Glossary
Khartoum Stock Exchange (KSE)
A stock exchange is a form of exchange which provides services for stock brokers and traders to trade stocks, and other securities, accordingly KSE is the only agency authorized as a formal market for trading securities in Sudan.
A stock exchange is a form of exchange which provides services for stock brokers and traders to trade stocks, and other securities, accordingly KSE is the only agency authorized as a formal market for trading securities in Sudan.
Annual Report
The formal financial statement issued yearly by a publicly owned corporation, showing the firm’s assets, liabilities, revenues, expenses and earnings.
The formal financial statement issued yearly by a publicly owned corporation, showing the firm’s assets, liabilities, revenues, expenses and earnings.
Offer Price
The lowest price at which an owner will sell a given security (also called Offer Price).
The lowest price at which an owner will sell a given security (also called Offer Price).
Asset
Anything a person, company, or group owns or is owed, including money, investments, and property.
Anything a person, company, or group owns or is owed, including money, investments, and property.
Balance Sheet
A financial statement for a firm showing the company’s assets, liabilities, and capital on a given date.
A financial statement for a firm showing the company’s assets, liabilities, and capital on a given date.
Bid Price
The highest price an investor is willing to pay to purchase a given security.
The highest price an investor is willing to pay to purchase a given security.
Bid-Ask Spread
The difference between the bid and ask prices.
The difference between the bid and ask prices.
Book Value
A company’s total assets minus intangible assets and liabilities (also called Common Shareholder’s Equity).
A company’s total assets minus intangible assets and liabilities (also called Common Shareholder’s Equity).
Broker
An individual or company who handles public orders to buy and sell securities, commodities or other property on the behalf of clients. A commission is charged for this service.
An individual or company who handles public orders to buy and sell securities, commodities or other property on the behalf of clients. A commission is charged for this service.
Brokerage Fee
The broker’s basic fee for purchasing or selling securities on behalf of another party, usually a percentage of the amount of the transaction.
The broker’s basic fee for purchasing or selling securities on behalf of another party, usually a percentage of the amount of the transaction.
Buy
The act of completing a transaction in which an individual takes the title to a security in exchange for cash.
The act of completing a transaction in which an individual takes the title to a security in exchange for cash.
Buy Order
An order to buy securities.
An order to buy securities.
Canceled Order
A buy or sell order that has been cancelled prior to its execution.
A buy or sell order that has been cancelled prior to its execution.
Capital Gain
Profit made on securities by selling the security for a higher price than was paid for that security.
Profit made on securities by selling the security for a higher price than was paid for that security.
Capital Markets
A market where securities are bought and sold.
A market where securities are bought and sold.
Certificate
The piece of paper that is evidence of ownership of stock in a company.
The piece of paper that is evidence of ownership of stock in a company.
Clearance
The post-trade and pre-settlement matching of trade details for the purpose of confirming the trade and allowing settlement.
The post-trade and pre-settlement matching of trade details for the purpose of confirming the trade and allowing settlement.
Closed-End Mutual Fund (Fixed Capital Mutual Fund)
A mutual fund that has shares which are readily transferable in the open market and are bought and sold like shares of stock. The number of fund shares remains finite, as opposed to an open-end mutual fund.
A mutual fund that has shares which are readily transferable in the open market and are bought and sold like shares of stock. The number of fund shares remains finite, as opposed to an open-end mutual fund.
Closing Price
The price of the last trading transaction in a trading session, executed on a specific security.
The price of the last trading transaction in a trading session, executed on a specific security.
Commission
The broker’s basic fee for purchasing or selling securities on behalf of another party, usually a percentage of the amount of the transaction.
The broker’s basic fee for purchasing or selling securities on behalf of another party, usually a percentage of the amount of the transaction.
Current Assets
A company’s assets that are expected to be realized in cash, sold, or consumed within the next year.
A company’s assets that are expected to be realized in cash, sold, or consumed within the next year.
Current Liabilities
Money owed by a company to be paid within the next year.
Money owed by a company to be paid within the next year.
Custody
Safekeeping of securities for institutions and individuals generally including settlement of trades, collection of income, and processing of corporate actions.
Safekeeping of securities for institutions and individuals generally including settlement of trades, collection of income, and processing of corporate actions.
Custodian
Financial institution that maintains custody of stock certificates for institutional individual clients.
