID
Illiquid shares are those which trade less than R200 000 worth of shares every day on average. Such shares can be traded by private investors, but the big institutions (like pension funds, unit... read more
 
HIGHLY LIQUID
A term to describe a share which has a large number of shares changing hands each trading day. A good example is Sasol which has an average of 1,3 million shares at roughly R500 each trading... read more
 
HIGHLY RATED
This term describes the share of a company with a reputation for consistently growing its earnings. The rating of a company is dependent on the consistency with which it can grow headline earnings... read more
 
HISTORIC VOLATILITY
How much a contract price has fluctuated over a period of time in the past; usually calculated by taking a standard deviation of price changes over a time period.
 
HISTORICAL DATA
A series of past daily, weekly or monthly market prices (open, high, low, close, volume, open interest).
 
HISTORICALLY DISADVANTAGED SOUTH AFRICAN
The laws of South Africa are based on the constitutional requirement to remedy the imbalances of the past by benefiting historically disadvantaged South Africans. This generally means that the... read more
 
HOLDER
The purchaser of either a call or put option. Option buyers receive the right, but not the obligation, to assume a futures position. The opposite of a Grantor. Also referred to as the Option... read more
 
HOLDING COMPANY
Any company which owns more than 50% of the voting capital of another company, or can be said to have effective control over the appointment of its directors.
 
HOMECHOICE INT PLC
03 - 04 - 2020
Homechoice (HIL) is South Africa's largest home shopping retailer operating through two divisions - retail and financial services. It offers a broad range of home appliances,... read more
 
HOMOGENOUS SECURITY
Homogeneity means "sameness". In the investment world it refers to the fact that every ordinary share of Sasol or any listed company is exactly the same as every other ordinary share - which... read more
 
HOOK DAY
A trading day in which the open is above/below the previous day's high/low and the close is below/above the previous day's close with narrow range.
 
HORIZONTAL COUNT
A part of Point & Figure charting (P&F) used to calculate share's (or other indicator) upside target after an extended sideways market and a upside breakout. Essentially, the longer that... read more
 
HOSKEN CONSOLIDATED INVESTMENTS LIMITED
03 - 12 - 2019
Hosken Consolidated Investments (HCI) is a BEE investment holding company owned by the South African Clothing and Textile Workers' Union. It has investments in gaming, hotels,... read more
 
HOSPITALITY PROPERTY FUND LIMITED
04 - 06 - 2020
The Hospitality Property Group (HPB) is a real estate investment trust (REIT) which specialises in owning hotels and leisure activities. Tsogo injected all its hotels into... read more
 
HUDACO INDUSTRIES LIMITED
26 - 05 - 2020
Hudaco (HDC) is an importer and supplier of "automotive, industrial and consumer products" mostly in Southern Africa. Its business has two sides (1) supplying automotive security,... read more
 
HUGE GROUP LIMITED
21 - 05 - 2020
Huge (HUG) is a telecommunications, media and software company. It has operations in South Africa, Mozambique, Namibia, Lesotho, Swaziland, Botswana, Zambia and Zimbabwe.... read more
 
HULAMIN LIMITED
21 - 04 - 2020
Hulamin (HLM) is a producer and supplier of aluminum products in South Africa and trades in more than 50 countries internationally. It supplies foil, heat-treated plate as... read more
 
HULISANI LIMITED
27 - 05 - 20220
Hulisani (HUL) is an energy start-up that intends investing in coal, gas, solar power, wind and hydro. The company was incorporated in 2015 and listed in April 2016. The... read more
 
HURDLE RATE
This is the required return on investment for an international investor who is considering investing into this country (or another country). The hurdle rate increases as the perceived political... read more
 
HWANGE COLLIERY COMPANY LIMITED
11 - 05 - 2020
Hwange (HWA) is a coal mining and processing company with a mine in the North West province of Zimbabwe and is 37% owned by the Zimbabwean government. This company has a primary... read more
 
HYPERINFLATION
Rapid and excessive inflation within an economy. Where normal inflation is measured over... read more
 
HYPROP INVESTMENTS LTD
08 - 04 - 2020
Hyprop (HYP) is a leading property real estate investment trust (REIT) that specialises in high-quality shopping malls in South Africa and some interests in Eastern Europe... read more
 
ILLEGAL MINERS
These are informal miners who attempt to extract ore from a disused mine - usually at great risk to themselves. Known as "Zama-zama" (which means "people who try"), these miners have inadequate... read more
 
ILLEGAL STRIKE
A labour strike which takes place outside the ambit of the Labour Relations Act. Such wildcat strikes entitle the employer to fire those who are involved. In South Africa, however, such strikes... read more
 
ILLIQUID
Illiquid shares are those which trade less than R200 000 worth of shares every day on average. Such shares can be traded by private investors, but the big institutions (like pension funds, unit... read more
 
IMBALIE BEAUTY LIMITED
12 - 12 - 2019
Imbalie (ILE) is a beauty franchisor which operates through 150 salons and retailers. It sells its own health and beauty brands. It has 3 types of franchises - Placecol, Dream... read more
 
IMPAIRED ASSETS
Assets whose book value has been reduced by the board in order to reflect their true market value more accurately. Impairments result in a reduction in the profit of the company in the period... read more
 
IMPALA PLATINUM HOLDINGS LTD
19 - 05 - 2020
Impala Platinum Holdings (IMP), or Implats, is the world's third largest platinum group metals (PGM) producer. It has been suffering over the past 7 years from aggressive... read more
 
IMPERIAL HOLDINGS LTD
11 - 05 - 2020
Imperial (IPL) is a massive logistics and motor business. It operates in 32 European and African countries and employs 49 000 people. The company has split into two separate... read more
 
IMPLIED ALPHA
The excess return expected from a stock to justify its current weighting in the portfolio.
 
IMPLIED VOLATILITY
The volatility computed using the actual market prices of an option contract and one of a number of pricing models. For example, if the market price of an option rises without a change in the... read more
 
IMPORT COVER RATIO
A ratio which assesses the level of the country's reserves in terms of how many months worth of imports they could cover. A healthy import cover ratio would be around 15 to 20 and South Africa... read more
 
IMPULSE WAVE
A wave or cycle of waves that carries the current trend further in the same direction.
 
IMUNITI HOLDINGS LTD
02 - 01 - 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
 
IN PLAY
A stock that is the focus of a public bidding contest, as in a takeover or bear raid.
 
IN-THE-MONEY
An investment term used to describe a situation in which a particular security can be sold for a profit. This is calculated by taking into consideration the purchase price of the security, the... read more
 
IN-THE-MONEY OPTION
An option that has intrinsic value. A call option is in-the-money if its strike price is below the current price of the underlying futures contract. A put option is in-the-money if its strike... read more
 
INCLUSION RATE
In Capital Gains Tax (CGT), the percentage of a capital gain which is included in taxable income. For companies and trusts this is 66% while for individuals it is 40%. Thus, if you are in the... read more
 
INCOME
In accounting terms, this refers to all revenues received by a company, both as a result of its sales and other sources such as interest, dividends or rent. This figure is often called "turnover"... read more
 
INCOME DIVIDENDS
Payments to mutual fund shareholders consisting of dividends, interest and short-term capital gains earned on the fund's portfolio securities after deduction of operating expenses.
 
INCOME STATEMENT
A requirement of the Companies Act and Generally Accepted Accounting Practice (GAAP), the income statement must disclose the turnover of the company during the accounting period and certain,... read more
 
INCOME TAX ACT
The Income Tax Act 58 of 1962 has had numerous amendments. Its basic purpose is to consolidate the law relating to the taxation of incomes and donations, to provide for the recovery of taxes... read more
 
INCORPORATOR
Under the old Companies Act, the people who started a company were known as the subscribers, because they "subscribed" to the memorandum and articles of association. The new Companies Act which... read more
 
INDEPENDENT ACCOUNTING PROFESSIONAL
A type of accountant who is not necessarily a chartered accountant, but who is sufficiently qualified to undertake an independent review on behalf of a smaller company. In order to reduce costs... read more
 
INDEPENDENT REVIEW
An independent review is a lower level check of a company's financial statements which can be conducted by an independent accounting professional. This type of check is open only to smaller companies... read more
 
INDEQUITY GROUP LIMITED
16 - 04 - 2020
Indequity (IDQ) is a short-term insurance company which writes personal line business insurance on behalf of larger insurance companies. The company targets the professional... read more
 
INDEX
A weighted or unweighted average of the prices or market cap of a group of shares. There are many types of indices for sectors, sub-sectors and entire markets. There are also a number of ways... read more
 
INDEX FUND

An index fund is a unit trust (collective investment scheme) which tracks a specific index - usually on the JSE.... read more

 
INDEX POINTS
A measurement term for market indices. An index is an aggregate of the listed companies on an exchange, for example, the JSE Top 40 is an average of the top 40 companies trading on the JSE by... read more
 
INDLUPLACE PROPERTIES LIMITED
26 - 05 - 2020
Indluplace (ILU) is a real estate investment trust (REIT) which specialises in residential property and which is 66,24% owned by Arrowhead Properties. It owns residential... read more
 
INDUSTRIAL DEVELOPMENT ZONE
These are special business zones which enjoy tax and other benefits to encourage rapid industrialisation. They are often located in areas where business is depressed in order to encourage growth... read more
 
INDUSTRIAL SHARE
 
INDUSTRY CLASSIFICATION
A grouping of all shares in the same industry, usually represented by a sector index. If you look at the price page of your newspaper, you will see that the share market is divided into sectors.... read more
 
INEFFICIENT MARKETS
Behavioural finance. Driven by frame dependence and heuristic bias, when market prices stray from fundamental values. In simple terms, new and important information which affects the profitability... read more
 
INFLATION
Inflation is the degree to which a country's currency loses purchasing power over one year - expressed as a percentage. This is usually measured by the consumer price index (CPI), but it can... read more
 
INFLATION TARGETING
The Reserve Bank, through its Monetary Policy Committee (MPC) strives to keep the inflation rate between 3% and 6%. They target the CPI-X which is the CPI without the effect of interest rates.... read more
 
INGENUITY PROPERTY INVESTMENT LIMITED
Ingenuity (ING) is a property development company which focuses on properties in the Western Cape. The company was listed on the JSE in 2007 with the objective of developing properties in the... read more
 
INITIAL MARGIN
The amount a futures market participant must deposit into a margin account at the time an order is placed to buy or sell a futures contract.
 
INITIAL PUBLIC OFFERING
Usually coinciding with a listing, this is the first offer of shares to the investing public by a company.
 
INSIDER TRADING
The illegal dealing in shares by people who, because of their privileged position, have information that materially impacts on the value of the shares, before that information has been made public.... read more
 
INSIMBI INDUSTRIAL HOLDINGS LIMITED
15 - 04 - 2020
Insimbi (ISB) is a group which manufactures and supplies specialist products to the industrial sector. They source, buy, package and process ferrous and non-ferrous alloys,... read more
 
INSTITUTIONAL INVESTOR
A collective investment scheme (as opposed to an individual), that invests funds arising from deposits, premiums, contributions etc.. Examples are insurance companies, unit trusts and pension... read more
 
INSTITUTIONAL SHARE
A share which is followed by the big institutions and held by them in their portfolios. A listed share which is patronised by the large institutional investors on the JSE. In South Africa there... read more
 
INSTRUMENT
A very generalised term for any sort of security or debt claim. Thus instruments can include shares, debentures, bonds, derivative contracts and so on.
 
INSURANCE ACT (18 0F 2017)
This is a new act which came into effect on the 1st of July 2018 and which seeks "To provide for a legal framework for the prudential regulation and supervision of insurance business in the Republic... read more
 
INTANGIBLE ASSETS
Any asset which is not concrete. For example, goodwill or patents, which belong to the company, are not represented by any physical object, but refer to the company's rights to something or the... read more
 
INTEGRATED REPORT
The King 3 report on corporate governance requires that companies produce an integrated report which includes a "sustainability report". Listed companies are required by the JSE Rules to adhere... read more
 
INTERBANK RATES
The foreign exchange rates at which large international banks quote other large international banks. Because of the size of such transactions and creditworthiness of the counterparties, such... read more
 
INTEREST
Interest is the price of money. When one peson or company lends money to another then interest is charged at a percentage of the capital lent over a period of time. Interest rates are typically... read more
 
INTEREST RATE
The price of money. Money behaves in much the same way as a commodity, in the sense that when it is in short supply, it becomes more expensive and vice versa. The interest rate is the cost of... read more
 
INTEREST RATE SWAPS
An arrangement that requires both sides of the transaction to make payments to each other based on two different interest rates. The most commonly traded requires one side to pay a fixed rate... read more
 
INTERIM DIVIDEND
 
INTERIM FINANCIAL RESULTS
In terms of the Companies Act, all public companies are required to produce interim financial statements covering the first six months of their financial year. These "interims" are published... read more
 
INTERMARKET ANALYSIS
Observing the price movement of one market for the purpose of evaluating a different market.
 
INTERNAL RATE OF RETURN
The rate of interest which an individual, or, more commonly, an investment company is willing to accept. To determine your IRR, you need to ask yourself what amount of money received in a year's... read more
 
INTERNATIONAL ACCOUNTING STANDARDS BOARD
In March 2001, the International Accounting Standards Committee (IASC) Foundation was formed as a not-for-profit corporation incorporated in the State of Delaware, US. The IASC Foundation is... read more
 
INTERNATIONAL MONETARY FUND
An organisation with over 185 member countries that aims to maintain international currency stability and maximise economic growth. The IMF regularly reports on world growth and economic developments.... read more
 
INTERNATIONAL SECURITIES IDENTIFICATION NUMBER
 
INTRADAY
Literally, "within the day" as opposed to inter-day. Intraday trades are those that occur during the trading day - i.e. where a security is both bought and sold on the same day. This is mostly... read more
 
INTRINSIC VALUE
 
INTRODUCING BROKER
A firm or individual that solicits and accepts futures orders from customers but does not accept money, securities, or property from the customer. An IB must be registered with the Commodity... read more
 
INTU PROPERTIES PLC
11 - 05 - 2020
Intu (ITU) is a UK-based real estate investment trust (REIT) which is part of the FTSE 100 index. It was formed from the estate of the late Donald Gordon in 2010. It specialises... read more
 
INVENTORY
Another word for stocks of raw material, work in progress, consumable stores and finished goods. The valuation of the inventory is critical to the balance sheet.
 
INVERTED HAMMER
The counterpart of the hammer, this is also a bullish bottom reversal candlestick formation which derives its significance from it's shadow and implies that an upward trend is imminent. The inverted... read more
 
INVESTEC AUSTRALIA PROPERTY FUND
04 - 11 - 2019
Investec Australia Property Fund (IAP) is a real estate investment trust (REIT) which concentrates on property investments in Australia and New Zealand. It is owned 23% by... read more
 
INVESTEC BANK LTD
26 - 05 - 2020
Investec (INL) does specialist banking and asset management in South Africa, Australia, Europe, the UK and a few other countries. The surprise Brexit vote in the UK has put... read more
 
INVESTEC PROPERTY FUND
26 - 05 - 2020
Investec Property Fund (IPF) is a diversified South African real estate investment trust (REIT) with a R24bn portfolio of which R16bn is in South Africa. Like most REITs,... read more
 
INVESTMENT
  1. An asset on the balance sheet that refers to the shares held in a company or loans granted to other companies, which do not amount to or confer a controlling interest. The Act requires... read more
 
INVESTMENT ANALYST
An investment analyst does research on listed shares in order to provide information to a fund manager to enable him to allocate funds to specific investments. Investment analysts have to have... read more
 
INVESTMENT CLUBS
Small, private organisations in which a group of investors, usually novices, pool their time and resources to learn more than they could on their own about various forms of investments and then... read more
 
INVESTMENT HOLDING COMPANY
A company which holds shares in other companies as subsidiary or associate companies.
 
INVESTOR
A person, either natural or juristic, that purchases and holds any investment in a security. On the JSE, most of the investors are institutions (pension funds, unit trusts and insurance companies)... read more
 
INVESTOR PROTECTION LEVY
A levy charged by the JSE on all trades on the JSE consisting of 0,0002% of the value of the trade. This pays for insider trading investigations and prevents market manipulation.
 
INVICTA HOLDINGS LIMITED
17 - 04 - 2020
Invicta (IVT) has two divisions - Engineering Solutions Group (ESG), which is a supplier of engineering consumables, components and spare parts, and Capital Equipment Group... read more
 
IRA
An American retirement vehicle called an Individual Retirement Account (IRA). An employer's retirement plan that, as specified by tax law, allows employees to elect to have their federal taxable... read more
 
IRREGULAR FLAT
A type of Elliott wave correction that has a 3-3-5 wave pattern, where the B wave terminates beyond the start of wave A. A "flat" is in progress, implying that a larger pattern is developing.... read more
 
ISA HOLDINGS
26 - 05 - 2020
ISA Holdings (ISA) is a small Alt-X listed IT company offering network, internet and information security in sub-Saharan Africa. The company claims to employ some of the leading... read more
 
ISLAND FORMATION
A period of sideways movement after a substantial fall, where the share moves up and down within a relatively narrow trading range. Eventually, there should be an up-side break-out from the island,... read more
 
ISSUED CAPITAL
The value of the company’s authorised shares which have been sold to shareholders. Companies issue shares to the public to raise capital in what is known as the "primary market". This is... read more
 
ISSUED SHARES
The number of shares which a company has sold to the public to raise capital for its establishment or expansion. A company must obtain authorisation from the Companies and Intellectual Property... read more
 
ITALTILE LTD
17 - 02 - 2020
Italtile (ITE) is a franchisor of tiles, sanitary ware, flooring and home finishing products - which it manufactures and wholesales itself. The company is controlled by the... read more
 
ITRIX
A joint initiative by the JSE and Deutsche Bank to offer South African investors a method of investing in overseas markets using rands on the JSE. There are five Itrix ETF's trading on the JSE: ... read more
 
JANUARY EFFECT
An American phenomena which means the tendency for securities prices to recover in January after tax-related selling is completed before the year-end.
 
