BSE > Members

	Automated Trading System (ATS)
	A computer system used by the Exchange to facilitate trading.
	Bahraini Dinar (BD)
	The State of Bahrain's local currency, based on the denomination of 1000 fils or 100 fils, 10 x 100fils = 1 BD.
	Bear
	An investor who anticipates a falling market and, therefore, sells the security in the hope of buying it back at a lower price.
	Blue Chip
	A large well-established company with a history of profitable operation.
	Bonds
	Fixed-income securities, which entitle the holder to a pre-determined return during their life and repayment of principal at maturity.
	Bonus Share
	(see stock dividend.)
	Book Value Per Share
	A company's total shareholders' equity divided by the number of its outstanding common shares. Book value per share can be a guide in selecting valued shares, and is an indication of the ultimate value of securities in liquidation.
	Broker
	An agent, or middle man who facilitates the buying and selling of securities on behalf of investors on the Exchange.
	Bull
	An investor who anticipates a rising market and, therefore, buys the security in the hope of selling it later at a higher price.
	Clearing, Settlement, Depository and Registry System (CSDR)
	A computer system that is used by exchanges and brokerage houses to facilitate the transfer of securities certificates.
	Closing Price
	The price of the last 'round lot' transaction completed during a day's trading session of a particular security on an organized securities exchange.
	Common Stock
	Securities representing equity ownership in a corporation, providing voting rights, and entitling the holder to a share of the company's success through dividends and/or capital appreciation. In the event of liquidation, common stock holders have rights to a company's assets only after bondholders, other debt holders, and preferred stock holders have been satisfied.
	Coupon Bond
	A bond issued with detachable coupons that must be presented to a paying agent or the issuer for a semi-annual interest payment. These are bearer bonds, so whoever presents the coupon is entitled to the interest.
	Coupon Interest Rate
	The promise by an issuer to pay the bond-holder until maturity an agreed annual percentage of the face value, which is usually paid semi-annually.
	Dealer
	A company acting as a principal in a securities transaction. It trades on its own account and risk. The dealer buys and sells from his inventory, profiting from the difference in the buying and selling prices. Since most brokerage companies operate as brokers and principals, the term broker/dealer is commonly used.
	Depository Receipts
	A negotiable certificate evidencing ownership of shares in a foreign corporation from a country outside the market in which the DR is traded. Each DR denotes depository shares (DS), which represent a specific number of the underlying shares remaining on deposit in the issuer's home market.
	Dividend Yield
	The current cash dividend paid annually on a share of common stock, expressed as a percentage of the current market price of the company's common stock.
	Dividends
	Cash payments made to shareholders by a company, expressed as a percentage of par value.
	Earnings Per Share (EPS)
	A company's accounting annual net profits, divided by the number of its outstanding common shares.
	Equities (Common Shares)
	These are interests of ownership possessed by shareholders in a corporation that are shares as opposed to bonds. Common shareholders are considered to be owners of the corporation and they possess certain rights/claims, such as dividends, assets, voting and pre-emptive rights.
	Ex-Dividend Date (Ex-Stock Dividend Date)
	The date on which ownership of shares is determined for purposes of paying dividends (stock dividends). Investors purchasing shares before the existing date receive the dividend (stock dividend) in question. Investors purchasing shares on or after the ex-dividend date (ex-stock dividend date) are not entitled to the dividend (stock dividend).
	Face Value
	The value of a bond, shares, or other security as given on the certificate or instrument. The face value is the amount on which interest payments or dividends are calculated, and is also referred to as par value or nominal value.
	Flotation (IPO)
	The occasion when a company's shares are offered on the stock market for the first time.
	Fund Managers
	A company which invests and manages investors' money, with the aim of maximizing capital growth.
	Global Depository Receipt (GDR)
	A global finance vehicle that allows an issuer to raise capital simultaneously in two or more markets through a global offering.
	Global Offering
	DRs that are offered to investors in two or more markets outside the issuer's home country.
	Initial Public Offering (IPO)
	The offering of equity shares of a company to the general public for the first time.
	Insider trading
	The purchase or sale of shares by someone who possesses 'inside' information on a company's performance which information has not been made available to the market and which might affect the share price.
	Investment companies
	A company which issues shares and uses its capital to buy securities and shares in other companies.
	Listed company
	A company whose securities are admitted for listing on a stock exchange.