Financial institution that maintains custody of stock certificates for institutional individual clients.
Day Traders
Individuals who seek to establish and liquidate the same position for profit within one day’s trading.
Individuals who seek to establish and liquidate the same position for profit within one day’s trading.
Market Depository Center
A central securities repository where physical securities are kept in a vault and owners are tracked via book entry system without the delivery of those securities when transactions occur.
A central securities repository where physical securities are kept in a vault and owners are tracked via book entry system without the delivery of those securities when transactions occur.
Disclosure
The release by companies of all information positive or negative that might bear on an investment decision as requested by the Khartoum Stock Exchange.
The release by companies of all information positive or negative that might bear on an investment decision as requested by the Khartoum Stock Exchange.
Diversification
The act of spreading one’s investments across different types of securities and various companies in different fields in order to minimize risk.
The act of spreading one’s investments across different types of securities and various companies in different fields in order to minimize risk.
Dividend
Distribution of earnings to shareholders, usually paid in the form of money or stock (see Stock Dividend).
Distribution of earnings to shareholders, usually paid in the form of money or stock (see Stock Dividend).
Dividend Yield
Calculated by dividing the amount of the annual dividends per share of stock by the current market price per share of the same stock, resulting in the annual percentage of return earned by an investor on a stock.
Calculated by dividing the amount of the annual dividends per share of stock by the current market price per share of the same stock, resulting in the annual percentage of return earned by an investor on a stock.
Earnings Per Share (EPS)
Calculated by dividing after-tax net income by the total number of shares outstanding. Shows the portion of a company’s profit allocated to each outstanding share of common stock.
Calculated by dividing after-tax net income by the total number of shares outstanding. Shows the portion of a company’s profit allocated to each outstanding share of common stock.
Electronic Trading
Trading which is conducted via electronically linked computers to the exchange, enabling brokers to carry out transactions in locations other than the Khartoum Stock Exchange.
Trading which is conducted via electronically linked computers to the exchange, enabling brokers to carry out transactions in locations other than the Khartoum Stock Exchange.
Equity
Ownership interest in a corporation.
Ownership interest in a corporation.
Executed Order
A completed buy or sell transaction.
A completed buy or sell transaction.
Execution
The act of carrying out a trade.
The act of carrying out a trade.
Face Value
The amount of money the issuing company or government promises to pay for a bond at maturity.
The amount of money the issuing company or government promises to pay for a bond at maturity.
Final Settlement
The completion of a transaction when delivery of all components to a trade has been accomplished.
The completion of a transaction when delivery of all components to a trade has been accomplished.
Financial Services Companies
The companies licensed by the Khartoum Stock Exchange to perform the activities of investment trusteeship, investment management, financial consultations, brokerage or custodial activities.
The companies licensed by the Khartoum Stock Exchange to perform the activities of investment trusteeship, investment management, financial consultations, brokerage or custodial activities.
Fiscal Year
Any continuous 12-month period that a company or government uses as its annual accounting period.
Any continuous 12-month period that a company or government uses as its annual accounting period.
Held to maturity
A held to maturity security is a debt or equity security that is purchased with the intention of holding the investment to maturity.
This type of investment is not affected by the fluctuations in the financial markets.
This type of investment is not affected by the fluctuations in the financial markets.
Holding Company
A corporation that owns the securities of another company, usually with voting control.
A corporation that owns the securities of another company, usually with voting control.
Income Statement
A report on a company’s financial status describing revenues and expenses over a specific period of time.
A report on a company’s financial status describing revenues and expenses over a specific period of time.
Investment Manager
An professional responsible for managing the investments of institutional and individual clients.
An professional responsible for managing the investments of institutional and individual clients.
Inflation
An increase in the prices for goods and services in a particular country.
An increase in the prices for goods and services in a particular country.
Initial Public Offering (IPO)
A corporation’s first offering of stock to the public.
A corporation’s first offering of stock to the public.
Investment Fund
An established fund which pools funds from investors in order to purchase a wide variety of financial instruments that will meet the fund’s investment goals.
An established fund which pools funds from investors in order to purchase a wide variety of financial instruments that will meet the fund’s investment goals.
Issuer
Corporation that originates securities in the primary market for the purpose of raising capital.
Corporation that originates securities in the primary market for the purpose of raising capital.
