P

Parallel loan

A parallel loan, also known as a back-to-back loan, allows a business in one country to borrow currency from a business in another country for a certain period, and vice versa. The businesses then agree to return each other's currency at a specific time. This reduces the risks of foreign exchange dramatically.. 

Payslip

A payslip is one of the documents that banks may require before issuing you with a personal loan, home loan, credit card or other line of credit. This document, issued on a monthly basis by your employer, serves to prove that you have a fixed monthly income, and that you'll be able to afford repaying any line of credit or loan made available to you. 

Pension

Pension is the monthly income stream that helps support retired senior citizens who contributed to a pension fund during their working lives. 

PIN

Debit cards, as well as some credit cards, are issued with a PIN for safer point-of-sale transacting and ATM-based banking. Once the vendor has swiped your card, you will be prompted to enter your PIN. Keeping one's PIN safe is critical to prevent transactional fraud. The PIN should preferably be memorised, but if this is not possible, it should never be kept in the same place as the debit card. 

Purchase price

This is the amount the client pays to purchase property or vacant land.

Q

Qualification period

The qualification period is a period after a new insurance policy has been taken out during which the insurance company will not allow any claims to be made by the policyholder. The insurance firm uses this time to assess the accuracy and validity of the application.

Qualifying stock option

Some companies offer a qualifying stock option, whereby its employees can buy shares at a significantly discounted rate. 

Qualitative analysis

This is an examination of a company's qualities, such as staff morale or managerial style, which cannot be calculated scientifically or mathematically. 

Quantitative analysis

In contrast to qualitative research, quantitative research is a mathematical examination of a company's figures, such as total asset value or future sales. 

Quid pro quo

Quid pro quo is, for example, an understanding whereby one company can use the research of another company free of charge, provided the first company does all its business with the second. 

R

Random walk

According to the random walk hypothesis, stock price fluctuations are always by chance and unpredictable. One change occurs in isolation from the next, and it is thus impossible to detect a pattern or formulate a theory to beat the stock market consistently. 

Rate lock

A rate lock is an arrangement between a homeowner and his or her home loan provider, where a fixed interest rate is agreed on for a certain amount of time. Rate lock normally applies to a 60-day period. 

Readvance

All or part of the capital that a client has already paid o" may be borrowed again by means of a readvance, which is the difference between the limit and the registered amount.

Registered amount

This is the amount registered at the deeds office and noted on the title deed (usually the registered amount is the same as the loan amount,
unless it is a HomeVision home loan).

Registration cost

This refers to attorney’s fees for registering the home loan and includes stamp duty, postage, conveyancing fees and VAT.

Repossession

A financed asset, such as a vehicle or property, can be repossessed by a lending institution if the person who bought it does not honour the purchase agreement by making monthly repayments on time. 

Reference instrument

The underlying listed share whose share price the CFD instrument replicates.

Reserved amount

In respect of a given order on any date, an amount calculated as: CFD notional value x margin rate.