Dubai Financial Market

 

Abu Dhabi Securities Exchange

 

Securities and Commodities Authority

 

Gulf & International Securities Websites ...

 
 
 
 

Financial Terminology

 
 

* ADSM /ADX
* Ask
* Best Ask
* Best Bid
* Bid
* Broker
* Buy order
* Cash Investment to Deposit (%)
* CDS
* Clearing
* Closing Price
* Credit to Deposits (%)
* Credit to Total Assets (%)
* Current Price
* Current Ratio
* Current Ratio (Time)
* DFM
* Dividend Paid to Paid-In Capital (%)
* Earning Per Share (AED)
* Equity Ratio (%)
* Face value
* Gainers
* Gray Market
* Hot IPO
* Immediate or Cancel Order
* Index
* Initial Public Offering (IPO)
* Interest rate
* Limit Down
* Limit Order
* Limit up
* Limit-on-Close Order
* Limit-On-Open Order
* Losers
* Market Index
* Market Price
* Market Value
* Matching Orders
* Online Trading
* Opening Price
* Order Book
* Price / Earning Ratio (Multiplier)
* Retired Securities
* Return of Revenues (%)
* Return on Assets (%)
* Return on Equity (%)
* Return on Paid-In Capital (%)
* SCA
* Shareholders’ Equity to Credits (%)
* Shareholders’ Equity to Deposits (%)
* Short Market Value
* Stock
* Stock Market
* Stop Limit Order
* Stop Order
* Stop-Loss Order
* Thin Market
* Tip from a Dip
* Trade Book
* Trading
* Turnover / Share (%)
* Volume
* Yield / Share (%)

 

ADSM /ADX : Abu Dhabi Securities Market/Abu Dhabi Securities Exchange.


Ask : Ask The price a seller is willing to accept for a security, also known as the offer price. Along with the price, the ask quote will generally also stipulate the amount of the security willing to be sold at that price.


Best Ask : Best Ask The lowest quoted ask price for a particular stock among those offered from competing market makers.


Best Bid : Best Bid The highest quoted bid for a particular stock among all those offered by competing market makers.


Bid : Bid An offer made by an investor, a trader or a dealer to buy a security. The bid will stipulate both the price at which the buyer is willing to purchase the security and the quantity to be purchased.


Broker : An individual or firm that charges a fee or commission for executing buy and sell orders submitted by an investor. The role of a firm when it acts as an agent for a customer and charges the customer a commission for its services.


Buy order : Instruction given to the Broker to buy certain stock at either Market price or fixed price.


Cash Investment to Deposit (%) : = Cash and Investment x 100 / Deposits


CDS : Stands for Clearing, Deposits, and settlements.


Clearing : The procedure by which an organization acts as an intermediary and assumes the role of a buyer and seller for transactions in order to reconcile orders between transacting parties.


Closing Price : The final price at which a security is traded on a given trading day. The closing price represents the most up-to-date valuation of a security until trading commences again on the next trading day.


Credit to Deposits (%) : = Granted Credits x 100 / Deposits


Credit to Total Assets (%) : = Granted Credits x 100 / Total Assets


Current Price : The "real time" price of a security trading on an exchange.


Current Ratio : Current ratio is defined as current assets divided by current liabilities.


Current Ratio (Time) : = Granted Credits x 100 / Deposits


DFM : Dubai Financial Market.


Dividend Paid to Paid-In Capital (%) : = Cash Dividends x 100 / Paid-In Capital


Earning Per Share (AED) : = Net Profit / No. of Outstanding Shares


Equity Ratio (%) : = Shareholders’ Equity x 100 / Total Assets


Face value : The nominal value or dollar value of a security stated by the issuer. For stocks, it is the original cost of the stock shown on the certificate.


Gainers : Stocks that have increased the most.


Gray Market : An unofficial market where new issues of shares are bought and sold before they become officially available for trading on the stock exchange.


Hot IPO : An initial public offering that appeals to many investors and for which there is great demand. Hot IPOs are often oversubscribed - meaning market demand far exceeds the supply of shares - which results in the stock price surging as soon as it is offered on the market.


Immediate or Cancel Order : An order requiring that all or part of the order be executed immediately after it has been brought to the market. Any portions not executed immediately are automatically cancelled.


Index : A statistical measure of change in an economy or a securities market. In the case of financial markets, an index is essentially an imaginary portfolio of securities representing a particular market or a portion of it.


