Beware of "JSE Investment" scams

The JSE Limited/ Johannesburg Stock Exchange (JSE) is aware of a several scams (on Telegram and WhatsApp) posing as authorised JSE investment schemes and/or using the names(s) of JSE Executives (including our CEO, Leila Fourie).

In these investment scams, potential investors are urged to deposit money into a bank account and promised quick and guaranteed returns on their investment. These types of groups are not authorised by the JSE and the investments referred to are not authorised or endorsed by the JSE or any members of the JSE Executive. The JSE does not recruit investors in this manner.

The only way to invest on the JSE is via an authorised JSE stockbroker. A list of stockbrokers can be found on www.jse.co.za and then click on 'find a stockbroker' and you will find a list of stockbrokers in your area who will help you to open an account and you can begin your investment journey with the JSE.

Should you suspect a false investment scam group, please report these to the JSE at [email protected].

Name Description
JSE Virtual Trader A simulated trading platform that allows participants to experience real-time trading.
JSE was “up” When the majority of share prices of the companies listed on the JSE increased.
JSE was “down” When the majority of share prices of the companies listed on the JSE decreased.
Krugerrand A South African gold coin, first minted in 1967.
latency The measure of a time delay in a system; minimising latency is desirable in capital markets.
linked units Property loan stock companies issue these part-share, part-debenture units, which give investors the opportunity to invest in a diverse portfolio of immovable property.
liquidity The ease with which an asset or security can be bought or sold in the market without causing a significant price movement in the market.
liquidity ratio Total value of cash and marketable securities divided by current liabilities. For a bank this is the cash held by the bank as a proportion of deposits in the bank. The liquidity ratio measures the extent to which a corporation or other entity can quickly liquidate assets and cover short-term liabilities, and therefore is of interest to short-term creditors. Also called cash asset ratio or cash ratio.
liquidity risk The risk that arises from the difficulty of selling an asset. An investment may sometimes need to be sold quickly. Unfortunately, an insufficient secondary market may prevent the liquidation or limit the funds that can be generated from the asset. Some assets are highly liquid and have low liquidity risk (such as stock of a publicly traded company), while other assets are highly illiquid and have high liquidity risk (such as a house).
listed A security that has met an exchange’s various requirements, designed to protect investors, is given formal approval by being added to its list of securities.
loan An arrangement in which a lender gives money or property to a borrower, and the borrower agrees to return the property or repay the money, usually along with interest, at some future point(s) in time. Usually, there is a predetermined time for repaying a loan, and generally the lender has to bear the risk that the borrower may not repay a loan (though modern capital markets have developed many ways of managing this risk).
managed account platforms Platforms for fee-based investment management products that work with strict investment controls around trading, investment allocation and risk management.
market regulator A body appointed by Government to regulate one or several markets so as to ensure their integrity. The regulator of South Africa’s Bond Market is the Financial Services Board.
money market instrument Money market instruments are debt securities that generally give the owner the unconditional right to receive a stated, fixed sum of money on a specified date. These instruments usually are traded, at a discount, in organised markets; the discount is dependent upon the interest rate and the time remaining to maturity.
mark-to-market A measure of the fair value of accounts that can change over time, such as assets and liabilities. Mark-to-market aims to provide a realistic appraisal of an institution’s or company’s current financial situation.
Main Board The primary section of the JSE, upon which the largest companies are listed.
mandated investments Any investments made by or through any third party regulated by legislation on behalf of the actual owner of the funds pursuant of a mandate given by the owner to the third party. Mandated investments would include domestic ownership by pension funds, collective investment schemes, insurance company policyholder funds, medical schemes and other forms of mandated investment as defined in the Department of Trade and Industry Code of Practice. Example: Government Employees Pension Fund.
margin When trading derivative products, the exchange requires the payment of both initial margins and variation margins. The initial margins are determined by the clearing house and vary depending on historical price volatility. The variation margin is a daily flow of funds (profits/losses) resulting from any open position calculated through a methodology of mark-to-market.
market abuse Securities law violations, which include insider trading, market manipulation or money laundering.
market capitalisation The total market value of share capital issued by a publicly traded company.
market crash When a market’s value falls by more than 20% during a short period of time.