Liabilities
The claims against a corporation, including, but not limited to, accounts payable, salaries payable, dividends declared payable, debenture bonds, and bank loans.
The claims against a corporation, including, but not limited to, accounts payable, salaries payable, dividends declared payable, debenture bonds, and bank loans.
Limit Order
An order to buy or sell a stock at a customer specified price.
An order to buy or sell a stock at a customer specified price.
Liquidity
Ease with which a security can be traded on the market.
Ease with which a security can be traded on the market.
Listed Securities
Stock or bond that has been accepted for trading in the Khartoum Stock Exchange.
Stock or bond that has been accepted for trading in the Khartoum Stock Exchange.
Maturity Date
The date a debt security expires and the date that the principal amount of the debt must be paid by the borrower to the investor.
The date a debt security expires and the date that the principal amount of the debt must be paid by the borrower to the investor.
Market Order
An order to buy or sell a stock at the market’s current best displayed price, given one’s position.
An order to buy or sell a stock at the market’s current best displayed price, given one’s position.
Market Price
The order price which is the best-bid price in case of a buying order, or the best-ask price in case of a selling order.
The order price which is the best-bid price in case of a buying order, or the best-ask price in case of a selling order.
Maturity Date
The date on which the principal amount of a bond is to be paid in full.
The date on which the principal amount of a bond is to be paid in full.
Merger
A voluntary combination of two or more companies whereby both stocks are merged into one.
A voluntary combination of two or more companies whereby both stocks are merged into one.
Mutual Fund
An established investment fund whereby an investment company pools funds from investors in order to purchase a wide variety of financial instruments that will meet the fund’s investment goals.
An established investment fund whereby an investment company pools funds from investors in order to purchase a wide variety of financial instruments that will meet the fund’s investment goals.
New Listing
A security that has just begun to trade on the stock exchange.
A security that has just begun to trade on the stock exchange.
Offer Price
The price for which a seller is willing to sell his security holding (also called, Ask Price ).
The price for which a seller is willing to sell his security holding (also called, Ask Price ).
Open-End Mutual Fund (Variable Capital Mutual Fund)
A mutual fund where the capitalization is not fixed. The mutual fund company will continually sell or redeem its own shares to meet investor demand, as opposed to a Closed-End Mutual Fund.
A mutual fund where the capitalization is not fixed. The mutual fund company will continually sell or redeem its own shares to meet investor demand, as opposed to a Closed-End Mutual Fund.
Open Order
An order that has been placed with the broker, but not yet filled or cancelled.
An order that has been placed with the broker, but not yet filled or cancelled.
Open Price
The price of an order sent in the pre-opening phase to buy or to sell as security at the opening price.
The price of an order sent in the pre-opening phase to buy or to sell as security at the opening price.
Opening Price
The price of the first trading transaction in a trading session, executed on a specific security.
The price of the first trading transaction in a trading session, executed on a specific security.
Ordinary Order
An order to buy or sell a specific security, which the broker can offer or demand through the trading system.
An order to buy or sell a specific security, which the broker can offer or demand through the trading system.
Par Value
The principle amount that will be paid at a debt instrument’s maturity.
The principle amount that will be paid at a debt instrument’s maturity.
Paying Agent
The place or company where the capital and profit margins are payable by Sudan Financial Services Company (SFSC).
The place or company where the capital and profit margins are payable by Sudan Financial Services Company (SFSC).
Portfolio
The group of investments and cash held by an individual.
The group of investments and cash held by an individual.
Preferred Stock
One of two major types of stock an investor can purchase in a company. Investors who hold preferred stock have voting rights at the company’s annual stockholders’ meeting and, if dividends are distributed, are guaranteed to receive dividend payments before Common Stockholders.
One of two major types of stock an investor can purchase in a company. Investors who hold preferred stock have voting rights at the company’s annual stockholders’ meeting and, if dividends are distributed, are guaranteed to receive dividend payments before Common Stockholders.
Price/Book Ratio
Calculated by dividing a stock’s price by its book value per share. Used to assess whether a stock is overvalued or undervalued.
Calculated by dividing a stock’s price by its book value per share. Used to assess whether a stock is overvalued or undervalued.
Price to Earnings Ratio (P/E Ratio)
Calculated by dividing the current price of a stock by the reported actual or forecasted earnings per share of the issuing firm.
