Accrued Interest

Interest earned between the most recent interest payment and the present date, but not yet paid to the lender.


The act of one corporation acquiring control of another corporation.

Annual Report

The formal financial statement issued yearly by a publicly owned corporation, showing the firm's assets, liabilities, revenues, expenses and earnings.


The simultaneous buying and selling of a security at two different prices in two different markets.


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 ).


Anything a person, company, or group owns or is owed, including money, investments, and property.

Balance Sheet

A financial statement for a firm showing the company's assets, liabilities, and capital on a given date.


An individual who believes a stock or the overall market will decline

Bear Market

A prolonged period of falling stock prices.

Bearer Bond

A bond that has no identification of an owner. The owner of the bond is the entity that holds the bond.

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 Price

The highest price an investor is willing to pay to purchase a given security.

Bid-Ask Spread

The difference between the bid and ask prices.

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.


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.


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

Bonus Share

A bonus issue is described as a free issue, a scrip issue, a capitalization issue and a stock dividend. These are new shares issued by a company to its existing shareholders, usually in a mathematical proportion to the number of shares already held. What the company is doing is turning part of the profits and reserves it will have accumulated into capital.

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 Per Share

It reflects the accounting value of the share and computed by dividing the Shareholders equities on the number of subscribed shares.


A Broker is a company licensed by the government authorities according to the Federal rules and regulations. A broker is authorized to trade at Amman Securities Market on behalf of an investor after obtaining an official approval from the investor.


An individual who believes a stock or the overall market will rise.

Bull Market

A prolonged period of rising stock prices.

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.

Buy Order

It is an instruction given by an investor to a broker to buy a specified amount of shares of a certain company.

Buying on Margin

The act of buying securities with credit available through a relationship with a broker, called a margin account.

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. Cash Dividend to Paid-in Capital (%) Cash Dividend to Paid-in Capital (%) - = Cash Dividend x 100% / Paid-in Capital.

Cash Dividends

The amount of cash distributed to the shareholders by a company, expressed as a percentage of par value.


The post-trade and pre-settlement matching of trade details for the purpose of confirming the trade and allowing settlement.


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.

Common Stock

One of two main types of stock an investor can purchase in a company. Investors who hold common stock have voting rights at the company's annual stockholders' meeting, but are not guaranteed dividends. If dividends are issued, holders of common stock receive the distribution only after the holders of preferred stock receive the distribution.

Corporate Action

Restructuring the ownership of a company, through an action such as a stock split or conversion.

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.


Financial institution that maintains custody of stock certificates for institutional individual clients.


Safekeeping of securities for institutions and individuals generally including settlement of trades, collection of income, and processing of corporate actions.

Day Order

An order that expires at the end of the day.

Daily Trading Limits

The maximum price range set by the ASE.

Day Traders

Individuals who seek to establish and liquidate the same position for profit within one day's trading.


The process and conversion of securities issuance and processing through book entries only and without any physical certificates.


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.


Unsecured debt backed by the creditworthiness of the issuer, such as a corporate bond.

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.


The failure of a party to make payment of interest or principal on a debt security when due.

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.


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.


Financial instruments whose value is derived from underlying value of another security. Derivatives include options and futures.


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.


The act of spreading one's investments across different types of securities and various companies in different fields in order to minimize risk.


Distribution of earnings to shareholders, usually paid in the form of money or stock (see Stock Dividend). Dividend Yield (%) Dividend Yield (%) = Annual Cash Dividend Per Share x 100% / Market Price Per Share.

Earnings Announcements

The results of a company's operations for a given time period, usually released annually in Jordan. Earnings Per Share (EPS in AED) Earnings Per Share (EPS in AED) = Net Income / Weighted Average Number of Share.

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.

Equilibrium Price

Market price at which quantity supplied of a security equals quantity demanded of the same security (see Indicative Equilibrium Price ).

Equilibrium Price

Market price at which quantity supplied of a security equals quantity demanded of the same security (see Indicative Equilibrium Price ).


Ownership interest in a corporation.


U.S. dollars on deposit with a bank outside of the United States.

Executed Order

A completed buy or sell transaction.


The act of carrying out a trade.


An order that requires execution of a possible quantity at the price limited in the order, and cancellation of the remaining un-executed quantity.


An order that requires execution of the entire quantity immediately. If this order cannot be executed, it is cancelled.

Final Settlement

The completion of a transaction when delivery of all components to a trade have been accomplished

Financial Instrument

A mechanism for investment in the financial markets. There are two major types of financial instruments: a debt instrument, which is a loan guaranteed to pay back principal with interest, and an equity security, which represents part ownership in a company.

