Ask
The price at which a seller is willing to sell a security; also known as the offer
price. The “ask” quote will generally also stipulate the amount of the security
willing to be sold at that price.
Best Ask
The lowest quoted offer price for a particular security among those offered from
competing market makers.
Best Bid
The highest quoted bid for a particular security among all those offered by competing
market makers.
Bid
An offer made by an investor, a trader or a dealer to buy a security. The bid will
stipulate both the price at which the buyer is willing to purchase the security
and the quantity to be purchased.
Broker
An individual or firm that charges a fee or commission for executing buy and sell
orders submitted by an investor. The role of a firm when it acts as an agent for
a customer and charges the customer a commission for its services.
Buy Order
Instruction given to the Broker to buy a specific security at either Market price
or a fixed price.
Clearing
The procedure by which an organization acts as an intermediary and assumes the role
of a buyer and seller for transactions in order to reconcile orders between transacting
parties.
Closing Price
The final price at which a security is traded on a given trading day. The closing
price represents the most up-to-date valuation of a security until trading commences
again on the next trading day.
Face Value
The nominal value of a security stated by the issuer. For stocks, it is the original
cost of the stock shown on the certificate.
Gainers
Securities that experienced the rise in market price.
Immediate or Cancel Order
An order requiring that all or part of the order be executed immediately after it
has been brought to the market. Any portions not executed immediately are automatically
cancelled.
Index
A statistical measure of change in an economy or a securities market. In the case
of financial markets, an index is essentially an imaginary portfolio of securities
representing a particular market or a portion of it.
Initial Public Offering (IPO)
A company raising capital by selling common securities to public for the first time.
Losers
Securities that experienced the fall in market price.
Limit Order
An order placed with a brokerage to buy or sell a set number of shares at a specified
price or better. Limit orders also allow an investor to limit the length of time
an order can be outstanding before being cancelled.
Limit up
The maximum amount by which the price of a security may advance in one trading day.
Limit Down
The maximum amount by which the price of a security may decline in one trading day.
Market Index
An aggregate value produced by combining several securities or other trading vehicles
together and expressing their total value against a base value from a specific date.
Market indexes are intended to represent an entire securities market and thus track
the market's changes over time.
Market Price
The price of the securities that is currently offered in the market. e.
Matching Orders
Entering identical buy and sell orders at the same time to create the appearance
of active trading in that security..
Online Trading
Executing trades via the Internet.
Opening Price
The price at which a security first trades upon the opening of an exchange on a
given trading day.
Order Book
This is an option found in the online trading application where all the orders placed
by a Client can be viewed.
QE
QFMA
Qatar Financial Markets Authority
Stock
A type of security that signifies ownership in a corporation and represents a claim
on part of the corporation's assets and earnings.
Securities Market
The market in which shares are issued and traded. It is one of the most vital pillars
of a market economy as it provides companies with equity market access to capital
and investors with a slice of ownership in the company and the potential of gains
based on the company's future performance.
Stop Order
An order to buy or sell a security when its price surpasses a particular point,
thus ensuring a greater probability of achieving a predetermined entry or exit price,
limiting the investor's loss or locking in his or her profit. Once the price surpasses
the predefined entry/exit point, the stop order becomes a market order.
Stop Limit Order
An order to buy or sell a security when its price surpasses a particular point,
thus ensuring a greater probability of achieving a predetermined entry or exit price,
limiting the investor's loss or locking in his or her profit. Once the price surpasses
the predefined entry/exit point, the stop order becomes a market order.
Stop-Loss Order
An order placed with a broker to sell a security when it reaches a certain price.
It is designed to limit an investor's loss on a security position.
Trade Book
This is an option found in the online trading application. Where all the securities
that are ordered and executed can be viewed by the client.
Trading
The activity of buying and selling securities.
Volume
The number of shares or contracts traded in a security or an entire market during
a given period of time. It is simply the amount of shares that trade hands from
sellers to buyers as a measure of activity. If a buyer of a stock purchases 100
shares from a seller, then the volume for that period increases by 100 shares based
on that transaction