Discretionary Account
An account with a broker that grants them the freedom to buy or sell without prior approval or knowledge of the client. Some clients set certain limits, such as investing only in blue-chip stocks.
Unrestricted Investment Accounts
Accounts whose owners authorize the investment of their funds based on mudarabah contracts without imposing any restrictions. The mudarib may commingle their own funds with them and invest them all in a pooled portfolio.
Restricted investment accounts
Accounts whose holders authorize the investment of their funds based on mudarabah or agency contracts, with specific restrictions on where, how, and for what purpose these funds must be invested
Accounts Payable
Accounts payable is an accounting account that represents a company’s obligation to settle a short-term debt owed to its creditors. On many balance sheets, accounts payable is listed under current liabilities.
Preemptive Right in Additional Subscription
When a new offering is issued, existing subscribing shareholders are granted the right to purchase all the new shares that weren’t sold in the initial offering, in proportion to each shareholder’s stake in the company.
Squeeze-Out Right
The majority’s right to squeeze out the minority — also known as the withdrawal offer or a mandatory buyout offer from the controlling party to force out minority shareholders. This right is typically exercised when a particular party (or a related group) reaches a high ownership stake in the company’s shares, such as 90% or […]
Voting Share
A share whose holder is entitled to vote for electing the company’s board of directors, for the issuance of a new group of shares, and on any other significant key decisions of the company, at the annual ordinary general meeting of shareholders.
Futures Market
An organized market where trades (contracts) are concluded on specific assets or securities to be executed in the future, with oversight mechanisms and trading systems that differ from other securities markets.
Money Market
It is the market in which short-term securities are traded, and the banking system generally undertakes these transactions. The most important institutions in this market are central banks, commercial banks, and exchange houses.
Capital Market
The trading of all securities, including the organized electronic buying and selling of securities, known as the (Financial Market) in the Kingdom of Saudi Arabia. It includes: the organized market and the over-the-counter market.