Glossary

Earnings	Net income for the company during a period.
Earnings Announcements	The results of a company's operations for a given time period, usually released annually in Jordan.
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.
Eating Stock	When an underwriter can't find buyers for a stock and therefore has to buy them for his own account.
Efficient Market	Market in which prices correctly reflect all relevant information.
Efficient Portfolio	A portfolio that provides the greatest expected return for a given level of risk (i.e., standard deviation), or, equivalently, the lowest risk for a given expected return.
Electronic Trading	Trading which is conducted via electronically linked computers to the exchange, enabling brokers to carry out transactions in locations other than the ASE.
Emerging Markets	The financial markets of developing economies.
Equilibrium Price	Market price at which quantity supplied of a security equals quantity demanded of the same security.
Equity	Ownership interest in a corporation.
Equityholders	Stockholders; those holding shares of the firm's equity.
Eurodollars	U.S. dollars on deposit with a bank outside of the United States.
Exchange	A marketplace in which shares, options and futures on stocks, bonds, commodities, and indexes are traded.
Executed Order	A completed buy or sell transaction.
Execution	The act of carrying out a trade.
Exempted Transfers	It includes: • Transfer of the ownership of non- traded securities including: 1. Inheritance Transfers which includes the transfer of securities from a deceased’s Account to the Accounts of his lawful inheritors. 2. Family transfers that occur between ascendants and descendants and between spouses. 3. Transfers for the purpose of dividing the joint ownership of securities. 4. Donating securities to religious, charitable or social associations. 5. Waqf of securities whether charitable or descendentiary. 6. Securities contained in wills. 7. Transfers that occur in accordance with the Law of the Government’s Acquisition of Monies that Reach Limitation. 8. Transfers in accordance with decisions of courts and execution departments. 9.Transfers of Founders' Shares. • Transactions excluded from trading through the market including: 1. Transfer of securities suspended from listing. 2. Transfer of securities suspended from trading. 3. Transfer of non- listed and non-traded securities through the Market.

Daily Trading Limits	The maximum price range set by the ASE.
Day Order	An order that expires at the end of the day.
Day Traders	Individuals who seek to establish and liquidate the same position for profit within one day's trading.
Dealer	An individual or a company in the securities industry who buys and sells securities as a principal rather than an agent. The profit and loss is the difference between the price paid and the price received for the same security.
Debenture	Unsecured debt backed by the creditworthiness of the issuer, such as a corporate bond.
Debit	Expense or money paid out from an account. A debit transaction is one which the net cost is greater than the net sale proceeds.
Debit Balance	The amount that is owed to a broker by a margin customer for loans the customer uses to buy securities.
Debt	Money borrowed.
Debt Instrument	An asset requiring fixed cash payments, such as a government or corporate bond.
Debt Market	The market for trading debt instruments.
Debtor	A person who owes money, goods or services to another, the latter being referred to as the creditor.
Debt to Equity Ratio	Calculated by dividing a company's long-term debt by shareholders' equity. Used to show the relationship between long-term funds provided by creditors and funds provided by shareholders.
Deed	A written and signed document which sets out the things that have to be done or recognitions of the parties towards a certain object.
Default	The failure of a party to make payment of interest or principal on a debt security when due.
Default Interest	A higher interest rate payable after default.
Delisting	Removal of a company's security from listing on an exchange because the firm has not abided by specific regulations.
Delivery Versus Payment (DVP)	Simultaneous, certain, final, and irrevocable exchange of securities and funds. A securities settlement system that provides a mechanism that ensures that delivery occurs only if payment occurs.
De-materialization	The process and conversion of securities issuance and processing through book entries only and without any physical certificates.
Depository	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.
Depression	Period when excess aggregate supply overwhelms aggregate demand, resulting in falling prices, unemployment problems, and economic contraction.
Derivatives	Financial instruments whose value is derived from underlying value of another security. Derivatives include options and futures.
Dirty Stock	A stock that fails to fulfill prerequisites to attain good delivery status.
Discharge of Lien	An order terminating a lien on ownership.
Disclosure	The release by companies of all information positive or negative that might bear on an investment decision as requested by the Jordan Securities Commission.
