Interest accrued on securities are calculated as follows: (nominal value of the security X rate of return on the security x actual number of days from the date of settlement of the last coupon to the date of settlement ) / 365.
Purchase by a company of the majority of the shares of another company, whereby the first company acquires control of the second company.
Announcements or disclosures made by the listed company or insider person or beneficiary person at the Stock Exchange.
Companies listed on the Stock Exchange issued an annual report which contains the financial statements for the past year, shows the assets, liabilities, revenues, expenses and income. The annual report also shows the financial position of the company at the end of the past year and contains certain information of interest to the shareholders.
are all the financial and real estate investments owned by the company.
The market which includes the shares that have a low liquidity level.
A report from an auditor expressing an unbiased technical opinion on the financial statements of a company whose accounts have been audited.
Capital Markets Authority.
The financial position statement at the end of the period. It also shows the nature and value of the assets, liabilities and capital of the company.
It includes an analysis of the company’s assets, profitability, managements, etc. It also includes an analysis of the sector within which the company operates. The purpose of this analysis is to arrive that the fair price of the share and determine the investor’s position and whether the investor should sell, buy or keep the share. The basic analysis takes into account such economic indicators as Gross Domestic Product, interest rates, unemployment rates, savings, etc.
A market condition during which share prices are falling.
Any person who has an interest of 5% or more in the capital of a listed company, directly or indirectly, or jointly with others.
A coefficient for measuring the rate of the risks regularly associated with the shares of a certain company.
The members of the board of directors are elected by the shareholders at the annual general meeting of the shareholders. The members of the board of directors manage the company and take the strategic decisions including the distribution of profits.
The bond is a deed of indebtedness used by companies as a means of borrowing. The issuer of the bond undertakes to pay to the bond holder interest (or coupon) at a pre-determined rate throughout the period (tenor) of the bond and to repay the nominal value of the bond on the date of maturity. For this reason, the bond holder is deemed to be a creditor to the company rather than a shareholder in the company.
Distributions made by the company whereby the shareholder receives his share of the distributions in the form of ordinary shares. Distributions in the form of shares are considered an increase of the company’s capital.
“Book Value” is an accounting term. The book value is determined through the books of the company as follows: (Total Value of the Assets – Total Liabilities) / Number of Ordinary Shares.
Boursa Kuwait Stock Exchange Company.
A corporate entity that carries on the business of buying and selling of securities for the account of others in return for a commission.
An intermediary in the sale and purchase of securities. The broker receives a commission (brokerage fee) in consideration of its services.
A market condition during which share prices are rising.
The gain resulting from the difference between the selling price and the buying price of a security.
An entity that performs the role of the contracting parties so that it becomes a buying central broker for every seller and a selling broker for every buyer.
An entity that provides securities accounts services, central custody services and asset custody services. It is possible that the services include companies transactions management. They play an important role in helping ensure the soundness of the procedures related to the issue of securities and ensuring that no securities are issued or cancelled through fraud, fault or change of the details thereof.
The entity that performs the clearing and settlement of securities trading and the central deposit of securities and other services relevant thereto.
Closed ended funds are negotiable in the stock exchange and their units may be purchased or sold by trading in the stock exchange like any other security.
The closing date of any security traded on the Kuwait Stock Exchange. It is the weighted average of the daily trading prices of the security which is equal to the total trades value of the security divided by the total daily traded quantity of the security.
Bonds issued by companies.
The day eight days preceding the due date, on which the time schedule is confirmed or amended for the entitlements related to shares by the listed company.
A bond that is convertible to ordinary shares according to the conditions of the issue.
The Company’s assets that can be converted to cash or can be used in settling claims within one year. They include cash, stock, accounts receivable (amounts that customers owe to the company).
A person to whom the licensed person provides or intends to provide services within the scope of the activities of the licensed person. This term includes any prospective customer, foundation, charitable will, and persons to whom the registered auditor or Sharia external audit office renders services.
Any party that constitutes a source of trading information at the Stock Exchange whether instant or historical.
Orders that have been executed and that have resulted in the creation of obligations among the parties thereto.
