Equity Markets Flashcards
6 cards from real CME-1 practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Equity Markets flashcards as text
What is the main stock exchange in Saudi Arabia?
Answer: Saudi Exchange (Tadawul)
The Saudi Exchange (Tadawul) is the sole authorized stock exchange in Saudi Arabia. It was formally established as a joint-stock company in 2007 and is one of the largest exchanges in the Middle East by market capitalization.
What is Nomu, the parallel market on Tadawul, primarily designed for?
Answer: Small and medium enterprises (SMEs) seeking lighter listing requirements
Nomu is a parallel equity market with lighter listing requirements designed to provide SMEs with an opportunity to access capital markets. It has lower minimum capital, free float, and track record requirements compared to the Main Market.
What is the settlement cycle for equity trades on Tadawul?
Answer: T+2
Tadawul operates on a T+2 settlement cycle for equity trades, meaning the transfer of securities and payment occurs two business days after the trade date. This aligns with international standards.
What is the daily price fluctuation limit for stocks on the Main Market of Tadawul?
Answer: 10% up or down
Stocks on the Main Market of Tadawul have a daily price fluctuation limit of ±10% from the previous day's closing price. This circuit breaker mechanism helps prevent extreme volatility.
Under the Qualified Foreign Investor (QFI) program, what is the maximum ownership limit for a single foreign investor in a listed Saudi company?
Answer: 10% of the company's shares
A single QFI can own up to 10% of a listed company's shares. The total foreign ownership limit (including swap agreements and QFIs) is 49% unless the company's articles specify a lower limit.
Which index tracks the performance of the 30 largest and most liquid stocks on Tadawul?
Answer: MT30 Index
The MT30 Index (Market Tracker 30) tracks the top 30 most traded and largest stocks on Tadawul. TASI, while important, tracks all listed stocks rather than a select group of blue-chip companies.
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