Initial Public Offering (IPO) : A company raising capital by selling common stock to public for the first time.


Interest rate : The amount of ownership a stockholder has in a company, usually expressed as a percentage.


Limit Down : The maximum amount by which the price of a commodity futures contract may decline in one trading day.


Limit Order : An order placed with a brokerage to buy or sell a set number of shares at a specified price or better. Limit orders also allow an investor to limit the length of time an order can be outstanding before being canceled.


Limit up : The maximum amount by which the price of a commodity futures contract may advance in one trading day.


Limit-on-Close Order : A type of limit order to buy or sell shares near the market close only if the closing price is trading better than the limit price. This order is an expansion of the market-on-close order, adding to it a limit condition, which places a maximum on the entry price and minimum on the selling price.


Limit-On-Open Order : A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of order is good only for the market opening and does not last for the whole trading day.


Losers : Stocks that have decreased the most.


Market Index : An aggregate value produced by combining several stocks or other investment vehicles together and expressing their total value against a base value from a specific date. Market indexes are intended to represent an entire stock market and thus track the market's changes over time.


Market Price : The price of the stock that is currently offered in the market.


Market Value : The current quoted price at which investors buy or sell a share of common stock or a bond at a given time.


Matching Orders : Entering identical buy and sell orders at the same time to create the appearance of active trading in that security.


Online Trading : Making trades via the Internet.


Opening Price : The price at which a security first trades upon the opening of an exchange on a given trading day.


Order Book : This is an option found in the online trading homepage. Where all the stocks that are ordered but not yet processed and executed are recorded.


Price / Earning Ratio (Multiplier) : = Closing Price / Earning per share


Retired Securities : Securities that have been repurchased by the issuer out of the company's retained earnings and cancelled according to Securities & Exchange Commission (SEC) regulations. They have no market value and no longer represent a share of ownership in the issuing corporation.


Return of Revenues (%) : = Net profit x 100 / Total Revenue


Return on Assets (%) : = Net Profit x 100 / Total Assets


Return on Equity (%) : = Net Profit x 100 / Shareholders Equity


Return on Paid-In Capital (%) : = Net Profit x 100 / Paid-In Capital


SCA : Securities and Commodities Authority.


Shareholders’ Equity to Credits (%) : = Shareholders’ Equity x 100 / Granted Credits


Shareholders’ Equity to Deposits (%) : = Shareholders’ Equity x 100 / Deposits


Short Market Value : The total value of all short sales in place in a customer's account at the end of the trading day.


Stock : A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.


Stock Market : The market in which shares are issued and traded either through exchanges or over-the-counter markets. Also known as the , it is one of the most vital areas of a market economy as it provides companies with equity marketaccess to capital and investors with a slice of ownership in the company and the potential of gains based on the company's future performance.


Stop Limit Order : An order to buy or sell a security when its price surpasses a particular point, thus ensuring a greater probability of achieving a predetermined entry or exit price, limiting the investor's loss or locking in his or her profit. Once the price surpasses the predefined entry/exit point, the stop order becomes a market order.


Stop Order : An order to buy or sell a security when its price surpasses a particular point, thus ensuring a greater probability of achieving a predetermined entry or exit price, limiting the investor's loss or locking in his or her profit. Once the price surpasses the predefined entry/exit point, the stop order becomes a market order.


Stop-Loss Order : An order placed with a broker to sell a security when it reaches a certain price. It is designed to limit an investor's loss on a security position.


Thin Market : A market with few bid and ask offers. The market is characterized by low liquidity, high spreads, and high volatility. Also known as a narrow market.


Tip from a Dip : Advice from a person who claims to have inside information, such as substantially higher than expected earnings or government approval of corporate mergers, that will materially impact a stock's price but actually doesn't.


Trade Book : This is an option found in the online trading homepage. Where all the stocks that are ordered and processed are recorded.


Trading : The activity of buying and selling stocks.


Turnover / Share (%) : = Value of Shares Traded During the Year x 100 / Market Capitalization at the end of the year


Volume : The number of shares or contracts traded in a security or an entire market during a given period of time. It is simply the amount of shares that trade hands from sellers to buyers as a measure of activity. If a buyer of a stock purchases 100 shares from a seller, then the volume for that period increases by 100 shares based on that transaction.


Yield / Share (%) : = Cash Dividend per share x 100 / Closing Price


 
 
 
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