Iran Capital Market Dealing Exam key terms

The 2005 statute that established the Securities and Exchange Organization as regulator and created the legal framework for issuing, trading, and settling securities in Iran.

Iran's capital market regulator, empowered to license market participants, approve offerings, supervise trading, and enforce rules against market misconduct.

The core legislation, amended over time, that governs the structure of Iran's exchanges, the duties of intermediaries, and investor protection standards.

The entity operating a regulated trading venue under SEO oversight, responsible for listing decisions, trading rules, and surveillance of its members.

Iran's main equity market, where shares of listed companies trade through licensed brokers under auction and continuous trading mechanisms.

A secondary Iranian exchange listing smaller companies, start-ups, and various debt and fund instruments, with lighter listing criteria than the main market.

A licensed intermediary that accepts client orders, executes trades on an exchange, and handles related account and reporting duties for investors.

The minimum criteria a company must satisfy to have its securities admitted to trading, covering capital size, shareholder spread, disclosure, and governance.

A unit of ownership carrying voting rights and a residual claim on profits and assets after all senior obligations are paid.

The entitlement of existing shareholders to subscribe to new shares in proportion to their holdings before the offer is opened to outsiders.

A capital increase in which a company offers new shares to existing holders, typically at a discount, using their preemptive subscription entitlements.

The process of raising a company's registered share capital by issuing new shares, whether through cash subscription, retained earnings, or asset revaluation.

A free share distributed to existing holders out of retained earnings or reserves, increasing share count without bringing in new cash.

The portion of a company's distributable profit approved by the general meeting and paid to shareholders, usually in cash.

The cut-off date on which an investor must appear in the shareholder register to receive a declared dividend or exercise a corporate action entitlement.

The date from which newly purchased shares no longer carry the entitlement to participate in an announced rights issue or other corporate action.

A Sharia-compliant certificate representing an undivided beneficial ownership interest in an underlying asset, project, or usufruct, paying returns from those assets rather than interest.

A sukuk structure in which the issuer leases an underlying asset to a lessee and passes the rental income to certificate holders as periodic return.

A sukuk structure based on a cost-plus sale of an asset, where deferred sale proceeds generate the profit distributed to certificate holders.

A short-term Sharia-compliant government instrument used to manage liquidity and finance the state, structured without interest and traded in the money market.

A short-dated, highly liquid debt security such as a treasury bill or commercial paper, used for cash management and short-term funding.

The total return an investor earns by holding a fixed-income instrument to maturity, assuming all scheduled payments are made and reinvested at that same rate.

A measure of a bond's price sensitivity to changes in yield, expressed in years, and used to gauge interest-rate risk in a fixed-income portfolio.

A pooled vehicle that raises money from many investors and invests it in a diversified portfolio under a defined strategy and regulatory authorization.

An Iranian licensed pooled fund whose units are issued to the public and whose assets are managed by a professional manager under SEO rules.

The total value of a fund's assets minus its liabilities, divided by the number of units outstanding, used to price subscriptions and redemptions.

The process by which an investor sells fund units back to the fund at the prevailing net asset value, subject to the fund's rules and notice periods.

A trading model in which buy and sell orders are matched by price and time priority in a central limit order book without a designated liquidity provider.

An instruction to buy or sell a security at no worse than a specified price, remaining in the book until executed, amended, or cancelled.

An instruction to trade immediately at the best available price, prioritizing execution certainty over price control.

The broker's process of receiving, validating, recording, routing, and executing client instructions in line with best-execution and priority rules.

A specific instruction from an investor to a broker to buy or sell a stated quantity of a security under stated price and timing conditions.

A regulatory band setting the maximum daily price movement for a security, triggering a trading halt or auction when reached.

An automatic mechanism that pauses or halts trading after a predefined market-wide or security-specific price movement to calm disorderly conditions.

The entity that holds securities in electronic book-entry form, maintains investor accounts, and processes transfers and corporate actions for issuers.

An institution that interposes itself between trade counterparties, nets obligations, and manages counterparty risk through margin and default funds.

The final transfer of securities against payment that discharges the obligations created by a trade, completing the post-trade process.

A settlement arrangement in which the transfer of securities occurs only if the corresponding payment is made simultaneously, reducing principal risk.

An entity that becomes the buyer to every seller and the seller to every buyer, guaranteeing performance of cleared trades.

Trading or tipping on material non-public information about an issuer, breaching the duty of confidence owed to the market and to shareholders.

Any fact that a reasonable investor would consider significant in deciding whether to buy, hold, or sell a security, including undisclosed corporate events.

Conduct intended to distort the price or trading volume of a security, such as wash trades, spoofing, or spreading false market rumours.

A transaction in which the same beneficial owner is on both sides, creating misleading volume or price signals without genuine change in ownership.

Placing orders with no intention of executing them, then cancelling, to create a false impression of supply or demand and move prices.

The duty of listed issuers to publish material information promptly and equally to all investors through approved channels.

The process of identifying clients, verifying their identity, and understanding their business and risk profile before providing financial services.

Ongoing measures to establish and verify a client's identity, beneficial ownership, source of funds, and expected pattern of activity.

The natural person who ultimately owns or controls a client or the assets involved, even where a nominee or corporate structure stands in front.

An individual entrusted with a prominent public function, or a close associate or family member, who requires enhanced scrutiny due to higher corruption risk.

Additional scrutiny applied to higher-risk clients, such as politically exposed persons or those in high-risk jurisdictions, including deeper source-of-funds checks.

A confidential report filed with the financial intelligence unit when a firm suspects funds are linked to criminal activity or terrorist financing.

The set of laws, procedures, and controls designed to prevent criminals from disguising the origin of illicit funds through financial systems.

A licensed participant obliged to quote continuous buy and sell prices in specified instruments, providing liquidity and narrowing spreads for other traders.

A security whose payments derive from a defined pool of underlying assets or receivables rather than from the issuer's general credit.