Calculated by dividing the current price of a stock by the reported actual or forecasted earnings per share of the issuing firm.
Primary Market
The market in which financial instruments are issued for the first time. After issuing on the primary market, the stock is then sold to the public in the secondary market.
The market in which financial instruments are issued for the first time. After issuing on the primary market, the stock is then sold to the public in the secondary market.
Principal
The original amount or face value of a bond or certificate of deposit.
The original amount or face value of a bond or certificate of deposit.
Privatization
The act of a government transferring state-owned or state-run companies to the private sector, usually by selling them.
The act of a government transferring state-owned or state-run companies to the private sector, usually by selling them.
Prospectus
A document detailing a new offer for public securities. The prospectus provides financial background information of the issuing company, how the proceeds from the sale of securities will be used, and other information that aids a potential investor in deciding whether or not to participate in the new issue.
A document detailing a new offer for public securities. The prospectus provides financial background information of the issuing company, how the proceeds from the sale of securities will be used, and other information that aids a potential investor in deciding whether or not to participate in the new issue.
Proxy
Written authorization by a shareholder to allow someone else to represent him and his vote at a corporation’s annual shareholders’ meeting.
Written authorization by a shareholder to allow someone else to represent him and his vote at a corporation’s annual shareholders’ meeting.
Public Shareholding Company
A company whose shares may be purchased by the public and whose share capital is not less than a statutory minimum.
A company whose shares may be purchased by the public and whose share capital is not less than a statutory minimum.
Redemption
The paying off or buying back of a Sukuk by the issuer.
The paying off or buying back of a Sukuk by the issuer.
Shahama Sukuk Renewal
The replacement of a Shahama issue with a new Shahama issue.
The replacement of a Shahama issue with a new Shahama issue.
Registrar
An organization with the responsibility of keeping a record of the owners of securities; Sudan Financial Services Company (SFSC).
An organization with the responsibility of keeping a record of the owners of securities; Sudan Financial Services Company (SFSC).
Rejected Order
An order that is invalid or unacceptable by the Khartoum Stock Exchange (KSE)
An order that is invalid or unacceptable by the Khartoum Stock Exchange (KSE)
Return on Assets (ROA)
A percentage calculated by dividing a company’s net income from the previous year by its common stockholder equity. Indicator of profitability.
A percentage calculated by dividing a company’s net income from the previous year by its common stockholder equity. Indicator of profitability.
Safekeeping
The holding of a physical or book entry security by a depository or custodian.
The holding of a physical or book entry security by a depository or custodian.
Second Market
Part of the Secondary Market through which trading takes place in securities subject to special Khartoum Stock Exchange listing rules.
Part of the Secondary Market through which trading takes place in securities subject to special Khartoum Stock Exchange listing rules.
Secondary Market
Market where previously issued securities are bought and sold.
Market where previously issued securities are bought and sold.
Sector
A group of securities similar with respect to industry, maturity, type, rating, and/or coupon.
A group of securities similar with respect to industry, maturity, type, rating, and/or coupon.
Securities
Securities are a financial instrument that represents: an ownership position in a publicly-traded corporation (stock). Securities allow you to own the underlying asset without taking possession. For this reason, securities are very easily traded and are very easily liquidated.
Securities Law
The Securities Law of 1994. This Law regulates the Khartoum stock exchange market. One institution was established under this Law: the Khartoum Stock Exchange market Law.
The Securities Law of 1994. This Law regulates the Khartoum stock exchange market. One institution was established under this Law: the Khartoum Stock Exchange market Law.
Security
Instrument that signifies an ownership position in a corporation (a stock), a creditor relationship with a corporation or governmental body (a bond), or rights to ownership (e.g., option).
Instrument that signifies an ownership position in a corporation (a stock), a creditor relationship with a corporation or governmental body (a bond), or rights to ownership (e.g., option).
Sell Order
An order to sell securities.
An order to sell securities.
Settlement
The conclusion of a securities transaction when a customer pays a broker or dealer for securities purchased or delivers securities sold and receives payment from the broker.
The conclusion of a securities transaction when a customer pays a broker or dealer for securities purchased or delivers securities sold and receives payment from the broker.
Settlement Date
The date on which both parties of a transaction agree to deliver securities or pay cash.
The date on which both parties of a transaction agree to deliver securities or pay cash.
