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Mixed Companies
Companies incorporated and residing in Saudi Arabia for tax purposes, and whose shares are owned by Saudi individuals (and those who are treated as Saudis for income tax purposes) and non-Saudis.
Main Market
The market in which shares registered and offered under Part 4 of the Rules on the Offering of Securities and Continuing Obligations are traded.
Global Oil Markets
The worldwide industry that influences oil production, pricing, and distribution.
Related Person
The managing director, a director, the senior executives, any shareholder who owns a substantial percentage of shares of a company with a listed securities, or any associate of any such persons to whom this definition applies.
Offeree Company
A company listed on the Exchange in respect of which an Offer has been made, or whose shares is the subject of a Private Transaction.
Finance Company
A company licensed to engage in finance activities in accordance with the Laws of the Kingdom.
Transparency
Openness, clarity, and comprehension in financial reporting, decision-making, and governance practices.
Certified Declaration of Origin
An official document certified by a competent authority that proves the original country where the goods were produced or manufactured.
Decision Maker
An individual, group, or entity with an interest, concern, or influence in a project, organization, or decision, often including employees, investors, and the public.
National Industry
Industries that are primarily nationalized or crucial to a country’s economy.
Foreign Fund
An investment fund, which is established in a jurisdiction outside the Kingdom.
Month of Maturity
Employee's due salary according to the Gregorian month based on the salary slip raised by the government body, including the entitlement and monthly allowances.
Exports
The goods and services produced by one country and sold to other countries. Exports include both oil and non-oil exports.
Net Assets
The residual interest in the assets of the entity after deducting all its liabilities.
Net Tax
Tax resulting from deducting the Deductible Tax in a Member State from the Tax due in that State within the same Tax Period. Net Tax may either be payable or refundable.
Net Realizable Value (NRV)
The estimated selling price in the ordinary course of operations, less the estimated costs of completion and the estimated costs necessary to make the sale, exchange or distribution.
Conditional Commitment Transaction
A type of trade order in financial markets that is executed only if certain conditions are met, such as the counterparty committing to fulfill the full quantity or executing a specific price.
Title Deed
The deed a legal document that proving ownership of the property issued by the competent authority, or its equivalent for properties located outside the Kingdom.
Absolute Title Deed
A legal designation signifying full and undisputed ownership of a property or financial asset.
Investment Fund
A mutual investment program that aims to enable investors to collectively participate in the program's profits, and is managed by the fund manager for a specified fee.
Mutual Fund
A professionally managed investment fund pooling money from multiple investors.
Index Fund
An investment fund whose primary investment objective is to track the performance of a specified index.
Traded Fund
An investment fund the units of which are traded on the Main Market or the Parallel Market.
Capital Gains Tax
A tax imposed on the profit earned from the sale of investments or assets.
Input Tax
The tax borne by a taxable person in relation to goods or services supplied or imported for the purpose of carrying on an economic activity. It includes supplies or imports made only in KSA as per KSA VAT Law.
Demand Weakens
A situation where consumer or business demand for goods and services declines, often due to economic downturns.
Initial Public Offering (IPO)
The process of offering shares of a private company to the public for the first time.
Indirect Taxes
Taxes that a customer bears and are imposed through an intermediary so who is responsible for collecting and remitting them to the Zakat, Tax and Customs Authority, such as value-added tax and excise tax.
Angel Investor Tax
A tax applied to investments made by angel investors in startups, sometimes with exemptions to encourage entrepreneurship.
External Pressures
Economic or political influences exerted by foreign entities (governments, institutions, or markets) that impact a country’s policies or economy.
Application Controls
Controls relating to the scope of operations or application systems; This includes (data edits, segregation of business functions, balancing of processing aggregates, transaction registration and error reporting).
Detective Controls
Controls that are put in place to identify specific actions after they have taken place.
Renewable Energy
Energy generated from renewable sources like wind, solar, and hydroelectric power, with lower environmental impact compared to fossil fuels.
Quotation Method
The method that the supplier is going to submit his quotation including the following Submitting the proposal in two separate files (technical and financial), and submitting the offer on one file and it includes (technical and financial).
Application for Listing
In the Rules on the Offer of Securities and Continuing Obligations, any application submitted to the Exchange to list securities of any type.
Mortgage Applications
Applications made by individuals to borrow money for the purpose of purchasing or refinancing real estate.
Partial Offer
An offer subject to merger and acquisition regulations made to all holders of voting shares in the offeree company for the purpose of acquiring a share of voting shares in the offeree company, excluding offers made by the offeree company itself.
Factory Orders
The total value of new orders for durable and non- durable goods placed with manufacturers, providing insights into the health of the industrial sector.
Risk-Adjusted Return
A measure of return that accounts for the level of risk involved in an investment.
Zakat Year
The Zakat payer's fiscal year, that is, the time period that shows the earnings of the Zakat payer’s activities. The fiscal year can be: Hijri or Gregorian, short (less than12 months), long (a full year of 12 months), and at the beginning or end of the activity.
Offering Exchange Shares or Convertible Debt Instruments
An offer in which the exchange includes shares or convertible debt instruments of the offeror.
Contract of Establishing
A legal document that grants certain rights, privileges, or permissions. In finance, it can refer to a corporate charter or articles of incorporation.
Takeover Offer
An offer (other than by the offeree company itself) made to the holders of the securities of the offeree company which has as its objective the acquisition of control of the offeree company.
Executive Board Member
In the Capital Market Institutions Regulations, a member of the board of directors who is full-time in the executive management of the Capital Market Institution and participates in its daily activities.
Leasing Contract
A contract, or part of a contract, that conveys the right to use an asset (the subject asset) for a period of time in exchange for consideration.
Smart Contract
Self-executing contracts with terms written into code, typically on blockchain networks.
Executory Contracts
Contracts under which neither party has performed any of its obligations, or both parties have partially performed their obligations to an equal extent.
Beneficiary Relations
The strategies, processes, and activities used to manage and nurture interactions with beneficiaries.
Long Standing Relationship
A connection or association between individuals, businesses, or entities that has endured over an extended period of time.
Mergers and Acquisitions (M&A)
The consolidation of companies through financial transactions such as mergers and takeovers.
Client
A person for whom a Capital Market Institution executes securities transactions.
E-invoicing
A procedure aimed at converting the billing process and paper amendments into an electronic process that allows the exchange of invoices and their amendments and processing in an organized electronic format between the seller and the buyer in an integrated electronic format.
Claim's Cycle from Payment Order' Registration on the System
Series of actions that take place on the claim from the date of registration on the Etimad Platform to the date of its approval in the financial system and before disbursement.
Digital Currencies
Digital assets built on blockchain networks that represent ownership or utility within a specific ecosystem.
Sales Commission
The commission paid to the seller’s agent who is related to the seller or the factory, governed by or acting for its favor or on its behalf.
Execution-Only Customer
A customer for whom the authorized person only deals as agent in accordance with instructions provided by the customer and whom an authorized person does not advise.
Compound Interest
A type of interest calculated on the initial principal amount, plus the accumulated interest from previous periods.
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