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glossary
 

Ask
The price a seller is willing to accept for a security, also known as the offer price. Along with the price, the ask quote will generally also stipulate the amount of the security willing to be sold at that price.

ADSM
Abu Dhabi Security Market.

Best Ask
The lowest quoted ask price for a particular stock among those offered from competing market makers.

Best Bid
The highest quoted bid for a particular stock among all those offered by competing market makers.

Bid
An offer made by an investor, a trader or a dealer to buy a security. The bid will stipulate both the price at which the buyer is willing to purchase the security and the quantity to be purchased.

Broker
An individual or firm that charges a fee or commission for executing buy and sell orders submitted by an investor. The role of a firm when it acts as an agent for a customer and charges the customer a commission for its services.

Buy order
Instruction given to the Broker to buy certain stock at either Market price or fixed price.

CDS
Stands for Clearing, Deposits, and settlements.

Clearing
The procedure by which an organization acts as an intermediary and assumes the role of a buyer and seller for transactions in order to reconcile orders between transacting parties.

Closing Price
The final price at which a security is traded on a given trading day. The closing price represents the most up-to-date valuation of a security until trading commences again on the next trading day.

Current Ratio
Current ratio is defined as current assets divided by current liabilities.

Current Price
The "real time" price of a security trading on an exchange.

DFM
Dubai Financial Market.

Face value
The nominal value or dollar value of a security stated by the issuer. For stocks, it is the original cost of the stock shown on the certificate.

Gainers
Stocks that have increased the most.

Gray Market
An unofficial market where new issues of shares are bought and sold before they become officially available for trading on the stock exchange.

Hot IPO
An initial public offering that appeals to many investors and for which there is great demand. Hot IPOs are often oversubscribed - meaning market demand far exceeds the supply of shares - which results in the stock price surging as soon as it is offered on the market.

Immediate or Cancel Order
An order requiring that all or part of the order be executed immediately after it has been brought to the market. Any portions not executed immediately are automatically cancelled.

Index
A statistical measure of change in an economy or a securities market. In the case of financial markets, an index is essentially an imaginary portfolio of securities representing a particular market or a portion of it.

Index
A statistical measure of change in an economy or a securities market. In the case of financial markets, an index is essentially an imaginary portfolio of securities representing a particular market or a portion of it.

Initial Public Offering (IPO)
A company raising capital by selling common stock to public for the first time.