JASCO ELECTRONICS HOLDINGS LIMITED
04 - 06 - 2020
Jasco (JSC) is a technology and electronics group that produces and markets products mainly in South Africa but also in East Africa. It serves a wide range of customers from... read more
 
JOHANNESBURG INTERBANK AGREED RATE
The interest rate which banks in South Africa charge each other for funds lent in the open market and it is agreed by the ten largest financial institutions in the country.
 
JOHANNESBURG SECURITIES EXCHANGE
The primary securities exchange in South Africa. The Johannesburg Stock Exchange, the futures and options markets and the bond market are all part of the Johannesburg Securities Exchange. There... read more
 
JSE ALTERNATIVE EXCHANGE
The Alternative Exchange or Alt-X was brought in by the JSE to replace the Venture Capital Market (VCM) and the Development Capital Market (DCM) and its main purpose is to allow smaller shares... read more
 
JSE ALTX 15 INDEX
The index is supposed to contain the 15 largest companies trading on the Alt-X, but at the time of writing only 11 qualified for inclusion and they were dominated by Anchor Capital, which represented... read more
 
JSE DIVIDENDS PLUS INDEX
The JSE’s Dividend Plus Index is designed to include only those shares from the JSE Top40 and the JSE Mid-Cap which pay the best dividends based on their dividend yield. The components... read more
 
JSE FINANCIAL AND INDUSTRIAL 15 INDEX
The Financial and Industrial 15 index consists of the largest 15 companies by free-float market capitalisation, but it excludes Naspers and Richmont. At the time of writing, these 15 companies... read more
 
JSE FINANCIAL AND INDUSTRIAL INDEX
The JSE Financial and Industrial index (J250) includes 139 industrial and financial shares. The largest component is Naspers which accounts for more than 27% of the index, followed by Richemont... read more
 
JSE FINANCIALS INDEX
This is an index of the financial shares trading on the JSE. It includes 60 companies (counting Investec Ltd and Investec Plc as a single company) including the larger real estate investment... read more
 
JSE FLEDGLING INDEX
This index consists of ordinary shares which comply with all listing requirements, but are too small to be included in the All Share Index and which are not tested for liquidity. The JSE is broken... read more
 
JSE GOLD MINING INDEX
This is a weighted average of all gold shares traded on the JSE. The South African economy has been built on the exploitation of its mineral wealth - and gold was predominant until about 1970.... read more
 
JSE INDUSTRIAL 25 INDEX
The Industrial 25 index contains the largest 25 shares in the industrial sector weighted for their free-float market capitalisation. This index is again dominated by Naspers (over 44% weighting... read more
 
JSE INDUSTRIAL AND FINANCIAL 30 INDEX
An index prepared by the JSE actuaries which is a weighted average of the 30 largest financial and industrial shares trading on the Johannesburg Stock Exchange. The Financial and Industrial 30... read more
 
JSE INDUSTRIAL INDEX
The JSE Industrial index contains just 20 shares and, at the time of writing, was dominated by Remgro with a weighting of over 33% and Bidvest with a weighting of over 23%. These two shares had... read more
 
JSE LARGE AND MID CAP INDEX
The Large and Mid-Cap index combines the Large Cap and the Mid Cap indices into a single index. At the time of writing, it had 103 shares in it and Naspers made up over 20% of it and BHP was... read more
 
JSE LARGE CAP INDEX
The JSE Large Cap index contains 46 very large companies. In many ways this index is similar to the JSE Top 40 index. At the time of writing, Naspers accounted for over 23% of it, followed by... read more
 
JSE LIMITED
27 - 02 - 2020
The Johannesburg Stock Exchange (JSE) is listed on the JSE. It is a securities exchange which allows the trade of shares, bonds and derivatives. It has approximately 350 shares... read more
 
JSE MID-CAP INDEX
The Mid Cap index is supposed to be the next 60 largest shares trading on the JSE, after the Top 40. In practice it sometimes contains 59 or 61. For actuarial reasons. At the time of writing... read more
 
JSE OVERALL INDEX
All stock exchanges have indexes which provide averages of the prices of their listed shares. These averages are normally "weighted" so that larger companies are more important and smaller companies... read more
 
JSE PROPERTY INDEX
The Sapy is an FTSE/JSE index of the top 20 liquid real estate investment trusts (REIT) by market capitalisation. 80% of a REIT's assets must be in property and they are required to earn at least... read more
 
JSE QUARTERLY MAGAZINE
A three-monthly magazine sent to stockbrokers, fund managers and various other financial professionals. It is available at: http://www.jsemagazine.co.za
 
JSE RULES AND DIRECTIVES
Rules and directives established by the JSE to govern all the workings of the exchange in terms of the Stock Exchanges Control Act (SECA). The rules are an extensive document which is available... read more
 
JSE SMALL-CAP INDEX
The JSE Small Cap index consists of all the shares which are included in the JSE overall – except for those in the JSE Top 40 and the JSE Mid Cap. The Top 40 index is an average of the... read more
 
JSE TRUSTEES (PTY) LTD
A company formed by the JSE to hold, invest and safeguard the surplus funds belonging to a client and held by a broker who is operating a controlled account on behalf of the client.
 
JSE TRUSTEES RATE
Stock Broking firms open accounts for their customers so that they can invest on the JSE. Any funds deposited into such accounts and not used to buy shares must be transferred to the JSE Trustees... read more
 
JUBILEE METALS GROUP LIMITED
12 - 05 - 2020
Jubilee Metals Group (JBL) is a diversified metals recovery company which re-processes mine waste and surface materials. It is listed both on the London AIM market and on... read more
 
JUDICIAL MANAGEMENT
A term from the previous Companies Act to allow for a company to be wound up for financial reasons. It is sometimes the case that a company can be saved with good management. Judicial management... read more
 
JUMBO CERTIFICATE OF DEPOSIT
A CD worth at least $100,000.
 
JUNK BOND
A bond which has less than investment grade - usually a bond issued by a company rather than a government or quasi-government organisation.
 
JUNK STATUS
There are three major ratings agencies which have made a business out of assessing the credit risk of companies, parastatals and governments worldwide. They are Fitch, Moody's and Standard &... read more
 
JURISTIC PERSON
An organisation which has a legal personality such as a company. This implies that it is responsible for its own management and debts (and not the investors who own the shares). The opposite... read more
 
KAAP AGRI LIMITED
12 - 05 - 2020
Kaap Agri (KAL) is an agricultural company owned 40,9% by Zeder, which is, in turn, 43,7% held by PSG. The company operates through over 190 retail outlets offering a wide... read more
 
KAGI
One of three types of Japanese candlestick charts that does not have time on the horizontal axis.
 
KALMAN FILTERS
A linear system in which the mean squared error between the desired and the actual output is minimised when the input is a random signal. The filter is named after Rudolf E. Kalman, though Thorvald... read more
 
KAP INTERNATIONAL HOLDINGS LTD
30 - 04 - 2020
KAP International Holdings (KAP) is a diversified industrial company which produces and markets timber, chemicals (PET and related chemicals), bedding and car parts. It also... read more
 
KAYDAV GROUP LIMITED
08 - 04 - 2020
Kaydav (KDV) sells compressed wood-based paneling to the construction industry through outlets in Gauteng, Western Cape and Natal. It also sells packaging materials and machinery... read more
 
KEY REVERSAL DAY
A day with a much wider range of trade than usual which occurs at the top or bottom of a cycle. When a key reversal day occurs at the top of a cycle, prices open in new highs and then close below... read more
 
KIBO ENERGY PLC
15 - 04 - 2020
Kibo (KBO) is an African-orientated energy exploration company listed on the AIM (Alternative Investment Market) on the London Stock Exchange and on the Alt-X (Alternative... read more
 
KING 3 REPORT
A report on corporate governance and the duties of directors which has been accepted by the JSE as applying to all listed companies. The king report is now in its 3rd version and the... read more
 
KONDRATIEV, NIKOLAI
Developer of a wave theory. The Kondratieff Cycle is a theory based on a study of nineteenth century price behaviour which included wages, interest rates, raw material prices, foreign trade,... read more
 
KORE POTASH PLC
04 - 05 - 2020
Kore (KP2) is a potash mining company which owns 97% of Sinukola Potash which has the Kola and Dougou (DX) mining leases in the Congo. Kola has a resource of 508m tons and... read more
 
KRUGERRAND
A gold coin containing exactly one ounce of gold in the form of "royal gold" which is 8.3% copper. The copper is added to make the coin harder so that it cannot easily be "sweated" or "clipped".... read more
 
KST
Indicator developed by Martin Pring. A weighted summed rate of change oscillator. Four different rates of change are calculated, smoothed, multiplied by weights and then summed to form one indicator.... read more
 
KUMBA IRON ORE LTD
30 - 04 - 2020
Kumba (KIO) is a highly successful iron mining operation which is owned (79%) and controlled by Anglo American. The share price doubled from R250 in December 2018 to levels... read more
 
KURTOSIS
Descriptive measure of how flat or pointed a distribution is. In probability theory and statistics, kurtosis is a measure of the "peakedness" of the probability distribution of a real-valued... 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 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 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
 
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
 
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
 
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
 
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.
 
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
 
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
 
LEWIS GROUP LIMITED
05 - 02 - 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
 
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
04 - 06 - 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... read more
 
LIBERTY TWO DEGREES
04 - 06 - 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 interest rate which British banks charge each other for inter-bank loans. Libor is used as a bench-mark rate to determine other interest rates.
 
LIBSTAR HOLDINGS LTD
08 - 04 - 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
 
LIFE HEALTHCARE GROUP HOLDINGS LIMITED
13 - 05 - 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
 
LIGHTHOUSE CAPITAL LIMITED
08 - 05 - 2020
Lighthouse Capital (LTE) (previously Greenbay) is an Alt-X listed share which is one of the Resilient group of REITs (real estate investment trusts) along with Resilient itself,... 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
 
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
 
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
 
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
 
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
 
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
 
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 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
 
LONDON FINANCE AND INVESTMENT GROUP PLC
28 - 02 - 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 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
19 - 05 - 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 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-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
12 - 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
 
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.
 
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.
 
MAJOR AUCTION
The overall trend of the market such as might be observed on a bar chart.
 
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 FUTURES
A fund that uses the futures market as its primary asset.
 
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
 
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 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
 
MARGIN
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 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 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
 
MARKED TO MARKET
Calculation of the difference between the contract price and the market price.
 
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 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 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 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 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 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
 
MARSHALL MONTEAGLE PLC
06 - 01 - 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
 
MAS REAL ESTATE INC
01 - 06 - 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
 
MASSMART HOLDINGS LTD
21 - 05 - 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
 
MASTER DRILLING GROUP LTD
07 - 04 - 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
 
MASTER PLASTICS LTD
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
 
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
 
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
 
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
 
MAZOR GROUP LIMITED
15 - 04 - 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
 
MC MINING LIMITED
21 - 05 - 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
 
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.
 
MEDICLINIC INTERNATIONAL PLC
21 - 10 - 2019
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
 
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
 
MENTAL STOP-LOSS
A stop-loss order kept in your head instead of instructing your broker.
 
MERAFE RESOURCES LIMITED
30 - 04 - 2020
This is a ferrochrome operation controlled by Glencore which operates mines, furnaces and smelters in Mpumalanga and Limpopo. The Glencore-Merafe joint venture can produce... read more
 
MERGER
(Also called an amalgamation.) 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. Sometimes... read more
 
METAIR INVESTMENTS ORD
19 - 05 - 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
 
METROFILE HOLDINGS LIMITED
07 - 05 - 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
 
METTLE INVESTMENTS LIMITED
01 - 06 - 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
 
MICROMEGA HOLDINGS LIMITED
03 - 01 - 2020
Sebata (SEB) is an investment holding company with four divisions - software solutions, water technologies, ICT support services and consulting. Their software solutions division... read more
 
MINE RESTORATION INVESTMENT LIMITED
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
 
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 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
 
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
 
MIS-MATCH 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
 
MIX TELEMATICS LTD
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
 
MMI HOLDINGS LTD
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
 
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.
 
MOMENTUM
A time series representing change of today's price from some fixed number of days back in history. The theory here is that when a share is going up it tends to move in a trajectory like a tennis... 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
26 - 05 - 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
 
MONDI LTD
16 - 04 - 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
 
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
 
MONEY FLOW
A number of technical indicators that incorporate volume and price action to measure buying or selling pressure.
 
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 FUND
A mutual fund made up of money market instruments that are short term in nature.
 
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".
 
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.
 
MONTAUK HOLDINGS LTD
03 - 03 - 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
 
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
 
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.
 
MOTUS HOLDINGS LIMITED
28 - 04 - 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
 
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
 
MPACT LTD
10 - 03 - 2020
Mpact (MPT) is a large producer of paper and plastics packaging in Southern Africa. It recycles paper and cardboard and makes corrugated cardboard containers for a variety... read more
 
MR PRICE GROUP LTD
22 - 01 - 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 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
 
MTN GROUP LTD
19 - 05 - 2020
MTN is a leading emerging market mobile operator, serving 257,3 million people (including 29m in South Africa) in 21 countries across Africa and the Middle East. MTN's three... read more
 
MULTICHOICE GROUP LIMITED
19 - 11 - 2019
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
 
MURRAY & ROBERTS HOLDINGS LTD
28 - 05- 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
 
MUSTEK LTD
06 - 03 - 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
 
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
15 - 04 - 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 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
 
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
 
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
 
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-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
 
NEDBANK GROUP LTD
10 - 03 - 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.
 
NEPI ROCKCASTLE PLC
26 - 05 - 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
 
NET 1 UEPS TECHNOLOGIES INC
01- 06 - 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 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 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 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 FRONTIER PROPERTY LIMITED
20 - 04 - 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.
 
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.
 
NICTUS BEPERK LIMITED
12 - 12 - 2019
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
26 - 05 - 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
 
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
 
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
 
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-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-TREND DAY
A narrow range day lacking any discernible movement in either direction.
 
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.
 
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: http://www.euroinvestor.com/exchanges/gtis-energy/brent-oil/2327059/chart.... read more
 
NORTHAM PLATINUM LTD
03 - 04 - 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.
 
NOVUS HOLDINGS LIMITED
17 - 04 - 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.
 
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
 
OANDO PLC
04 - 11 - 2019
Oando (OAO) is an oil and gas company located primarily in Nigeria. It has listings on both the JSE and the Nigerian stock exchange. The problem with a share like this from... read more
 
OASIS CRESCENT PROPERTY FUND
07 - 05 - 2020
Oasis (OAS) is a property company that manages various properties applying the principles of Islamic finance. It also manages institutional investments and retirement portfolios... read more
 
OCEANA GROUP LTD
20 - 11 - 2019
Oceana (OCE) is Southern Africa's largest fishing business which also has significant fishing interests in the US through its Louisiana-based subsidiary Daybrook Fishing.... read more
 
OCTODEC INVESTMENTS LIMITED
24 - 04 - 2020
Octodec (OCT) is a real estate investment trust (REIT) which owns properties mainly in the inner cities of Johannesburg (33,9%) and Pretoria (66,1%). It has a large residential... read more
 
ODD LOTS
Transactions in shares in quantities other than round hundreds. With the advent of on-line trading and the further computerisation of the JSE, the need for a distinction between "odd lots" and... read more
 
OFF FARM
The amount of stock held by non-producers including supplies held at mills, elevators, terminals, and processors.
 
OFFER
An indication of willingness to sell a a share at a given price; the opposite of Bid.
 
OLD MUTUAL LTD
01- 06 - 2020
Old Mutual (OMU) is a premium African financial services group that offers a broad spectrum of financial solutions to retail and corporate customers across key market segments... read more
 
OLIGOPOLY
An industry which is dominated by a few very large players who co-operate on the fixing of prices and allocation of contract work. Price fixing and work allocation agreements are a contravention... read more
 
OMNIA HOLDINGS LIMITED
07 - 04 - 2020
Omnia (OMN) is a diversified chemicals company supplying products to the agricultural, chemicals and mining industries in South Africa and 48 other countries. The Agricultural... read more
 
ON FARM
The amount of stock held by producers.
 
ON-BALANCE VOLUME
This was the first volume-based technical method developed by Joseph Granville. The method begins with an arbitrary total like 100 000 to which the positive volumes are added and the negative... read more
 
ONELOGIX GROUP LIMITED
10 - 02 - 2020
OneLogix (OLG) is a logistics company which listed on the JSE in 2004. The company has three divisions - cross-border delivery of new cars (47% of turnover), auto-logistics... read more
 
ONLINE TRADING
Buying and selling of securities over the Internet. A number of stockbroking firms are offering the ability to buy and sell shares over the internet. Brokerage is usually less than for trades... read more
 
OPEN INTEREST
The total number of futures or options contracts of a given commodity that have not yet been offset by an opposite futures or option transaction nor fulfilled by delivery of the commodity or... read more
 
OPEN MARKET OPERATIONS
The buying and selling of government securities (mainly bonds) in the open market by the Reserve Bank in order to control the money supply. Doing this allows for the amount of money in the banking... read more
 
OPEN ORDER
An order still pending or on the books to buy or sell securities, but not yet executed. An open order will remain in effect until it is either executed or cancelled or subject to validity constraints... read more
 
OPEN OUTCRY
A method of public auction for making bids and offers in the trading pits of futures exchanges. Stock exchanges also used to operate this way, but today most are electronic, with the notable... read more
 
OPEN TRADE EQUITY
The gain or loss on open futures positions.
 
OPENING CALL
A period at the opening of a futures market in which the price for each contract is established by outcry.
 
OPENING PRICE
The price of the first transaction of the day in any share or security. The opening price is critical to the drawing of candlestick charts. If the market closes above its opening then the bulls... read more
 
OPENING PRINT
The first price of a stock that comes across the ticker for a trading session.
 
OPENING RANGE
The range of prices that occur during the first 30 seconds to five minutes of trading, depending on the preference of the individual analyst.
 
OPERATING CASH FLOW
The amount of cash which a company brings in from its sales or turnover minus interest, taxation and dividends paid, and excluding income from investments. This is used to calculate the company's... read more
 
OPERATING INCOME
An income statement item usually immediately following the statement of turnover, but not directly linked to it by calculation. Because finance costs are normally shown on the face of the income... read more
 
OPPORTUNITY COST
Income foregone by the commitment of resources to another use. For example, if you use some of your capital to buy shares then you suffer the opportunity cost of not being in a fixed interest... read more
 
OPTIMISATION
A methodology by which a system is developed with rules tailored to fit the data in question precisely. A computer program can test every moving average from 1-day to 200-day, buying and selling... read more
 
OPTION CONTRACT
An option contract which gives the buyer the right, but not the obligation, to buy or sell a specified quantity of a commodity or a futures contract at a specific price within a specified period... read more
 
OPTION HOLDER
An investor who holds (owns) an option.
 