Discretionary Account	An account whereby the holder gives written power of attorney to another person or entity to make trading decisions on his behalf.
Diversification	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).
Dividend Rights	A shareholder's rights to receive per-share dividends identical to those other shareholders receive.
Dividends per Share	Dividend paid for the past 12 months divided by the number of common shares outstanding, as reported by a company. The number of shares often is determined by a weighted average of shares outstanding over the reporting term.
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.
Dual Listing	Listing of a security on more than one exchange, thus increasing the competition for bid and offer prices, the liquidity of the securities, and the length of time the stock can be traded daily.
Dumping	Used in the context of general equities. Offering large amounts of stock with little or no concern for price or market effect.

Call	The right for the investor to purchase a prescribed number of shares at a specific price on or before a specific date.
Callable Bond	Bonds that may be redeemed by the issuer prior to the stated maturity date.
Call Option	An option that gives the buyer the right, but not the obligation, to purchase the underlying stock at a given price (the strike price) by a given time (the expiration date).
Canceled Order	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.
Capital Markets	A market where securities are bought and sold.
Capital Market Efficiency	The degree to which the present asset price accurately reflects current information in the market place.
Capital Stock	The amount of money or property contributed by stockholders to be used as the financial foundation for a corporation, including common and preferred stock.
Capitalization	The debt and/or equity mix that funds a firm's assets.
Cash Dividend	A dividend paid in cash to a company's shareholders. The amount is normally based on profitability and is taxable as income. A cash distribution may include capital gains and return of capital in addition to the dividend.
Cash Flow	Cash flow represents earnings before depreciation, amortization, and non-cash charges. Sometimes called cash earnings. Cash flow from operations (called funds from operations by real estate and other investment trusts) is important because it indicates the ability to pay dividends.
Cash Investments	Short-term debt instruments -such as commercial paper, banker's acceptances, and Treasury bills- that mature in less than one year. Also known as money market instruments or cash reserves.
Cash Markets	Also called spot markets, these are markets that involve the immediate delivery of a security or instrument.
Cash Settlement	A settlement method used in certain future and option contracts whereby, upon expiry or exercise, the seller of the securities does not deliver the actual but transfers the associated cash position.
Central Bank	A country's main bank whose responsibilities include the issue of currency, the administration of monetary policy, open market operations, and engaging in transactions designed to facilitate healthy business interactions.
Certificate	The piece of paper that is evidence of ownership of stock in a company. All Certificates are deemed canceled upon the deposit of securities.
Certificate of Deposit	A short-term debt security with maturity from a few weeks to several years.
CFI Code	The Classification of Financial Instruments (CFI) consists of six alphabetical characters that classify financial instruments reflecting the financial instrument characteristics since its issue and remain unchanged during its entire lifetime. The first letter is the category, the second is the group, and the remaining letters show special attributes of the group since its issue and remain unchanged during its entire lifetime, according to ISO standard 10962
Chief Executive Officer (CEO)	The person principally responsible for the activities of a company.
Clearance	The post-trade and pre-settlement matching of trade details for the purpose of confirming the trade and allowing settlement.
Clearinghouse	A computerized facility that compares and reconciles both sides of a brokerage trade.
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.
Closing Price	The price of the last trading transaction in a trading session, executed on a specific security.
Collateralized Bond	Bonds that are backed by the assets the issuer puts up as collateral for the issue (e.g., equipment or real estate).
Commercial Paper	Short-term unsecured promissory note issued in the open market as an obligation of the issuing entity.
Commingling	Mixing customer-owned securities with those owned by a firm in its proprietary accounts.
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.
Common Stock	A corporation generally issues two types of shares: Common stock and preferred stock. Common stock is issued first and represents the “basic” ownership in a corporation. Owners of common stock share directly in the success or failure of the business. A corporation only issues preferred stock after common stock has been issued. Dividends are distributed to preferred stockholders before being distributed to common stockholders, and in case the company is forced to liquidate its assets preferred stockholders are entitled to receive the money they have invested before common stockholders receive theirs. Companies can also issue several classes of stock, often labeled A, B, C and so on. The different classes have different dividend payments and different restrictions on ownership.
