Means  a  Securities  and  /  or Funds  Account  opened  and held at KCC.

Interest accrued on securities are calculated as follows: (nominal value of the security X rate of return on the security x actual number of days from the date of settlement of the last coupon to the date of settlement ) / 365.

Purchase by a company of the majority of the shares of another company, whereby the first company acquires control of the second company.

Means  a  Person  licensed  by the  Authority  to  carry  out the  activity  of  Investment Portfolio  Management  who is  engaged  for  the  purpose of  accumulating  the  Shares of  those  wishing  to participate in an Acquisition.

Means an offer to acquire or a  solicitation  to  procure  the acquisition  of  Shares  which would  contribute  to achieving  Effective  Control of  a  Company  Listed  on  an Exchange,  or  of  an  Unlisted Company  in  the  event  of Reverse  Acquisition,  to which  the  provisions  and Rules  of  Module  Nine (Mergers  and  Acquisitions) of the Bylaws apply.

Means an Investor's overdue Securities  and  /  or  Funds obligations  resulting  from Transactions  failing  to  settle on  the  Intended  Settlement Date  which are  immediately repayable by  the  Investor  or the related executing Broker.

Means  an  Account  with  no restrictions.

Means  the  date  at  which  a Transaction  create  final irrevocable Settlement.

Announcements or disclosures made by the listed company or insider person or beneficiary person at the Stock Exchange.  

Companies listed on the Stock Exchange issued an annual report which contains the financial statements for the past year, shows the assets, liabilities, revenues, expenses and income. The annual report also shows the financial position of the company at the end of the past year and contains certain information of interest to the shareholders. 

Are all the financial and real estate investments owned by the company.

Means  freezing  of  a  whole balance  of  an  Account  at  a certain  date  response  to  a Court  Order  disabling  an Account  Holder's  rights  to dispose  of  the  frozen balance.

The market which includes the shares that have a low liquidity level. 

A report from an auditor expressing an unbiased technical opinion on the financial statements of a company whose accounts have been audited.

Capital Markets Authority.

Means  the  Capital  Markets Authority  in  the  State  of Kuwait.

The financial position statement at the end of the period. It also shows the nature and value of the assets, liabilities and capital of the company.

Means  any  local  Kuwaiti Bank,  or  a  branch  of  a foreign Bank, licensed by the Central Bank of Kuwait.

It includes an analysis of the company’s assets, profitability, managements, etc. It also includes an analysis of the sector within which the company operates. The purpose of this analysis is to arrive that the fair price of the share and determine the investor’s position and whether the investor should sell, buy or keep the share. The basic analysis takes into account such economic indicators as Gross Domestic Product, interest rates, unemployment rates, savings, etc. 

A market condition during which share prices are falling.

Any person who has an interest of 5% or more in the capital of a listed company, directly or indirectly, or jointly with others.

A coefficient for measuring the rate of the risks regularly associated with the shares of a certain company.

Means freezing of the whole or  part  of  the  balance  of  an Account  at  a  certain  date disabling  an  Account Holder's rights to dispose of the frozen balance.

The members of the board of directors are elected by the shareholders at the annual general meeting of the shareholders. The members of the board of directors manage the company and take the strategic decisions including the distribution of profits.

Means  Beginning  of  Day according  to  the  published timetable.

The bond is a deed of indebtedness used by companies as a means of borrowing. The issuer of the bond undertakes to pay to the bond holder interest (or coupon) at a pre-determined rate throughout the period (tenor) of the bond and to repay the nominal value of the bond on the date of maturity. For this reason, the bond holder is deemed to be a creditor to the company rather than a shareholder in the company. 

Means a financial instrument that  represents  an indebtedness  due  from  the Issuer  to  a  Bondholder, pursuant  to  which  a Bondholder  receives periodic distributions during the  Bond’s  Term  or  one payment  or  more  of  the redemption  or  both  which when  matured  leads  to  the expiry of the Bond.

It is the price at which the bond will be amortized on the maturity date.

Means  any  Person  whose name  is  Registered  in  the Bondholder’s Register.

The bond is a deed of indebtedness used by companies as a means of borrowing. The issuer of the bond undertakes to pay to the bond holder interest (or coupon) at a pre-determined rate throughout the period (tenor) of the bond and to repay the nominal value of the bond on the date of maturity. For this reason, the bond holder is deemed to be a creditor to the company rather than a shareholder in the company. 

Means a financial instrument that  represents  an indebtedness  due  from  the Issuer  to  a  Bondholder, pursuant  to  which  a Bondholder  receives periodic distributions during the  Bond’s  Term  or  one payment  or  more  of  the redemption  or  both  which when  matured  leads  to  the expiry of the Bond.

Distributions made by the company whereby the shareholder receives his share of the distributions in the form of ordinary shares. Distributions in the form of shares are considered an increase of the company’s capital.

