Definitions

Securities : Shares and bonds issued by joint stock companies , bonds issued by government and its public authorities, treasury bonds and bills and any other securities negotiable in the market.

The Primary Market : The market in which securities are offered to the public and issued pursuant to the applicable rules, regulations , guidelines and common practice .

The Secondary Market: The market in which the securities are purchased or sold directly or through brokers and where the exchange and transfer of their ownership takes place on the Floor, in the Brokers’ offices or the Market’s offices.

The Regular Market: The section of the Secondary Market where dealing on the Floor is regulated in respect of companies’ shares subject to special listing conditions as specified by the Board of the Authority.

Parallel Market: The section of the Secondary Market where dealing on the Floor is regulated in respect of companies’ shares subject to simplified listing requirements specified for such Market, in order to facilitate the provision of early liquidity for the Securities listed therein prior to their listing in the Regular Market.

Third Market : The section of the Secondary Market where off-floor dealings take place at the Brokers’ offices in respect of the companies’ shares to which the specific listing conditions for trading on the Floor do not apply, or where ownership of Securities is transferred off-Floor without a Broker.

Joint Stock Company: is a commercial company whose capital is divided into equal negotiable shares pursuant to the law.

The Promoters: Each person participated in the establishment of a company in order to take responsibility arising therefrom, signed the company’s Memorandum of Association and its Article of Association and owned a percentage of the capital share in cash or in kind given at its founding.

Promotion Expense: are those expenses spent by the founders’ committee for the purposes of establishing a public shareholding company and the issuance of its securities.

Issuer: Who is issuing or selling shares in public or private offering in accordance with the provisions of applicable laws in all countries of the Cooperation Council for the Arab States of the Gulf.

Par value: is the amount value of the issued share.

Market Value of the shares: the value of the company's shares in the trading market.

Public Subscription: an open invitation to the public to subscribe for shares of joint stock companies at their incorporation or upon the increase of the share capital of an existing company in accordance with the conditions and provisions specified in the prospects of such company as ratified by the Authority.  

Private Subscription: an invitation addressed to a specific category of subscribers or persons to subscribe for the shares of an open joint stock company at its incorporation or upon the increase of the company’s share capital pursuant to the conditions and requirements specified by the Authority.

Initial Public Offering: the first sale of stock by a company to the public

Financial Advisor: A person who provide advice and consultation to others in the field of stock investment for fee or commission.

Issue Manager: Company operating in the field of securities and licensed by the Authority to manage the IPOs.

Underwriter: Is the person who administrate the subscription in the new shares under the Underwriting Agreement concluded between him and the issuer.

Investment Fund: A joint investment program aims to provide an opportunity for investors to participate collectively in the profits of the program, and managed by an authorized person from the Authorities for flat fees, and shall have independent financial liabilities or in contract form.

The Custodian: A person who is licensed by the Authority to hold the assets of the investment fund for safekeeping.

The Broker: A Juristic person who is licensed to exercise brokerage activities in the market.

Broker’s Agent: A person who represents a Broker in giving selling and purchasing orders under the supervision and responsibility of that Broker.

Solvency: The ability of a licensed person is to meet its financial obligations and maintain sufficient capital to exercise licensed activities.

Share Register: A register that maintained by the Issuer of the stock or Depository that records the names of the shareholders and their data, number of securities and trading operations.

Depository Centre: Muscat Clearing and Depository.

Preferential Right: Each shareholder shall have the preferential right to subscribe a number of additional shares in the capital of the company in proportion to the number of shares he/she owned at the date of stock acquisition right.

Date of Stock acquisition right: The date is determined by relevant parties that composed to increase the capital of the company, in which the owners of the right of preference will be determined

Preferred Stock Shareholders: Shareholders registered in the records of the public shareholding company and maintained by Muscat Depository and Securities Registration at the date of rights’ acquisition, may subscribe or relinquish the referred right during the specified period.

Material Information: is any event or incident, or decision may affect directly or indirectly the stock price or trading volume or have an impact on a person’s decision to buy or keep or sell or relinquish the securities

Internal Information: is undeclared information, which if declared may affect the price of a stock, excluding any conclusions based on economic and financial studies, researches and analyses.

Insider: is a person who is aware of the internal information of the shareholding companies by virtue of his position or job.

Governance: is a set of controls, standards and procedures that achieve institutional discipline in the management of the company in accordance with world standards and practices, and through the identification of the responsibilities and duties of the members of the Board of Directors and executive management of the company, and take into account the protection of the rights of shareholders and stakeholders.

Assets: are the economic resources of the company with specific monetary value. Its importance lies in its ability to convert to cash and generate revenue in the future.

Fixed Assets: a collection of assets that are purchased by the company to use for future years and not for sell in the short term.

Current Assets:  a group of assets that can be converted into cash during the financial year or the operating cycle, whichever is longer.

Short-term liabilities: company's obligations to creditors, that are due within the operating cycle or fiscal year of the facility.

Long-term liabilities: company’s obligations to creditors that are due in more than one operating cycle or fiscal year of the facility.

Annual Report: a report that is published annually by the companies which includes Chairman’s message, a report of the Board of Directors, the financial statements and the auditor's report.

Credit Rating: is an impartial and independent assessment of the ability of the company’s credit and its ability to fulfil its obligations arising from loans and interests.

Shareholders’ Equity: The financial resources contributed by the shareholders to the company and including results. Equity is calculated by subtracting the company's net obligations from the net assets.

Income Statement: is a list showing income and expenses that have been achieved by the company during a specific time.

Balance Sheet: is a list showing the company's assets and liabilities as well as the equity of shareholders as stated in a specific time.

The Primary Market The Market in which Securities are offered to the public and issued pursuant to the applicable rules, regulations, guidelines and common practices.

Disclosure: Disclosure is that the financial statements of listed companies shall present on proper time all material information about the company concerning external parties, and help them to

take sound decisions. The importance of disclosure lies in the protection it provides to investor to take sound investment decision built on disclosed information. It is also considered the most important element in achieving fair share prices, and a restriction method for internal dealing based on undisclosed information. Therefore, disclosure is an essential part in establishing capital markets and a base for their success.

Transparency: Transparency is dismissing dealing related  information as like purchase and sell of securities in order to create required interaction between offer and demand forces.


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