Financial Services Companies

The companies licensed by the JSC to perform the activities of investment trusteeship, investment management, financial consultations, brokerage or custodial activities.

Fiscal Year

Any continuous 12-month period that a company or government uses as its annual accounting period.


When a company's shares are admitted to trading on the ASE.

Foreign Exchange Market

An over-the-counter market where buyers and sellers conduct foreign exchange business by telephone and other electronic means of communication.

Futures Contract

An agreement to buy or sell a specific security at a particular price on a stipulated future date.

Global Custodian

Custodian who offers international services through a network of sub-custodian (agent) banks.

Good - Till - Cancelled (GTC)

An order that remains valid until its cancellation OR cancelled automatically at the end of the month.

Good - Till - Cancelled (GTC)

An order that remains valid until its cancellation OR cancelled automatically at the end of the month.

Gross National Product

Total value of all goods and services produced in a given country, including the income accruing to domestic residents that result from investments abroad.

Group of Thirty (G-30)

An international economic consortium which studies world- wide economic situations and makes recommendations to benefit the world economy.


The practice of offsetting the price risk in an existing security by the purchase or sale of a derivative security, such as an option or futures contract.

Hidden Quantity

The quantity which the broker does not wish to reveal on the Market by Order Book.

Holding Company

A corporation that owns the securities of another company, usually with voting control.


Pledging of securities to brokers as collateral for loans made to purchase securities or to cover short sales.


International Securities Identification Number - A twelve-digit number used as an internationally recognized numbering system for securities identification.


Process that occurs when the central depository vaults share certificates and converts them into book based positions.

Income Statement

A report on a company's financial status describing revenues and expenses over a specific period of time.

Indicative Equilibrium Price (IEP)

The equilibrium price between offered and demanded quantities, which is calculated by the ASE trading system. (See Equilibrium Price).


An increase in the prices for goods and services in a particular country.

Initial Public Offering (IPO)

A company first public issue of shares

Insider Trading

The practice of buying and selling a company's stock by that company's management or board of directors, or by a holder of more than 10% of the company's shares.

Institutional Investor

An institution that invests its own assets or the assets of other large institutions, such as foundations. The institutional investor category includes pension funds, investment companies, insurance companies, and banks.


The cost of borrowing, represented as a percentage of the amount borrowed.

Intrinsic Value

A valuation determined by applying data inputs to a valuation model. The value is comparable to the prevailing market price.

Investment Fund

An established fund which pools funds from investors in order to purchase a wide variety of financial instruments that will meet the fund's investment goals.

Investment Manager

An professional responsible for managing the investments of institutional and individual clients.


An individual, establishment or a company that owns shares in a public joint stock Company.

Investor Number

A unique number given to an investor.


Corporation that originates securities in the primary market for the purpose of raising capital.

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Leading Indicators

Market statistics that signal the state of the economy for a given period of time, such as unemployment rate, housing starts, and change in money supply.

Lending Securities

Securities borrowed from a broker's inventory, other margin accounts, or from other brokers when a customer makes a short sale and the securities must be delivered to the buying customer's broker.


The ratio of debt to equity to finance a company's operations and new projects. A company is highly leveraged if it is using a large proportion of debt (i.e., bonds or loans) versus equity to finance its operations.


The claims against a corporation, including, but not limited to, accounts payable, salaries payable, dividends declared payable, debenture bonds, and bank loans.

Limit Order

An order to buy or sell a stock at a customer specified price.


The ability to buy or sell a contract on one exchange and sell or buy the contract on another exchange.


Ease with which a security can be traded on the market.

Listed Securities

Stock or bond that has been accepted for trading at the Amman Stock Exchange

Locked-in Trades

Matched trades which are guaranteed to settle as initially entered on trade date.


The position of an individual who has bought financial instruments.


The illegal act of buying or selling securities for the purpose of creating a misleading impression of market activity to induce the purchase or sales of securities by others.

Margin Account

An account where the brokerage firm lends a customer money for purchases of securities or securities for short sale.

Margin Call

A brokerage house's request for a customer to put up more cash or securities because existing collateral has fallen below the agreed upon minimum maintenance requirements.

Margin Security

Security that may be bought or sold in a margin account.

Market Capitalization

This is the aggregate market value of a listed security. It is equal to the market price per share, multiplied by the total number of outstanding share.

Market Capitalization

This is the aggregate market value of a listed security. It is equal to the market price per share, multiplied by the total number of outstanding share.

Market Index

An index is a statistical number that measure the change of securities prices now relative to some base value.