“Book Value” is an accounting term. The book value is determined through the books of the company as follows:  (Total Value of the Assets – Total Liabilities) / Number of Ordinary Shares. 

Means  a  Person  who  is permitted  to  borrow Securities.

www.boursakuwait.com.kw

Boursa Kuwait Stock Exchange Company.

A corporate entity that carries on the business of buying and selling of securities for the account of others in return for a commission. 

Means  a  corporate  entity who  purchases  and  sells Securities  for the  Account  of a  third  party  for  a commission  and   /  or  for their own Account 

It is the statement of financial position at the end of the period, showing the nature and value of the assets, liabilities and capital of the company.

A market condition during which share prices are rising. 

Means  an  official  Business Day at the Authority.

Means the Executive  Bylaws to the Law.

It means the executive regulations of Law No. 7 of 2010 regarding the establishment of the Capital Markets Authority and the regulation of securities activity and its amendments.

The gain resulting from the difference between the selling price and the buying price of a security.

Means  the  Central  Bank  of Kuwait.

An entity that performs the role of the contracting parties so that it becomes a buying central broker  for every seller and a selling broker for every buyer.

An entity that provides securities accounts services, central custody services and asset custody services. It is possible that the services include companies transactions management. They play an important role in helping ensure the soundness of the procedures related to the issue of securities and ensuring that no securities are issued or cancelled through fraud, fault or change of the details thereof.

Means  an  entity  that provides  Accounts,  central  safekeeping  services,  and asset  services,  which  may include the administration of  Corporate Actions  and plays an important role in helping to  ensure  the  integrity  of Securities  issues  (that  is, ensuring  that  Securities  are not  accidentally  or fraudulently  created  or destroyed  or  their  details  changed).

Means the verification of the validity  and  sufficiency  of  Investor’s balances to settle a Transaction  in  accordance with these Rules.

The entity that performs the clearing and settlement of securities trading and the central deposit of securities and other services relevant thereto. 

Closed ended funds are negotiable in the stock exchange and their units may be purchased or sold by trading in the stock exchange like any other security.

The closing date of any security traded on the Kuwait Stock Exchange. It is the weighted average of the daily trading prices of the security which is equal to the total trades value of the security divided by the total daily traded quantity of the security.

Means  all  or  any  of  the Funds  and/or  assets deposited with, or otherwise provided  to  KCC  by Broker/Custodian  as margin,  credit  support and/or  Security  as  may  be required  under  these  Rules or  as  otherwise  directed  by KCC.

Means  a  Broker's  / Custodian’s  /  KCC’s  Bank Account,  credit  with Collateral  and  operated  by KCC.

The electronic means in the trading system in which the orders entered in the trading system are collected, inserted and shown for each security.

They are all obligations of the company, short-term obligations include notes payable, wages payable, taxes due, while long-term obligations include long-term bank loans, mortgaged bonds...etc.

They are title deeds that give their holder the right to attend the annual general assembly, and to receive distributions if the company achieves profits, and the company’s board of directors decides to distribute part or all of it. In the event of the company's liquidation, the dues to the ordinary shareholders shall be paid after the payment of the dues to the bondholders and preferred stockholders.

Means  Companies  Law  of Kuwait.

Bonds issued by companies.

The day eight days preceding the due date, on which the time schedule is confirmed or amended for the entitlements related to shares by the listed company. 

It is the process of associating buying and selling orders with the result of a transaction.

A bond that is convertible to ordinary shares according to the conditions of the issue.

Means  any  distribution  of Funds  dividend  or  bonus Shares  or  any  other  Shares entitlements.

They are debt instruments issued by companies.

Means  the  last  day  where  a buyer  is  still  entitled  to partake in Corporate  Actions and  distributions  as  the transaction  can  be  settled in time before  the Record Date. The  Cum  date  is  the  day prior to the Ex-Date.

The Company’s assets that can be converted to cash or can be used in settling claims within one year. They include cash, stock, accounts receivable (amounts that customers owe to the company).

Means  a  KCC  Member licensed by  the Authority  to hold  in  custody  Clients’ Funds  and  Clients’  Assets including  those  constituting a  Collective  Investment Scheme  in  accordance  with the  provisions  of  the  Law and Executive Bylaws.

A person to whom the licensed person provides or intends to provide services within the scope of the activities of the licensed person. This term includes any prospective customer, foundation, charitable will, and persons to whom the registered auditor or Sharia external audit office renders services.

Any party that constitutes a source of trading information at the Stock Exchange whether instant or historical. 

Means calendar Day.

Orders that have been executed and that have resulted in the creation of obligations among the parties thereto. 

Means any  Person  that deals with  KCC  and  bound  by these  Rules  such  as Investors,  Issuers  or  any KCC Members.

Means  the  period  of  time between  the  expiry  date  of the  Settlement  Period  and the  Actual  Settlement  Date, during  which  the  Investor and  the  Broker  shall  pay Fines for Dues.