The state of the economy during periods of lack of growth or declining rates of growth and rising rates of unemployment.
A document issued by issuing companies that will offer new securities for sale. It shows the details, provisions and conditions of the offering. The Prospectus gives the details of the company’s financial position and the way the company will use the proceeds of the offering as well as other important information that may affect investors’ decisions.
The service provided by brokers (who have direct access to the market) to their customers who are licensed to carry on market activity or investment portfolio manager activity or other persons who are registered at the stock exchange through the use of trading systems that allow such customers to trade directly in the Stock Exchange, under the trading number of the guaranteeing broker, through electronic communication channels.
Distributions of the profits as decided by the company’s board of directors. These profits are distributed pro-rata the number of shares held. Distributions to holders of ordinary shares are linked to the company’s profit and liquidity. The Board of Directors may decide not to distribute the profits and rather decide to re-invest them in expansion projects or the purchase of other assets.
It refers to the multiplicity of the types of contents of the investment portfolio in terms of such contents being in the form of short-term investments and long-term investments in securities and in diverse companies in various sectors.
The date set by the listed company on which the entitled parties are identified with regard to the entitlements related to the shares according to the registered of the company’s shareholders at the end of that day.
The licensed person is in an event of principal default in the following events:
1- In the event of the troubled financial or managerial conditions of another person who keeps the funds of the customers of the licensed person, including the inability of such other person to perform its obligations when due, or upon the appointment of a liquidator, receiver, receiver in bankruptcy or the attachment of the properties of such other person.
2- In the event where the Capital Markets Authority imposes a prohibition against the licensed person thereby preventing such person from possessing or keeping customer funds.
A secondary default takes place in the event of the troubled financial or managerial conditions of another person who keeps the funds of the customers of the licensed person, including the inability of such other person to perform its obligations when due, or upon the appointment of a liquidator, receiver, receiver in bankruptcy or the attachment of the properties of such other person.
Exceptional, non-periodical dividends determined by the issuer, usual arising from a non-operational source.
The company’s accounting year. The period of the financial year differs from one company to another depending on the activity. For some companies the financial year begins on July 1st and ends on June 30th. In other companies, the financial year begins on January 1st and ends on December 31st.
The market which includes the shares that have a high market value and high liquidity and that fulfill the requirements specified by the Stock Exchange.
First day of trading a security excluding dues on the shares.
The rate of the shares of the company that are available for trading by the public. The strategic ownership by persons or establishments (private or public) are excluded from free trading.
Collective investment scheme that seeks to collect funds from investors for the purpose of investing them on their behalf in various fields according to the principles of the professional management of collective investment. It is managed by the fund manager in consideration for specified fees.
Bonds issued by the government in order to finance public expenditure.
The parent company which has control of the company, directly or indirectly, its subsidiary, and the company which is a subsidiary to the parent company.
The parent company which owns the majority of the shares of the subsidiary companies and, therefore, the right to vote and control.
A report showing the result of the business of the entity during a certain period, showing the revenues, expenses, profits and losses.
The index is a numerical value used to measure changes in the financial markets. This index is expressed as a percentage rate of change as at a specific point in time compared to a certain value during the base period or at the starting point. The index measures the rise or decline of the prices of shares, bonds, funds, etc. thereby reflecting the market price and trend. For the investor, the share index is a benchmark of the share market and a benchmark for the performance of a specific share against the performance of the market as a whole.
An economic indicator that shows the rate of price increases.
Any person who, by virtue of his position, has material information or data about a listed company unless such information or data is available to the public.
Certificates of deposit negotiable in the international capital markets. They are issued by international institutions or banks such as Bank of New York or Deutsche Bank in US Dollar or any other foreign currencies against keeping a cover therefor in local shares.
The customer’s account designated for managing and keeping his funds and assets. It is used for executing all securities trading operations by direct debit or credit.
A subscription promoter and underwriter. It plays the role of intermediary between the investors and the companies which wish to offer securities to investors or to the main investor.
Companies that invest their funds in various securities.
