A PRIORIA Latin phrase meaning “known ahead of time” or more precisely, known without any empirical evidence or experience. ABANDONAn option contract which is not enforced because it is out-of-the-money. ABANDONED BABYA rare candlestick pattern which can indicate either a new bullish or a new bearish trend. ABNORMAL ITEMAn income or expense which may be part of understanding fibonacci retracements forex factory company’s normal business but which is abnormal in amount.
So, an unusually high expense or income might be considered abnormal. ACCELERATED BOOKBUILDAn offering of new shares in the short term which is non-promoted to institutional investors in order to raise capital. Debt instruments are basically IOU’s written by one organisation in favour of another. ACCEPTANCE DATEThe date on which the right acquired by a shareholder as a result of a rights issue must be exercised. ACCOMMODATIONThe extension of credit by the Reserve Bank to commercial banks.
ACCOUNTANCYA set of conventions for recording and gathering financial transactions in an organisation. ACCOUNTING CONSERVATISMAccountants are notoriously conservative people. Conservatism applies to incomes, expenses, liabilities and assets of unknown amounts. ACCOUNTING CONVENTIONThese 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. ACCOUNTING PERIODThe period of time over which the financial affairs of a company are being accounted for.
ACCOUNTING POLICYA policy established by the board of directors for the allocation of transaction entries into the books of account. ACCOUNTS PAYABLEAmounts owing to the company’s creditors in the balance sheet. ACCOUNTS RECEIVABLEAmounts owing to the company, usually by customers who have bought products on credit. ACCRUALA balance sheet item that consists of an expense or income which has not yet been paid or received. It indicates that the share is becoming stronger. The company acquiring the shares then becomes the “holding company” and the acquired company becomes a “subsidiary”.
Refers to actual physical commodities, as distinguished from the futures on those commodities. ACTUARIES INDEXMost stock market indexes, except for the very simplest are calculated by actuaries. ACTUARYAn 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. ADAM SMITHThe first person to study and write about economics. ADMINISTERED PRICEPrices of certain products in South Africa are determined, not by the forces of supply and demand, but by various government departments and institutions. ADRSCertificates that are issued by a bank of US origin and traded in the U.
ADVERSE EXCURSIONThe loss attributable to price movement against the position in any one trade from the time that the trade began. ADVICEInvestment advice has become a big industry in South Africa and world-wide. AFRICA BOARDA 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.
AFRICAN GROWTH AND OPPORTUNITY ACTAn American Act which allows certain African countries to export to America duty free. AFRICAN STOCK EXCHANGEA stock exchange located somewhere in Africa. AFTER-TAX PROFITThe 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. AGENTA natural or juristic person who cats on behalf of another such person in a commercial transaction.