Shares
Certificates or book entries representing ownership in a company.
Certificates or book entries representing ownership in a company.
Share Repurchase
The process in which a corporation buys back previously issued shares of its own stock in the open market.
The process in which a corporation buys back previously issued shares of its own stock in the open market.
Shareholders’ Equity
See Stockholders’ Equity
See Stockholders’ Equity
Split
The division of a corporation’s outstanding shares into either a larger or smaller (reverse split) number of shares without any impact on shareholder equity.
The division of a corporation’s outstanding shares into either a larger or smaller (reverse split) number of shares without any impact on shareholder equity.
Stock
Equity ownership of a corporation through the purchase of shares.
Equity ownership of a corporation through the purchase of shares.
Stock Dividend
Payment of a corporate dividend in stock rather than in cash.
Payment of a corporate dividend in stock rather than in cash.
Stock Index
An indicator used to measure and report changes in prices of a selected group of stocks. How a particular stock index tracks the market depends on its composition – the sampling of stocks, the weighing of individual stocks, and the method of averaging used to establish an index.
An indicator used to measure and report changes in prices of a selected group of stocks. How a particular stock index tracks the market depends on its composition – the sampling of stocks, the weighing of individual stocks, and the method of averaging used to establish an index.
Stock Market
A market in which shares of stock are bought and sold.
A market in which shares of stock are bought and sold.
Stockholders’ Equity
The value of all stock of a particular company owned by the shareholders of that company. Calculated by subtracting a company’s total liabilities from its total assets or a corporation’s paid-in capital, donated capital, and retained earnings less its liabilities (also called, Shareholders’ Equity, Net Worth, and Owners’ Equity).
The value of all stock of a particular company owned by the shareholders of that company. Calculated by subtracting a company’s total liabilities from its total assets or a corporation’s paid-in capital, donated capital, and retained earnings less its liabilities (also called, Shareholders’ Equity, Net Worth, and Owners’ Equity).
Stop Order
An order to sell if and when the market price falls to a specified amount.
An order to sell if and when the market price falls to a specified amount.
SWIFT (Society for Worldwide Interbank Financial Telecommunication)
Communication network providing secure lines of trades and/or cash communication to financial institutions globally. Customers include banks, broker-dealers, securities depositories and clearing organizations, investment managers and stock exchanges.
Communication network providing secure lines of trades and/or cash communication to financial institutions globally. Customers include banks, broker-dealers, securities depositories and clearing organizations, investment managers and stock exchanges.
Third Market
Part of the Secondary Market through which trading takes place in securities that are not listed in the Khartoum Stock Exchange.
Part of the Secondary Market through which trading takes place in securities that are not listed in the Khartoum Stock Exchange.
Time Limit Order
A customer order that designates the time during which it can be executed.
A customer order that designates the time during which it can be executed.
Trade
To carry out a transaction of buying or selling stock or a bond.
To carry out a transaction of buying or selling stock or a bond.
Trade Balance
The difference between a nation’s imports and exports of merchandise
The difference between a nation’s imports and exports of merchandise
Trade Settlement
Delivering securities in return for cash.
Delivering securities in return for cash.
Trader
An individual who buys and sells securities for his own account for personal gain or an individual who buys and sells securities on behalf of a broker or financial institution for the firm and its clients.
An individual who buys and sells securities for his own account for personal gain or an individual who buys and sells securities on behalf of a broker or financial institution for the firm and its clients.
Transaction
Execution of an order to buy or sell securities.
Execution of an order to buy or sell securities.
Underwriter
An investment bank that agrees to purchase a new issue of securities from an issuer and distribute it to investors, making a profit on the fees charged for this service.
An investment bank that agrees to purchase a new issue of securities from an issuer and distribute it to investors, making a profit on the fees charged for this service.
Unlisted Security
A security not listed on an exchange.
A security not listed on an exchange.
Volume
The number of purchases or sales of securities contracts made during a specific time period, often the total transactions for one trading day or week.
The number of purchases or sales of securities contracts made during a specific time period, often the total transactions for one trading day or week.
Yield
A measure of the amount of money returned to an investor on his investments.
A measure of the amount of money returned to an investor on his investments.
Yield to Maturity
The rate of return an investor receives if Shahama is held to maturity.
The rate of return an investor receives if Shahama is held to maturity.
