Financial Statements Audit
The objective of an audit of financial statements for an entity is to express an opinion on whether the financial statements are prepared, in all material respects, in accordance with the applicable financial reporting framework.
Cash flow
The movement of cash into or out of the entity.
Factoring
Factoring is the process of selling an entity’s gross accounts receivable without recourse to another party (the debt buyer). This means the buyer assumes all risks associated with collecting the debts. Some banks and financial institutions purchase these debts, typically at a discount from the face value of each account. Customers then make payments directly […]
Investment Analysis
It is the process of evaluating financial instruments or investment projects with the aim of making informed decisions regarding capital allocation. Investment analysis includes studying historical performance, market conditions, financial indicators, and risks associated with the asset or project, in addition to forecasting stock prices or future returns based on quantitative and qualitative models.
Stock Split
A process that increases the number of shares comprising a company’s capital without increasing shareholders’ equity, as both the par value and market value per share decrease by the approved split ratio. For example, if the par value per share is SAR 50, the market value per share is SAR 500, and the number of […]
Price Variance (Currency Difference)
The difference between the bid price and the ask price for a security at a specific time.
Ex-Dividend Date
A term meaning that an investor who buys shares on the ex-date is not entitled to receive the dividends declared for the completed financial period. It’s the date after which the stock is traded without the entitlement to those dividends.
Inah Sale and Reverse Inah Sale
Selling a commodity for a cash price, then purchasing it back for a deferred price higher than the cash price. Reverse Inah is selling a commodity for a deferred price, then purchasing it back in cash for a price lower than the deferred price
Debt Sale
The sale by a creditor of their debt to a third party. The debt may be money or specified goods held as an obligation, in accordance with Sharia provisions.
Istijrār sale
A sale contract in which the buyer receives goods gradually, usually without agreeing on the price or delivering anything, and payment is settled later after they are consumed; it is similar to a supply contract.