JSE Online Glossary

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ACE
Accelerated Change Enablement
ADR
American Depository Receipt, which is a mechanism through which foreign shares are traded in the USA. Shares are registered into a nominee's name. The issues transferable ADR’s in respect of the underlying holding. Foreign-owned companies are required to list on the US stock market through ADR’s. They trade in the same way as any other listed share, and several of South African companies have ADR listings in the US.
APD
Agricultural Products Division
API
Application Program Interface
ATS
Automated Trading System.
Acceptance Credit
Contract between a banker and a customer under which the banker under-takes, during a specified period, to accept bills of exchange and replacements thereof on maturity, drawn on him by the customer who may discount them to provide short-term finance.
Accounting Period
The period for which the affairs of a company are being accounted for. The matching principle ensures that the incomes for the accounting period are offset against the expenses for the same period to arrive at the profit. The balance sheet shows the asset and liability position at the end of the accounting period. Companies are required to have an annual accounting period, but this may vary if they have elected to change their financial year- end.
Accounting Policy
For public companies, the accounting policies are set out in the first note to the accounts. They usually concern the method used to value stock and depreciate assets, the principles used in consolidating accounts, the method by which leases are charged, provisions made for deferred taxation, exchange rates used to value foreign currencies, what constitutes turnover and other items specific to the company.
Accounts Payable
These are amounts reflected in the balance sheet as owing to the company’s creditors in the balance sheet. These appear under current liabilities. These amounts owed to the company the short term, usually as a result of sales on credit.
Accounts Receivable
There are amounts owing to the company’s creditors as shown in the balance sheet. These amounts are owed to the company the short term, usually as a result of sales on credit.
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 – after a period of accumulation, the supply of shares will be exceeded by the demand and this may lead to a sharp upwards move in the share price.
Accumulation Area
A period indicated on a chart where the share price is moving sideways at the bottom of a downward move. It is said that the share is being accumulated by 'smart' money.
Acid Test Ratio
Current assets less stocks, expressed as a percentage of current liabilities.
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”.
Actuaries Index
The JSE actuaries index is an indicator of the performance of a sector of shares on a continous basis. It is a statistically representative group of shares to which a starting value of 100 was initially ascribed. Since the inception of the index it has measured rises and falls in the capital values of the shares represented by the index. The actual shares used for this purpose are often indicated by an asterisk in the share page of the newspapers and financial journals. There are indices for every sector of the JSE as well as overall indices for the total market or major segments, e.g. financial and industrial.
Actuaries Indices
The JSE actuaries’ indices are carefully calculated weighted averages of all the market sectors and the market as a whole. They are published daily on the page opposite the price page in the Business Day (top left-hand corner) and can be used to determine the performance of an entire sector. It is important to understand that only the more important shares in each sector are taken into account in each index. Very thinly traded shares, or shares, which have small market capitalisations, are not included.
Additional Issue
1) An issue of additional shares in the same class as those already listed ; 2) An issue of shares of an additional class. Distribution can be by way of rights or capitalisation issue or otherwise, with the proviso that the JSE requires that holders of equity must be offered as a right to any additional issue of equity or any additional issue with an equity element with very specific exceptions.
Adjusted Close
Most recent cash sale prior to today ex prices board adjusted if there was a higher buying price or lower selling price. This value is adjusted after capital structure changes.
Advance or Decline Ratio
This is a refinement of the nett advance/decline line calculated by dividing the difference between the total number of shares up and the total number of shares down, by the total number of active shares on that day.
Affirmation
The custodian's or investor's assent to settlement terms that have already been ratified by the buying and selling JSE member firms.

ACE

Accelerated Change Enablement

ADR

American Depository Receipt, which is a mechanism through which foreign shares are traded in the USA. Shares are registered into a nominee's name. The issues transferable ADR’s in respect of the underlying holding. Foreign-owned companies are required to list on the US stock market through ADR’s. They trade in the same way as any other listed share, and several of South African companies have ADR listings in the US.

APD

Agricultural Products Division

API

Application Program Interface

ATS

Automated Trading System.

Acceptance Credit

Contract between a banker and a customer under which the banker under-takes, during a specified period, to accept bills of exchange and replacements thereof on maturity, drawn on him by the customer who may discount them to provide short-term finance.

Accounting Period

The period for which the affairs of a company are being accounted for. The matching principle ensures that the incomes for the accounting period are offset against the expenses for the same period to arrive at the profit. The balance sheet shows the asset and liability position at the end of the accounting period. Companies are required to have an annual accounting period, but this may vary if they have elected to change their financial year- end.

Accounting Policy

For public companies, the accounting policies are set out in the first note to the accounts. They usually concern the method used to value stock and depreciate assets, the principles used in consolidating accounts, the method by which leases are charged, provisions made for deferred taxation, exchange rates used to value foreign currencies, what constitutes turnover and other items specific to the company.

Accounts Payable

These are amounts reflected in the balance sheet as owing to the company’s creditors in the balance sheet. These appear under current liabilities. These amounts owed to the company the short term, usually as a result of sales on credit.

Accounts Receivable

There are amounts owing to the company’s creditors as shown in the balance sheet. These amounts are owed to the company the short term, usually as a result of sales on credit.

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 – after a period of accumulation, the supply of shares will be exceeded by the demand and this may lead to a sharp upwards move in the share price.

Accumulation Area

A period indicated on a chart where the share price is moving sideways at the bottom of a downward move. It is said that the share is being accumulated by 'smart' money.

Acid Test Ratio

Current assets less stocks, expressed as a percentage of current liabilities.

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”.

Actuaries Index

The JSE actuaries index is an indicator of the performance of a sector of shares on a continous basis. It is a statistically representative group of shares to which a starting value of 100 was initially ascribed. Since the inception of the index it has measured rises and falls in the capital values of the shares represented by the index. The actual shares used for this purpose are often indicated by an asterisk in the share page of the newspapers and financial journals. There are indices for every sector of the JSE as well as overall indices for the total market or major segments, e.g. financial and industrial.

Actuaries Indices

The JSE actuaries’ indices are carefully calculated weighted averages of all the market sectors and the market as a whole. They are published daily on the page opposite the price page in the Business Day (top left-hand corner) and can be used to determine the performance of an entire sector. It is important to understand that only the more important shares in each sector are taken into account in each index. Very thinly traded shares, or shares, which have small market capitalisations, are not included.

Additional Issue

1) An issue of additional shares in the same class as those already listed ;
2) An issue of shares of an additional class.
Distribution can be by way of rights or capitalisation issue or otherwise, with the proviso that the JSE requires that holders of equity must be offered as a right to any additional issue of equity or any additional issue with an equity element with very specific exceptions.

Adjusted Close

Most recent cash sale prior to today ex prices board adjusted if there was a higher buying price or lower selling price. This value is adjusted
after capital structure changes.

Advance or Decline Ratio

This is a refinement of the nett advance/decline line calculated by dividing the difference between the total number of shares up and the total number of shares down, by the total number of active shares on that day.

Affirmation

The custodian's or investor's assent to settlement terms that have already been ratified by the buying and selling JSE member firms.

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