Market Order

An order to buy or sell a stock at the market's current best displayed price, given one's position.

Market Price

The last reported price at which a security was traded on an exchange or the current quote.

Market Risk

Exposure to changes in market prices. Market to Book Value (times) Market to Book Value (times) = Market Price of Share / Book Value.


A measure of ease or difficulty with which a security can be resold in the secondary market. Good marketability indicates that there is an active market in which the security can be resold.


Comparison of the terms of a trade to ensure the details from both parties match.


A voluntary combination of two or more companies whereby both stocks are merged into one. Money Market Funds Funds where borrowing and lending is for a period of less than one year, including certificates of deposit, repurchase agreements, and treasury bills.

Money Supply

The amount of money in a given economy, consisting primarily of currency in circulation and deposits by banks. There exist a number of different measures of the money supply, among them M1 and M2.

Money Supply (M1)

Equals the currency with the public plus demand deposits in Jordanian dinar with the banking system of the private sector (resident), public entities, and non-banking financial institutions, plus demand deposits of other banking institutions in Jordan dinar with the Central Bank of Jordan only.

Money Supply (M2)

Equals the money supply (M1) plus quasi-money. On the asset side, it equals net domestic assets plus net foreign assets of the banking system.

Mutual Fund

An established investment fund whereby an investment company pools funds from investors in order to purchase a wide variety of financial instruments that will meet the fund's investment goals.

Net Income

Is the excess of revenue earned over related expenses incurred. This caption and amount is usually found at the bottom of a company's Profit and Loss statement.


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.

New Issue

Stock or bond being offered to the public for the first time.

New Listing

A security that has just begun to trade on the stock exchange.


A person or firm, such as a bank or brokerage house, into whose name securities are registered by agreement between the two parties concerned.

Open Order

An order that has been placed with the broker, but not yet filled or cancelled.

Open Price

The price of an order sent in the pre-opening phase to buy or to sell as security at the opening price (IEP). Open-End Mutual Fund (Variable Capital Mutual Fund) A mutual fund where the capitalization is not fixed. The mutual fund company will continually sell or redeem its own shares to meet investor demand, as opposed to a Closed-End Mutual Fund.

Opening Price

The price of the first trading transaction in a trading session, executed on a specific security.


The right to buy or sell a security at a particular ask or bid price.


The right to buy or sell a security at a particular ask or bid price.


The right to buy or sell a security at a particular ask or bid price.


A request to buy or sell a security at a particular ask or bid price.

Ordinary Order

An order to buy or sell a specific security, which the broker can offer or demand through the trading system.

Over-the-Counter Market

The market where securities are bought and sold directly between the purchaser and seller.

Par value

Par value is the nominal value of a security at JOD 1.

Physical Delivery

The actual delivery of a stock certificate.


The group of investments and cash held by an individual.


A market commitment to buy or sell a security. A buyer of a financial instrument is said to have a long position and, conversely, a seller of financial instrument is said to have a short position.

Preferred Stock

One of two major types of stock an investor can purchase in a company. Investors who hold preferred stock have voting rights at the company's annual stockholders' meeting and, if dividends are distributed, are guaranteed to receive dividend payments before Common Stockholders.

Price Earning Ratio (PE in Times)

Price Earning Ratio (PE in Times) - = Market Price Per Share / Earnings Per Share.

Primary Market

This is where newly security is first offered (sold), whether in IPO's or as an additional issue of stock or bonds by a company that is already public.


The original amount or face value of a bond or certificate of deposit.


The act of a government transferring state-owned or state-run companies to the private sector, usually by selling them.


A document detailing a new offer for public securities. The prospectus provides financial background information of the issuing company, how the proceeds from the sale of securities will be used, and other information that aids a potential investor in deciding whether or not to participate in the new issue.


Written authorization by a shareholder to allow someone else to represent him and his vote at a corporation's annual shareholders' meeting.

Public Shareholding Company

A company whose shares may be purchased by the public and whose share capital is not less than a statutory minimum.

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The price span of a stock, index, or exchange during a given trading session, week, month, year, or other time period.


The paying off or buying back of a bond by the issuer.


The division that maintains the investor share register.

Rejected Order

An order that is invalid or unacceptable.

Repurchase Agreements (Repo)

An agreement between a seller and a buyer, in which the seller agrees to buy back the security at a later date.

Reserve Requirements

The minimum amount of cash and liquid assets as a percentage of demand deposits and time deposits that member banks of the Central Bank are required to maintain.

Retail Investor

An individual who buys and sells securities on his own behalf, not for an organization.