OPTION PREMIUM
The price a buyer pays (and a seller receives) for an option. Premiums are arrived at through open outcry. There are two components in determining this price -- extrinsic (or time) value and... read more
 
OPTIONAL CASH PURCHASE
Buying additional shares made through the dividend reinvestment account.
 
ORDER
 
ORDINARY RESOLUTION
A resolution which requires the approval or 50% or more of the voting shares of a company. Typically this would be the appointment of directors, approval of employment equity schemes and other... read more
 
ORDINARY SHARE
Also sometimes called "equity" shares, these shares share in the profits and risks of the company. Unlike the fixed dividend paid to preference shareholders, the ordinary dividend is decided... read more
 
ORDINARY SHARE CAPITAL
Capital of a company represented by the number of its ordinary shares.
 
ORDINARY SHAREHOLDERS' FUNDS
The funds which the ordinary shareholders have in a company. This can normally be calculated by subtracting the company's liabilities from its assets. Shareholders' funds is a critical element... read more
 
ORGANIC GROWTH
This is growth from within the company's existing businesses - as opposed to growth by acquisition. Both types of growth can be good, but growth by acquisition is generally more risky because... read more
 
ORGANISATION OF PETROLEUM EXPORTING COUNTRIES
Commonly known as OPEC, this consists mostly of Arab countries that control the bulk of the world's oil exports. OPEC has managed in the past to increase oil prices by restricting supply, but... read more
 
ORION MINERALS LIMITED
29 - 05 - 2020
Orion Minerals (ORN) is an Australian exploration company which is listed on the JSE and on the Australian Stock Exchange in Sydney. It is trying to find funding for its copper... read more
 
ORION REAL ESTATE INVESTMENT TRUST LTD
08 - 10 - 2019
This is a real estate investment trust that was suspended on the JSE in October 2018 because it had not produced audited financial statements by the deadline. On 29th March... read more
 
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 the Overbought/Oversold (OB/OS) and the MACD.... read more
 
OTC MARKET
Over-the-counter market - a market which is normally not licensed or an informal market for the trading of securities. There is therefore no formal settlement through a clearing house nor is... read more
 
OUT-OF-THE-MONEY OPTION
 
OUTSIDE REVERSAL MONTH
A month in which the recent monthly trading range exceeds the previous month's range and closes opposite (reverses) the previous month's close.  
 
OVER INVESTING
Beginners in the share market are typically guilty of over-investing in two ways - either they put too great a percentage of their available funds into a single trading idea, or they commit more... read more
 
OVER-PRICED
This describes a share which has a market price in excess of its "real" value - in the opinion of the person who uses the term. The real value of a share is always a matter of opinion, and at... read more
 
OVER-REACTION
A situation which arises after news concerning a share is disseminated and investors push the price to levels beyond reasonable discounting of the news - i.e. they over-react. Such situations... read more
 
OVER-SUBSCRIBED
When a company raises new capital by selling shares to the public they invite applications for a limited quantity of shares. If the company is perceived as having a bright future, then sometimes... read more
 
OVER-SUBSCRIPTION
This occurs where the applications for a new issue of shares exceed the number of shares available for issue. This often happens because the shares are offered to the public at a price below... read more
 
OVER-THE-COUNTER
Trading of shares which are not listed on a formal stock exchange. In America there are about 80 000 companies that trade their shares in this manner - mostly small "mom-and pop" outfits which... read more
 
OVERBOUGHT/OVERSOLD INDICATOR
An indicator that attempts to define when prices have moved too far and too fast in either direction and thus are vulnerable to a reaction. The OB/OS indicator is calculated by expressing the... read more
 
OVERFITTING
The parameters of a trading system are selected to return the highest profit over the historical data.
 
OVERSOLD
Market prices that have declined too steeply and too fast.
 
PAN AFRICAN RESOURCES PLC
14 - 05 - 2020
Pan African Resources (PAN) is a London- and JSE-listed re-treatment gold producer. It has shifted most of its operation from underground mining at the recently closed Evander... read more
 
PANAMA PAPERS
A massive leak (over 11 million documents) of important documents from a Panamanian legal company involved in setting up off-shore companies and trusts in tax havens to avoid or evade tax in... read more
 
PAPER PROFITS
The difference between the purchase price of a share and its current market price. Another term for this is "market appreciation". There is a potential danger in this figure, because it may not... read more
 
PAR
The full principal amount of an investment instrument.
 
PAR VALUE
A concept from the old Companies Act which meant the value given to shares when they were created (i.e the price for which they were first sold). Normally, the market price of a share quickly... read more
 
PARASTATAL

Parastatals or State Owed Enterprises (SOE) are corporations owned and controlled by the government. In South... read more

 
PARENT COMPANY
A company which owns more than 50% of another company (its subsidiary). JSE listed companies are usually groups which own a number of subsidiaries. The Companies Act requires that the financials... read more
 
PARETO'S LAW
A law that states that 80% of results come from 20% of the effort.
 
PARIS CAC INDEX
The Cotation Assistee en Continu is an index of the 40 largest shares trading on the Paris stock exchange, now known as the Euronext Paris. It commenced with a base value of 1000 in 1987. It... read more
 
PARITY
An option is said to be trading at parity if the premium at which it is currently trading in the market is exactly equal to its intrinsic value. Time value, in other words, is zero.
 
PARTIAL FILL
When a trader has placed an order to buy or sell more than 1-lot, it is always possible that the order may be only partially filled. This happens most commonly when a market touches a price level... read more
 
PARTICIPATING PREFERENCE SHARE
Preference shares which participate in the profits of the company in some way - usually beyond a fixed percentage. For example, they might receive an additional 2% if the ordinary dividend is... read more
 
PARTNERSHIP
A business which is not incorporated and which is owned and managed by more than one person. Partnerships usually have a partnership agreement which stipulates the relationship between the partners,... read more
 
PASSIVE INVESTOR
An investor who aims to maximise his profits over the long term by holding on to his investments instead of taking advantage of short term highs and lows in the market.  Such an investor avoids... read more
 
PATTERNS
There is an on-going debate in the investment world about whether share prices move in patterns or are simply random. Obviously, it is impossible to predict a random series - by definition. So... read more
 
PAY AS YOU EARN TAX
A system of tax which is applied to salaried tax payers. Companies are required to deduct PAYE directly from employees' salaries and pay it to SARS. People whose income is variable like sales... read more
 
PAYMENT DATE
The date on which a dividend is paid. These days, dividend payments are mostly paid directly into shareholders' stockbroking accounts automatically. There are five dates associated with dividend... read more
 
PBT GROUP LIMITED
12 - 12 - 2019
PBT Group (PBG) is a fledgling IT company in the general finance sector. It has operations in South Africa and Europe, having recently exited operations in the Middle East... read more
 
PEMBURY LIFESTYLE GROUP LIMITED
08 - 10 - 2019
Pembury Lifestyle Group (PLG) has two divisions - running schools and retirement villages. They were listed on the JSE in April 2017 at 100c and had fallen to 38c by April... read more
 
PENNANT FORMATION
A charting formation where the price chart forms a pattern which looks something like a triangle. The difference between a pennant and a triangle is the length of time that the formation occurs... read more
 
PENNY STOCK
Shares which trade for low prices per share. They may be shares of a very good company; however, they are usually not. They are attractive to speculators who can generate returns based on big... read more
 
PEPKOR HOLDINGS LTD
01- 06- 2020
Pepkor Holdings (Pep) (PPH), previously known as Pep and part of the Steinhoff Retail Group (STAR), is 71% owned by Steinhoff International. With the collapse of the Steinhoff... read more
 
PER SHARE RATIO
Certain ratios are calculated as a number of cents per share - like the net asset value per share, the dividends per share and the earnings per share. These types of "per share" ratios depend... read more
 
PEREGRINE HOLDINGS LIMITED
20 - 11 - 2019
Peregrine (PGR) is an owner-managed asset management and stockbroking group which was founded in 1996 and listed on the JSE in 1998. It consists of Citadel, Stenham and Peregrine... 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 from the bank. Loan capital must receive its interest... 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 square root of the actual number and increases... read more
 
PETROL PRICE
The price of a litre of petrol, not including the general fuel levy or the Road Accident Fund (RAF) levy. These two levies make up approximately 37% of the cost of a litre of fuel in South Africa.... read more
 
PHUMELELA GAMING AND LEISURE LIMITED
12 - 05 - 2020
Phumelela (PHM) is a gambling and gaming company which owns 4 race courses and 5 training centers across South Africa and stages 250 race meetings per annum. It provides betting... read more
 
PICK 'N PAY STORES LTD
14 - 05 - 2020
Pick ‘n Pay (PIK) is a retail grocery chain with 1858 stores, mostly in South Africa, but also in the rest of Africa. The company was started by Raymond Ackerman in... 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 with a long red�candle. The next day opens at a new low... read more
 
PIONEER FOODS GROUP LIMITED
13 - 02 - 2020
Pioneer Foods (PFG) is one of the largest manufacturers and distributors of food products in South Africa. It has many well-known brands like Bokomo, Ceres, Liquifruit, Weetbix,... read more
 
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.
 
PIT
The area on the trading floor where trading in futures or options contracts is conducted by open outcry.
 
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 moves in the market, pivot points are calculated... 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 are mined together in varying proportions. For... 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, a three-box reversal... 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 fluctuations in the market. It is not usually... 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 on their capital. Ponzi schemes take a variety... 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 have done so for many years then analysts and investors... 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 lower multiples of their earnings per share than "highly-rated"... read more
 
PORTFOLIO
A small group of shares and other investments belonging to a single investor. As a private investor, you should aim to have between 5 and 8 different shares in your portfolio. Each additional... read more
 
PORTFOLIO MANAGER
This is someone who manages portfolios on behalf of investors. He makes the investment decisions and is not usually obliged to get his clients' permission to change their investments if there... read more
 
PORTFOLIO STRUCTURE
The percentage breakdown of a portfolio over the various market sectors.
 
POSITION LIMIT
The maximum number of speculative futures contracts one can hold as determined by the CFTC and/or the exchange where the contract is traded.
 
POSITION MANAGEMENT RATIO
The ratio of profits extracted on winning transactions versus losses suffered on trades that liquidate unprofitably.  
 
POSITION TRADER
A trader who either buys or sells contracts and holds them for an extended period of time, as distinguished from a day trader.
 
PPC LIMITED
27 - 11 - 2019
PPC is a leading manufacturer and supplier of cement, aggregates, ready-mix, lime, limestone and fly-ash in Africa. It has 11 cement factories in South Africa, Botswana, the... read more
 
PRE-LISTING STATEMENT
A public press announcement required by the JSE before the listing of a company, which is not accompanied by a new issue of shares and therefore a prospectus. It is felt that the investing public... read more
 
PRECIOUS METAL
There are really three main precious metals - gold, silver and platinum. To this you could add the other platinum group metals, like palladium and rhodium.  Base metals are much cheaper and... read more
 
PREFERENCE SHARE
Shares which have preferential rights in relation to another class of share in the same company. These rights consist of: the right to receive dividends before ordinary shareholders, the right... read more
 
PREMIER FISHING BRANDS LIMITED
19 - 05 - 2020
Premier Fishing (PFB) is a 55% subsidiary of listed AEEI - an investment holding company controlled by the Sekunjalo Group and ultimately by the Surve family. The company... read more
 
PREMIUM
A general term used to describe the difference between the price at which a share was first issued and the current price. Often, a successful company wants to issue additional shares to raise... read more
 
PREPROCESSING
Altering data to some extent to be more accurately analysed; smoothing, reducing unwanted data, removing trends. Processing data is mathematically transforming the data from one form into another... read more
 
PRESCRIBED ASSET
An asset which must be held by a retirement fund by law. This idea was introduced by the National Party, to ensure that they had sufficient funds for major projects during the apartheid era.... read more
 
PRESCRIPTION
This is the period of time for which a debt remains valid, after the creditor ceases to demand payment. In terms of the Prescription Act. If the creditor does not demand payment (i.e. by delivering... read more
 
PRESS RELEASE
An announcement made by a company, either voluntarily or to comply with legal requirements, to inform the public of some material development which will impact on shareholders. Typically, profit... read more
 
PRICE CHANGE
A revision to a previously reported fill, usually due to the resolution of an out trade.  
 
PRICE DISCOVERY
The process of determining the price of a commodity by trading conducted in open outcry at an exchange.
 
PRICE LIMIT
The maximum advance or decline, from the previous day's settlement price, permitted for a futures contract in one trading session. Also referred to as Maximum Price Fluctuation.
 
PRICE PAGE
The page of your daily newspaper which displays the previous day's closing prices on the JSE. The price page is divided into the same sectors and sub-sectors as the JSE and gives the high, low,... 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 day, or one year. The range is a good indication of... read more
 
PRICE TO SALES RATIO
The price of a stock divided by sales-per-share of the company in the most recent fiscal year.
 
PRICE:EARNINGS GROWTH RATIO
A ratio which is designed to show whether a share is cheap or expensive at the current market price, in relation to its track record of growing earning per share over a period of time. For example,... read more
 
PRICE:EARNINGS RATIO
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
 
PRICING POWER
The ability of a company to raise the price of its products without losing significant market share. Pricing power is determined by the existence of suitable substitute products and competition.... read more
 
PRIMARY MARKET
The market for shares when they are first sold by a company to raise capital. New issues and rights issues are examples of activity on the primary market. Once the company has sold the shares,... read more
 
PRIMARY TREND
The overall long-term trend of the share market as a whole. The primary trend is either bullish (up) or bearish (down) separated by periods of indecisiveness where the market moves sideways,... read more
 
PRIME RATE
The rate of interest charged by a commercial bank to its very best (i.e. lowest risk) clients. The prime overdraft rate is usually about 3,5% higher than the repo rate, which is the rate which... read more
 
PRIMESERVE GROUP LIMITED
29 - 05 - 2020
Primeserve (PMV) describes itself as a, "provider of integrated business support services focused on providing client-centric human capital services, spanning staffing and... read more
 
PRIVATE COMPANY
A company defined by the Companies Act which may not make an offer of shares to the public - as opposed to a public company which may. So all the shares trading on the JSE represent public companies.... read more
 
PRIVATE CREDIT EXTENSION
The amount of money borrowed by companies, private individuals and other non-government organisations. This figure is made up of private individuals borrowing on credit cards, overdrafts and... read more
 
PRIVATE INVESTOR
A natural person (rather than a corporate entity) who invests on the stock market either directly or indirectly. Private investors make up only about 10% of the trades done on the JSE. The other... read more
 
PRIVATE PLACING
An offer of shares to specific investors chosen by the board of directors. Usually, a private placing is offered to staff members, suppliers, clients and others who are closely connected with... read more
 
PRIVATE SECTOR
That part of a country's economy which is run and organised by individuals and private companies, with no direct control from government. This sector is made up of private households and private... read more
 
PRIVATISATION
The sale of government assets to the private sector. The union movement in South Africa has been implacably opposed to privatisation since 1994 because they see it as resulting in retrenchments.... read more
 
PROBABILITY
The chances that a certain event or outcome will occur. It has been well said that investment is not about certainty. It is about probability. When you buy a share, you are making a forecast.... read more
 
PRODUCER PRICE INDEX
The inflation rate measured at the producer level. This is the average price of goods sold by manufacturers to wholesalers. If the PPI is rising then you can expect the Consumer Price Index to... read more
 
PROFESSIONAL INVESTOR
A private person who makes his/her living out of buying and selling shares on the JSE. These people generally keep a very low profile and are hard to find. Usually, they operate out of a tax... read more
 
PROFIT AND LOSS ACCOUNT
The profit and loss account (P&L) subtracts indirect expenses from gross profit to arrive at net profit. The P&L itself is not disclosable in terms of the Companies Act or GAAP, but elements... read more
 
PROFIT MARGIN EXPANSION
In long-term reference, a measure of a company's net profit margin in the latest reported quarter divided by profit margin in the fiscal year previous. In short-term reference, a measure of a... read more
 
PROFIT TAKING
Selling tradables that have appreciated since initial purchase in order to take advantage of the appreciation.
 
PROGRAM TRADING
Trades based on signals from computer programs, usually entered directly from the trader's computer to the market's computer system.
 