Means  any  proceedings  or other  action  taken  by  KCC under Default Section7.

Means  a  Person  who  is  the subject  of  any  Default Proceedings.

The state of the economy during periods of lack of growth or declining rates of growth and rising rates of unemployment.

A document issued by issuing companies that will offer new securities for sale. It shows the details, provisions and conditions of the offering. The Prospectus gives the details of the company’s financial position and the way the company will use the proceeds of the offering as well as other important information that may affect investors’ decisions.

The service provided by brokers (who have direct access to the market) to their customers who are licensed to carry on market activity or investment portfolio manager activity or other persons who are registered at the stock exchange through the use of trading systems that allow such customers to trade directly in the Stock Exchange, under the trading number of the guaranteeing broker, through electronic communication channels.

Distributions of the profits as decided by the company’s board of directors. These profits are distributed pro-rata the number of shares held. Distributions to holders of ordinary shares are linked to the company’s profit and liquidity. The Board of Directors may decide not to distribute the profits and rather decide to re-invest them in expansion projects or the purchase of other assets.

It refers to the multiplicity of the types of contents of the investment portfolio in terms of such contents being in the form of short-term investments and long-term investments in securities and in diverse companies in various sectors.

The date set by the listed company on which the entitled parties are identified with regard to the entitlements related to the shares according to the registered of the company’s shareholders at the end of that day. 

Means an Investor's overdue Securities  and  /  or  Funds obligations  resulting  from Transactions  failing  to  settle on  the  Intended  Settlement Date  which are  immediately repayable by  the  Investor  or the related executing Broker.

Means End of Day  according to the published timetable.

Means  the  request  from  the Investor  to  link  his  Account at KCC to his Bank Account.

The licensed person is in an event of principal default in the following events:

1- In the event of the troubled financial or managerial conditions of another person who keeps the funds of the customers of the licensed person, including the inability  of such other person to perform its obligations when due, or upon the appointment of a liquidator, receiver, receiver in bankruptcy or the attachment of the properties of such other person.

2- In the event where the Capital Markets Authority imposes a prohibition against the licensed person thereby preventing such person from possessing or keeping customer funds.

A  primary  default  event occurs for a Licensed Person in the following events:-

1.  On the administrative and financial  failure  of  a Licensed  Person,  including  the  inability  to  meet  its obligations  on  maturity,  the appointment of a  liquidator, receiver,  administrator  or attachment over its assets;

2.  When  the  Authority imposes  a  limitation  on  the Licensed  Person  prohibiting it  from  holding  Clients’ funds.

A secondary default takes place in the event of the troubled financial or managerial conditions of another person who keeps the funds of the customers of the licensed person, including the inability of such other person to perform its obligations when due, or upon the appointment of a liquidator, receiver, receiver in bankruptcy or the attachment of the properties of such other person.

Exceptional, non-periodical dividends determined by the issuer, usual arising from a non-operational source.

Means Boursa Kuwait.

It means the Kuwait Stock Exchange Company.

Means  rules  issued  by  the Exchange  and  approved  by CMA.

Means  The  First  Trading  of  a security where such security is not carrying any rights or benefits  deriving  from  a Corporate Action.

Means  KCC  Fees  and Charges  defined  in  these Rules.

The company’s accounting year. The period of the financial year differs from one company to another depending on the activity. For some companies the financial year begins on July 1^st and ends on June 30^th. In other companies, the financial year begins on January 1^st and ends on December 31^st. 

Means  a  disciplinary  action taken  by  KCC  towards  a Dealer.

The market which includes the shares that have a high market value and high liquidity and that fulfill the requirements specified by the Stock Exchange.

First day of trading a security excluding dues on the shares. 

Means  a  corporate  entity established  abroad  that  has issued  or  intends  to  issue Securities  and has deposited with KCC.

Means ownership transfer of Securities  without  a corresponding  transfer  of Funds.

The rate of the shares of the company that are available for trading by the public. The strategic ownership by persons or establishments (private or public) are excluded from free trading.

Collective investment scheme that seeks to collect funds from investors for the purpose of investing them on their behalf in various fields according to the principles of the professional management of collective investment. It is managed by the fund manager in consideration for specified fees.

Means  a  collective investment  scheme  formed to  collect  money  from Investors  for  the  purpose  of investing it on  their behalf in different fields in accordance with  professional management  principles  of collective  investment  and  to  be  managed  by  a  Fund manager for a specific fee;

Means  an  Investor  Account opened at KCC  to record the  amounts  (debit/credit)  in Kuwaiti Dinars.

Means the  Settlement  of Funds  obligations  on  the Actual Settlement Date.

When the company offers its shares to the public.

Bonds issued by the government in order to finance public expenditure.

Companies that invest their funds in various securities.

The parent company which has control of the company, directly or indirectly, its subsidiary, and the company which is a subsidiary to the parent company.  

