CME-1 Equity Markets 2

Question 1

What is a Rights Issue (Haq Al-Awalawiya) in the Saudi capital market?

Accepted Answer

An offering of new shares to existing shareholders at a discounted price

Answer

A new listing on Tadawul

Answer

A government bond issuance

Answer

A share buyback program

Question 2

What is the minimum number of shareholders required for a company to list on the Main Market of Tadawul?

Accepted Answer

200 shareholders

Answer

50 shareholders

Answer

100 shareholders

Answer

500 shareholders

Question 3

How are dividends typically distributed to shareholders of Saudi-listed companies?

Accepted Answer

Through the Tadawul Depository Center (Edaa)

Answer

Only in the form of additional shares

Answer

By direct bank transfer from the company

Answer

Through postal cheques only

Question 4

What does the term 'Sukuk' refer to in the Saudi capital market?

Accepted Answer

Islamic financial certificates similar to bonds

Answer

Common shares of a company

Answer

Mutual fund units

Answer

Foreign currency derivatives

Question 5

What is the role of the Listing Authority in Saudi Arabia?

Accepted Answer

It reviews and approves applications for listing securities on Tadawul

Answer

It manages day-to-day trading operations

Answer

It sets monetary policy

Answer

It regulates the banking sector

Question 6

What is the Saudi Exchange's pre-opening session used for?

Accepted Answer

Collecting orders to determine the opening price through an auction mechanism

Answer

Executing market orders at any price

Answer

Allowing only institutional investors to trade

Answer

Processing dividend payments