PROSPECTUS
This is a requirement of the Companies Act (71 of 2008) for every offer of shares made to the public. Section 108 of the Act requires that a company cannot allot shares or accept money for those... read more
 
PROSUS NV1
14 - 04 - 2020
On 11th September 2019, Naspers (NPN) separately listed Prosus (PRX) on the Euronext in Amsterdam which houses all its international assets including its stake in Tencent,... read more
 
PROVISION
An item on the balance sheet that falls under liabilities. A provision is "raised" when the company has an expense for which it has not yet received an invoice and therefore does not know the... read more
 
PROXY
A document, signed by a shareholder of a company, which entitles a person (who is not necessarily a shareholder of that company) to attend shareholders' meetings, speak and vote on behalf of... read more
 
PRUDENTIAL AUTHORITY
A juristic person within the South African Reserve Bank (SARB) responsible for the regulation of the banking sector, the insurance industry, cooperative financial institutions, financial conglomerates... read more
 
PSG GROUP LIMITED
04 - 05 - 2020
PSG is an investment holding company which began in stockbroking but which has now branched out into various other businesses, including banking, education, agriculture, asset... read more
 
PSG KONSULT LIMITED
16 - 04 - 2020
PSG Konsult (KST) is a well-established financial services group which grew out of PSG's stockbroking business and which now offers a wide range of financial services including... read more
 
PSV HOLDINGS LIMITED
19 - 03 - 2020
This is an Alt-X listed industrial holding company with two divisions - Omnirapid which supplies mining and industrial consumables, and Specialised Services consisting of... 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 of its shares. Companies listed on the JSE are required by... read more
 
PUBLIC COMPANY
A company as defined by the Companies Act may issue shares to the public, has no restrictions concerning the number of shareholders, or the transfer of shares from one person to another. Public... 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 borrowing funds, guarantees and the purchase... read more
 
PUBLIC INVESTMENT CORPORATION
The Public Investment Corporation (PIC) manages the largest fund in South Africa which is the pensions contributions of the millions of public servants in this country. It is also the largest... read more
 
PUBLIC OFFER
An offer of shares made to the public. The public is invited to apply for the shares by completing an application form and submitting it with their cheque. If the total amount raised exceeds... read more
 
PUBLIC PRIVATE PARTNERSHIP
A partnership between the government and the private sector in terms of the Public Finance Management Act. The Gauteng freeway project and toll roads undertaken by Sanral with various construction... read more
 
PURCHASE AND SALE STATEMENT
A statement sent by a Futures Commission Merchant to a customer in the US when a futures or options position has been liquidated or offset. The statement shows the number of contracts bought... read more
 
PURCHASING MANAGERS INDEX

An economic indicator which shows the health or otherwise of the manufacturing sector. This index is produced... read more

 
PURPLE GROUP LIMITED
09 - 04 - 2020
Purple Group (PPE) is a trading platform and asset management company that is mainly aimed at the private investor and offers the cheapest costs of dealing in shares on the... read more
 
PUT OPTION
The purchased right to sell (put) specified securities at a specified price (strike price) within a specified period (American) or a specified date (European). By the payment of a premium per... read more
 
PUT UP OR SHUT UP
A rule of certain stock exchanges which requires an acquiring company to make a formal offer or to publicly abandon its take over attempt. The London Stock Exchange frequently enforces this policy,... read more
 
PUTPROP LIMITED
10 - 03 - 2020
Putprop (PPR) is a property company which was spun out of Putco (the bus company) and separately listed on the JSE in July 1988. The company owns properties in industrial,... read more
 
PYRAMID
A holding company that holds subsidiaries that in turn holds other subsidiaries and so on. In this way the company at the top of the pyramid can control those at the bottom even though it effectively... read more
 
PYRAMID SCHEME
A scheme whereby people are promised a percentage return for getting other people to invest in the scheme. Participants are encouraged to enroll as many people below them in the the pyramid as... read more
 
QUALIFIED AUDIT REPORT
Where the audit report in a company's financial statements contains a proviso. The auditors state that "the company's financials fairly represent the company's financial position, except for…".... read more
 
QUALITY OF EARNINGS
The quality of a company's earnings is measured by their consistency. An earnings growth of about 15% per annum is ideal from an investors viewpoint. If a company can sustain this for many years,... read more
 
QUANTITATIVE EASING
The policy of major Western countries to increase their money supply to stimulate growth as part of their monetary policy. Quantitative easing is the modern equivalent of printing money and injecting... read more
 
QUANTUM FOODS HOLDINGS LTD
26 - 05 - 2020
Quantum (QFH) is in the chicken business. It has four divisions - Animal feeds, eggs and layers, broilers and an African division where it sells related products. Quantum... read more
 
QUARTERLY BULLETIN
The Reserve Bank's quarterly report-back on the state of the economy. This document makes a very interesting read for the private investor because it gives a very credible overview of the economy... read more
 
QUARTERLY EARNINGS CHANGE
Historical earnings change between the earnings most recently reported and the quarter preceding. This statistic is much watched in America where companies are required to report financials every... read more
 
QUARTERLY NET PROFIT MARGIN
Net operating earnings after taxes for the latest quarter divided by revenues for the quarter.
 
QUICK RATIO
Indicates a company's financial strength; a company's cash and equivalent divided by current liabilities. This ratio is somewhat more stringent that the "acid test" ratio which includes all current... read more
 
QUILTER PLC
23 - 04 - 2020
Quilter Plc (QLT) is a company spun out of Old Mutual as part of that group’s "managed separation" process. It was admitted to trading on the London Stock Exchange (LSE)... read more
 
QUOTATION
The actual price or the bid or ask price of either cash commodities or futures or options contracts at a particular time.
 
QUOTED
A security whose prices are quoted on the price page of the newspaper. Not all listed securities are quoted. For example, preference shares are usually not quoted, unless they are either convertible... read more
 
QUOTRON
A proprietary financial data service.
 
RALLY
A temporary upturn in the price of a share or index or other data stream, which occurs during an overall bear trend. The opposite of a correction.
 
RALLY TOPS
A series of tops in an established ongoing trend. A bull trend will have a number of rally tops as bulls and bears get in and out of the market. Although the general sentiment in a bull trend... read more
 
RAND COST AVERAGING
The idea of buying more of an investment after a large price move so that the average price is less volatile. Unit trusts make much of this idea because most investors buy small quantities of... read more
 
RAND HEDGE
Some companies listed on the JSE, receive most of their income in a foreign currency like US dollars, yen or British pounds. These companies benefit directly when the rand falls in value because... read more
 
RAND MERCHANT BANK HOLDINGS LTD
17 - 04 - 2020
Rand Merchant Bank Holdings (RMH) is a company which owns 34,1% of Firstrand and, since 2016, has been investing in property. RMBH was started 41 years ago by GT Ferriera,... read more
 
RAND MERCHANT INVESTMENT HOLDINGS LTD
17 - 03 - 2020
Rand Merchant Investment Holdings (RMI) is an investment holding company which owns a financial services portfolio worth R56bn consisting of 25% of Discovery, 29,9% of UK... read more
 
RANDGOLD & EXPLORATION COMPANY LIMITED
02 - 04 - 2020
Randgold (RNG) is a mining exploration company. It has a strong asset base which is mostly in cash which is being used to pursue legal claims and may be applied to investment... read more
 
RANDOM WALK
A theory that says there is no sequential correlation (no "dependence") between prices from one day to the next, and that prices will act unpredictably as they seek a level in response to supply... read more
 
RANGE
The difference between the high and low price during a given period.
 
RATE
A forex term used to describe the price of one currency in terms of another, typically used for dealing purposes.  
 
RATE OF CHANGE
 
RATINGS AGENCY
An agency that rates the debt instruments of governments, parastatals and companies. There are three primary ratings agencies - Fitch, Standard & Poors and Moodys. Their ratings have a major... read more
 
RATINGS DOWNGRADE

The world has three major ratings agencies, Fitch, Moodys and Standard and Poors that constantly monitor and... read more

 
RATIO
The relationship between two figures from the financial statements, designed to show the profitability or effectiveness of the management within a company. Ratios have no absolute significance,... read more
 
RAUBEX GROUP LIMITED
04 - 06 - 2020
Raubex (RBX) is a construction company that was started in 1974 and listed on the JSE in 2007. The company has three divisions in construction, materials and infrastructure.... read more
 
RAVEN PROPERTY GROUP LIMITED
02 - 09 - 2019
Raven Property Group (previously Raven Russia) (RAV), which took a secondary listing on the JSE from 10th September 2018, specialises in property in Russia and it is the 18th... read more
 
RCL FOODS LTD
10 - 03 - 2020
RCL is a large producer of food, sugar products and chicken in South Africa which is owned 78% by Remgro. The company owns a number of very well-known South African brands... read more
 
RDI REIT PLC
14 - 05 - 2020
RDI (RPL) is a real estate investment trust (REIT) listed on the London Stock Exchange (LSE) and incorporated into the FTSE 250 index. It has a secondary listing on the JSE... read more
 
REACTION
A short-term decline in price.
 
REAL BODY
That part of a candlestick chart which appears between the opening and closing prices. Normally, if the close is below the open, the bears are said to have won the day and the candle is coloured... read more
 
REAL ESTATE INVESTMENT TRUST
The standard and internationally recognised structure for a property investment company. REITs (pronounced "reet") came into effect in South Africa from the beginning of 2012. These are listed... read more
 
REAL RETURN
The return on an investment after inflation and tax have been deducted. The return before inflation is deducted is known as the nominal return. You should remember that the after-tax real return... read more
 
REAL VALUE
The real value of a share only exists as an opinion. Everyone has an opinion about whether a share is over- or under-priced. In relation to what? In relation to their perception of its real value.... read more
 
REAL-TIME QUOTES
Market quotations which are not delayed.
 
REALISED PROFIT/GAIN
A profit, which is actually in the bank, as opposed to a market appreciation. If you buy shares for R10 and they rise to R12 then you have a market appreciation of R2. Only if you then sell them... read more
 
REALISED/UNREALISED P/L
 
REBOSIS PROPERTY FUND LTD
26 - 03 - 2020
Rebosis (REB) was the first substantially black-owned and black-controlled real estate investment trust (REIT) listed on the JSE. It has a 50% exposure to retail property... read more
 
RECESSION
A cyclical period of lower economic activity, occurring at regular intervals; as opposed to a depression, which is a period of major economic downturn with high unemployment and declining gross... read more
 
RECKLESS LENDING
The National Credit Act does not allow financial institutions to lend money to people who cannot afford to repay it. Under the Act, the financial institution must ensure that the borrower has... read more
 
RECM & CALIBRE
RECM and Calibre (RACP) is an investment holding company which has listed its preference shares on the JSE since June 2010. The company is controlled by Theunis de Bruyn, Piet Viljoen and Jan... read more
 
RECM AND CALIBRE LIMITED PREFS
11 - 11 - 2019
RECM and Calibre (RACP) is an investment holding company which has listed its preference shares on the JSE since June 2010. The company is controlled by Theunis de Bruyn,... read more
 
RECORD DATE
The day determined by the issuer on which the holding, upon which the entitlement is based, is ascertained.
 
RECTANGLE
A charting formation in which a share's (or any security) price is bound between two horizontal lines. The upper horizontal line represents resistance at that price level. The bottom horizontal... read more
 
REDEEMABLE PREFERENCE SHARE
This refers to preference shares or debentures, which are issued with the specific undertaking that they will be bought back or paid out by the company at a certain future date. So redeemable... read more
 
REDEFINE PROPERTIES LIMITED
08 - 05 - 2020
Redefine (RDF) is the second largest real estate investment trust in South Africa (after Growthpoint) with assets worth R108bn against a market capitalisation of R48bn. The... read more
 
REDEMPTION DATE
The date on which redeemable preference shares or debentures will be redeemed or paid back by the company. These are really forms of long-term indebtedness, which clearly have to be paid back... read more
 
REGISTERED FINANCIAL SERVICES PROVIDER
Any person or organization that wishes to engage in the business of asset management or investment advice must first register with the Financial Services Board as a "Financial Services Provider"... read more
 
REGISTRAR OF COMPANIES
An old term used under the old Companies Act. Under the new Companies Act (71of 2008) the Registrar of Companies is replaced by the Companies and Intellectual Property Commission (CIPC). The... read more
 
REGISTRATION CERTIFICATE
When a company is registered with the Companies and Intellectual Property Commission (CIPC) the commission issues a registration certificate and the date of that certificate marks the commencement... read more
 
REGRESSION LINE
A regression line is a mathematical construct which is used in technical analysis - and especially in the construction of a time series moving average. A regression line is a line drawn through... read more
 
REGULAR TRADING HOURS
The standard, morning/afternoon trading sessions at the U.S. markets.
 
REINET INVESTMENT LIMITED
04 - 06 - 2020
Reinet (RNI) is an investment holding company whose main asset is a holding of roughly 3% of British American Tobacco (BAT) which now accounts for 40,6% of its net asset value... read more
 
REIT DISTRIBUTION
A Dividend paid out by a REIT to investors. REITs (Real Estate Investment Trusts) are investment vehicles listed on the JSE that provide exposure to income generating property. They are required... read more
 
RELATED PARTY TRANSACTION
A related party is one who has an interest in a transaction made by a company and yet stands to gain from the transaction. In other words, he/she has a conflict of interest. Normally when this... read more
 
RELATIVE RETURN
The annualised return on an investment in excess of the average three-month US Treasury bill yield during the same period as the investment. This statistic measures the return on an investment... read more
 
RELATIVE RETURN STANDARD DEVIATION
Measures the amount of variability of the relative return. A large relative return standard deviation indicates that the relative return experienced during the holding period fluctuated dramatically... read more
 
RELATIVE STRENGTH INDEX
An indicator invented by Welles Wilder, Jr (see his book, New Concepts in Technical Trading Systems) and used to ascertain overbought/oversold and divergent situations. The RSI is a momentum... read more
 
REMAINING LIFE
An estimate of how long a mine will be able to extract gold (or other minerals) profitably, given the lease area and the expected grade. Clearly an assumption has to be made about the future... read more
 
REMGRO LIMITED
17 - 04 - 2020
Johann Rupert's Remgro (REM) is an investment holding company which owns 28,2% of Rand Merchant Bank Holdings (RMH) and 3,9% of Firstrand. RMBH owns 34,1% of Firstrand too... read more
 
RENERGEN LIMITED
07 - 05 - 2020
Renergen (REN) describes itself as an "integrated alternative energy business" which invests in renewable energy projects in Africa. The company listed on the JSE in June... read more
 
RENKO CHARTING
A kind of charting, similar to point and figure, that does not take time into account. Invested by the Japanese, renko charting focuses on changes in the price movement that satisfy a specific... read more
 
RENMINBI
The unit of the Chinese currency - also called a "yuan", which means "round".
 
REPLACE ORDER
To modify an existing, pending or working order.
 
REPO RATE
This is the "repurchase rate" - an interest rate which is set by the supply and demand for money between the Reserve Bank and the commercial banks. The rate is effectively controlled by the Reserve... read more
 
REPORTABLE IRREGULARITY
Auditors are required to report anything which they find during the course of their audit which indicates fraud, a breach of fiduciary duties, or anything which might cause the shareholders of... read more
 
RESERVE
A figure from the liabilities side of the balance sheet, which is money ploughed back into the business out of profits, arising from a revaluation of assets, or money set aside for the redemption... read more
 
RESERVE ARISING ON ACQUISITION
A reserve which arises as a result of a holding company paying less for a subsidiary than its book value. The difference is shown in the balance sheet as a liability.
 
RESIDUAL VALUE
The standard deviation of the unexplained portion of the monthly return.
 
RESILIENT REIT LTD
21 - 02 - 2020
The Resilient group of companies (Resilient, Lighthouse - previously Greenbay, Rockcastle and Fortress) used to be the high-flyers of the property sector until the beginning... read more
 
RESISTANCE
A price level at which rising prices have stopped rising and either moved sideways or reversed direction; usually seen as a price chart pattern. Resistance levels are normally caused by one or... read more
 
RESISTANCE LINE
On a chart, a line drawn indicating the price level at which rising prices have stopped rising and have moved sideways or reversed direction.
(image) read more
 
RESOLUTION
There are two types of resolutions which can be voted and passed at shareholder meetings. The ordinary resolution which usually deals with normal business like the appointment of directors and... read more
 
RESOURCE GENERATION LIMITED
06 - 04 - 2020
Resource Generation (RSG) is a junior coal mining company that is busy developing the Boikarabelo mine in the Waterberg in Limpopo Province. The company listed on the Australian... read more
 
RESOURCE NATIONALISM
The process whereby particularly African governments seek to get a higher return or ownership of companies involved in mining and the exploitation of natural resources. Governments in Africa... read more
 
RESTING ORDER
An order placed with a condition or qualifier but not yet executed.
 
RETAINED EARNINGS
That portion of a company's profits which is ploughed back into the business rather than paid out as dividends - so the equation is: profits (earnings) - dividends = retained earnings. Companies... read more
 
RETENDER
In specific circumstances, some contract markets permit holders of futures contracts who have received a delivery notice through the clearinghouse to sell a futures contract and return the notice... read more
 
RETENTION RATE
Percentage of a firm's after-tax profits that can be put to those earnings retained.
 
RETRACEMENT
A price movement in the opposite direction of the trend. These are corrections (in a bull trend) or a rallies (in a bear trend). A retracement implies that some of the ground lost or gained is... read more
 
RETURN
The return on an investment consists of income plus capital gain expressed as an annualized percentage of the original investment. The income can take the form of a dividend (shares), interest... read more
 
RETURN ON ASSETS
The net earnings of a company expressed as a percentage of its assets.
 
RETURN ON CAPITAL EMPLOYED
A ratio used to measure pre-tax profitability. It may be calculated as pre-tax profit plus interest paid, divided by total shareholders' funds.
 
RETURN ON EQUITY
The net earnings of a company divided by its equity.
 
REUNERT LIMITED
18 - 11 - 2019
Reunert (RLO) is a company in electrical appliances, electrical engineering and information communications. The company has been in existence for 130 years and listed for... read more
 
REVALUATION (OF ASSETS)
When a company purchases an asset the transaction is normally recorded in the books of account at purchase price (known as the book value). In time, however, the asset may come to be worth more... read more
 
REVERSAL SIGNAL
A term used in technical analysis to describe a formation found either at the top or bottom of a trend which signals that the trend is about to be reversed. Candlestick formations commonly form... read more
 
REVERSAL SIZE
In point and figure charting the number of reverse boxes required (set by the user) to indicate a change in the direction of the trend. So for example, in an upward trend, if the box size is... read more
 
REVERSAL STOP
A stop that, when hit, is a signal to reverse the current trading position, i.e., from long to short. Also known as stop and reverse.
 
REVERSE EXPONENTIAL MOVING AVERAGE
An exponential moving average computed working backward through the time series, rather than forward, as is the case with a standard EMA. A REMA is used so the target would reflect only future... read more
 
REVERSE HEAD AND SHOULDERS FORMATION
The opposite of a head-and-shoulders formation, this formation normally comes at the bottom of a long down-trend and signals the end of that down-trend. The market makes a left shoulder with... read more
 
REVERSE TAKE OVER
Where a company buys assets, the value of which greatly exceeds its net asset value in exchange for the majority of its shares - so that the seller of the assets ends up with a controlling stake.... read more
 
REWARD-RISK RATIO
Monthly excess return to risk comparison, calculated by dividing alpha by standard deviation. A ratio better than 0.4 is excellent.
 