The parent company which owns the majority of the shares of the subsidiary companies and, therefore, the right to vote and control. 

A report showing the result of the business of the entity during a certain period, showing the revenues, expenses, profits and losses.

The index is a numerical value used to measure changes in the financial markets. This index is expressed as a percentage rate of change as at a specific point in time compared to a certain value during the base period or at the starting point. The index measures the rise or decline of the prices of shares, bonds, funds, etc. thereby reflecting the market price and trend. For the investor, the share index is a benchmark of the share market and a benchmark for the performance of a specific share against the performance of the market as a whole.

An economic indicator that shows the rate of price increases. 

Every act that violates the provisions of the law, or any system, regulation, decision, or instruction issued by the Authority. As for the provisions of the Violations Committee at the Stock Exchange, the violation means every act that is considered a violation of the rules and regulations in force at the Stock Exchange.

Any person who, by virtue of his position, has material information or data about a listed company unless such information or data is available to the public.

Certificates of deposit negotiable in the international capital markets. They are issued by international institutions or banks such as Bank of New York or Deutsche Bank in US Dollar or any other foreign currencies against keeping a cover therefor in local shares.

The customer’s account designated for managing and keeping his funds and assets. It is used for executing all securities trading operations by direct debit or credit.

A subscription promoter and underwriter. It plays the role of intermediary between the investors and the companies which wish to offer securities to investors or to the main investor. 

Companies that invest their funds in various securities.

A variety of securities owned by individuals or entities.

Means  cash,  Securities  or other  assets  owned  by  an Investor,  the  ownership  of which  is  recorded  in  an Account opened in favour of the  Investor  by  a  company licensed  to  manage Investment  Portfolios,  in accordance with  the requirements  set  out  by  the Authority.  The  Investment Portfolio  shall  either  be  a custody  portfolio  or  be managed  by  a  Portfolio Manager or by the Investor;

Means  a  KCC  Member  who manages  discretionary  or non-discretionary Investment  Portfolios  on behalf  of  Investors  or  who manages  the  assets  of  the Company  by  whom  he  is employed.

It is the client's account designated for managing and preserving his money and assets, and is used to carry out all securities transactions by debiting or directly adding to it.

Means  a  Person  to  whom KCC  provides  Clearing, Settlement  and  CSD services.

Means,  all  Securities  and  / or Funds held or received by KCC  for  or  on  behalf  of  an Investor  in the course of any Securities Activity.

An international code to identity a security. Every security that is registered in a stock exchange has a unique ISIN. 

Means  the  International Securities  Identification Number; 

It is an international code to identify the security, and each security listed in the stock exchange has a unique international code.

The date on which these rules entered into force. 

These are the shares that represent a portion in the capital of a shareholding company, subscribed to by the shareholders whether they are fully or partially paid.

Corporate entity authorized to issue securities.

Means  a  corporate  entity entitled  to  issue  Securities and  has  Registered  such Securities with KCC.

Means  a  Licensed  Person with  whom  KCC  agrees  to interact  in  the  performance of its duties.

Means an automated system where  KCC  clears  and settles  trading  Transaction and central depository.

Means:-

http://www.maqasa.com/

Any person who, by virtue of his position, has access to information or data of material effect about a listed company that was not available to the public.

Means  any  entity  that conducts  settlement  and clearing  operations  of  Securities,  and  one  which provides the central custody  of Securities, and one  which  provides  other  related services  in  accordance  with Chapter 4 (Clearing  Agency) of the Law.

Law No. 7 of 2010 concerning the Establishment of the Capital Markets Authority and Regulating Securities Activity as amended.

Means  Law  No.  7  of  2010 Regarding the Establishment of  the  Capital  Markets Authority  and  Regulating Securities  Activities,  and  its Amendments;

Means  a  Person  who  is permitted to lend Securities.

All the liabilities of the company. Short-term liabilities include notes payable, payable wages and payable taxes, while long-term liabilities include long-term bank loans, bonds, etc.

A license issued by the Capital Markets Authority to carry on any of the securities activities.

A securities broker registered at the Stock Exchange or a qualified securities broker which is registered at the Stock Exchange.

Means a person registered with the Authority as a representative of a licensed broker approved by the Stock Exchange under these Rules.

Means a natural or corporate entity that has a license from the Authority  to practice one or  more  of  the  Securities Activities   provided  for  in Article  (1-2)  of  Module  Five (Securities  Activities  and Registered  Persons)  of  the Bylaws.

A measurement of the traded value of the shares existing in the market during a specific period of time.

Means:

a.  A  shareholding  company, the  Shares  of  which  are  listed on an Exchange.

b.  A  Registered  Issuer  or Borrower  that  lists  on  an Exchange  Bonds  and  Sukuk it  has  issued  or  is  the Borrower thereof, and.

c. A  Fund, the units of which are listed on an Exchange.

