The following words and expressions in this Agreement shall have the meanings assigned to them hereunder unless the context indicates otherwise:
A set of general and special provisions to deal with investment tools, securities, agreements and the appendices thereof which shall be deemed to be one unit and shall be read and construed together after being signed by the Customer.
A set of investment tools retained by the Customer at the Bank whereby the investor shall estimate the risks and benefits by determining the relationship among all the securities contained in the portfolio regardless of the nature of each tool thereof.
Jordan Ahli Bank, hereinafter referred to as the (Bank or Manager).
The natural and/or corporate person referred to above who signs this Agreement in compliance with its terms and conditions.
Securities registered in the Bank’s Name:
Securities registered in the Bank’s name on the Customer’s behalf.
Profit(s), cash interest or securities which are realized by the investment tool or security. Such return is expressed in percentage (where it is distributed in cash) of the amount paid for the investment tools, securities or portfolio.
Current cash liquidity for investments plus the ultimate profit or loss during a specific period of time.
Any property rights, indications or evidence recognized as being foreign securities approved by the Board of Commissioners of Jordan Securities Commission, particularly including those provided for under Article No. (3)(b) and Article (4) of the Securities Law No. 18 of 2017.
Any foreign or domestic commission with which the Bank has a direct relationship, which acts as a trustee of investment tools and/or securities and which performs the selling and/or buying operations.
The portfolio’s account that solely permits the Customer to make his selling and buying decisions, to select the securities he wishes to deal with which are acceptable to the Bank and the timing of selling or buying at the price pursuant to which he wishes to sell or buy through the Bank (the Manager).
The portfolio’s account in respect of which the Bank makes all the decisions of the selling and/or buying operations of securities at the prices and timing that the Bank deems appropriate.
The potential of whether an investment would not realize the profit it is supposed to realize and the potential that the value of an investment would diminish and/or shall be exposed to direct losses more than anticipated.
The fees received by the Bank in consideration of managing the portfolio(s); performing the investment operations and trading in securities. The Bank shall determine and adjust such commissions from time to time.
Equity unit belonging to any shareholder in any company.
Debentures issued by a company or government with a specific interest rate and fixed maturity dates clarifying the time of payment of interest and principal.
It is a contract that obliges the buyer to buy a specific asset (or the seller to sell a specific asset) at a future date at a previously specified price. The future contracts shall determine in detail the type and quantity of assets that have been contracted for, which could either be basic commodities or financial tools, such as, securities, foreign currencies, metals, stock indices or other assets which the Bank agrees to deal in.
Contracts that grant the buyer the right to buy or sell an asset (obliging the counter party to meet such right if the option contract is performed) at a price specified at any time before the date which is determined in advance. The options contracts transaction involves an agreement between two parties. These contracts are divided into two parts, namely, buying option and selling option.
In the Money:
This occurs when the selling or buying price of the asset in the spot market is better than the price specified in the options contract.
At the Money:
This occurs when the selling or buying price of the asset in the spot market is equal to the price specified in the options contract.
Out the Money:
This occurs when the selling or buying price of the asset in the spot market is worse than the price specified in the options contract.
It is one of the investment tools which is managed by specialized persons in the stock market. It contributes towards increasing capitals by selling shares in the international stock exchanges which are called units within a set of securities. Mutual funds and capitals are invested in a common package called “Portfolio” which combines securities, products and other tools that are in conformity with the fund which appear in the subscription prospectus, provided they are listed in the stock exchange.
A preventative measure used to avoid potential losses on the return which is one of the securities market operations.
The amount (limit) which the Bank agrees to extend to the Customer which is placed at the Bank’s disposal by the Customer to be dealt with in managing the investment tools based on the Customer’s instructions through the Bank.
The process pursuant to which a dealing contract is finalized to transfer title of the securities from the seller to the buyer and settle the price thereof finally and unconditionally.
Any act, practice, scheme, approach or means prohibited by the Securities Law; the regulations, instructions or decisions rendered in pursuance thereof or any domestic or international laws promulgated in that regard.
Amman Court of first Instance.