Cash Flows from Financing Activities
The section of the cash flow statement showing cash movements related to the entity’s capital structure, including proceeds from issuing shares or debt instruments and payments of dividends or repayment of loans.
Cash Flows from Operating Activities
The section of the cash flow statement showing cash generated from or used in the principal revenue-producing activities of the entity, such as receipts from customers and payments to suppliers and employees.
Cash Flows from Investing Activities
The section of the cash flow statement reflecting cash used to acquire or dispose of long-term assets and other investments, such as the purchase or sale of property, equipment, or securities.
Free Cash Flow
The cash generated by a business from its operating activities after deducting capital expenditures required to maintain or expand the asset base. Free cash flow represents funds available for distribution to investors, debt repayment, or reinvestment.
Insider Trading
The illegal practice of buying or selling securities based on material, non-public information about a company. It is prohibited under the Saudi Capital Market Law and enforced by the CMA, as it undermines market fairness and investor confidence.
Excessive Trading (Over-Trading)
A pattern of frequent buying and selling of securities in a client’s account by a broker or manager, often motivated by commission generation rather than the client’s best interest. It is considered a market conduct violation.
Electronic Trading
The use of digital platforms and computer-based systems to execute buy and sell orders for financial securities, replacing traditional open-outcry trading floors.
Trading
The buying and selling of financial securities (such as shares, bonds, sukuk, and derivatives) on organised exchanges or over-the-counter markets.
Financial Hedging
The use of financial instruments — such as forwards, futures, options, or swaps — to offset or mitigate specific financial risks, including currency risk, interest rate risk, and commodity price risk.
Hedging
A risk management strategy in which an investor takes an offsetting position in a related security or derivative to reduce the potential loss from adverse price movements in an existing holding.