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Definitions

COMMISSION: 

A service charge assessed by a broker, Market, SCA, and CDS for handling the purchase or sale of a security, and it's equal to 0.275 in DFM & 0.175 in ADX from the total amount of the trade.

PRIMARY MARKET:

A market that issues new securities on an exchange. Companies, governments and other groups obtain financing through debt or equity based securities. Primary markets are facilitated by underwriting groups, which consist of investment banks that will set a beginning price range for a given security and then oversee its sale directly to investors.

SECONDARY MARKET:

A market where investors purchase securities or assets from other investors, rather than from issuing companies themselves.  

NOMINAL VALUE: 

The stated value of an issued security. Nominal value in economics also refers to a value expressed in monetary terms for a specific year or years, without adjusting for inflation. When used in reference to securities, nominal value is also known face value or par value.

BOOK VALUE OF EQUITY PER SHARE - BVPS:

A financial measure that represents a per share assessment of the minimum value of a company's equity. More specifically, this value is determined by relating the original value of a firm's common stock adjusted for any outflow (dividends and stock buybacks) and inflow (retained earnings) modifiers to the amount of shares outstanding.

MARKET VALUE:

The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization of a publicly-traded company, and is obtained by multiplying the number of its outstanding shares by the current share price.

SHAREHOLDERS' EQUITY:

A firm's total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity represents the amount by which a company is financed through common and preferred shares.

NET PROFIT:

Calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses.

CASH DIVIDEND:

Money paid to stockholders, normally out of the corporation's current earnings or accumulated profits. All dividends must be declared by the board of directors .

PRICE INDEX:

A stock index in which each stock influences the index in proportion to its price per share. The value of the index is generated by adding the prices of each of the stocks in the index and dividing them by the total number of stocks. Stocks with a higher price will be given more weight and, therefore, will have a greater influence over the performance of the index.

PURCHASE ORDER:

An order issued by the investor to the broker asked him to buy a certain amount of shares of a listed companies in the market.

SALES ORDER:

An order issued by the investor to the broker asking him to sell a specified amount of shares of a listed companies in the market.

INITIAL PUBLIC OFFERING - IPO:

The first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking the capital to expand, but can also be done by large privately owned companies looking to become publicly traded.

SHAREHOLDER REGISTER:

A list of active owners of a company's shares, updated on an ongoing basis. The shareholder register requires that every current shareholder be recorded. The register includes each person's name, address and number of shares held, but can further detail the holder's occupation and price paid. The shareholder register is fundamental to the examination of the ownership of a company.

SHAREHOLDER:

Any person, company or other institution that owns at least one share of a company’s stock.

INVESTOR NUMBER (NIN):

A special number given to the investor and can use it for trading in securities listed on the market.

BROKER:

The company licensed by the Securities and Commodities Authority and by the market to deal in companies listed on the market on behalf of it's clients.

SHARES:

A unit of ownership interest in a corporation or financial asset.

EARNINGS PER SHARE - EPS:

The portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company's profitability.

Earnings per share (AED)=net profit / number of shares issued

Return on paid-up capital (%) = net profit * 100% / paid-up capital.

Return on equity (%)=net profit * 100% / equity.

Return on Assets (%)