Another benefit of common stocks is that they are highly liquid for the most part. Small and/or obscure companies may not trade frequently, but most of the larger companies trade daily creating an opportunity to buy or sell shares.
Thanks to the stock markets, you can buy or sell shares of most publicly traded companies almost any day the markets are open.
What is the Investor Number (IN) and how is it used?
A:
The Investor Number (IN) is a unique number given to you as an investor. It identifies your account at the Clearing and Depository System (CDS), which holds all investor shares.
The IN will be used to transfer shares to and from your account each time you buy or sell shares. When you open an account with a broker you will have to give your IN so that future transactions in your account can automatically be settled immediately after the trade is done.
Despite its name, preferred stock has fewer rights than common stock, except in few important areas ? dividends. Companies that issue preferred stocks usually pay consistent dividends and preferred stock has first call on dividends over common stock.
Investors buy preferred stock for its current income from dividends, so look for companies that make big profits to use preferred stock to return some of those profits via dividends. In case of bankruptcy preferred stock holder gets priority over common stock holder.
You can claim your money personally by filling a cheque request form. You can also claim your money by phone, fax or e-mail, provided that required information like. The full name, amount required, and trading number should be mentioned in order for the request to be processed. The cheque will be issued after two (2) working days. This can also be done through a Telegraphic Transfer (TT) by giving in the account number, bank name, and branch (Bank Charges on Customer)
How can I credit my account with Al Buhaira LLC account?
A:
You can credit your account using a Personal Cheque, Manager Cheque, Transfer, or by depositing it to our account. If a Personal Cheque is used, the customer is reminded that transaction shall be honored only after the cheque has cleared.
An account statement shows the details of the transactions in your account over a specific time period, as well as your shareholdings at the statement date.
To trade means to buy or sell in the jargon of the financial markets. How a system that can accommodate one billion shares trading in a single day works is a mystery to most people. No doubt, our financial markets are marvels of technological efficiency.
Yet, they still must handle your order for 100 shares of ABC with the same care and documentation as my order of 100,000 shares.
I have changed my mailing address, what can be done?
A:
The two stock exchanges handle things differently. For the DFM, the mailing address may be changed through Damac. However, for ADX, the mailing address has to be changed through ADX.
Where is the transfer of shares as a result of inheritance handled?
A:
The registrar of the concerned joint-stock company is responsible for this type of transfer. Once the transfer is completed, the registrar is responsible for updating the share ownership record at the CDS.
You can change your broker any time you like. You have to open an account with a new broker to be able to transfer your shares from the old broker. Alternatively, you can transfer your shares directly to your account in the CDS and then transfer them to a new broker.
I have deposited money in Al Buhaira bank account, what is the next step?
A:
The next step is to provide us with the originalslip (with all the required details such as name of customer, amount deposited, date of deposit, etc.) in order to credit your Al Buhaira Securities LLC account either personally or by fax.
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 Value per Share
It reflects the accounting value of the share and computed by dividing the Shareholders equities on the number of subscribed shares.
Broker
A Broker is a company licensed by the government authorities according to the Federal rules and regulations. A broker is authorized to trade at Abu Dhabi Securities Exchange and Dubai Financial Market on behalf of an investor after obtaining an official approval from the investor.
Buy Order
It is an instruction given by an investor to a broker to buy a specified amount of shares of a certain company.
Sell Order
It is an instruction given by an investor to a broker to sell a specified amount of shares of a certain company.
Cash Dividends
The amount of cash distributed to the shareholders by a company, expressed as a percentage of par value
Is it possible for me to keep my shares in the CDS in case I don?t want to trade?
A:
You can keep your shares in the CDS if you don?t want to trade by filling a ?Transfer of Shares? form, which allows you to transfer your shareholdings from your account with your broker to your account with the CDS. The form is available at the Investor Services Desk at the DFM.
The first step for you to understand the stock market is to understand stocks.
A share of stock is the smallest unit of ownership in a company. If you own a share of a Company?s stock, you are a part owner of the company.
In most cases you have the right to vote on members of the Board of Directors and other important matters before the Company. If the Company distributes profits to shareholders, you will receive a proportionate share.
One of the unique features of stock ownership is the notion of limited liability. If the company loses a lawsuit and must pay a huge judgment, the worse that can happen is your stock becomes worthless. The creditors can?t come after your personal assets. That?s not necessarily true in private-held companies.
There are two types of stock:
Common stock
Preferred stock
Most of the stock held by individuals is common stock.