The shares of the company listed on the Stock Exchange. All global stock exchanges have rules and conditions that should be fulfilled by companies before they can be listed.

They are the orders in which the customer requests to buy or sell a security at a certain price, and they have not been executed.

The market which includes the shares that have a medium market value or liquidity which is less than what should be fulfilled in the First Market.

The market that includes stocks that have a market value or medium liquidity, and are less than those that must be available in the first market.

One or more officers authorized by the Stock Exchange to manage / operate the trading system operation.

The speed at which securities can be converted into cash. It indicated the ability of the market to absorb a large number of selling and buying operations at appropriate prices without much price difference among them in any security. Market security is a key feature of a good market. 

The person who seeks to create offer and supply with regard to one or more listed securities subject to such controls as are issued or approved by the Authority.

Means a Person  who ensures the  availability  of  supply and demand for one or more Securities  according  to  such controls  as  may  be  laid down by the Authority.

An agreement made between the Exchange and the market maker to specify the details of the market maker’s rights, obligations and the controls that govern its work.

The Stock Exchange lays down a detailed market model for the trading system without the need for such model to be approved by the Authority.

The present value of the share in the Market, excluding the treasury shares.

The matching of sale and purchase operations resulting in a deal.

The date on which the nominal value of the security is payable. 

It is a member of the stock exchange, and it means companies, funds listed on the stock exchange, and brokers.

A member of the Stock Exchange, i.e. companies and funds listed in the Stock Exchange and brokers.

Companies licensed to carry on their activities on the Egyptian Stock Exchange. These members include several categories, namely: securities brokerage companies, main traders, custodians, market makers). 

An agreement between two or more companies to merge and form a new economic entity. 

Means  Kuwait  Ministry  of Commerce and Industry.

A system that instantly displays the latest prices, volume of trading and operations of sale and purchase of securities.

It is calculated daily according to the following equation: Total market value of the fund’s assets less all the fund’s liabilities / the remainder on the number of securities offered.

The sum of the market value of the fund's assets minus all the fund's obligations / remaining on the number of offered documents.

The value for which the listed company issued the security, without an issue premium.

The nominal value is the value stated in the security.

The face value is the value recorded on the security.

A percentage rate of the average daily trading volume used in an auction related to the shares.

Trading operations for 100 shares or less.

Means  Listed  Companies Securities  Transactions which  excluded  from Trading.

The price offered in the market for each security. It is the price that the holder of the security wishes to sell the security for. On the other hand, the bid price is the price the investor is ready to pay to buy the security.

A user of the trading system in his capacity as representative of the licensed broker, who has the authority to access all orders entered into the system by the users of the system of the licensed broker.

Means  an  Account  holding the  portfolio  of  more  than one Investor.

The units of open-ended funds are sold to the investor directly. They are not traded in the stock exchange. The investor may transfer them by returning them directly to the issuer of the fund.

They are investment documents that are sold to the investor directly and are not tradable in a stock exchange, and the investor can waive them by returning them directly to the fund issuer.

A user manual for the “Extreme” work station or a manual of the specifications of “Genium FEX” of the “Extreme” unit or any other technical document specified by the Stock Exchange in connection with the trading system.

It is the Xtreme Workstation User's Manual or the Xtreme Genome FIX Specification Guide, or any other technical document specified by the Exchange regarding the trading system.

Means  KCC  policies  and procedures in relation to any of the services or facilities of KCC issued.

The electronic unit within the trading system in which the orders entered in the trading system are collected and are listed and displayed for each security. 

Ownership deeds that give their holder the right to attend the annual general assembly and receive distributions if the company has made profits and the board of directors of the company has decided to distribute part or all of such profit. Upon liquidation of the company the holders of the ordinary shares receive their entitlements after the holders of the company’s bonds and preference shares have received their entitlements.

Orders by which the customer requests the buying or selling of a security at a certain price, and which have not been executed yet.

Shares listed on the Exchange and available for trading. 

Means  all  Transactions  for unlisted  Securities  according Exchange procedures.

The condition of the market or share, after periods of successive price increases, which, in the opinion of some, leads to an excessive rise in prices.

The condition of the market or share, after periods of successive price falls, which, in the opinion of some, leads to an excessive decline in prices.

Ownership transfer is carried out in two stages. The first is the delivery of the share warrants or shares with the central depository by the seller broker to the buyer broker upon settlement. The transfer of ownership takes place after seven days. The second phase is the registration of the new owners of the shares in the registers of the companies.

A company is considered a parent of another company in the event where it owns 50% of its capital and where it has the right to appoint or dismiss the majority of its board of directors or where it has such influence as would direct the resolutions of the company in a manner that would serve its own interests.

Means  the  date  on  which  a declared  stock  or  Funds dividend  is  scheduled  to  be paid.

A natural individual or corporate entity.

Means a natural  Person  or a corporate entity.