Return On Equity (ROE%)

Return On Equity (ROE%) = Net Income x 100% / Shareholder's Equity.

Return on Assets (%)

Return on Assets (%) = Net Income x 100% / Total Assets.

Return on paid-in Capital (in%)

Return on paid-in Capital (in%) = Net Income x 100% / Paid-up Capital.

SWIFT (Society for Worldwide Interbank Financial Telecommunication)

Communication network providing secure lines of trades and/or cash communication to financial institutions globally. Customers include banks, broker-dealers, securities depositories and clearing organizations, investment managers and stock exchanges.


The holding of a physical or book entry security by a depository or custodian.

Secondary Market

It is the market where trading in securities takes place in accordance with the laws, regulations and instructions in force.


A group of securities similar with respect to industry, maturity, type, rating, and/or coupon.

Securities Borrow

A collateralized security loan for a fee.


An asset such as share or bond and units of Mutual Funds.

Sell Order

It is an instruction given by an investor to a broker to sell a specified amount of shares of a certain company.


The conclusion of a securities transaction when a customer pays a broker or dealer for securities purchased or delivers securities sold and receives payment from the broker.


An instrument or legal right signifying equity, or an ownership position, in a corporation.

Share Book

A share book is an official record of ownership of company information about shareholders such as their names, addresses and numbers of shares held.

Share Repurchase

The process in which a corporation buys back previously issued shares of its own stock in the open market

Shareholder's Equity

Balance sheet item that includes the book value of ownership in the corporation. It includes paid-up capital, issue premium, reserves and retained earning sand subtracting loss and discount on par.

Short Sale

The selling of a security that the seller does not own, or any sale that is completed by the delivery of a security that was borrowed by the seller.

Sinking Fund

Money that is accumulated in a separate custodial account for the purpose of redeeming debt securities or preferred stock issues.


The division of a corporation's outstanding shares into either a larger or smaller (reverse split) number of shares without any impact on shareholder equity.


Usually refers to a cash market price for a physical commodity that is available for immediate delivery.


The price difference between two related markets or commodities.


Equity ownership of a corporation through the purchase of shares.

Stock Dividend

Payment of a corporate dividend in stock rather than in cash.

Stock Index

An indicator used to measure and report changes in prices of a selected group of stocks. How a particular stock index tracks the market depends on its composition - the sampling of stocks, the weighing of individual stocks, and the method of averaging used to establish an index.

Stock Market

A market in which shares of stock are bought and sold.

Stop Order

An order to sell if and when the market price falls to a specified amount.

Street Name

Indicates that a stock certificate is in the name of a brokerage house.

Strike Price

The stated price per share for which a stock option may be purchased or sold by the option holder.


An agent bank or subsidiary that provides local custody services for a global custodian.


An arrangement when two companies lend to one another on different terms, for example at different interest rates or in different currencies.

Third Market

Part of the Secondary Market through which trading takes place in securities that are not listed on the ASE.

Time Limit Order

A customer order that designates the time during which it can be executed.


To carry out a transaction of buying or selling stock or a bond.

Trade Balance

The difference between a nation's imports and exports of merchandise.

Trade Settlement

Delivering securities in return for cash.


An individual who buys and sells securities for his own account for personal gain or an individual who buys and sells securities on behalf of a broker or financial institution for the firm and its clients.


An individual who buys and sells securities for his own account for personal gain or an individual who buys and sells securities on behalf of a broker or financial institution for the firm and its clients.

Trading Floor

The area in Amman Stock Exchange where brokers and investors interact with each other to execute orders.


Execution of an order to buy or sell securities.

Transfer Agent

The primary recordkeeper for all shareholder information regarding a company's stock.

Transfer Agent

The primary recordkeeper for all shareholder information regarding a company's stock.

Treasury Bills (T Bills)

A government security with maturity of one year or less.

Treasury Bond

Long-term obligations of the Central Bank with a minimum maturity of 10 years.

Treasury Note

A government security with maturity between 1 and 10 years.


A bank designated by an issuer of stocks or bonds that acts as the custodian of funds and official representative of the stock or bondholders. Trustees are appointed to assure that stockholders and bondholders have representation to enforce the contractual obligations of the issuer.


An investment bank that agrees to purchase a new issue of securities from an issuer and distribute it to investors, making a profit on the fees charged for this service.

Unlisted Security

A security not listed on an exchange


A measurement of the change in price over a given period.


The number of purchases or sales of securities contracts made during a specific time period, often the total transactions for one trading day or week.


A corporate-issued certificate giving the holder the right to buy securities at a stipulated price within a given time period.

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A measure of the amount of money returned to an investor on his investments.

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