REX TRUEFORM GROUP LIMITED
06 - 04 - 2020
Rex Trueform (RTO) is an extremely thinly-traded company listed on the JSE - which makes it completely impractical for private investors in its current form. The company was... read more
 
RH BOPHELO LIMITED
14 - 10 - 2019
RH Bophelo (RHB) is a black-owed African healthcare company that listed on the JSE in July 2017 as a "special purpose acquisition company" (SPAC) after raising R500m (50 000... read more
 
RHODES FOOD GROUP LTD
26 - 05 - 2020
Rhodes (RFG) is a Western Cape manufacturer of convenience foods - started by Cecil John Rhodes in 1896. It has several well-known South African brands like Bisto, Bull Brand... read more
 
RICH
Price higher than expected.
 
RICKSHAWMAN
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
 
RIGHTS ISSUE
An offer of additional shares to existing shareholders, usually at a discount to the current market price. When a company wishes to raise additional capital, one of the ways it can do so is by... read more
 
RISING THREE METHODS
A bullish candlestick signal, formed in the progress of an established uptrend, and used to predict the continuation of the current trend. This formation begins with a long green candle within... read more
 
RISK
The probability that a share price will go down rather than up. All investments have an element of risk, which is always harder to quantify, mathematically, than their return, and therefore very... read more
 
RISK (IMPLIED)
In which the formula produces the percentage overbought/oversold for a contract using the price, a moving average and the option's implied volatility.
 
RISK-ADJUSTED RETURN ON CAPITAL
Another measure of risk-adjusted profitability, derived as the ratio between P/L and value at risk.
 
RISK-OFF
A period when international investors are for some reason "spooked" and rush to take money out of more risky investments (like emerging markets) and place it in traditionally safe assets like... read more
 
RISK-ON
A time when short-term international investors feel comfortable with investing in more risky assets. This makes them inclined to invest in emerging markets like South Africa. During a risk-on... read more
 
ROAD ACCIDENT FUND LEVY
Road Accident Fund (RAF) levy. This is a levy collected on every litre of petrol sold for the road accident fund, which is used to pay out victims of accidents on our roads. In July 2018 the... read more
 
ROCKWELL DIAMONDS INCORPORATED
Rockwell (RDI) develops and operates alluvial diamond deposits. The company owns and operates the Wouterspan property in Douglas, South Africa. This property has previously been mined, but has... read more
 
ROLFES HOLDINGS LIMITED
07 - 11 - 2019
Rolfes (RLF) is a black-empowered chemicals company in the fledgling sector of the JSE which supplies products to the agricultural, chemicals, colourants, food ingredients... read more
 
ROLL
Substituting a far option for a near option on the same underlying instrument at the same strike price; also to roll forward or roll over.
 
ROLLOVER
 
ROTATION
Moving funds from one sector to another sector of the stock market as the business cycle unfolds.
 
ROTH IRA
 
ROUNDTURN
A completed futures transaction involving both a purchase and a liquidating sale, or a sale followed by a covering purchase.
 
ROYAL BAFOKENG PLATINUM LTD
04 - 05 - 2020
Royal Bafokeng Platinum (RBP) is a platinum company controlled by Royal Bafokeng Holdings (RBH) which holds about R32bn worth of assets on behalf of the Bafokeng tribe, a... read more
 
RULING PRICE
The price at which the last trade on a security took place, unless there was a higher bid or a lower offer. So, for example, if the most recent trade took place at 100c, but there is an offer... read more
 
RUNNING MARKET
A market wherein prices are changing rapidly in one direction with very few or no price changes in the opposite direction.
 
RUNNING TOTAL
Each day's value is added to yesterday's total or subtracted if the value is negative.  
 
S&P500 INDEX
An index of the 500 largest companies trading on Wall Street, weighted for their market capitalisation. The S&P is more representative than the Dow Jones which is a simple average of the... read more
 
SA CORPORATE REAL ESTATE FUND
17 - 03 - 2020
SA Corp (SAC) is probably one of the worst-performing real estate investment trusts (REIT) on the JSE at the moment. It owns a group of 199 industrial, retail, storage, residential... read more
 
SABVEST LIMITED
17 - 03 - 2020
Sabvest (SBV) is an investment holding company which listed on the JSE in 1988. Both its ordinary and "N" shares are listed and very thinly traded. It has investments in five... read more
 
SAFARI INVESTMENTS LIMITED
16 - 04 - 2020
Safari (SAR) is a real estate investment trust (REIT). The company owns 9 operational properties in South Africa - 8 retail outlets and one day-care center with a total value... read more
 
SAFE HAVE TAX RULE
In terms of the Income Tax Act, any share investment which is held for longer than 3 years is taxed only on the basis of capital gains and does not result in the investor being declared a share... read more
 
SAFEX
South Africa's licenced futures exchange under the Financial Markets Act. SAFEX is owned by the JSE.
 
SALES GROWTH
The growth in sales in a company.
 
SALES LOAD
A service charge of a mutual fund that is added to the costs of owning a stake in the fund.
 
SAME STORE SALES
The sales made by a retailer from the same stores which it owned in the previous financial period - as opposed to new store which have been opened in the current  financial period. Same store... read more
 
SANLAM LTD
06 - 04 - 2020
Sanlam (SLM) is one of the largest insurance and financial services groups in South Africa. It was established in 1918 and demutualised in 1998 then listed on the JSE and... read more
 
SANTAM LTD
06 - 04 - 2020
Santam (SNT) is South Africa's largest short-term insurer with about 22% of the market. This means that it does not engage in endowment insurance, annuities or any kind of... read more
 
SANTOVA LOGISTICS LIMITED
26 - 05 - 2020
Santova (SNV) is an international logistics company with 19 offices in 7 countries. The company designs, implements, coordinates, controls and monitors international supply... read more
 
SAPPI LTD
12 - 05 - 2020
Sappi (SAP) manufactures paper, dissolving wood pulp (DWP) and paper pulp internationally and supplies products in 150 countries. DWP is used to manufacture clothing, packaging... read more
 
SASFIN HOLDINGS LTD
27 - 03 - 2020
Sasfin (SFN) is a banking group that specialises in various types of finance for small businesses and high net-worth individuals. It was listed on the JSE in 1987. The company... read more
 
SASOL LTD
29 - 05 - 2020
Sasol (SOL) is a massive international chemicals and energy company which has its roots in the oil-from-coal technology developed during the apartheid era in South Africa.... read more
 
SATRIX
A financial institution providing (passive opposed to managed) investment products including exchange traded funds (ETF) and unit trusts. They also produce customized products to meet specific... read more
 
SATRIX 40 ETF
The Satrix Top 40 (STX40) is an ETF (exchange traded fund) that tracks the FTSE/JSE Top 40 providing exposure to the 40 largest shares, by market capitalisation, listed on the JSE.  The Satrix... read more
 
SATRIX DIVI
This an ETF which tracks the Dividend Plus Index (STXDIV) as closely as possible. The components of the Dividend Plus index are based on a one-year forecast of future dividend yields. This type... read more
 
SATRIX RESI
Satrix Resi (STXRES) is an index tracking fund, providing investors with the price performance of the FTSE/JSE Capped Resource index. It, together with various other ETFs, is produced and managed... read more
 
SATRIX SWIX
The Satrix Swix (STXSWX) exchange traded fund (ETF) is very similar to the Satrix Top 40, except that it reduces the weighting of those shares in the top 40 which have exposure to foreign investments... read more
 
SAUCER BOTTOM FORMATION
This is the name that technicians give to the bottom formation of a share price where it drifts out slowly from a strong downward trend and then begins to tentatively move upwards into a new... read more
 
SAUCER TOP FORMATION
A cycle top on a chart which drifts out and down in a gradual loss of momentum. This is as opposed to a "V" top which is very sharp and sudden. Also called an Umbrella Top, a Frying Pan Top,... read more
 
SAVI
 
SCALED INDEX
 
SCALLOP
Similar to the cup and handle formation, this chart formation occurs when price dips momentarily, forming a cup, before resuming its upward course. Typically bullish, the scallop form can be... read more
 
SCALP
In commodities, purchasing and selling in equal amounts so there is no net position at the end of the trading day; a speculative attempt to make a quick profit by buying at the initial offering... read more
 
SCALPER
A local trader in the pit who trades for small, short-term profits during the course of a trading session, rarely carrying a position overnight.
 
SCHEME OF ARRANGEMENT
A transaction which could change how a company is controlled. If the company's ownership is changed to the extent that there is a new controlling shareholder by whatever means, then the minority... read more
 
SCHRODER EUR REIT PLC
01 - 06 - 2020
Schroder European Real (SCD), Seriet, is a real estate investment trust (REIT) which specialises in providing investors with a reliable return by investing in properties in... read more
 
SCRIP
The physical share certificates(s).
 
SCRIP DIVIDEND
A dividend which is paid in additional shares rather than in cash. A company will offer a scrip dividend if it wants to retain cash in the business. And sometimes, dividends can be either in... read more
 
SEA HARVEST GROUP LTD
10 - 03 - 2020
Sea Harvest (SHG) is South Africa's most popular frozen fish brand with about 38% of the market. It is controlled by Brimstone which has a 54,92% stake. Sea Harvest catches,... read more
 
SEASONAL TREND
A consistent but short-lived rise or drop in market activity that occurs due to predictable changes in climate or calendar. For example, retailers tend to do a large percentage of their business... read more
 
SECOND ROUND INFLATION
Primary inflation occurs because the price of goods goes up and hence the purchasing power of the currency falls. Thus an element of primary inflation would be an increase in the petrol price.... read more
 
SECONDARY LISTING
Companies generally list on the main stock exchange of the country where they have most of their businesses. But as they diversify into other geographies, they often take a second listing in... read more
 
SECONDARY MARKET
The market made up of share transactions between members of the public, which do not directly involve the company that issued the shares. The primary market is where companies sell their shares... read more
 
SECONDARY SHARE
A secondary share is a share which is well-managed and has good markets, but does not have the financial muscle, history of profits or diversity of the blue-chips. These are sometimes referred... read more
 
SECONDARY TREND
Charles Dow identified three different lengths of movement in the stock market as part of his "Dow Theory". They were long-term trends which vary from 2 to 10 years or even longer, secondary... read more
 
SECTOR
A grouping of all shares in the same industry, usually represented by a sector index. If you look at the price page of your newspaper, you will see that the share market is divided into sectors.... read more
 
SECTOR EDUCATION TRAINING AUTHORITY
SETA's are probably one of the worst innovations of the ANC government. They were initially aimed to create a skilled labour force, but have turned into massive bureaucratic structures that achieve... read more
 
SECTOR FUND
A mutual fund that concentrates on trading a range of securities within a broad industry group, such as technology, energy or financial services.  
 
SECTOR ROTATION
When a block of investment professionals cash out of one industry sector to invest in another.
 
SECULAR TREND
A long term trend that persists for a virtually indefinite period.
 
SECURITIES REGULATION PANEL
In terms of the Companies Act, the securities regulation panel is established to examine "affected transactions" where the control of the business changes hands. Examples include mergers, acquisitions... read more
 
SECURITIES SERVICES ACT
This is an old and out-dated piece of legislation that was replaced by the Financial Markets Act (19 of 2012) in mid-2014.
 
SECURITIES TRANSFER TAX
A tax which is charged on all share market transactions, as well as unlisted securities, at the rate of a quarter of a percent of the value of the transaction. SST is part of the dealing costs... read more
 
SECURITISATION
Where debt instruments like mortgage bonds are gathered under a new corporate entity and then shares in that corporate entity are on-sold. The 2008 sub-prime crisis was partly the result of retail... read more
 
SECURITY
A "catch-all" term for all types of paper assets which can be traded on an organized exchange or over-the-counter. Thus the term securities includes stocks, shares or debentures (issued by a... read more
 
SECURITY SELECTION RATIO
The percentage of trades in a given account that liquidate profitably.
 
SEED
The first value used to start a calculation. For example, an exponentially smoothed moving average (EMA) uses the previous day's EMA for the calculation. On the first day's calculation of the... read more
 
SEGREGATED ACCOUNT
A special account used to hold and separate customers' assets from those of the broker or firm.
 
SELECTNET
A Nasdaq execution technology.
 
SELF-REGULATORY ORGANISATION
Self-regulatory organisations (i.e.the futures exchanges and National Futures Association) enforce minimum financial and sales practice requirements for their members.
 
SELLER'S PRICE
The price at which someone is prepared to sell a share. At the end of the day's trade, there is often a seller who was not able to find a buyer for his shares at the price he wants, so that his... read more
 
SELLING PRESSURE
A high sell-off of a particular share or class of shares which creates excess supply in the market and so causes the price to fall.
 
SELLING SHORT
Here you can see that since the collapse of the oil price in the second half of 2014, the Sasol share price has been moving sideways between a support line at around R360 per share and strong... read more
 
SEMI-LOG 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
 
SENSITIVITY
The rate of change of the moving average in response to the movement of the underlying data. The most sensitive period is that in which the rate of change of the moving average is fastest in... read more
 
SEPHAKU HOLDINGS LIMITED
10 - 03 - 2020
Sephaku (SEP) is a construction materials business in South Africa which supplies ready-mixed cement products and cement to the construction industry. The group consists of... read more
 
SERVICES COMPANIES
A company which sells a service as opposed to a tangible product. Services companies have come to dominate the economies of first world countries. A services company has the advantage that it... read more
 
SETTLEMENT
The price at which all outstanding positions in a stock or commodity are marked to market. Typically, the closing price.
 
SETTLEMENT DATE
The date on which the transaction is due to be settled. In the STRATE environment transactions become due to be settled a prescribed number of days after the trade date. This is currently three... read more
 
SETTLEMENT PERIOD
One of the prescribed portions of the year for the settlement of Krugerrands (the weeks are numbered from 1 to 52, starting in January).
 
SETTLEMENT PRICE
The last price for a futures contract on any trading day, as determined by the exchange on which the futures contract is traded. The market may not actually have traded at the settlement price,... read more
 
SHADOW
The wick or tail, at one end or both, designating the high and/or low prices for the period upon which a candle is based. In order to create a candlestick chart, you must have a data set that... read more
 
SHARE
A part-ownership of a company. The ownership of companies is divided into individual shares which, if the company is listed on the JSE, can be bought and sold by members of the public through... read more
 
SHARE BUY BACK
The Companies Act (71 of 2008) allows a company to buy back its own shares in the open market, provided it can pass a solvency and liquidity test. To do this the company board of directors must... 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 is a vehicle specifically designed to raise capital from... read more
 
SHARE DEALER
Someone who deals in shares as their business. A person or organisation that buys and sells shares can be declared by the Receiver of Revenue to be a share dealer - in which case, any capital... read more
 
SHARE MARKET
A market place where securities or investment products can be bought and sold. The share market is, in fact, two markets – the primary market and the secondary market. In the primary market,... read more
 
SHARE SPLIT
Where a company decides to divide its existing issued share capital into more shares to increase tradability. For example, if a company with 10m shares in issue, trading for 1 000c in the market... read more
 
SHARE TRANSACTIONS TOTALLY ELECTRONIC
An electronic settlement system for the South African equities market.
 
SHAREHOLDER OF RECORD
Share owner of company stock as registered in company files.
 
SHAREHOLDER OF REFERENCE
A large, but not necessarily controlling shareholder. For example, PSG owns 30,7% of Capitec - which is a very substantial holding, but it does not have a controlling interest (i.e. more than... read more
 
SHAREHOLDERS FUNDS
The money which shareholders have invested in a company - as opposed to third parties like banks. These funds are derived from the sale of shares to the public, plus the accumulation of retained... read more
 
SHARPE RATIO METHOD
The Sharpe Ratio Method is the classic return/risk measure, often used to measure the affect of a new investment in a portfolio. Similar to this is the Sterling Ratio Method.
 
SHAVEN BOTTOM
 
SHAVEN CANDLESTICK
A candlestick which does not have shadows at both the top or bottom of the candle, indicating certainty.
(image)
Shaven... read more
 
SHAVEN HEAD
 
SHOOTING STAR
A top reversal candlestick formation consisting of a candle with a small body and a long upper shadow. This candlestick formation is the inverse of the hammer and derives its significance from... read more
 
SHOPRITE HOLDINGS LTD
28 - 01 - 2020
Shoprite (SHP) is the largest grocery retailer and consumer goods company in Africa. Intense price competition has prevented supermarkets from passing on price increases to... read more
 
SHORT INTEREST RATIO
A ratio that indicates the number of trading days required to repurchase all of the shares that have been sold short. A short interest ratio of 2.50 would tell us that based on the current volume... read more
 
SHORT NAME
Listed shares have three names - the long name, the short name and the JSE code. So for example, Edgars Consolidated Stores Ltd. is the long name for Edgars, Edcon is the short name and ECO is... read more
 
SHORT OPTION VALUE
The current market value of all short options in a trading account. This amount of cash would flow out of the account (in addition to any commissions and fees) in the event that the options were... read more
 
SIBANYE GOLD LTD
20 - 05 - 2020
Sibanye (SSW) is a mining house which has been on a rapid acquisition trail accumulating platinum and gold mines in South Africa and America. The company is run by Neal Froneman... read more
 
SIDEWAYS MARKET
A technical analysis term meaning a period of "backing and filling" where a share's price moves up and down within a tight range bounded on the upside by a "resistance line" and on the downside... read more
 
SIGNAL
In technical analysis (charting), a signal is usually either a "buy" or "sell" signal given when two charts cross over each other, a chart crosses a horizontal "buy line" or a formation indicates... read more
 
SIGNAL LINE
A moving average superimposed on an indicator, generating buy and sell signals. Two indicators which use a signal line are the MACD and the stochastic oscillator. Generally a buy signal occurs... read more
 
SIGNATURE MEDALLION GUARANTY
Program used by banks and other institutions to verify a signature.
 
SIGNIFICANCE
The probability of rejection on the basis of a statistical test and a hypothesis that there is no validity to the specific claim that two variations of the same thing can be distinguished by... read more
 
SILVERBRIDGE HOLDINGS LIMITED
20 - 02 - 2020
Silverbridge (SVB) is a small IT and communications company which focuses on the financial sector. The company operates in 4 divisions - software, outsourcing, data and digital... read more
 
SIMPLE MOVING AVERAGE
The arithmetic mean or average of a series of prices over a period of time. The longer the period of time studied (that is, the larger the denominator of the average), the less impact each individual... read more
 
SIMPLE PERCENTAGE STOP-LOSS
A strategy which allows an investors profits to accumulate while cutting his losses where a position goes against him. The simplest stop-loss strategy involves selling a share if it falls more... read more
 
SIMPLE REGRESSION
A mathematical way of stating the statistical linear relationship between one independent and one dependent variable.
 