A variety of securities owned by individuals or entities.
An international code to identity a security. Every security that is registered in a stock exchange has a unique ISIN.
The date on which these rules entered into force.
These are the shares that represent a portion in the capital of a shareholding company, subscribed to by the shareholders whether they are fully or partially paid.
Corporate entity authorized to issue securities.
Law No. 7 of 2010 concerning the Establishment of the Capital Markets Authority and Regulating Securities Activity as amended.
All the liabilities of the company. Short-term liabilities include notes payable, payable wages and payable taxes, while long-term liabilities include long-term bank loans, bonds, etc.
A license issued by the Capital Markets Authority to carry on any of the securities activities.
A securities broker registered at the Stock Exchange or a qualified securities broker which is registered at the Stock Exchange.
A measurement of the traded value of the shares existing in the market during a specific period of time.
The shares of the company listed on the Stock Exchange. All global stock exchanges have rules and conditions that should be fulfilled by companies before they can be listed.
The market which includes the shares that have a medium market value or liquidity which is less than what should be fulfilled in the First Market.
One or more officers authorized by the Stock Exchange to manage / operate the trading system operation.
The speed at which securities can be converted into cash. It indicated the ability of the market to absorb a large number of selling and buying operations at appropriate prices without much price difference among them in any security. Market security is a key feature of a good market.
The person who seeks to create offer and supply with regard to one or more listed securities subject to such controls as are issued or approved by the Authority.
An agreement made between the Exchange and the market maker to specify the details of the market maker’s rights, obligations and the controls that govern its work.
The Stock Exchange lays down a detailed market model for the trading system without the need for such model to be approved by the Authority.
The present value of the share in the Market, excluding the treasury shares.
The matching of sale and purchase operations resulting in a deal.
The date on which the nominal value of the security is payable.
A member of the Stock Exchange, i.e. companies and funds listed in the Stock Exchange and brokers.
Companies licensed to carry on their activities on the Egyptian Stock Exchange. These members include several categories, namely: securities brokerage companies, main traders, custodians, market makers).
An agreement between two or more companies to merge and form a new economic entity.
A system that instantly displays the latest prices, volume of trading and operations of sale and purchase of securities.
It is calculated daily according to the following equation: Total market value of the fund’s assets less all the fund’s liabilities / the remainder on the number of securities offered.
The value for which the listed company issued the security, without an issue premium.
The nominal value is the value stated in the security.
A percentage rate of the average daily trading volume used in an auction related to the shares.
Trading operations for 100 shares or less.
The price offered in the market for each security. It is the price that the holder of the security wishes to sell the security for. On the other hand, the bid price is the price the investor is ready to pay to buy the security.
A user of the trading system in his capacity as representative of the licensed broker, who has the authority to access all orders entered into the system by the users of the system of the licensed broker.
The units of open-ended funds are sold to the investor directly. They are not traded in the stock exchange. The investor may transfer them by returning them directly to the issuer of the fund.
A user manual for the “Extreme” work station or a manual of the specifications of “Genium FEX” of the “Extreme” unit or any other technical document specified by the Stock Exchange in connection with the trading system.
The electronic unit within the trading system in which the orders entered in the trading system are collected and are listed and displayed for each security.
Ownership deeds that give their holder the right to attend the annual general assembly and receive distributions if the company has made profits and the board of directors of the company has decided to distribute part or all of such profit. Upon liquidation of the company the holders of the ordinary shares receive their entitlements after the holders of the company’s bonds and preference shares have received their entitlements.
Orders by which the customer requests the buying or selling of a security at a certain price, and which have not been executed yet.
Shares listed on the Exchange and available for trading.
The condition of the market or share, after periods of successive price increases, which, in the opinion of some, leads to an excessive rise in prices.
The condition of the market or share, after periods of successive price falls, which, in the opinion of some, leads to an excessive decline in prices.
Ownership transfer is carried out in two stages. The first is the delivery of the share warrants or shares with the central depository by the seller broker to the buyer broker upon settlement. The transfer of ownership takes place after seven days. The second phase is the registration of the new owners of the shares in the registers of the companies.
