CME-1 Study Guide 2026
Everything you need to pass the CME-1 exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 CME-1 Exam Format at a Glance
📚 CME-1 Topics to Study (36)
✍️ Sample CME-1 Questions & Answers
1. What is the CMA's enforcement power when it detects a securities law violation?
The CMA has broad enforcement powers including issuing fines, suspending or cancelling licenses, banning individuals from the market, and referring criminal cases for prosecution.
2. Under the Qualified Foreign Investor (QFI) program, what is the maximum ownership limit for a single foreign investor in a listed Saudi company?
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.
3. What is a Rights Issue (Haq Al-Awalawiya) in the Saudi capital market?
A Rights Issue allows existing shareholders to purchase additional shares proportional to their current holdings at a discounted price. In Saudi Arabia, these rights are tradeable on Tadawul during the subscription period.
4. What is the daily price fluctuation limit for stocks on the Main Market of Tadawul?
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.
5. What is the primary regulation governing investment funds in Saudi Arabia?
The Investment Funds Regulations (IFR) issued by the CMA govern the establishment, management, and operation of investment funds in Saudi Arabia. These regulations cover both public and private funds.
6. Which entity operates the Saudi Exchange (Tadawul) and is overseen by the CMA?
The Saudi Exchange (Tadawul) is the national stock exchange of Saudi Arabia and operates under the oversight of the Capital Market Authority.