Company	A proprietorship, partnership, corporation, or any form of legal entity that engages in business, which can focus on pursuing set objectives, and empowered with legal rights which are usually only reserved for individuals, such as to sue and be sued, own property, hire employees or loan and borrow money.
Continuous Net Settlement	A system whereby all pending settlements in a given security are continuously combined by issue to create the smallest net deliveries at the end of the day. Any unsettled, or failed, transaction is continued, or carried over and offset against the next day's trades.
Controller	The corporate manager responsible for the firm's accounting activities. Sometimes referred to as the comptroller.
Convertible Bond	A bond that is able to be converted, or traded in, for another security at the option of the bondholder.
Corporate Action	Restructuring the ownership of a company, through an action such as a stock split or conversion.
Corporate Bond	A debt certificate issued by a corporation without giving the holder of the certificate ownership in the company.
Cost	An expense that reflects the price of purchasing goods, services and financial instruments. Also, the purchase price of an investment, which is compared to the sale proceeds to determine capital gain or loss.
Counterparties	The parties on either side of an interest rate swap or a currency, equity or commodity swap, or to an options or futures position.
Counterparty Risk	The risk that the other party to an agreement will default.
Coupon	The interest payment on a debt instrument, usually annually or semiannually.
Credit	Money loaned.
Credit Balance	The surplus in a cash account with a broker after purchases have been paid for, plus the extra cash from the sale of securities.
Creditor	Lender of money.
Credit Ratings	Independent evaluations of the credit of companies and governments and the ability of these institution to repay debt obligations.
Cross Border Trading	Trading which takes place between persons or entities from different countries.
Cross Execution	See Cross Trade>
Cross Trade	An order to buy and an order to sell a specific security, placed within one broker, for the same quantity, and for the same price (also called Crossing or Cross Execution).
Current Assets	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.
Current Ratio	Calculated by dividing the total current assets for a given period by the total current liabilities for the same period.
Current Yield	A percentage measure of how much income is being derived from a security. The formula is calculated by dividing the annual payment (through dividends or interest) to the holder of the security divided by the following number: current price of the security divided by 100 times the quantity of the security.
Cushion Bond	A callable bond that is not as sensitive to interest rate fluctuations because of its early call option.
Custodial Fees	Fees charged by an institution that holds securities in safekeeping for an investor.
Custodian	Financial institution that maintains custody of stock certificates for institutional individual clients.
Custody	Safekeeping of securities for institutions and individuals generally including settlement of trades, collection of income, and processing of corporate actions.

Balance Sheet	A financial statement for a firm showing the company's assets, liabilities, and capital on a given date.
Bear	An individual who believes a stock or the overall market will decline.
Bearer Bond	A bond that has no identification of an owner. The owner of the bond is the entity that holds the bond.
Bear Market	A prolonged period of falling stock prices.
Benchmark	The performance of a predetermined set of securities, used for comparison purposes. Such sets may be based on published indexes or may be customized to suit an investment strategy.
Beneficial Owner	An individual who owns securities regardless of their form of registration. Securities held in a custodian's street name may have an individual as their beneficial owner.
Bid-Ask Spread	The difference between the bid and ask prices.
Bidder	A firm or person that wants to buy a security.
Bid Price	The highest price an investor is willing to pay to purchase a given security.
Bilateral Netting	The process whereby all trades executed on the same day in the same security are netted between two counter parties at the end of the day and one movement of securities and cash is conducted.
Block	A large holding or transaction of stock.
Block Trades	Trading between two brokers or through one broker (in the case of cross execution) for the purpose of buying and selling any security, in one block, whereby the value shall not be less than 200,000JD.
Blowout	The rapid sale of all shares in a new securities offering.
Board of Directors	Individuals elected by the shareholders of a corporation who carry out certain tasks established in the charter.
Bond	Debt certificates issued by corporations or governments for the purpose of borrowing money from the public.
Bond Market	Market for bond trading at the ASE.
Book Entry Securities	Securities that are maintained by computerized records and that have no physical document to represent the security. These securities do not move from holder to holder, but are kept in a central clearinghouse.
Book Value	A company's total assets minus intangible assets and liabilities.