SIMULATION
A training method which imitates the actions of the share market as closely as possible to enable investors to gain real-life experiences without the risks inherent in investing directly in the... read more
 
SINGLE STOCK FUTURES
Futures contracts on individual securities.
 
SINGLE STOCK LIMIT
A maximum percentage of a single equity share that can be held by an institution usually expressed as a percentage of their total portfolio. Most institutions (like pension funds, unit trusts... read more
 
SIRIUS REAL ESTATE LIMITED
20 - 05 - 2020
Sirius (SRE) is a real estate investment trust (REIT), listed on the JSE and the London Stock Exchange (LSE), which specialises in office, manufacturing and warehousing properties... read more
 
SLIPPAGE
The difference between estimated transaction costs and actual transaction costs.
 
SMALL ORDER EXECUTION SYSTEM
Computerised system developed by Nasdaq for immediate electronic execution of up to 1,000 shares of stock.
 
SMALL, MEDIUM AND MICRO ENTERPRISES
A definition used by the Department of Trade and Industry. SMME's are businesses with less than 150 employees, but most of them are one-man businesses, spaza shops and street vendors. They employ... read more
 
SMART MONEY
This refers to large, very well-informed investors who generally buy at or close to the bottom of a trend and sell at or close to the top. Smart investors, sometimes also called professional... read more
 
SMOOTHING
Removing the variability and market noise in a chart to reveal the correct underlying trend. This can be done by using a moving average, among other mathematical algorithms.
 
SNAPSHOT QUOTES
Market quotations which reflect the market price at a particular point in time. Such quotes do not refresh automatically but are refreshed when the user hits the reload button on his web browser... read more
 
SOCIAL AND ETHICS COMMITTEE
This is a diverse committee of experts from the community, academia, professionals and employees whose task it is to advise listed and government corporations on everything from empowerment to... read more
 
SOCIAL SCIENCE
A social science is an academic discipline which attempts to quantify some aspect of human behavior. The obvious examples are psychology and economics. Both of these disciplines attempt to measure... read more
 
SOCIALLY RESPONSIBLE INDEX
This index includes all companies that care about the environment and that look after the communities where they are located. The problem is that some big companies like Sasol which produce plenty... read more
 
SOLE TRADERS
A business run by a single natural person. Sole traders carry all the risk of their business. The risk and tax liability pass through the business to the sole trader himself. This makes this... read more
 
SOLVENCY
The ability of a company to pay its expected short-term liabilities out of its expected short-term assets and incomes. With the introduction of the new Companies Act (71 of 2008) company law... read more
 
SOLVENCY AND LIQUIDITY TEST
A test required by the Companies Act which requires the directors of a company to assert that the company can meet all its expenses out of its incomes for the next 12 months (liquidity) and that... read more
 
SOUTH AFRICAN INSTITUTE OF CHARTERED ACCOUNTANTS
The South African Institute of Chartered Accountants is the pre-eminent accounting body in South Africa. Its membership consists of qualified chartered accountants and its functions include offering... read more
 
SOUTH AFRICAN RESERVE BANK
The South African Reserve Bank is the central bank of the Republic of South Africa. The Bank was established in 1921 in terms of a special Act of Parliament, the Currency and Bank Act of 10 August... read more
 
SOUTH AFRICAN REVENUE SERVICES
The Receiver of Revenue in South Africa, tasked with collecting taxes and customs duties. Since the advent of the ANC government, tax collections in South Africa have improved noticeably, and... read more
 
SOUTH OCEAN LIMITED
23 - 03 - 2020
South Ocean (SOH) is a manufacturer of low-voltage electrical cables and an importer of light fittings and electrical accessories. The company has an electrical cable manufacturing... read more
 
SOUTH32 LIMITED
23 - 04 - 2020
South 32 (S32) was spun out of BHP Billiton in 2015 and contained all of BHP's South African coal assets. It is, in its own right, a diversified miner of base metals and minerals... read more
 
SOVEREIGN BANK NEXUS
This term refers to the relationship between commercial banks and the government of a country and more especially the exposure or risk of both commercial banks and governments because of their... read more
 
SOVEREIGN DEBT
A government's debt, mostly in the form of long-term government bonds. The interest cost of this debt obviously reduces the proportion of revenue available for social spending. The government's... read more
 
SPANJAARD LIMITED
12 - 12 - 2019
Spanjaard (SPA) is a very thinly-traded distributor and manufacturer of specialised lubricants and related products for industrial and automotive applications. It has operations... read more
 
SPEAR REIT LIMITED
20 - 05 - 2020
Spear (SEA) is a real estate investment trust (REIT) which specialises in properties in and around Cape Town. It was started by Mike Flax and the CEO is Quintin Rossi. Both... read more
 
SPECIAL DIVIDEND
When a company has surplus cash it can sometimes pay a special dividend over and above its normal interim and final dividends. Companies accused of having a "lazy balance sheet" with excessive... read more
 
SPECIAL ECONOMIC ZONES

Special Economic Zones (SEZ) grew out of the Industrial Development Zones (IDZ) which existed previously. There... read more

 
SPECIAL OFFSET
When a long position and a short position are specially matched and offset according to specific instructions from a customer, rather than according to standard industry offset practices.
 
SPECIAL PURPOSE ACQUISITION COMPANY
A listed JSE company that comes to the JSE with just cash and management with the direct intention of making acquisitions within a specified time frame. The JSE requires that those acquisitions... read more
 
SPECIAL RESOLUTION
A special resolution can only be passed with the approval of at least 65% of the voting shares of the company depending on the stipulations of the memorandum of incorporation (MOI). Special resolutions... read more
 
SPECIALIST
A trader on the market floor of the New York Stock Exchange assigned to fill bids/orders in a specific stock out of his/her own account when the order has no competing bid/order to ensure a fair... read more
 
SPECTRUM
The frequency decomposition of time series data. This is used to detect periodic fluctuations or cycles in historical price data.
 
SPECULATIVE SHARES
The word "speculative" is usually applied to smaller companies, usually newly-listed, which don't have a track record of profits and which can be viewed as risky "penny stocks". These shares... read more
 
SPECULATOR
A person who buys shares with the sole objective of making a quick capital gain. Usually, speculators concentrate on high-risk penny stocks or commodity shares where there is considerable movement.... read more
 
SPIKE
A sharp rise or fall in price in a single day or two; may be as great as 15-30%, indicating the time for an immediate sale or perhaps a purchase.
 
SPINNING TOP
A candlestick formation which consists of a small real body and long upper and lower shadows which represent a wide range of trading movement during the period. This formation signals a level... read more
 
SPLIT FILL
An order consisting of more than one lot, where contracts are filled at different prices. An order to sell 2 December Canadian Dollar contracts at .6200 stop might be reported as one contract... read more
 
SPOT MARKET
A spot market is a market where transactions are made for immediate delivery - like the share market. If shares are bought they must be delivered three days later (T+3). The derivatives market... read more
 
SPOT MONTH
In trading, the current contract month. Also known as the "front month".
 
SPOT PRICE
In futures markets, this term usually refers to a cash market price for a physical commodity that is available for immediate delivery. Whereas where forex is concerned, the term generally refers... read more
 
SPREAD ROLLS
Using a spread order to bridge the closing of one position and the establishment of a new one.
 
SPRING
A two-day pattern where the market declines below a support point on the first day and moves up strongly the next day into the congestion area.
 
SPUR CORPORATION LTD
20 - 05 - 2020
Spur (SUR) is a very well-known franchisor of fast-food restaurants in South Africa (where it has 559 restaurants with 80% able to trade during load-shedding) and has branches... read more
 
STADIO HOLDINGS LTD
10 - 03 - 2020
Stadio (SDO) is a tertiary education institution that offers a wide range of post-school training. The company offers higher education through five universities offering higher... read more
 
STAG
An investor who buys shares prior to a listing with the intention of selling them and making a profit as soon as the listing takes place.
 
STAGGING
The practice of buying shares in a new listing before it comes to the market with the objective of making a profit when trading begins.
 
STAGGING PROFIT
The profit made by an investor who buys a share before a listing, usually as part of a private placing, and then sells it immediately as it begins to trade on the market.
 
STAIR-STEPPING
Market activity characterised by a trend, then sideways movements, followed by another trend and further sideways movement.
 
STANDARD & POORS
A ratings agency which, together with Fitch and Moodys, rates the bonds and other debt instruments of governments, parastatals and companies. It also produces indexes of leading stock markets... read more
 
STANDARD BANK GROUP LTD
28 - 04 - 2020
Standard Bank (SBK) is South Africa's second largest bank by market capitalisation - after First National Bank. It has widespread interests in the rest of Africa which are... read more
 
STANDARD DEVIATION
A statistical measure of deviation from the average. The first standard deviation is the first 34,13% of occurrences closest to the average (or mean) on either side of it. The second standard... read more
 
STANDARDISED UNANTICIPATED EARNINGS
A company's average earnings surprise is compared with analyst earnings estimates dispersion, which can be used to estimate the likelihood of earnings surprises.
 
START UP
A business which has just started. Usually businesses begin as sole traders or partnerships and then progress from that to becoming private companies and finally public companies. Then, if they... read more
 
STATIONARITY
A distribution of a quantity that does not change over time.
 
STATIONARY TIME SERIES
Implies that no trend is observed in the time series. Identified when the time series has a constant mean and variance.
 
STATISTICS
The collection, study and analysis of large quantities of data in order to facilitate interpretation and forecasting. In the context of the share market, various economic statistics which are... read more
 
STATISTICS SOUTH AFRICA
A government department which accumulates and analyses information about the South African economy. The Statistician General runs the department and collects figures for population, economic... read more
 
STATUTORY MERGER
 
STEFANUTTI & BRESSAN HOLDINGS LIMITED
14 - 04 - 2020
Stefanutti (SSK) is a South African construction company which offers roads and earthworks, marine construction, concrete structures, bulk pipelines, piling, geotechnical... read more
 
STEINHOFF INT HOLDINGS NV
20 - 05 - 2020
This share has been the subject of considerable drama since the Viceroy Report was produced in December 2017. Basically, the company has admitted to "accounting irregularities"... read more
 
STELLAR CAPITAL PARTNERS LTD
17 - 03 - 2020
Stellar Capital (SCP) is an investment holding company with interests in financial services companies (Prescient, Friedshelf and Praxis). In its results for the six months... read more
 
STENPROP LIMITED
11 - 05 - 2020
Stenprop (STP) is a real estate investment trust (REIT) which is listed on the London Stock Exchange and the JSE. It owns commercial property in the UK, Switzerland and Germany.... read more
 
STERLING RATIO METHOD
A measurement ratio used mostly when evaluating hedge funds. The ratio measures returns versus volatility, and is similar to the Sharpe Ratio.
 
STOCHASTIC OSCILLATOR
A short term indicator developed by George Lane, identifying buy and sell signals in a particular security. The indicator compares the closing price to a range of trade over a certain period.... read more
 
STOCK EXCHANGE CONTROL ACT No 1 of 1985
The statute regulating the establishment and operation of stock exchanges in South Africa. The Act also governs the trading of listed securities, and the constraints on the broking profession.... read more
 
STOCK EXCHANGE NEWS SERVICE
The Stock Exchange News Service - A news service run by the JSE on which listed companies are required to announce everything of importance to the company - such as their financials, the dealings... read more
 
STOCK EXCHANGE TRADING SERVICE
The London Stock Exchange's "Stock Exchange Trading Service" (SETS) electronic order book. The London Stock Exchange sold its Sets order-driven trading system to the JSE Securities Exchange South... read more
 
STOCK INDEX FUTURES
A futures contract traded that uses a market index as the underlying instrument. Typically, the value of the contract is $500 times the underlying index. The delivery mechanism is usually cash... read more
 
STOCK TURN RATIO
A ratio which shows how quickly a company is turning over its stock. Obviously, companies are always trying to minimise the amount of stock which they hold, because it represents cash which could... read more
 
STOCKBROKER
A member of the stock exchange who has passed the required exams and been accepted by the stock exchange. All the transactions done on the JSE must go through a registered stockbroker. These... read more
 
STOCKBROKING ACCOUNT
Before you can buy shares on the stock exchange, you must first open a stockbroking account and deposit some funds into it. Stockbrokers offer two types of accounts - discretionary and non-discretionary.... read more
 
STOCKBROKING FIRM
To buy and sell shares on the Johannesburg Securities Exchange, you will need to open an account with a stockbroking firm. Stockbroking firms employ stockbrokers who have passed the necessary... read more
 
STOP AND REVERSE
A stop that, when hit, is a signal to reverse the current trading position, i.e., from long to short. Also known as reversal stop.
 
STOP ORDER
An order that becomes a market order when the futures contract reaches a particular price level. A sell stop is placed below the market, a buy stop is placed above the market.
 
STOP-CLOSE-ONLY ORDER
This order type is used by the trader who desires his stop order to be filled only if elected in the closing range of trading. Since this order type may not be filled until the closing range,... read more
 
STOP-LIMIT ORDER
Used by the trader who doesn't wish to be filled any worse than his stop price. Here, the stop and limit prices specified on the order are one and the same. This order becomes a straight limit... read more
 
STOP-RUNNING
After a trend, the market will enter into a trading range and have a tendency to trade to levels where stop-loss orders have been placed.
 
STOP-WITH-LIMIT ORDER
Used by the trader who wishes to give the floor broker a limit as to how far through the specified stop the order may be filled. Two prices must be stipulated when the order is placed -- the... read more
 
STOPS
Buy stops are orders that are placed at a predetermined price over the current price of the market. The order becomes a "buy at the market" order if the market is at or above to the price of... read more
 
STOR-AGE PROPERTY REIT
21 - 05 - 2020
Stor-age (SSS) is the JSE's only real estate investment trust (REIT) which specialises in buying and running domestic storage facilities in all major South African cities... read more
 
STRADDLE
The purchase or sale of an equivalent number of puts and calls on an underlying stock with the same exercise price and expiration date.
 
STRANGLE
The purchase or sale of an equivalent number of puts and calls on an underlying stock with the same expiration date but a different exercise price. Usually, the put has a low strike price and... read more
 
STRATE
South Africa's central securities depository. All the trades done on the JSE are settled by STRATE - in other words, the seller is paid and the buyer receives his shares. STRATE also keeps a... read more
 
STRATE SETTLEMENT COST
A tiny percentage of the value of all transactions, the Strate Settlement Cost is about 0,00546% of the value of transactions up to a value of R200 000.
 
STREET NAME
Stock ownership in which shares are registered to a brokerage or other financial institution and held.
 
STRIKE ACTION
Strike action is a major factor in labour-intensive industries in South Africa - like the mining industry and the metals industry. The labour legislation in this country is skewed heavily in... read more
 
STRIKE PRICE
The price per unit at which the holder of an option may receive or deliver the underlying unit; also known as the exercise price.
 
STRIPS
An option strategy in which an investor buys one call and puts two on the same underlying security with the same exercise price and expiration date.
 
STRONG HANDS
Investors in a particular share who are in possession of information which convinces them of the good prospects of a company. This means that they will hold the shares, even if they begin to... read more
 
STRUCK
The price at which an exercised option delivers the underlying securities.
 
SUB-PRIME CRISIS
In 2007/8 the property market in America collapsed. Mortgage bonds on tens of thousands of properties had been securitised and sold to banks all over the world. As property owners scrambled to... read more
 
SUBSCRIBER
A term from the old Companies Act used to refer to those people who start a company. With the advent of the new Companies Act (71 of 2008) in May 2011 the people who start their own companies... read more
 
SUBSIDIARY
The Companies Act (71 of 2008), states that a company is considered to be a subsidiary of another company if the parent company owns more than 50 % of voting rights in that company or it has... read more
 
SUKUK
An investment certificate or bond which is compliant with Islamic Shariah law. South Africa has a Muslim population of approximately 2m people. In terms of Shariah law a bank may not pay interest... read more
 
SUM-OF-THE-PARTS
A method of valuing a company by valuing its separate divisions of parts and then adding them up to arrive at a total value for the company. This gives a different (usually higher) value than... read more
 
SUN INTERNATIONAL LTD
21 - 04 - 2020
Sun International (SUI) is a casino and hotel operator with interests in South Africa, Chile, Peru and recently, Argentina. The depressed economy in South Africa has impacted... read more
 
SUPER GROUP LTD
14 - 04 - 2020
Super Group (SPG) is a large international logistics group offering transportation to the industrial sector. The company has a policy of not paying dividends, preferring to... read more
 
SUPPORT
A historical price level at which falling prices have stopped falling and either moved sideways or reversed direction; usually seen as a price chart pattern.
(image)... read more
 
SUPPORT LINE
On a chart, a line drawn indicating the price level at which falling prices have stopped falling and have moved sideways or reversed direction. This usually happens because one or more large... read more
 
SUSPENDED SHARE
A share that the JSE has suspended from trading for a period of the time. Usually, this occurs where some material event is about to occur which will drastically effect the share price. Until... read more
 
SUSTAINABILITY
A buzz-word which came into fashion in 2015 with the King 3 report on corporate governance. Sustainability is the ability of a corporation to continue with its various activities in a manner... read more
 
SWAPS
The sale of one security to purchase another with similar features.
 
SWING CHART
A chart that has a straight line drawn from each price extreme to the next price extreme based on a set criteria such as percentages or number of days. For example, percentage price changes of... read more
 
SYDNEY ALL SHARE INDEX
The Australian All Ordinaries Index is a weighted average of the 500 largest companies trading on the Australian Securities Exchange (sometimes also known as the "Sydney Stock Exchange"). This... read more
 
SYGNIA LTD
01 - 06 - 2020
Sygnia (SYG) describes itself as a "specialist financial services group". It is South Africa's largest provider of exchange traded funds (ETF) and has a number of unit trusts.... read more
 
SYMMETRICAL TRIANGLE FORMATION
Two converging trendlines, more or less equally but inversely sloped, which connect a series of peaks and troughs. A break out upwards signals the beginning of a bull trend. A break downwards... read more
 
SYNERGISTIC MARKET ANALYSIS
Also known as synergistic analysis. An analytical method that merges technical and fundamental analysis with an emphasis on inter-market analysis.
 