A company is considered a parent of another company in the event where it owns 50% of its capital and where it has the right to appoint or dismiss the majority of its board of directors or where it has such influence as would direct the resolutions of the company in a manner that would serve its own interests.
A natural individual or corporate entity.
Any person who carries on the activity of securities trading in the Stock Exchange and is registered in the stock exchange according to these rules. This includes all the branches and offices of the person registered in the Stock Exchange, including, without limitation, the members of the Stock Exchange, market makers, service providers, representatives of the licensed broker and any other registered person all in accordance with the requirements of the Stock Exchange from time to time.
A consolidated account of the portfolios of the customers of the person licensed to manage investment portfolios pursuant to orders from the customers.
A consolidated account of the portfolios of the customers of the person licensed to manage portfolios on a discretionary basis.
The most recent price at which a certain security was traded on the Stock Exchange.
The previous rules that were in force at the Kuwait Stock Exchange or the Boursa before the entry into effect of these Rules.
The price fixed according to the steps specified by the Stock Exchange for each security listed in the Stock Exchange.
A measure of the price volatility of securities prices or a particular security during a certain period.
A measure used to compare the level of share selling prices. It is calculated by divided the share closing price by the share profitability.
This takes place when the company offers its shares to the public.
Bonds that give the issuer the right to redeem (recall) all or part of the issued bonds before the maturity date.
The statement or schedule maintained by the Stock Exchange containing the data of the persons registered at the Exchange.
The shareholders registered in the ownership registers of the issuing companies.
The Executive Regulations. Of Law No. 7 of 2010 concerning the Establishment of the Capital Markets Authority and Regulating Securities Activity, as amended.
A person registered at the Authority as a representative of the licensed broker approved by the Stock Exchange under these rules.
An agreement made in writing or by electronic means to sell securities against the buyer paying the entire price or a percentage part thereof, with the seller’s obligation to recover them within a specified period, subject to conditions set forth in that agreement and subject to such controls as a laid down by the Exchange in this regard.
A weighted index that follows the movement of the shares without taking the cash distributions into consideration.
These rules or any change, amendment or addition thereto after having obtained the approval of the Authority at any time.
The buying price is the highest required in the market to buy a security at a given time, while the selling price is the lowest price offered in the market to sell a security at a given time.
The market or markets in which securities selling and buying operations take place as well as the transfer of ownership thereof according to their governing by-laws, regulations and laws.
The following activities fall within the securities activities:
Investment portfolio manager
Collective investment scheme manager
Securities broker registered at the Stock Exchange
Securities broker not registered at the Stock Exchange
Credit rating agency
Qualified securities broker registered at the Stock Exchange
Any other activities specified by the Authority
This is a contract made between the issuer of the security and the holder of the security. The contract shows the due date, interest on the security and other conditions and provisions of the issue. The unit holders usually select the trustee which is a bank or company that would follow up with the issuer of the securities to ensure that it observes the issue conditions and provisions. The trustee ensures that the issuer pays interest (coupons) in a timely manner and maintain a certain level of liquidity in the company.
Any deed of any legal form that establishes ownership in a negotiable financing process as licensed by the Authority such as:
Commercial papers such as cheques, bills of exchange, promissory notes, documentary credits, cash remittances, instruments that are negotiates by banks exclusively, insurance policies and the resulting rights in pension funds for the benefit of beneficiaries are not considered securities.
The price at which the security is depreciated on the maturity date.
The Company which provides services related to the Stock Exchange such as electronic trading and any other service approved by the Authority or the Stock Exchange.
Settlement in general means the transfer of balances (securities balances) from the seller to the buyer in addition to the settlement of the financial balances to the selling broker and the buying broker.
The last day on which the security may be traded with the entitlements of the share. It is one day before the date of trading without entitlements.
A rate calculated by dividing the traded value of the shares within the year by the market capitalization of all the shares registered in the Stock Exchange during the same year.
They represent the value of the shares owned by the shareholders in a company. They normally consist of the paid-up capital + reserves + retained profits.