Brady Bond	Bonds issued by developing countries when they restructure their debt, whose principal and interest payments are backed by U.S. Treasury securities. The bonds were named for former U.S. Treasury Secretary Nicholas Brady.
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.
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.
Bull	An individual who believes a stock or the overall market will rise.
Bull Market	A prolonged period of rising stock prices.
Business Day	A day in which financial markets are open for trading.
Buy	The act of completing a transaction in which an individual takes the title to a security in exchange for cash.
Buyer's Market	Market in which the supply exceeds the demand, creating lower prices. As a result, the buyer can dictate the price and the terms of sale.
Buy In	The transaction between brokers wherein securities are not delivered on time by the broker on the sell side, forcing the buy side broker to obtain shares from other sources.
Buying on Margin	The act of buying securities with credit available through a relationship with a broker, called a margin account.
Buy Order	An order to buy securities.
Bylaws	Rules and practices that govern management of an organization.

Net Income	The company's total earnings, reflecting revenues adjusted for costs of doing business, depreciation, interest, taxes and other expenses.
Netting	The act that occurs when security transactions are pooled and buys and sells are offset against each other for a net settlement of any difference.
Net Worth	See Stockholders' Equity.
New Issue	The first time the company's stock is issued the company is said to be going public; in other words the owners of the company are selling part or all of the ownership to the general public. This is called an initial public offering (IPO). A company goes public when it needs to raise cash, usually for expansion. When the company goes public, it also benefits from trading since it gives the company more legitimacy: its performance, its financial vitality, becomes visible to all, the underwriters are the Investment Bankers who handle the stock offering. They prepare the prospectus and underwrite (buy up) all the shares for sale from the company, then sell them to the public.
New-Issues Market	The market in which a new issue of securities is first sold to investors.
New Listing	A security that has just begun to trade on the stock exchange.
Noncallable Bonds	Bonds that cannot be redeemed whenever desired by the issuer.
Nominee	A person or firm, such as a bank or brokerage house, into whose name securities are registered by agreement between the two parties concerned.
Notice of Meeting	The legal one-page notice to security holders stating the date, time and place of the shareholder meeting. This page is normally attached to the front of the proxy statement.

Account	The relationship between a client and a broker firm allowing the firm's employee to be the client's buying and selling agent.
Account Balance	Credits minus debits at the end of a reporting period.
Account Statement	A summary of all transactions and positions (long and short) between a broker and a client.
Accrued Interest	Interest earned between the most recent interest payment and the present date, but not yet paid to the lender.
Acquisition	The act of one corporation acquiring control of another corporation.
Active Account	Refers to a brokerage account in which many transactions occur.
Active Market	A market in which there is frequent trading.
Agent	A person who has received the power to act on behalf of another, binding that other person as if he or she were themselves making the decisions.
Amman Financial Market (AFM)	The institution that was previously the regulator and operator of Jordan's capital market and has since been replaced by the regulatory body, the Jordan Securities Commission. The operations of the capital market now occur in the Amman Stock Exchange and the Securities Depository Center.
Amman Stock Exchange (ASE)	The organized market for trading securities in the Hashemite Kingdom of Jordan. ASE enjoys a legal personality with financial and administrative autonomy.
ANNA(The Association of National Numbering Agencies)	An Organization which issues an International Securities Identification Number (ISIN) in a uniform structure for use in any application in the trading and administration of securities in the international securities industry, implementing the international standard (ISO 6166).
Annual Meeting	Meeting of stockholders held once a year at which the managers of a company report to the stockholders on the year's results.
Annual Report	The formal financial statement issued yearly by a publicly owned corporation, showing the firm's assets, liabilities, revenues, expenses and earnings.
Arbitrage	The simultaneous buying and selling of a security at two different prices in two different markets.
Arbitration	A dispute resolution mechanism designed to help aggrieved parties recover damages.
Ask 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.
At Par	A price equal to nominal or face value of a security.
Audit	An examination of a company's accounting records and books conducted by an outside professional in order to determine whether the company is maintaining records according to generally accepted accounting principles.
Auditor's Report	A section of an annual report that includes the auditor's opinion about the veracity of the financial statements.