Trustee / Custodian / Fiduciary
A trustee (over a trust or the management of an institution) who holds funds in trust belonging to a beneficiary, and who is responsible for investing those funds properly for the benefit of the beneficiary.
Central Counterparty (CCP)
An entity that acts as an intermediary between the contracting parties, whereby the central counterparty becomes the buyer to every seller and the seller to every buyer.
Contingent Convertible Security
A derivative security under whose terms the client will be, or may be, obligated to make additional payments upon the expiry of the instrument or upon the closing of the investment position.
Trading Unit / Lot
The standard number of shares, bonds, or commodities that make up the minimum trading unit on the exchange.
Credit and Investment Document
The document from which the investment originates — it may be a will, a deed, or a title document.
Bid Bond / Earnest Money Margin
An amount provided by the party ordering the purchase as a guarantee of fulfilling their promise to buy. The seller has the right to recover from them an amount equal to the actual damage — represented by the shortfall in the sale value to a third party below the cost.
Capital Structure
It represents the company’s long-term permanent capital, consisting of long-term loans, preferred shares, and equity (equity is composed of: share capital + reserves + retained earnings).
Capital Market Authority (CMA)
It’s the entity responsible for regulating and supervising the capital market, effective from 2/6/1424 AH, corresponding to 31/7/2003 AD, under the Capital Market Law issued by Royal Decree No. (M/30) dated 4/6/1424 AH, corresponding to 31/7/2003 AD. Under this Law, the Authority oversees the regulation and supervision of the capital market by issuing regulations and […]
Supervisory Authority
The Authority, the Monetary Agency, or any other authority — whether in the Kingdom or abroad — that supervises and oversees the conduct of securities activities, banking or financial activities, insurance activities, or investment activities. This includes self-regulatory bodies.
Risk Margin (Takaful)
An element of the technical provisions of the participants’ risk fund that reflects the degree of risk and uncertainty in determining current estimates, and produces technical provisions reflecting the value that another takaful operator would be expected to require in order to take over the portfolio of liabilities.