SYNERGY
This is a fashionable word to denote gains made in addition to the sum total of the parts when two business concerns are joined. The basis of the concept in some mergers is that the net advantages... read more
 
SYNTHETIC SECURITIES
Security created by buying and writing a combination of options that imitate the risk and profit profile of a security.
 
SYSTEMATIC RISK
The risk which attaches to the market itself as opposed to the risk that attaches to a specific share (unsystematic risk).  This refers to the risk you take when investing in shares that the... read more
 
SYSTEMIC RISK
This risk refers to the scenario when a disruption at an institution such as the JSE or a bank or the STRATE settlement system could cause a "domino effect" throughout the financial markets toppling... read more
 
T
The symbol for a transaction's date used by the JSE. Thus T is the date on which a transaction takes place, T+1 is the next trading day, T+n is the day after that and so on. Today the JSE guarantees... read more
 
TAINTED SCRIP
Shares certificates and other securities which are fraudulent or forged. Since the advent of dematerialisation all shares have been converted to electronic records maintained by STRATE. One of... read more
 
TAKE-OVER
The situation where one company makes an offer for some or all of the shares of another company. The offer to existing shareholders is usually pitched at a price well above the existing market... read more
 
TAKE-UP PRICE
The price at which shares subject to a rights issue must be bought. Normally this price is below the market value of the shares, so that the rights themselves have a value. If the rights are... read more
 
TAKEOVER PANEL
A panel of 17 people whose job it is to examine mergers and acquisitions or any transaction which might change the control of a company. The panel includes the commissioners of the Competition... read more
 
TAKING A VIEW
This phrase has two meanings. Firstly, it can refer to an investor taking a bullish or bearish view of the market depending on whether he believes market trends will rise or fall - usually this... read more
 
TANGIBLES
Cash equivalents of the futures contracts.
 
TARGET STOP-LOSS
Once a share that you have bought is "in-the-money" (i.e. your stop-loss level has moved above the price you paid for the share), then you can apply a "target percentage growth line". What this... read more
 
TASTE HOLDINGS LIMITED
19 - 03 - 2020
Taste (TAS) consists of two businesses - a food franchisor and a luxury goods retailer. Taste had master franchises in Southern Africa for Starbucks and Dominoes. The Luxury... read more
 
TAX BASE
The group of people and companies in a country who pay tax. One of the most challenging problems of the new South Africa has been to widen the tax base to include more people. Obviously, if the... read more
 
TAX EXEMPT SAVINGS ACCOUNT
The TFSA was brought in in 2015 to encourage people to save. It is a savings account which attracts no income tax, capital gains tax or interest tax. Each natural person can have one TFSA into... read more
 
TAX-DEFERRED
In which an investment allows an investor to postpone paying taxes on money put into the investment until the investor literally takes possession of the money invested.
 
TAXABLE INCOME
Your taxable income is your total income for the tax year less whatever expenses you have incurred in generating that income. Once you have calculated your taxable income you can subtract any... read more
 
TECH SHARES
Technology shares world-wide are becoming more and more important as computers, cell phones and the internet become more powerful and ubiquitous. In America, most tech shares are listed on the... read more
 
TECHNICAL ANALYSIS
The analysis of group investor behaviour, as reflected in the patterns of share prices and volumes, indices, exchange rates and other data streams. More commonly known as charting, this consists... read more
 
TECHNICAL INDICATOR
A technical indicator is a mathematical formula which is applied to price and volume data for shares (and other securities) to identify and isolate patterns which may then be used to predict... read more
 
TECHNICAL RECESSION
Two consecutive quarters of negative economic growth as measured by a country's gross domestic product (GDP),
 
TECHNICAL RISK
The risk inherent in the volatility of a share's price on the JSE - as opposed to the fundamental risk that the company's business will become less profitable. Obviously technical and fundamental... read more
 
TECHNICIAN
A technician is an investor who strives to predict the future progress of a share's price by studying patterns in its past price and volume performance. Technicians study the charts of shares... read more
 
TELEGRAPHER'S EQUATION
 
TELEMASTER HOLDINGS LIMITED
06 - 04 - 2020
Telemasters (TLM) is a company which supplies voice, data and cloud communications using fixed line, fixed cellular, fixed data and PBX services. It has three divisions -... read more
 
TELKOM SA SOC LTD
11 - 05 - 2020
Historically, Telkom (TKG) was the government-controlled provider of fixed line telephone connectivity in South Africa. With the advent of cell phones, Telkom was forced to... read more
 
TERM INSURANCE
Insurance which is aimed at covering you for a specific risk like your death or disability or the theft of your car or a house fire. This is as opposed to endowment insurance which is a type... read more
 
TERM STRUCTURE
Also known as yield curve. The slope of the term structure is the yield on long-term government bonds minus the yield on short-term instruments such as Treasury bills.
 
TEXTAINER GROUP HOLDINGS

11 - 05 - 2020

Textainer (TXT) is one of the world's largest lessors of containers with 3,5m twenty-foot-equivalent... read more
 
TEXTON PROPERTY FUND LTD
02 - 04 - 2020
Texton (TEX) is a small real estate investment trust (REIT). The company owns retail, industrial and office properties, 58,5% of which are in South Africa and the balance... read more
 
THARISA PLC
26 - 05 - 2020
Tharisa (THA) is a mining company that mines and beneficiates platinum group metals (PGMs) and chrome. The company is listed in London and on the JSE. The Tharisa mine on... read more
 
THE BIDVEST GROUP LTD
09 - 03 - 2020
Bidvest (BVT) is a highly diversified South African company with dozens of subsidiaries. Its most notable investments are 66% of Bidvest Namibia which also owns a large property... read more
 
THE EFFICIENT GROUP LIMITED
25 - 11 - 2019
The Efficient Group (EFG) is an asset management and financial services group managed by well-known economist, Dawie Roodt (who is also a 5,7% shareholder). It is involved... read more
 
THE FOSCHINI GROUP LTD
20 - 05 - 2020
The Foschini Group (TFG) is an international retailer of 28 fashion retail brands. It has outlets in 32 countries around the world. It has a division in London and one in... read more
 
THE MINERALS COUNCIL OF SA
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
 
THE SPAR GROUP LIMITED
20 - 05 - 2020
Spar (SPP) runs a chain of supermarkets across Southern Africa with 2349 stores. It also operates the Build-It chain in hardware and building materials and the Tops Liquor... read more
 
THETA
The measurement of the time decay of a position.
 
THINLY TRADED
A term used to describe a share which has a very small number of shares changing hands each day. The first criteria which a private investor should look at when assessing a share is its average... read more
 
THREE TIMES VOLUME RULE
Probably the most important criteria for you as a private investor when looking at which shares to purchase, this rule requires that you assess whether a security has sufficient volume traded... read more
 
THRUST
A comparison between the price difference of successively lower pivot bottoms or higher pivot tops. For example, a reduction in the difference between pivot bottoms shows loss of momentum; an... read more
 
TICK
A short horizontal line off a bar chart showing the opening price (to the left) or the closing price (to the right).
(image)
TICK INDICATOR
The number of stocks whose last trade was an uptick or a downtick.
 
TICK SIZE
A short horizontal stroke on a bar graph showing the price at which the share closed.
 
TIGER BRANDS LTD
26 - 05 - 2020
Tiger Brands (TBS) is a massive diversified food producer and marketer in South Africa. It produces and sells such well-known brands at Jungle Oats, Tastic Rice, Koo, All... read more
 
TIME AND SALES
Official exchange transcript of the prices at which a futures contract traded, as well as the precise times at which such trades occurred.
 
TIME SERIES
A term used to describe a list of numerical data accumulated at regular periodic intervals. The daily or weekly closing price of shares is a time series.
 
TIME SERIES MOVING AVERAGE
A time series moving average is not really a moving average in the strictest sense. It draws a line which is the end of a regression line. A regression line is a line through a set of points... read more
 
TIME VALUE
The difference between the premium paid for an option and the intrinsic value. As the option approaches expiration, the time value erodes, eventually to zero.
 
TIME VALUE DECAY
A term which describes the fact that the time value of an option diminishes as the option approaches the expiry date. Time value decay follows a negative exponential curve, which is to say that... read more
 
TIP
If you talk about the stock market socially with your friends and colleagues at work, you will certainly get tips on what to buy and what to sell from time to time.  The person who gives it... read more
 
TIP SHEET
A newsletter, which concentrates on giving its readers hot tips regarding which share to buy and sell and when to transact. Such letters should be followed with caution, and their advice used... read more
 
TISO BLACKSTAR GROUP LIMITED
09 - 04 - 2020
Tiso Blackstar (TBG) is primarily a media company with interests in South Africa and the rest of Africa. It owns iconic newsprint brands like the Sunday Times, Business Day... read more
 
TOKYO STOCK EXCHANGE
The stock exchange of Japan. The Nikkei index of the 225 largest companies trading on the TSE gives a very good idea of the performance of this market. The TSE opens in the early morning South... read more
 
TONGAAT-HULLET LTD
15 - 05 - 2020
Tongaat (TON) is two businesses - land development and sugar. The company owns 17600 hectares of land of which 9100 hectares along the Natal coast can be developed. The property... read more
 
TOO LATE TO CANCEL
When a trader attempts to modify or replace an order that has already been executed but not yet reported as having been filled, the order is said to be too late to cancel.
 
TOP
The highest point on a share price or other graph over a defined period. Obviously, as a private investor, you will be trying everything you know to determine the moment at which a share's price... read more
 
TOP DOWN
An approach to financial analysis which begins with a company's financial statements and attempts to assess how the company is doing based on what they contain. As opposed to a bottom-up approach... read more
 
TOP REVERSAL SIGNAL
A term used in technical analysis to describe a formation at the top of a trend which signals that the trend is likely to change and become a downward trend. Examples of such formations include... read more
 
TORRE INDUSTRIES LIMITED
Torre (TOR) is an industrial company which operates through various divisions. Torre itself supplies a range of branded products such as Gabriel, Autolite, Textar and High-lift to companies in... read more
 
TOTAL CLIENT SERVICES LIMITED
03 - 01 - 2020
This company claims to be an IT company supplying software and administration services to municipalities and provincial governments. It has no active website and the share... read more
 
TOTAL EQUITY
Money balance figure calculated by adding futures open trade equity (the gain or loss on open futures positions) to cash balance.  
 
TOUCH POINTS
A touch point is a the point on a chart where the share (or other data stream) touches a trendline. The more touch points that a trendline connects the more reliable it becomes. Consider the... read more
 
TOWER BOTTOM
A candlestick reversal signal which is the opposite of the tower top formation. The Tower Bottom, also call the Spike Bottom, takes form beginning with a long red candle followed by three or... read more
 
TOWER PROPERTY FUND LIMITED
21 - 04 - 2020
Tower (TWR) is a diversified property company which owns 43 properties worth approximately R5bn in South Africa and Croatia (6 properties accounting for 32% of the portfolio).... read more
 
TOWER TOP
A candlestick top reversal signal formed at the top of a well established trend in an uncertain market. The Tower Top, also call the Spike Top, takes form beginning with a long green candle followed... read more
 
TRADABLE INDEX
An index which can be traded through some type of derivative contract such as a futures contract. Derivative instruments like futures enable investors to buy or sell various JSE indexes either... read more
 
TRADE ACCOUNT
This, together with the Capital Account make up the Balance of Payments. The Trade Account shows the country's exports minus its imports - are we selling more to overseas people than they are... read more
 
TRADE SURPLUS
The trade account shows the value of South Africa's merchandise exports minus its merchandise imports. If the exports exceed the imports during a particular period, then the account is said to... read more
 
TRADE UNION
The trade union movement in South Africa has become a major force since the advent of democracy in 1994. The union movement was an important component of the ANC's gaining power and the labour... read more
 
TRADEABILITY
The ease with which a share can be traded. Some shares are free-dealing and highly tradeable, others are tightly held.
 
TRADEHOLD LIMITED
26 - 05 - 2020
Tradehold (TDH) is a real estate investment company with property in the UK (42,7%) and Southern Africa which is 48% owned by Christo Wiese. 40% of its assets are in the UK... read more
 
TRADING ASSETS
Usually taken as the company's debtors and stock - in other words, the assets which are normally tied up in the direct running of the business.
 
TRADING BANDS
Lines plotted in and around the price structure to form an envelope, answering whether prices are high or low on a relative basis and forewarning whether to buy or sell by using indicators to... read more
 
TRADING DAY
A normal business day during which trades can be made on the JSE - usually from 9am until 5pm. There are approximately 250 trading days in the year and 22 on average per month. End-of-day's data... read more
 
TRADING DENSITY
A term used to describe the ratio of sales to floor space in shopping malls. Real estate investment trusts (REIT) that own shopping malls watch the trading density in those shopping malls closely.... read more
 
TRADING FLOOR
A large room where stockbrokers gather during specific hours every working day to trade shares and other instruments on behalf of their clients and for their own account. There are very few trading... read more
 
TRADING IDEA
A strategy for making money from an investment. This can be as simple as buying a share which you think is going to go up, to complex strategies involving the use of derivative instruments and... read more
 
TRADING RANGE
The difference between the high and low prices traded during a period of time; in commodities, the high/low price limit established by the exchange for a specific commodity for any one day's... read more
 
TRADING STATEMENT
Listed companies are required by the JSE rules to publish on the Stock Exchange News Service a statement which gives an indication of their financial results which are about to be published.... read more
 
TRADING STRATEGY
A pre-determined concrete plan for buying and selling which does not rely on any abstract or subjective input. So, for example, you may decide to buy a certain share when its price moves above... read more
 
TRAILING STOP ORDER
This special order type allows the trader to profit from favourable movement in the market while having the protection of a Stop order. But it frees the trader from having to constantly monitor... read more
 
TRANS HEX GROUP LIMITED
04 - 07 - 2019 Trans Hex (TSX) is one of the longest standing diamond-mining operations listed on the JSE with more than 50 years in the business. For most of its life, Trans Hex mined diamonds... read more
 
TRANSACTION CAPITAL LIMITED
20 - 05 - 2020
Transaction Capital (TCP) is a company which specialises in financing, repairing, insuring and selling minibus taxis in South Africa. It completely dominates the entire value... read more
 
TRANSCEND RES PROPERTY FUND LTD
14 - 04 - 2020
Transcend (TPF) is an Alt-X listed real estate investment trust (REIT) which specialises in residential property. It listed at the start of 2016, but is exceedingly thinly... read more
 
TRANSFER AGENT
Financial institution that manages ownership records of company stock.
 
TRANSFER FUNCTION
The mathematical relationship between the output of a control system and its input for a linear system, it is the Laplace transform of the output divided by the Laplace transform of the input... read more
 
TRANSFER PRICING
A method of moving profits out of a high-tax regime into a low tax regime, used by multinational companies with subsidiaries or business interests in a variety of countries. By selling product... read more
 
TRANSFORM
A process to change or convert. For example, a simple moving average is a filter to reduce noise; the moving average is the transform function.  
 
TRANSPACO LTD
28 - 02 - 2020
Transpaco (TPC) is a small manufacturer of paper and plastic packaging. It is also involved in re-cycling. The overriding problem with this share is that it is very thinly... read more
 
TREASURY BILLS
Instruments for short-term borrowing employed by governments. The bills are issued by tender to the money market.
 
TREASURY SHARES
Shares of a company which it has bought back from shareholders. Treasury shares are normally destroyed, thereby reducing the number of shares which the company has in issue and so benefiting... read more
 
TRELLIDOR HOLDINGS LIMITED
02 - 04 - 2020
Trellidor (TRL) is a manufacturer of barrier security products, blinds and security shutters since 1976. The company is divided into the Trellidor business (security barriers)... read more
 
TREMATON CAPITAL INVESTMENTS LIMITED
04 - 05 - 2020
Trematon (TMT) is an investment holding company with subsidiaries, joint ventures and associate companies, mostly in the Western Cape. The company also invests in listed and... read more
 
TRENCOR LTD
06 - 04 - 2020
Trencor's (TRE) primary asset is 47,78% of Textainer, a US listed renter of shipping containers (Twenty-foot units or TEUs). It should be noted that Trencor spent R100m buying... read more
 
TREND
The general drift, tendency or bent of a set of statistical data as related to time. There are two types of primary trend - "bull trends" which are upwards and "bear trends" which are downwards.... read more
 
TREND DAY
A day in which the price of a futures contract moves consistently away from the opening range and does not return to the opening range prior to the close.
 
TREND FOLLOWING
Moving in the direction of the prevailing price movement.
 
TREND LINE
A line joining the high points on a bear trend and the low points on a bull trend. When the price breaks through the trend line this gives a trading signal. This is probably the simplest, but... read more
 
TRENDING MARKET
Price moves in a single direction, generally closing at an extreme for the day.
 
TRENDLESS
Price movement that vacillates to the degree that a clear trend cannot be identified.
 
TRI-STAR
A candlestick formation consisting of three consecutive doji candles found at either the top or bottom of a trend which signal the reversal of the trend. This is a very rare formation and should... read more
 
TRIANGLE FORMATION
A charting pattern that exhibits a series of narrower price fluctuations over time; top and bottom boundaries need not be of equal length. Trendlines are usually drawn along the upper highs and... read more
 
TRIANGULAR MOVING AVERAGE
A moving average in which each day's data are multiplied by a weight that increases in value at steady increments to a peak value and then declines to zero at equivalent increments. The sum of... read more
 
TRIPLE BOTTOM FORMATION
A technical analysis formation used to predict the bottom of a downward trend. Triple bottoms are quite rare in charting and they indicate a very strong base for upward movement. The pattern... read more
 
TRIPLE TOP FORMATION
A top reversal signal in technical analysis which signals the end of a well established uptrend. The formation occurs when the price chart of a share or another security forms three peaks at... read more
 
TRUE RANGE
The largest of the following: Today's high minus today's low, today's high minus yesterday's close, today's low minus yesterday's close.
 
TRUE STRENGTH INDEX
A momentum indicator developed by William Blau that double-smoothes the ratio of the market momentum to the absolute value of the market momentum.
 
