Iran Capital Market Dealing Exam flashcards
Iran Capital Market Dealing Exam · Build recall with a focused review session.
34 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Securities Market Act
- Iran's core statute establishing the Securities and Exchange High Council and the SEO, and setting the legal framework for exchanges, brokers, disclosure, and market abuse enforcement.
- SEO licensing
- The Securities and Exchange Organization grants and revokes licences for exchanges, brokers, fund managers, custodians and advisers; operating without a licence is unlawful.
- Material event disclosure
- Issuers must promptly publish information that could affect price or investment decisions, such as major contracts, capital changes or management changes, to the exchange and public.
- Insider trading
- Trading or tipping others on material non-public information about an issuer; prohibited under the Securities Market Act and enforced by the SEO.
- Tehran Stock Exchange
- The main Iranian equity venue for larger listed companies, operating an electronic order-driven market under SEO regulation and supervision.
- Iran Fara Bourse
- The OTC-style venue for SMEs, sukuk, funds and base-market issuers, regulated by the SEO and operating alongside the Tehran Stock Exchange.
- Broker
- A licensed intermediary that opens client accounts, receives and routes orders to the exchange, and is responsible for order validation, record-keeping and client asset segregation.
- CSDI
- The Central Securities Depository of Iran, which holds book-entry ownership records, processes transfers, and executes corporate action entitlements for listed securities.
- Market maker
- A licensed participant contracted to provide continuous bid and ask quotes in specified securities, helping liquidity in exchange for defined obligations and benefits.
- Nominal share value
- The par value printed on an Iranian share, commonly IRR 1,000; market price is determined separately by supply and demand on the exchange.
- Rights issue
- A capital increase in which existing shareholders receive tradable pre-emptive rights to buy new shares at par value, protecting them against dilution.
- Bonus shares
- Free shares issued to existing shareholders pro rata from retained earnings or reserves, increasing share count without any cash subscription.
- Record date
- The date on which the shareholder register is fixed to determine entitlement to a dividend, bonus shares or rights; trades after it are ex-entitlement.
- Ex-rights price adjustment
- The exchange adjusts the reference price after the record date to reflect that the share no longer carries the right or dividend being distributed.
- Ijarah sukuk
- Islamic certificates representing ownership of a leased asset; holders receive rental income from the underlying asset rather than interest.
- Murabaha sukuk
- Sukuk based on a cost-plus sale of an identified asset, where the issuer's obligation to pay the deferred sale price funds the certificate holders' return.
- Accrued profit
- Profit accumulated since the last distribution date on a sukuk; the buyer pays it to the seller at settlement, and the seller receives it at the next coupon.
- Participation paper
- A Central Bank or issuer instrument based on Musharakah, used for money market operations and short-term liquidity management consistent with Islamic finance.
- NAV per unit
- Total fund assets minus liabilities divided by outstanding units; used to price subscriptions and redemptions of mutual fund units.
- Mutual fund
- A pooled investment vehicle issuing units to investors, managed by a licensed manager and supervised by a custodian and auditor under SEO rules.
- Exchange-traded fund
- A fund whose units list and trade on an exchange like shares; market price can deviate from NAV, and creation/redemption arbitrage narrows the gap.
- Investment limits
- SEO rules capping a fund's exposure to a single issuer, asset class or related party, designed to control concentration and liquidity risk.
- Limit order
- An order to buy or sell at a specified maximum or minimum price; it rests in the book until matched, cancelled or expired.
- Price limit band
- A daily maximum and minimum price range around the previous close; orders outside the band are rejected, and limit-locked symbols may be halted.
- Price-time priority
- Matching rule in continuous trading where the best price executes first, and among equal prices the earliest order executes first.
- Front-running
- Trading ahead of a known client order to profit from the expected price impact; prohibited as a breach of fair dealing and fiduciary duty.
- T+2 settlement
- The standard equities settlement cycle in which cash and securities are exchanged two business days after the trade date.
- Delivery versus payment
- A settlement mechanism linking securities transfer and cash payment so that delivery occurs only if payment occurs, reducing principal risk.
- Central counterparty
- A clearing entity that interposes itself between trade counterparties, guaranteeing performance and managing risk through margin and a default fund.
- Buy-in
- A remedy for failed delivery in which the clearing house or exchange purchases the securities in the market at the failing party's expense.
- Fiduciary duty
- The obligation of brokers and advisers to act in the client's best interest, disclose conflicts, and recommend only suitable products.
- Customer due diligence
- The AML process of identifying a client, verifying identity with official documents, and understanding the purpose of the business relationship before onboarding.
- Beneficial owner
- The natural person who ultimately owns or controls a client, commonly identified at a 25 percent ownership threshold and verified during onboarding.
- Suspicious transaction report
- A confidential report filed with the Financial Intelligence Unit when a transaction has no apparent economic purpose or may involve criminal proceeds; tipping off is prohibited.