Any person who carries on the activity of securities trading in the Stock Exchange and is registered in the stock exchange according to these rules. This includes all the branches and offices of the person registered in the Stock Exchange, including, without limitation, the members of the Stock Exchange, market makers, service providers, representatives of the licensed broker and any other registered person all in accordance with the requirements of the Stock Exchange from time to time.

Means  a  notation  of  Securities  in  the  Register  at KCC,  to  secure  the by  the  pledgor  to  the Pledgee,  which  will  create  a Security  interest in favour of  the  Pledgee  as  prescribed  in Section ‎ 8.16.3.

A consolidated account of the portfolios of the customers of the person licensed to manage investment portfolios pursuant to orders from the customers.

It is an aggregate account for the portfolios of clients of a person authorized to manage investment portfolios, and it is managed based on clients' orders.

A consolidated account of the portfolios of the customers of the person licensed to manage portfolios on a discretionary basis.

It is an aggregate account of the clients' portfolios of the person authorized to manage the investment portfolio, and it is managed by the authorized person. (Discretionary)

Means  a  right  that  grants  a Security  owner  priority  to subscribe  in  an   Issuer’s share  capital  increase  pro rata  to  the  number  of Securities  he  owns  in  the Issuer’s share capital.

Means  the  Shares  that  are granted  certain  privileges  in voting,  profits,  liquidation proceeds or any other rights  provided  that  Shares  of  the same type are equal in rights and privileges.

The most recent price at which a certain security was traded on the Stock Exchange.

It is the last price at which a stock was traded for a security.

The previous rules that were in force at the Kuwait Stock Exchange or the Boursa before the entry into effect of these Rules.

The price fixed according to the steps specified by the Stock Exchange for each security listed in the Stock Exchange.

A measure of the price volatility of securities prices or a particular security during a certain period.

A  primary  default  event occurs for a Licensed Person in the following events:-

1.  On the administrative and financial  failure  of  a Licensed  Person,  including the  inability  to  meet  its obligations  on  maturity,  the appointment of a  liquidator,receiver,  administrator  or attachment over its assets.

2.  When  the  Authority imposes  a  limitation  on  the Licensed  Person  prohibiting it  from  holding  Clients’ funds.

The licensed person is in an event of principal default in the following events:-

1- In the event of the troubled financial or managerial conditions of another person who keeps the funds of the customers of the licensed person, including the inability  of such other person to perform its obligations when due, or upon the appointment of a liquidator, receiver, receiver in bankruptcy or the attachment of the properties of such other person.

2- In the event where the Capital Markets Authority imposes a prohibition against the licensed person thereby preventing such person from possessing or keeping customer funds.

A measure used to compare the level of share selling prices. It is calculated by divided the share closing price by the share profitability.

This takes place when the company offers its shares to the public. 

He is a broker in the buying and selling of securities, and the broker charges a brokerage commission for his services.

Means the date not exceeded couple  Days  of  Ex-Date specified by an Issuer  for the purpose  of  determining  the eligibility  Shareholders  to benefit  from  Corporate Actions.

A feature of thee trading system that allows the user to enter non-activated orders. The user has an absolute discretion to move or activate them in the general orders register during the trading hours.

Means  the  KCC  books  of Account  that  provides definitive  evidence  of  an Investor's  final  legal  title  of Securities  and  Funds holdings  as  defined  in  these Rules.

Bonds that give the issuer the right to redeem (recall) all or part of the issued bonds before the maturity date.

The statement or schedule maintained by the Stock Exchange containing the data of the persons registered at the Exchange.

Means  the  complete  record of  Securities  Holders  of  a Security.

Means the collective term for Issuer and Foreign Issuer.

The shareholders registered in the ownership registers of the issuing companies.

They are the shareholders registered in the ownership records of the issuing companies.

Means  recording  the Investor's  name,  Securities holdings,  date,  time  of  the  Transactions  and  related ;information  as  per  Section ‎ 8.2  in  the  Records  of  the Registered  Issuer  held  at KCC.

The Executive Regulations. Of Law No. 7 of 2010 concerning the Establishment of the Capital Markets Authority and Regulating Securities Activity, as amended. 

Means  the  Authority, Ministry  or  Central  Bank with  regards  to  companies subject  to  any  of  them,  and other  competent  authorities inside or outside of the State of Kuwait.

A person registered at the Authority as a representative of the licensed broker approved by the Stock Exchange under these rules. 

Means a person registered with the Authority as a representative of a licensed broker approved by the Stock Exchange under these Rules.

An agreement made in writing or by electronic means to sell securities against the buyer paying the entire price or a percentage part thereof, with the seller’s obligation to recover them within a specified period, subject to conditions set forth in that agreement and subject to such controls as a laid down by the Exchange in this regard.

It means the company's shares that are listed on the stock exchange and all global stock exchanges have listing rules and conditions that companies must abide by in order to be listed.