TRUSTCO GROUP HOLDINGS LIMITED
31 - 12 - 2019
Trustco (TTO) is a financial services group operating out of Namibia and controlled by its CEO, Dr. Q. van Rooyen who holds just over 50% of the shares. The company has three... read more
 
TRUWORTHS INTERNATIONAL LTD
28 - 05 -2020
Truworths (TRU) is a clothing, footwear and accessories retailer that operates in Southern Africa and the UK, and is listed on the JSE and the Namibian Stock Exchange. It makes... read more
 
TSOGO SUN GAMING LIMITED
04 - 06 - 2020
Tsogo (TSG) is a gaming, hotel and entertainment business which has split into separate gaming and hotel businesses in order to unlock shareholder value and to enable each... read more
 
TULIP SECTOR
A sector that is the intense focus of speculators at the moment.
 
TURNING POINT
The approximate time at which there is a change in trend.
 
TURNOVER
A figure in the income statement of a company's financial statements which consists of the company's total sales or income figure.
 
TWEEZER BOTTOM
A bottom reversal pattern comprising of at least three candles and which signals the beginning of an upward trend. The Tweezer bottom requires that the last two candles in the formation have... read more
 
TWEEZER TOP
A top reversal candlestick formation consisting of three candles, the last two of which have the same, or nearly the same, highs. It does not matter whether these highs are shadows, bodies or... read more
 
TWIN PEAKS
This is a new regulatory environment for the banking and financial markets, first introduced by the then Minister of Finance, Pravin Gordhan on February 2011. In terms of the twin peaks model,... read more
 
TWK INVESTMENTS LIMITED
TWK (ZXTWI) describes itself as, "a diversified agriculture and forestry company, headquartered in Piet Retief, Mpumalanga. It operates mainly in Mpumalanga and Kwazulu-Natal, but with business... read more
 
TWO-WAY PRICE
When both a bid and offer forex rate is quoted by the dealer.
 
UBUNTU
A Zulu word which has found its way into the socio-economic jargon of the South African economy - and even into ideas on corporate governance. The word means "humanity" and has come to symbolise... read more
 
UNABLE
A working order which has not yet been able to be executed.
 
UNBUNDLE
To dispose of a subsidiary by handing the shares which the parent company holds directly to the parent company’s shareholders in proportion to their holdings. In some cases,... read more
 
UNCOVERED OPTION
The purchase or sale of an option without a position in the underlying futures contract; also known as a "naked option".
 
UNDER-PRICED
A security which is below its "real" value. Obviously, the real value of a share (or any other security) is a matter of opinion, so a share can be under-priced for some analysts and over-priced... read more
 
UNDERLYING FUTURES CONTRACT
The specific futures contract that the option conveys the right to buy (in case of a call) or sell (in the case of a put).  
 
UNDERLYING INSTRUMENT
A trading instrument subject to purchase upon exercise of a derivative instrument such as a future or option.  
 
UNDERWRITING
An agreement to buy all the units of a new issue not sold by a specific day. Banks typically underwrite new share issues, thus assuring the issuing company that all shares will be taken up.
 
UNEMPLOYMENT
The number or percentage of people in the economy who are trying to find work and cannot. In a first-world economy, this means that as many as 5% to 10% of workers can be unemployed depending... read more
 
UNENCUMBERED ASSETS
These are assets which have not been used in any way as a surety for any debt.
 
UNICORN CAPITAL PARTNERS LIMITED
06 - 04 - 2020
Unicorn Capital (UCP) is a company which outsources mainly to the coal mining industry. The company has been listed in the JSE's fledgling division since 1993 and went through... read more
 
UNIFORM GIFTS TO MINORS ACTS
A law that allows minors to own property without the use of a trust.
 
UNIMPAIRED
An adjective to describe an asset the value of which does not need to be reduced for any reason. For example, a debtors book may need to be impaired because some of the debtors will turn out... read more
 
UNION ACTIVITY
Union activity is a major problem in South Africa where labour legislation is skewed heavily in favour of employees and against employers. Strikes are common place in all of our labour-intensive... read more
 
UNION ATLANTIC MINERALS LIMITED
11 - 05 - 2020
Union Atlantic (UAT) is a junior mining operation which seeks to exploit base metals and minerals through brownfield exploration (development where the minerals have already... read more
 
UNIT TRUST
A collective investment scheme (in terms of the Collective Investment Schemes Act 45 of 2002) consisting of a management company like STANLIB and a trustee company (usually a bank) that invests... read more
 
UNIT TRUST CONTROL ACT
This act was replaced by the Collective Investment Schemes Control Act (45 of 2002).
 
UNIVERSAL PARTNERS LIMITED
18 - 02 - 2020
Universal Partners (UPL) is an investment holding company with a primary listing in Mauritius and a secondary listing on the Alt-X of the JSE. It listed in 2013 and has made... read more
 
UNLISTED INVESTMENT
A balance sheet item, normally shown by way of a note, and indicating share investments held by the company in unlisted companies which may be private or public.
 
UNSYSTEMATIC RISK
A term to describe that risk which attaches to a specific investment - as opposed to systematic risk which pertains to the market as a whole.
 
UPSIDE BREAK
An upward break above some form of resistance. Quite often a share's price will get stuck below a resistance line. When it breaks above this resistance that is known as an "upside break". Consider... read more
 
UPSIDE POTENTIAL
The potential for, and the extent to which, a specific security is likely to increase in value in the near future. As a private investor, your main focus should be on finding those shares with... read more
 
UPTHRUST
Occurs when price moves above a pivot top and a widespread reversal ensues as follows: a) two previous closes are reversed, b) close is below pivot top, c) close is below opening and mid-range,... read more
 
UPTREND
A period where a security's value and price move generally upwards. Uptrends can last from a few minutes to a decade or longer. The key is to determine when a new uptrend has begun so that you... read more
 
V-BOTTOM FORMATION
V-bottoms are a fairly rare formation in technical analysis and usually signal some sort of artificial interference in the progress of the market. For example, the V-bottom which occurred in... read more
 
V-TOP FORMATION
Changes in the direction of market sentiment from bullish to bearish represent points or periods at which the sentiment has shifted from positive to negative. Usually this takes place over a... read more
 
VACANCY RATE
This is the percentage of a property company's rentable space which is vacant. It is a key statistic in the assessment of real estate investment trusts (REIT) and property companies. It is especially... read more
 
VALUE ADDED TAX
A tax which is applied to the value added by an organisation to a product. The value added is measured by the difference between what a company paid for a product and what it is able to sell... read more
 
VALUE AT RISK
A measure of exposure within a given portfolio, which attempts to estimate how much the portfolio would be expected to lose, given the recent behaviour of the securities contained therein.
 
VALUE GROUP LIMITED
28 - 05 - 2020
Value Group (VLE) is a logistics company operating in Southern Africa with six divisions (1) Transportation (2) Distribution (3) Warehousing (4) Import and Export (5) Materials... read more
 
VALUE-WEIGHTED INDEX
A market average such as Standard & Poor's 500 Index that takes into account the market value of each security's market capitalisation rather than calculating a straight price average.
 
VARIABLE LIMIT
A price system that allows for larger than normal allowable price movements under certain conditions. In periods of extreme volatility, some exchanges permit trading at price levels that exceed... read more
 
VARIABLE RATE PREFERENCE SHARE
A preference share which receives a dividend based on a variable - like the prime overdraft rate from a specific bank. These shares are relatively rare, but they do exist. They have slightly... read more
 
VARIABLE-LENGTH MOVING AVERAGE
A moving average where the number of periods selected for smoothing is based on a volatility measurement of price. Typically, the standard deviation of price is used to measure price volatility.... read more
 
VARIATION MARGIN
Additional margin required to be deposited by a clearing member firm to the clearinghouse during periods of great market volatility or in the case of high-risk accounts.
 
VEGA
The amount by which the price of an option changes when the volatility changes.
 
VELOCITY OF CIRCULATION
The speed with which money circulates in the economy. In a recession, money tends to circulate more slowly than in a boom. When money is circulating more slowly, it takes longer for the inflationary... read more
 
VENTURE CAPITAL
High-risk, start-up operations which normally raise capital by selling shares in a public unlisted company directly to the public through a team of commissioned salespeople. These are always... read more
 
VENTURE CAPITAL MARKET
 
VERIMARK HOLDINGS LIMITED
Verimark (VMK) is a well-known South African retailer of unusual products which cannot generally be found in conventional shops. It sources, develops and distributes products in housewares, fitness,... read more
 
VERTICAL SPREAD
A stock option spread based on simultaneous purchase and sale of options on the same underlying stock with the same expiration months but different strike prices.
 
VESTING
The rights that an employee gains for working at a firm for a specific length of time.
 
VISUAL INTERNATIONAL HOLDINGS LIMITED
06 - 04 - 2020
Visual International Holdings (VIS) is a small, cash-strapped property development company operating in the Cape Town area. The company announced on 2nd July 2018 that publication... read more
 
VIVO ENERGY PLC
07 - 05 - 2020
Vivo (VVO) is an energy share which owns Shell service stations mainly in South Africa, but also in other countries in Africa to the North. Vivo has bought 230 service stations... read more
 
VODACOM GROUP LTD
13 - 05 - 2020
Vodacom (VOD) is South Africa's largest airtime and data provider for cell phones. It is a subsidiary of the international company Vodaphone. Its competitors are MTN, Cell-C... read more
 
VOLATILITY
The degree to which a share deviates from its average. High volatility is associated with risk, both fundamental and technical. For example, shares in marginal gold mines can be extremely volatile... read more
 
VOLUME
The number of shares changing hands during a single trading day. This figure is calculated by counting the number of shares traded in a particular security daily, which gives the daily traded... read more
 
VOLUME PRICE TREND
In which a running sum is maintained when a day's total volume is added if the market closes positive or the day's total volume is subtracted if the market closes lower. In this calculation the... read more
 
VOLUME WEIGHTED AVERAGE PRICE
This is the average price weighted for the volume traded each day over a defined period such as the previous 30 days. The VWAP is used to price rights issues, acquisitions, mergers and other... read more
 
VOLUNTARY CORPORATE ACTION
A corporate action which requires a decision from shareholders - such as a rights issue. With a rights issue, shareholders must decide whether to take up the rights or not. If they do not take... read more
 
VOTING AND NON-VOTING PREFERENCE SHARES
Preference shares are usually non-voting, but can also be voting shares.  If given the ability to vote the value of the shares is greater. Because preference shares do not participate in the... read more
 
VUKILE PROPERTY FUND LIMITED
27 - 05 - 2020
Vukile (VKE) is a real estate investment trust (REIT) trading on the JSE and the Namibian Stock Exchange. It owns properties directly, shares in other REITs, property in the... read more
 
VUNANI LIMITED
28 - 05 - 2020
Vunani (VUN) is a black-owned financial services group with interests in asset management, investment, banking, property and stockbroking. It also has an interest in coal... read more
 
W G WEARNE LIMITED
06 - 04 - 2020
Wearne (WEA) is a supplier of materials to the building and construction industry. It supplies pre-mix products, pre-cast concrete products, readymix concrete and aggregates.... read more
 
WALL STREET
The largest stock exchange in the world, located in New York City on Wall Street. Wall Street is a nick name for the New York Stock Exchange (NYSE) - because it is located on Wall Street in New... read more
 
WAREHOUSE RECEIPT
A document guaranteeing the existence and availability of a given quantity and quality of a commodity in storage; commonly used as the instrument of transfer of ownership in both cash and futures... read more
 
WARRANT
Warrants are securities traded on the JSE. They are derivatives that closely resemble options and include the right but not obligation to buy (call), sell (put) or participate in the performance... read more
 
WASTING
A term depicting how an option's value decreases over time; as each day after acquisition passes a portion of the option's time value is lost or wasted.  
 
WATCHLIST
A list of shares of different listed companies which is being watched by an investor. As a private investor you should always maintain and monitor your watchlist. Whenever you read about an interesting... read more
 
WAVE
In Elliott wave theory, a sustained move by a market's price in one direction as determined by the reversal points that initiated and terminated it.
 
WAVE AND CYCLE THEORY
Technical analysis or charting can be broken down into formations, line charts and wave and cycle theories. Over the decades since investors started charting the progress of share prices, indexes... read more
 
WAVE CYCLE
An impulse wave followed by a correction wave, the impulse wave being made up of five smaller, numbered waves of alternating direction designated 1, 2, 3, 4 and 5, and the correction wave being... read more
 
WBHO CONSTRUCTION LTD
02 - 04 - 2020
WBHO (WBO) is now South Africa's largest construction company - after the demise of Aveng and Murray & Roberts. It has a market capitalisation of about R6,5bn. It diversified... read more
 
WEAK HANDS
Ignorant and generally inactive investors who make trades on the JSE for personal reasons (like they need the money to buy a house) which are entirely unrelated to the reality of the share. Weak... read more
 
WEDGE FORMATION
A pattern in which two converging trend lines connect a group of price peaks and troughs. Very similar to the triangle formation, the wedge is considered to be a longer term signal occurring... read more
 
WEIGHTED AVERAGE
An average calculated by giving some variables within the data more value than others. In other words, each number within the data set is given a certain weight determining its influence on the... read more
 
WEIGHTED AVERAGE PURCHASE PRICE
Multiply each purchase order bought by the associated purchase price, add them together and divide the total by the number of blocks. The result is the weighted average purchase price.
 
WEIGHTED MOVING AVERAGE
A moving average that puts more weight on recent prices. A three-day weighted moving average would apply a multiple of 1 to the price of the first date, 2 to the second date and 3 to the third... read more
 
WESCOAL HOLDINGS LIMITED
03 - 04 - 2020
Wescoal (WSL) is a 51% black-owned South African coal mining and distribution company. Its revenue is derived 35% from its trading division which supplies coal products to... read more
 
WESIZWE PLATINUM LIMITED
08 - 05 - 2020
Wesizwe (WEZ) is a miner of platinum group metals through its development of the Bakubung Platinum Mine (BPM). The company is developing a mine to access the Merensky and... read more
 
WHIP LASH
In technical analysis when a share's price cuts up and down through its moving average giving a series of buy and sell signals at more or less the same price. This happens when the share's price... read more
 
WHIPSAW
Losing money on both sides of a price swing.
 
WHISPER NUMBER
A currency amount which fund managers and others in the investment management business talk about for a particular company's key statistics (like its profit) before they are announced. For example,... read more
 
WHITE GOODS
Large domestic appliances like, fridges, washing machines, dryers, stoves and microwave ovens. These types of big-ticket purchases are very influenced by the state of the economy. During a recession... read more
 
WIDOWS AND ORPHANS FUND
An institutional term referring to a fund which is dominated by the need to generate income rather than rapid capital growth.
 
WILDERNESS HOLDINGS LIMITED
07 - 06 - 2019 Wilderness Holdings (WIL) is a tourism company which is focused on safari tours together with transfers, camps, as well as finance and asset management. It serves an international... read more
 
WILLIAM'S PERCENTAGE R
Overbought and oversold indicator that is used to determine market entry and exit points.
 
WINDOW
Set period of time such as a look-back period for market indicator in question.  
 
WINDOW DRESSING
A practice, over the December period when trade on the JSE is very thin, when institutions drive the prices of the shares in their portfolios up so as to make their year-end figures look better.... read more
 
WOOLWORTHS HOLDINGS LTD
01 - 06 - 2020
The sad fall of the Woolworths share (WHL) price has been occasioned by the decision by previous CEO, Ian Moir, and his board to buy David Jones in Australia for AU$2,1bn... read more
 
WORKFORCE HOLDINGS LIMITED
06 - 04 - 2020
Workforce (WKF) is a labour broker that also does recruitment, specialist staffing, training, consulting, employee health management and sells financial and insurance products.... read more
 
WORKING CAPITAL
Money which is tied up in the workings of the company. It is usually calculated by adding the company's debtors and stock and then subtracting its creditors and other current liabilities. Most... read more
 
WORLD ECONOMIC FORUM
A non-profit organisation that strives to improve the world by engaging with various societal leaders, mainly in business. It meets once a year in Davos, Switzerland and attracts about 2000 businessmen... read more
 
WORLD INFLATION
An average inflation rate for the world economy - which is an aggregate of all the economies of the world. World inflation is found by calculating a weighted average of the available inflation... read more
 
YATES'S CORRECTION
When a small amount of data is available for testing, the chi-square formula is adjusted to account for the small sample base.
 
YEAR END
The end of a company's financial year. Most companies have a year-end at the end of December or June or one which coincides with the tax year end in February, but there are company financial... read more
 
YEBOYETHU LIMITED
06 - 12 - 2019
Yeboyethu (YYLBEE) is a special purpose vehicle (SPV) which was formed on 19th June 2008 as a BEE scheme with the objective of holding "A" ordinary shares of Vodacom. It originally... read more
 
YIELD
(1) The term used by newspapers on their price page for the dividend yield of a company. The dividend yield is the dividends per share (DPS) expressed as a percentage of the current share price.... read more
 
YORK TIMBER HOLDINGS
06 - 04 - 2020
York Timber Holdings (YRK) is a forestry company which owns plantations and processing plants, as well as a wholesaling distribution network. It is the biggest player in the... read more
 
ZAMA ZAMA
A term for an illegal miner in South Africa. South Africa has many disused mines where the shafts and stopes are accessible. Illegal miners remove particularly precious metals using primitive... read more
 
ZARCLEAR HOLDINGS LIMITED
25 - 11 - 2019
This is an A2X-listed investment holding company focused on financial market infrastructure and managing a capital base. Their investment portfolio is located 38% in South... read more
 
ZEDER INVESTMENTS LIMITED
04 - 05 - 2020
Zeder (ZED) is PSG's listed, 43,7%-held, investment holding company in agriculture. Just under half (51,2%) of the Zeder portfolio was its stake (28,6%) in Pioneer Foods (PFG)... read more
 
ZERO RATED
Products which do not attract value-add tax (VAT). The zero-rating of various food stuffs and other products, like educational products, is designed to help poor people to survive and improve... read more
 
ZERO SUM GAME
A securities market where the total of capital gains made by investors exactly equals the total of capital losses so that subtracting the one from the other always comes back to zero. Derivative... read more
 
ZERO-COUPON GOVERNMENT BONDS
Government bonds that are purchased at a deep discount and pay no cash dividend, unlike regular bonds.
 
ZETA
The percentage change in an options price per 1% change in implied volatility.
 
ZIGZAG