Terminology JSE Limited's top 40 shares (ALSI 40) • The JSE LTD Top 40 shares is an index (see definition of index below) that reflects the performance of the South African share market. • Companies in the JSE Ltd top 40 shares Index are generally large companies of sound financial standing having widely traded and marketable shares. • The movement of shares in this index can be said to represent the movement of the market as a whole. A wide range of industries (e.g. Mining, Banking, Telecommunications) is included in the index, limiting exposure if one part of the economy goes through a rough patch. Index: • An index is an imaginary portfolio of shares representing a particular market or a portion of it. In the case of Equity-linked Deposit, it is the South African share market. Each index has its own calculation methodology and is usually expressed in terms of a change from a base value. Thus, the percentage change is more important than the actual numeric value. As in the examples used above, the base value was 20 000 basis points. Capping of Returns: • Placing a maximum level that can be earned on an investment i.e. a ceiling percentage level. Placement Date: • The day the investment is linked in the JSE Ltd top 40 shares. Participation Rate: • The percentage of the Index that a client can earn. Capital Guarantee: • The initial amount invested is totally safe and clients will receive all of their capital back as the worst case scenario.
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