Bond (Conventional Bond)
A fixed-income debt instrument issued by a government or corporation to raise capital, committing the issuer to pay regular interest (coupon) payments to bondholders and to repay the principal at maturity.
Fiscal Year
This is a company’s accounting year. The period covered by the fiscal year varies from one company to another — for most companies, the fiscal year runs from January 1 to December 31, while for some, it runs from June 1 to May 31.
Salam (Forward Purchase Contract)
An Islamic finance contract in which the full payment for goods is made in advance (at a discounted price) and the goods are delivered at a specified future date. It is used primarily for agricultural commodities.
Target Price
The target price is the price expected by an analyst (or valuer) for a security. It’s the price against which an investor gauges the best available investment opportunities.
Business Associations and Professional Bodies
A dynamic sector that seeks cooperation among companies, ensuring that the perspectives of the sector’s various components are taken into account.
Pledge
Any form of security recognized under the laws of the Kingdom that can be executed on a financial instrument.
Symbol
The abbreviation of the name of the listed public joint-stock company, approved by the trading regulator.
Security Identification Number
Which must comply with international identification specifications such as the International Securities Identification Number (ISIN) or the Committee on Uniform Securities Identification Procedures (CUSIP)
Profitability
The ability of an organization to generate profits from its activities, measured through indicators such as profit margin and net income.
Dividend
A dividend is the portion of a company’s earnings distributed to its shareholders as a return on their investments. Dividends are distributed in the form of cash or shares, and their distribution can be quarterly, semi-annually, or annually. The announcement of dividend distribution is often made upon the recommendation of the company’s board of directors.