Dubai market stock
The Dubai stock market is the stock exchange situated in Dubai, UAE. The stock market was inaugurated in March, 2000. The companies that are registered under the Dubai Stock Market are mostly from UAE and remaining are from the Arabian Gulf countries. Some of the companies allow the foreign companies to own the shares. The Dubai stock market is one of the three major stock markets in UAE. The other two are Abu Dhabi Securities Market which is abbreviated as ADSM and Dubai International Financial Exchange which is abbreviated as DIFX. Out of these two DIFX has opened recently.
The Dubai share market is mainly owned by the Dubai Bourse. The stock market shares were on rise during the years 2004 and 2005. The total number of shares traded over has also increased in this duration. At the end of the 2005 the share prices dropped down significantly. Similar drops in the prices occurred in the stock markets from Persian Gulf. Recently the Dubai stock market makes a capital of $ 360bn.
The recent study shows that Dubai stock market is getting competitive with the US share market NASDAQ. The aim of the Dubai stock market is to create an efficient, transparent, fair and liquid marketplace with complete utilization of the available resources. The Dubai stock market has come up as the public institution with an independent commercial body. The stock market operates as the secondary market for the trading of securities. The market aims toward providing an opportunity for the investors to invest in the securities for better economical status.
The CDS is the department in the Dubai stock market that maintains the registries of securities in the DFM list. The CDS provides the investor data along with the CDS electronic registry. There are specific set of rules and regulations or investing in the Dubai stock market. The day to day operations of clearance, settlement and trading in Dubai Stock market are carried out through two systems. These are Clearance and Settlement System and Trading System. The clearance and settlement system also known as CSS is used to clear and settle the day to day business in the market. The trading system is the automated system. This system is used by the brokers for daily operations. The brokers get to know about the buy or sell spot orders. Both the systems are electronically linked together. When the deal procedure is completed, the systems modify the register of security holders. The system also transfers the securities immediately after the completion of the deal. As a result the investors find it easier to access through all the information required. All securities and other information of the issuers listed in the register are stored in the Clearance and Settlement System. Therefore the process becomes efficient and safe.
The investors who want to trade in the Dubai stock market need to follow certain rules. Each of the investor is provided with the Investor Number (IN) at the Investor Service Office. A stock market broker may also do this individually. After that the investor needs to fill up the Account Opening Form to open an account. Once the account is created the investor can go ahead with the trading procedure.
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