The new investor’s glossary: G to J

Fsp Invest, 10 Jan. 2014

Tags: investment, glossary, investors glossary, gearing, going public, guaranteed fund, index, institutional investors, instrument, jse, jse member firm, investing, investing terminology

If you’re new to the realm of the stock market, some of the terminology used can appear a little daunting. But once you get to grips with a few key terms, you’ll be well on your way to understand any financial information or news. Read on to uncover the most important investing terms starting with G through to J…

Getting to grips with the terminology used in the world of finance will help you gain the confidence you need to invest, the research team at Red Hot Penny Shares explains…

Your crucial investment glossary

Gearing: This is a company’s debt expressed as a percentage of its equity capital. High gearing means debts are high in relation to capital.

Going public: This describes a company that’s about to list on a stock exchange, for example, the JSE.

Guaranteed fund: A fund maintained by an exchange, such as the Johannesburg Stock Exchange, to compensate investors when a member firm fails to meet its obligations.

Index: A measure of a basket of shares. Examples include the JSE All Share Index and the JSE Top 40 Index.

Institutional investors: These are investors who manage pension funds and insurance companies. They own a large chunk of quoted shares on the stock market.

Instrument: This is a global term for securities. This covers anything from bonds to single stock futures.

JSE: The JSE stands for the Johannesburg Stock Exchange. This is South Africa’s stock market. You can find out more about the JSE at

JSE member firm: A member firm of the JSE is a stockbroker who can trade either as an agent for other or for their own account on the stock exchange. If you have a stockbroker, the company they work for will be a member firm of the JSE.

You can check out D and E here.

So there you have it, your new investor’s glossary from G to J.

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