market price A security’s last reported sale price, i.e. the price as determined dynamically by buyers and sellers in an open market. Also called market value.
market sentiment The feeling or mood of investors about a market.
market surveillance The prevention and investigation of any illegal, manipulative or abusive trading practices in securities markets.
MSCI South Africa Index An index that measures the performance of the large and mid-cap segments of the South African market.
Member A trader or product issuer that has been granted JSE Equity Market membership.
modified duration A value given to a fixed-income instrument (or portfolio of them) from which can be approximately calculated the change in the instrument’s price resulting from a 100 basis points change in interest rates. The higher the duration value, the greater the change in the instrument’s price.
money market ETFs Money market funds offer investors a way to put cash to work in a variety of low-risk, short-term securities, including commercial paper, repurchase agreements, Treasury bills and certificates of deposit.
multi-asset-class ETFs A combination of asset classes (such as cash, equity or bonds) used as an investment. A multi-asset-class investment would contain more than one asset class, thus creating a group or portfolio of assets. The weights and types of classes will vary according to the individual investor.
National Treasury South African government department that manages national economic policy and government finances.
notes Debt instruments with initial maturities of more than one year but less than 10 years.
N-Ordinary Shares These shares are identical to ordinary shares but their shareholders have minimal or zero voting rights.
over-the-counter A security traded in some context other than on a formal exchange. The phrase can be used to refer to stocks that trade via a dealer network as opposed to on a centralised exchange. It also refers to debt securities and other financial instruments such as derivatives that are traded through a dealer network.
opening auction Determines the market price when there is uncertainty about market conditions.
opportunity cost The cost of passing up the next best choice when making a decision. For example, if an asset such as capital is used for one purpose, the opportunity cost is the value of the next best purpose the asset could have been used for. Opportunity cost analysis is an important part of a company’s decision-making processes, but is not treated as an actual cost in any financial statement.
options The right, but not the obligation, to buy (for a call option) or sell (for a put option) a specific amount of a given stock, commodity, currency, index, or debt, at a specified price (the strike price) during a specified period of time. For stock options, the amount is usually 100 shares.
options contract A financial derivative representing a contract sold by the option writer to the option holder.
Ordinary Shares Represent equity ownership in a company and entitle the owner to vote on shareholder matters and receive dividends.
property loan stocks Common or preferred stock shares that are used as collateral to secure a loan from another party. The loan will earn a fixed interest rate, much like a standard loan, and can be secured or unsecured.
price discovery The provision by one or more sources of real-time prices obtaining in a given market.
price risk The risk that the value of a security or portfolio of securities will move in the future. Basically, it’s the risk that you will lose money due to a fall in the market price of a security that you own.
Principles for Responsible Investment A United Nations-supported initiative whereby institutional investors take environmental, social and corporate governance (ESG) issues into account when making investment decisions.
prospectus This is a requirement of the Companies Act for every company that is making an offer of shares to the public. It must be lodged with the Registrar of Companies and must conform to Schedule 3 of the Companies Act. The purpose of the prospectus is to ensure that members of the public wishing to purchase the shares on offer are aware of certain key information concerning the company and its directors.
property unit trusts A property unit trust (PUT) is a portfolio of investment-grade properties which date back to 1969 when two trusts were established and listed on the JSE Limited. Each portfolio is listed on the JSE under Real Estate Investment Trusts. A PUT generates value for the investor in two ways: through rental income of the properties in the portfolio; and through the appreciation in the values of these properties over time.
panic selling When investors are selling in reaction to pure emotion and fear.
par value The nominal amount assigned to a security by the issuer.
passive investing An investment strategy whereby the performance of a particular major index is tracked or replicated.
platinum futures and options Contracts that allow investors the right to buy or sell the underlying commodity at a fixed price on a future date. The underlying instrument is platinum futures.
Preference Shares Instruments that have debt (fixed dividends) and equity (capital appreciation) characteristics, giving shareholders a higher claim on assets and earnings than ordinary shareholders.
pre-listing statement A company wishing to list on the stock exchange must produce this prospectus for investors, which provides prescribed information on the company, its business and its prospects.