Indirect Dealing (Agency Dealing)
A transaction in which a broker acts as an agent for a client, executing trades on their behalf without taking on principal risk.
Direct Dealing (Principal Trading)
A transaction in which a broker or dealer buys or sells securities using its own account rather than acting as an agent on behalf of clients.
Internal Dealing (Related Party Transaction)
A transaction conducted between a company and its directors, major shareholders, or other related parties, subject to heightened disclosure and governance requirements to prevent conflicts of interest.
Dealing
The act of buying or selling financial securities or instruments on behalf of oneself or clients, forming the core activity of licensed brokers and dealers.
Inflation
A sustained increase in the general price level of goods and services in an economy over time, resulting in a reduction in the purchasing power of money. Inflation is measured using indices such as the Consumer Price Index (CPI).
Credit Rating
An independent assessment of the creditworthiness of an entity (corporation, government, or financial instrument), issued by a licensed credit rating agency. Ratings indicate the likelihood of timely repayment of financial obligations and range from investment grade to speculative/sub-investment grade.
Settlement
The final process in a securities transaction in which the seller transfers the securities to the buyer and the buyer transfers the agreed payment to the seller, completing the trade. In Saudi Arabia, settlement typically occurs on a T+2 basis.
Arranging
This is where a person introduces others in connection with an offering of securities, arranges for its underwriting, or provides corporate finance advisory services.
Volatility
A statistical measure of the dispersion of returns for a security or market index, typically expressed as the standard deviation of price changes over a given period. High volatility indicates large and rapid price fluctuations.
Internal Audit
An independent, objective assurance and consulting activity conducted within an organisation to evaluate and improve the effectiveness of risk management, internal controls, and governance processes.