Investor Definitions

Investor Definitions

A market in which shares are bought and sold. For example, the NSX (in Namibia) and the JSE (in South Africa).
The number of shares traded during a particular time period, normally measured in daily trading volume.
An indicator of the change in value of a portfolio of shares comprising a portion of the overall market, or segment of it. The indices are used as reference markers for traders and portfolio managers to measure their own portfolios.
The income received from an investment (usually expressed as a percentage of the value of the investment), such as the dividends received from holding particular shares.
The rate at which the price of a share moves up and down. Shares with a higher volatility have greater price movements over the same period of time. In general, the greater the volatility, the riskier the share.
When an investor requests their broker to buy or sell an investment immediately at the best available current price.
When an investor buys shares and keeps them for a long period in an attempt for better returns.
A group of shares that are in the same kind of business that make up a large subcategory of the market. For example, the NSX and JSE have a “Financial Services” sector under which Trustco Group Holdings is listed.
Capital gains or losses are the differences between the cost and current value of an investment held by an investor not a trader. This excludes non-capital gains/losses such as dividends.
When an investor opens a trade by submitting an offer to buy or sell shares.
A collection of financial assets such as investments in shares, bonds or unit trusts held by an investor.
Involves buying and selling many times within the same trading day, before the close of the markets on that specific day. These traders are often called “active traders” or “day traders.”
A person or company that is in the business of buying and selling investments such as shares, bonds, or unit trusts on your behalf.
When an investor buys more shares at a lower price than what they previously paid. Doing this makes the average purchase price of their share portfolio decrease.
When a person takes out a loan from a broker to purchase an investment. The loan is a portion of the investment and the investor must pay the remaining portion. The difference between the amount the investor pays and the price of the investment is called the margin.
A portion of a company's profits paid to shareholders.
The last price at which an investment traded. This information may be delayed unless the investor is using a broker trading platform.
A unique series of letters assigned to a share for trading purposes. Trustco’s stock code is TTO on the JSE and TUC on the NSX.
These are leading companies that have a reputation for sound financial management and are known to have a stable record of dividend payments.
Earnings attributable to ordinary shareholders divided by the weighted average number of ordinary shares in issue. This is the amount of earnings that each share of a company generates.
Headline earnings per share divided by dividend per share before taxation. This indicates how many times the amount of the dividend can be paid out by the earnings generated per share.
Headline earnings divided by the weighted average number of ordinary shares in issue. This is the amount of ordinary earnings, excluding once-off profits, generated by each share.
JSE Limited, a company duly registered and incorporated under the laws of South Africa, licensed as an exchange.
The assets of the company less its liabilities – essentially the value of the equity of a company.
Net asset value divided by the number of ordinary shares in issue at year end. This is the equity value of a single share.
Headline earnings as a percentage of net asset value. This indicates how much profit a company generates with the money that shareholders have paid to the company.
Trustco JSE share code.
Trustco NSX share code.
The weighted average number of ordinary shares in issue during the year is the number of ordinary shares issued adjusted by new issues of shares, repurchases of shares by the company, retirement of existing shares, treasury shares and conversion of options.
A measure of the percentage of stock holdings in a manager’s portfolio that differ from the benchmark index.
The highest price a person is willing to pay to buy a share at that point in time.
The lowest price a seller is willing to accept to sell a share at that point in time.
In the context of the share market, a person who handles orders to buy or sell shares.
A statement from your broker confirming a sale or purchase of shares on your investment account.
A period where the share prices are increasing.
A market in which prices are falling.
This is the last price in cents, at which the share was traded on any day.
The profit share paid to shareholders of the company.
The price at which you are willing to sell a share you own.
An investment that represents part ownership of a company. The holders of such shares are entitled to distributed profits after preference dividends have been paid.
An investment that represents part ownership of a company.
An investor holding one or more shares in a company.
Buying and selling for the purpose of making a profit in the short term.