These rules or any change, amendment or addition thereto after having obtained the approval of the Authority at any time. 

Means  the  Rules  of  KCC  as set out herein and as may be amended,  either  by withdrawal,  replacement  or change, where the context so permits,  after  obtaining  the Authority’s approval;

The buying price is the highest required in the market to buy a security at a given time, while the selling price is the lowest price offered in the market to sell a security at a given time.

A  secondary  default  event occurs  on  the  financial  and administrative  failure  of  a third party to which Clients’ Funds  controlled  by  the Licensed  Person  have  been transferred,  including inability  to  meet  its obligations  on  maturity,  the appointment of a  liquidator, receiver, or administrator  or the Attachment of its assets.

The market or markets in which securities selling and buying operations take place as well as the transfer of ownership thereof according to their governing by-laws, regulations and laws.

The following activities fall within the securities activities:

Means  any  Person  whose name  is  registered  in  the Securities Register at KCC.

This is a contract made between the issuer of the security and the holder of the security. The contract shows the due date, interest on the security and other conditions and provisions of the issue. The unit holders usually select the trustee which is a bank or company that would follow up with the issuer of the securities to ensure that it observes the issue conditions and provisions. The trustee ensures that the issuer pays interest (coupons) in a timely manner and maintain a certain level of liquidity in the company.

Means  any  instrument  –  in any  legal  form  -  that evidences  ownership  of  a share  in  a  financial Transaction  and that  is negotiable  pursuant  to  a license  from  the  Authority, such as:-

a.  Shares  issued or proposed to be issued in the capital of a company.

b.  Any  instrument  that creates  or  acknowledges  a debt  issued  or  to  be  issued by a company.

c.  loans,  Bonds,  Sukuks  and other  instruments  that  can be converted  Shares  in a the capital of a company.

d.  All  public  Debt Instruments that are tradable and  issued  by  the  various government  entities  or public  institutions  or authorities.

e.  Any  right,  option  or derivatives  relating  to Securities.

f.  Units  in  a  Collective Investment Scheme.

g.  Any  paper  or  instrument considered by the  Authority as  a  Security  for  the purposes  of  implementing this Law  and the Bylaws.

Not  to  be  considered  as Securities  are  commercial papers  such  as  cheques, promissory  notes,  bills  of lading, letters of  credit, Funds  transfers  and instruments  negotiated  by Banks  exclusively  between each  other,  insurance policies and  rights  arising from  retirement  Funds established for the benefit of the beneficiaries therefrom.

The price at which the security is depreciated on the maturity date.

It is the price at which the bond will be amortized on the maturity date.

The Company which provides services related to the Stock Exchange such as electronic trading and any other service approved by the Authority   or the Stock Exchange.

Means  the  final, unconditional,  enforceable and  irrevocable  completion  or  processing  of  a Transaction.

Means  a  Bank  appointed  by KCC  to  process  Funds payments  and  to  issue  and receive  payment  orders  and instructions,  on  behalf  of Dealers  related  to Transactions.

Settlement in general means the transfer of balances (securities balances) from the seller to the buyer in addition to the settlement of the financial balances to the selling broker and the buying broker.

Means  the  period  of  time between the time of entering into  a  sale  of  a  Security  on the Exchange and the time of registration  of  this  Security on behalf of the buyer in the Register by KCC.

The last day on which the security may be traded with the entitlements of the share. It is one day before the date of trading without entitlements.   

A rate calculated by dividing the traded value of the shares within the year by the market capitalization of all the shares registered in the Stock Exchange during the same year. 

They represent the value of the shares owned by the shareholders in a company. They normally consist of the paid-up capital + reserves + retained profits.

Means Shares  issued or to be issued in  a  company’s  share capital.

Actions taken by a listed company resulting in rights, obligations, changes to shares issued by it, such as the approval of the distribution of cash dividends, bonus shares, subscription rights, capital reduction, merger, division or changing the nominal value of the shares.

The sale of a security that is not owned by the seller. 

Means  the  sale  of  a  Security that is not owned by the seller, or  that  the  seller  has borrowed.

The sale of a security that is not owned by the seller. 

Means  the  standard  Service Level  Agreement  between KCC and each Dealer.

Means  the  Securities Lending and Borrowing.

Means  a  contract  between the Lender and Borrower.

Means  Securities  Lending and Borrowing Transaction.

A feature of thee trading system that allows the user to enter non-activated orders. The user has an absolute discretion to move or activate them in the general orders register during the trading hours.

The entry by licensed persons as market markers or investment portfolio manager or by other persons who are registered with the Stock Exchange to the trading systems through technical channels linked to the system of the licensed broker. 

An organized market with its own rules, where securities are bought and sold through brokerage companies (members).

It is a system that displays the latest prices, trading volume and buying and selling of securities in real time.

