Glossary

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

B

Bonus share - A bonus issue is described as a free issue, a scrip issue, a capitalization issue and a stock dividend. These are new shares issued by a company to its existing shareholders, usually in a mathematical proportion to the number of shares already held. What the company is doing is turning part of the profits and reserves it will have accumulated into capital.

Book Value Per Share - It reflects the accounting value of the share and computed by dividing the Shareholders equities on the number of subscribed shares.

Broker - A Broker is a company licensed by the government authorities according to the Federal rules and regulations. A broker is authorized to trade at Abu Dhabi Securities Exchange on behalf of an investor after obtaining an official approval from the investor.

Buy Order - It is an instruction given by an investor to a broker to buy a specified amount of shares of a certain company.

C

Cash Dividend to Paid-in Capital (%) - = Cash Dividend x 100% / Paid-in Capital.

Cash Dividends - The amount of cash distributed to the shareholders by a company, expressed as a percentage of par value.

D

Dividend Yield (%) - = Annual Cash Dividend Per Share x 100% / Market Price Per Share.

E

Earnings Per Share (EPS in AED) - = Net Income / Weighted Average Number of Share.

I

Initial Public Offering (IPO) - A company first public issue of shares.

Investor Number - A unique number given to an investor.

Investor - An individual, establishment or a company that owns shares in a public joint stock Company.

M

Market Capitalization - This is the aggregate market value of a listed security. It is equal to the market price per share, multiplied by the total number of outstanding share.

Market index - An index is a statistical number that measure the change of securities prices now relative to some base value.

Market Price - The last reported price at which a security was traded on an exchange or the current quote.

Market Risk - Exposure to changes in market prices.

Market to Book Value (times) - = Market Price of Share / Book Value.

N

Net Income - Is the excess of revenue earned over related expenses incurred. This caption and amount is usually found at the bottom of a company's Profit and Loss statement.

P

Par value - Par value is the nominal value of a security. It is set by the company issuing the share, at the time of the public offering.

Price Earning Ratio (PE in Times) - = Market Price Per Share / Earnings Per Share.

Primary Market - This is where newly security is first offered (sold), whether in IPO's or as an additional issue of stock or bonds by a company that is already public.

R

Registrar - The division that maintains the investor share register.

Return on Assets (%) - = Net Income x 100% / Total Assets.

Return On Equity (ROE%) - = Net Income x 100% / Shareholder's Equity.

Return on paid-in Capital (in%) - = Net Income x 100% / Paid-up Capital.

S

Secondary Market - It is the market where trading in securities takes place in accordance with the laws, regulations and instructions in force.

Security - An asset such as share or bond and units of Mutual Funds.

Sell Order - It is an instruction given by an investor to a broker to sell a specified amount of shares of a certain company.

Share Book - A share book is an official record of ownership of company information about shareholders such as their names, addresses and numbers of shares held.

Share - An instrument or legal right signifying equity, or an ownership position, in a corporation.

Shareholder's equity - Balance sheet item that includes the book value of ownership in the corporation. It includes paid-up capital, issue premium, reserves and retained earning sand subtracting loss and discount on par.

T

Trading Floor - The area in the ADX or DFM where brokers and investors interact with each other to execute orders.

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