	Long position
	When an individual purchases securities of a company he is said to have a long position in the company's shares.
	Market Capitalisation
	The aggregate market value of a listed security, equal to the market price per unit of the security, multiplied by the total number of outstanding units of the security.
	Market Maker
	A dealer who maintains a firm bid and offer in a given security, by standing ready to buy or sell at publicly quoted prices.
	Market Value Weighted Index
	An index whose components are weighted according to the total market value of their outstanding shares. The impact of a component's price change is proportional to the issue's overall market value, which is the share price multiplied by the number of outstanding shares.
	Mutual Funds
	These are a type of investment company, whereby the Fund Manager raises money from unit-holders and invests it in shares, bonds, options, commodities and/or other money market instruments. This type of investment offers the investor a diversified portfolio overseen by a professional management consultant for a fee.
	Net Worth (Shareholders' Equity)
	The amount by which assets exceed liabilities; also known as shareholders' equity or net assets.
	Nominee
	A person or company holding securities on behalf of others, but who is not the owner of such securities.
	Option
	The right (but not the obligation) to buy or sell securities at a fixed price within a specified period.
	Ordinary shares
	The most common form of shares, which entitle the owners to jointly own the company. Holders may receive dividends depending on profitability of the company and recommendation of directors.
	Par Value
	Par value of a common share is set by the company issuing the share at the time of the public offering.
	Portfolio
	A collection of investments
	Preferred Stock
	Capital Stock which provides a specific dividend that is paid before any dividends are paid to common stock holders, and which takes precedence over common stock in the event of a liquidation. Usually does not carry voting rights.
	Price-Earning Ratio (P/E)
	Also known as the multiple, it is a company's current share price divided by its earnings per share. It gives investors an idea of how much they are paying for a company's earning power. For instance, the higher the P/E the investors pay, the more earning growth they may expect.
	Primary Market
	New securities are issued and sold to the public for the first time (IPOs) in the primary market. The issuance of additional new shares of an already listed company can also take place, either as a public offering or as a private placement.
	Private company
	A company that is not a public company and which is not allowed to offer its shares to the general public.
	Public Limited Company (plc)
	A company whose shares are offered to the general public and traded freely on the open market and whose share capital is not less than a statutory minimum.
	Regular Market
	A transaction made of BD 350 (average) or above on the BSE.
	Return On Equity (ROE)
	The company's total earnings divided by the total shareholders' equity. It tells common shareholders how effectively their money is being employed.
	Rights Issue
	The issue of additional shares to existing shareholders when companies want to raise more capital.
	Secondary Market
	In the secondary market, investors may buy and sell listed securities which have already been issued to the public in the primary market.
	Security
	An instrument that signifies an ownership position in a company (a share), a creditor relationship with a company or government body (a bond), or rights to ownership such as those represented by an Option, Subscription Right, and Subscription Warrant.
	Settlement
	Once a deal has been made, the settlement process transfers stock from seller to buyer and arranges the corresponding exchange of money between buyer and seller.
	Share (Stock)
	Unit of equity ownership in a company. This ownership is represented by a share certificate, which names the company and the shareholder, giving the shareholder the right to claim on the company's earnings and assets.
	Short Selling
	The act of borrowing stock to sell with the expectation of price reduction with the intention of buying it back at a cheaper price.
	Stock Broker
	A member of the stock exchange who deals in shares for clients and advises on investment decisions.
	Stock Dividend
	Payment of a company dividend in the form of shares rather than cash. The dividend is usually expressed as a percentage of the shares held by a shareholder.
	Stock Market
	The market place where shares of publicly listed companies are bought and sold.
	Transfer Agent
	An agent appointed by an issuer to maintain records of shares and bond owners, to cancel and issue certificates, and to resolve problems arising from lost, destroyed, or stolen certificates. A company may also serve as its own transfer agent.
	Unit Trust
	An open-ended mutual fund that invests funds in securities and issues units for sale to the public. It can repurchase these units at any time.
	Whole or None (WON)
	Large order (BD 50,000 or more) to buy or sell a security.
	Yield
	The aggregate return earned on an investment taking into account the dividend/interest income and its present capital value.
	Zero Coupon Rate
	A security that makes no periodic interest payments, but instead is sold at a large discount from its face value. The buyer of such a bond receives the rate of return by the gradual appreciation of the security, which is redeemed at face value on a specified maturity date.