In the event where the company increases its capital and offers new shares for this purpose, the company first gives its existing shareholders the right to buy the capital increase shares before offering shares for subscription by other subscribers. Sale to the shareholders is made pro-rata the number of shares held by every shareholder and at a price lower than the market price. In the event where the existing shareholders do not subscribe and cover the number of shares available for subscription, the company may sell the shares to any other investor.

A company is considered a subsidiary in the event where any person owns more than 50% of its capital or has actual control thereof.

Any information at the listed company, listed fund issuer or obligor in the case of sukook or bonds, as the case may be, related to its activity, person, financial position, and management, which are not available to the public and parties with which it deals and that may affect its assets, liabilities, financial position or general course of its business and which may lead to a change in the price or volume of trading of its listed security or in attracting or repelling traders with regard to the security or that may affect the ability of the issuer to honor its obligations.

Means  instruments  each  of equal  value  representing  a common  share  in  the ownership  of  real  estate plots, utilities  or  services  or the  assets  of  a  specific project  or  investment activity.

Means  any  Person  whose name  is  registered  in  the Sukukholders’  Register  at KCC.

A group of investment banks that underwrites and promotes issues of securities in whole or in part.

Means  the  Business  Day  on which  a  Security  is purchased,  sold,  lend  or borrowed.

A study of the share price movement, trading volume and past market trends in order to forecast price trends and future offer and supply size.

It is the amount or face value of a bond that the issuer will pay to the bond holder on the maturity date.

Any person licensed by the Authority to establish and manage collective investment schemes.   

The total value of the securities issued by the company. It includes the total value of the ordinary shares, reserves and preference shares, if any. 

It is the total value of the securities issued by companies and includes the value of ordinary shares, reserves and preferred shares, if any.

The price or nominal value of the security that the issuer of that security will pay to the holder thereof on the maturity date. 

www.boursakuwait.com.kw

or

Any other site as may be announced by the Stock Exchange from time to time.

or

A weighted index that follows the movement of the listed shares assuming the re-investment of any cash distributions or corporate entitlements in the index.

A weighted index that follows the movement of the shares without taking the cash distributions into consideration.

Means  a  Person  that  trades in  the  purchase  and  sale  of Securities  for  his  own Account.

The date fixed by the Stock Exchange on which trading made be made on the Stock Exchange.

The hours specified by the Stock Exchange during which trading at the Stock Exchange may take place.

The time specified by the Stock Exchange, during which trading may take place in the Stock Exchange.

The sector of the Stock Exchange responsible for following up the daily trading operations.

Any electronic trading system for matching orders or for matching orders and price offers as specified by the Stock Exchange and approved by it for stock exchange transactions.

Means the Exchange  Trading System.

The operating platform provided by the Stock Exchange for entering data in the trading system.

The working platform provided by the exchange for entering data into the trading system.

Means  any  instruction submitted  to  KCC  for processing.

These are shares issued by a company and that the company buys and re-sells or uses.

Shares that the issuing company re-byes in the market through the Stock Exchange. These shares do not have distribution or voting rights throughout the period of their ownership by the issuing company.

Means  a  company’s  Shares which  the  issuing  company repurchases or buys back  or  otherwise makes use of.

Means:-

a.  A  Shareholding  company, the  Shares  of  which  are Unlisted on an Exchange.

b.  A  Registered  Issuer  or Obligorthat  Unlisted  on  an Exchange  Bonds  and  Sukuk it  has  issued  or  is  the Borrower thereof, and

c. A  Fund, the units of which are Unlisted on an Exchange.

Shares in respect of which no application have been submitted to register them in the Stock Exchange or that do not fulfill the criteria and conditions of listing on the Stock Exchange.

A person registered at the Authority   and the Stock Exchange as a representative of the licensed broker for whom an identification number has been issued in the trading system that renders him distinct from the other representatives of the licensed broker.

Every act that violates the provisions of the law or any regulation, bylaw, resolution or instructions issued by the Authority. With regard to the provisions of the committee in charge of addressing violations at the Stock Exchange, a violation is any act that violates the rules and regulations applicable at the Stock Exchange.

The committee appointed by the board of directors of the stock exchange to address violations of these rules, as committed by the members of the Stock Exchange.

A violator or the person who committed the violation, according to the determination of the committee to address violations at the Stock Exchange, is any member of the Stock Exchange who commits an act that constitutes a violation of the rules and regulations applicable at the Stock Exchange.

It is the right of the holder of an ordinary share to vote on the policies and resolutions of the company at the annual general assembly meeting. The number of shares owned by the investor is in direct proportion with his ability to influence the company’s resolutions. The higher the percentage of the investor’s number of share in the company the bigger is right to vote on the company’s resolutions.

The voting right is the right of the holders of the ordinary shares to vote on the company’s resolutions at the general assembly meeting.

Shares that have not submitted an application for listing in the stock exchange or that do not meet the criteria and conditions for listing in the stock exchange.