Ask price

The price at which a trader is willing to sell a security.

Bid price

The price a trader is willing to pay for a given share.

Bull run

When a market as a whole is on a prolonged period of increasing prices. Central Securities Depository (CSD) A specialist financial institution holding securities either in certificated or uncertificated form, so that ownership can be transferred through a book entry rather than physical transfer of certificates.


All activities pertaining to a security being traded from the moment a commitment is made regarding a transaction to the moment it is settled.

Closed-Ended Investment Traded Funds (CEFs)

A Closed-Ended Investment Traded Funds which its units are publicly offered pursuant to the Closed-Ended Investment Traded Funds Instructions and for which an application for listing is submitted to the Exchange or where its units are listed on the Exchange.


A Capital Market Institution who is authorized under the Capital Market Institutions Regulations to conduct the securities activity of custody.

Depository and Settlement System

All electronic systems used by the Centre to deposit and settle Securities or any supporting system thereof.


A Security traded on the Exchange whose value is based on the value of an underlying asset, such as stocks. The term “derivatives product” is interpreted accordingly.

Exchange Traded Funds (ETF)

A fund made up of a portfolio of shares that reflect the composition of an index. The fund is listed on a recognized exchange and trades like a normal security.

Futures contract

A contractual agreement, to buy or sell a particular a particular commodity or financial instrument at a predetermined price in the future.


A derivative instrument to protect an investment from unfavourable changes in value.

Independent custody

Providing custody services if trading services are provided by an execution broker.


A simulated portfolio of securities that represents a market or a portion of that market.


How easily securities can be bought or sold on the market. A security is liquid if there are units available for large transactions to take place without substantial changes in price.

Liquidity risk

The risk that arises from the difficulty in buying or selling a security.

Market maker

means in the Listing Rules, for an exchange traded fund, the Capital Market Institution appointed by the fund manager to act as a market maker in accordance with the Investment Funds Regulations. Means in the Trading and Membership Rules and the Derivatives Exchange Trading and Membership Rules and the Market Making Regulations, an Exchange Member or Derivatives Exchange Member (where applicable) that continuously enters buy and sell orders for the relevant listed security during the market open session for the purpose of providing liquidity for that listed security in accordance with the Market Making Regulations

Par value

The nominal value assigned to a security by the issuer.

Shareholder register

A list of a company’s shareholders updated on an ongoing basis. The register includes each person’s name, address and the number of shares owned.

Short selling

A transaction in the form specified in paragraph (b) of Article 3 of the Short Selling Regulations and entered into in accordance with the conditions set out in the Short Selling Regulations.

Tadawul All Share Index (TASI)

An index designed to reflect the movement of the equity market on the Saudi Exchange.


The price movements of a stock or a market as a whole.