Actions taken by a listed company resulting in rights, obligations, changes to shares issued by it, such as the approval of the distribution of cash dividends, bonus shares, subscription rights, capital reduction, merger, division or changing the nominal value of the shares.
The sale of a security that is not owned by the seller.
A feature of thee trading system that allows the user to enter non-activated orders. The user has an absolute discretion to move or activate them in the general orders register during the trading hours.
The entry by licensed persons as market markers or investment portfolio manager or by other persons who are registered with the Stock Exchange to the trading systems through technical channels linked to the system of the licensed broker.
An organized market with its own rules, where securities are bought and sold through brokerage companies (members).
In the event where the company increases its capital and offers new shares for this purpose, the company first gives its existing shareholders the right to buy the capital increase shares before offering shares for subscription by other subscribers. Sale to the shareholders is made pro-rata the number of shares held by every shareholder and at a price lower than the market price. In the event where the existing shareholders do not subscribe and cover the number of shares available for subscription, the company may sell the shares to any other investor.
A company is considered a subsidiary in the event where any person owns more than 50% of its capital or has actual control thereof.
Any information at the listed company, listed fund issuer or obligor in the case of sukook or bonds, as the case may be, related to its activity, person, financial position, and management, which are not available to the public and parties with which it deals and that may affect its assets, liabilities, financial position or general course of its business and which may lead to a change in the price or volume of trading of its listed security or in attracting or repelling traders with regard to the security or that may affect the ability of the issuer to honor its obligations.
A group of investment banks that underwrites and promotes issues of securities in whole or in part.
A study of the share price movement, trading volume and past market trends in order to forecast price trends and future offer and supply size.
Any person licensed by the Authority to establish and manage collective investment schemes.
The total value of the securities issued by the company. It includes the total value of the ordinary shares, reserves and preference shares, if any.
The price or nominal value of the security that the issuer of that security will pay to the holder thereof on the maturity date.
www.boursakuwait.com.kw or any other site as may be announced by the Stock Exchange from time to time.
A weighted index that follows the movement of the listed shares assuming the re-investment of any cash distributions or corporate entitlements in the index.
The date fixed by the Stock Exchange on which trading made be made on the Stock Exchange.
The hours specified by the Stock Exchange during which trading at the Stock Exchange may take place.
The sector of the Stock Exchange responsible for following up the daily trading operations.
Any electronic trading system for matching orders or for matching orders and price offers as specified by the Stock Exchange and approved by it for stock exchange transactions.
The operating platform provided by the Stock Exchange for entering data in the trading system.
These are shares issued by a company and that the company buys and re-sells or uses.
Shares that the issuing company re-byes in the market through the Stock Exchange. These shares do not have distribution or voting rights throughout the period of their ownership by the issuing company.
Shares in respect of which no application have been submitted to register them in the Stock Exchange or that do not fulfill the criteria and conditions of listing on the Stock Exchange.
A person registered at the Authority and the Stock Exchange as a representative of the licensed broker for whom an identification number has been issued in the trading system that renders him distinct from the other representatives of the licensed broker.
Every act that violates the provisions of the law or any regulation, bylaw, resolution or instructions issued by the Authority. With regard to the provisions of the committee in charge of addressing violations at the Stock Exchange, a violation is any act that violates the rules and regulations applicable at the Stock Exchange.
The committee appointed by the board of directors of the stock exchange to address violations of these rules, as committed by the members of the Stock Exchange.
A violator or the person who committed the violation, according to the determination of the committee to address violations at the Stock Exchange, is any member of the Stock Exchange who commits an act that constitutes a violation of the rules and regulations applicable at the Stock Exchange.
It is the right of the holder of an ordinary share to vote on the policies and resolutions of the company at the annual general assembly meeting. The number of shares owned by the investor is in direct proportion with his ability to influence the company’s resolutions. The higher the percentage of the investor’s number of share in the company the bigger is right to vote on the company’s resolutions.
The voting right is the right of the holders of the ordinary shares to vote on the company’s resolutions at the general assembly meeting.