Frequently Asked Questions
A: In the beginning, the Doha Securities Market was established in 1995 pursuant to Law No. 14 of 1995. Qatar Stock Exchange, the successor of Doha Securities Market, was created on June 19, 2009 pursuant to Law No. 33 of 2005 and its amendments.
A: Prices of shares traded at QSE are determined through the interplay of supply and demand, similar to any other products or commodities and any other securities market.
A: a licensed broker acts as a liaison person between the buying investor and the selling investor. The licensed broker acts as an agent for investors in all market dealings. Buying and selling securities on QSE cannot be performed amongst investors themselves but only through licensed brokerage companies.
A: First, it is essential for the investor to make certain that the broker is licensed to provide services at QSE. If you have an enquiry about any of the licensed brokerage companies, simply contact the QSE or visit QSE website. On the other hand, the investor is highly advised to visit a licensed brokerage company before accessing the market in order to become aware of the type of information and services offered by them. If unable to do so, the investor is highly advisable to access QSE Website for a list of all brokerage companies or by simply contacting QE by phone to obtain the necessary information needed in order to select the broker of his choice.
A: A brokerage company is authorized to charge a commission rate on both the purchase and sale transaction of 0.00275 (QR 2.75 per QR 1000 for the transacted value). This commission fee will be collected from each of the party of the transaction subject to a minimum levy (charge) of QR 30 from each- the selling and buying investor. It shall be permissible to the Broker to agree, in writing, with its clients for providing additional services which shall be approved by the Market in advance, against an added commission which is subject to the agreement of both parties. Additional services mean any service offered by the broker or requested by the client, that would possibly save the client time and effort and provide the client with a more distinguished services, and that any of these services shall not represent a material element between the parties of the trading transaction.
A: The Secondary Market is the market of trading securities (buying and selling) among investors through their licensed brokers. It is also known as the Stock Exchange or the Securities Market.
A: The Primary Market is the market that deals with the issuance of new securities for the first time whether issuance of securities for newly established companies or for already established companies that desire to increase share capital by selling its securities to the investing public. The Primary Market is also known as a market for the Initial Public Offering (IPO).
A: An Initial Public Offering (IPO) means the first sale of the company’s shares to the public. It is also known as “Public Offering”.
A: A private placement means a way in which a company can sell new shares to existing shareholders in proportion to their current holdings or to a selected group of investors.
A: Earnings per Share (EPS) is a financial ratio that measure the profitability per share in QR. It represents the portion of the profit allocated to each share. EPS is computed according to the below formula:
Earnings per Share (QR)
The Net Profit for the period does not mean the cash dividends distributed to shareholders, but it is the earned profit before deducting any reserves, retained earnings, board of director’s remunerations and before the distribution of cash dividends to shareholders. Therefore, EPS will not be distributed fully to shareholders. The distributed value to shareholders, once approved by the company’s general assembly, represents part of the earned profit on the share.
A: The dividends yield is one of the most important financial ratios that help the investor make investment decision when comparing to other investment alternatives. The Dividends Yield is computed according to the below formula:
Dividends Yield (%)
A: Price earning ratio is a valuation ratio of a company’s current share price compared to its per share earnings. It is one of the most important type of calculations utilized when valuating a share price in a stock exchange. Price Earning Ratio is computed according to the below formula:
Price Earning Ratio (times)
A: Price to Book Value Ratio is a ratio used to compare a share market value to its book value. The Price to Book Value is computed according to the following formula:
Price to Book Value Ratio (times)
A: A mutual fund is a pool of investments, with an investment strategy, used to invest in a large diversified portfolio of securities that will be managed by professional investment manager in order to gain a return distributed to those participated in the pool of investments. In general, there are two types of mutual funds: Open-ended and close-ended mutual funds.
A: An open-ended mutual fund is constantly offering new share units to the public and redeeming its outstanding shares. There is no limit to the number of shares that can be issued. Open-ended mutual fund shares are bought and sold directly through the fund itself or its agents, not over-the-counter or on an exchange. A closed-ended mutual fund issues only a certain number of shares. After the shares are sold and the money is invested in its portfolio of securities, trading of the fund shares can take place at a stock exchange. The fund is not obligated to redeem its shares or issue more shares. An investor who no longer wants to hold shares in the fund may simply sell them in the stock market. Therefore, a close-ended fund can be bought and sold through a broker with a commission fee on the exchange.
A: There are no taxes to be paid on the return of investments which resulted from investing at the Qatar Exchange whether these returns are in the form of cash dividends or capital gains resulted from the proceeds of sale of securities. However, it is highly recommended consulting with your tax advisor.
A: The trading hours at QE are as follows:
Pre-Open: 9:00 am.
Open Session: 9:30 am.
Close Session: 1:15 pm.
A: There are rules and regulations for new listings at the QSE - whether the company is newly established or a company transformed from a closed shareholding into a public shareholding. The rules and regulations can be found on QSE main website under Regulations and Instructions.
A: Yes. The QSE worked diligently to offer a number of educational brochures in order to enhance public awareness. Educational materials can be found by clicking on: “Publications” found by visiting QSE main webpage. Additionally, these educational materials are distributed among investors in the market halls and can be obtained at any time when physically visiting the QSE.
A: A shareholder number (nin) is issued to the investor by qatar central securities depository. there is a fee to open an account, all investor's transactions are done using this number.
A: Statement of Account is a statement issued by Qatar Central Securities Depository, which shows the names of the companies over a specific time period, as well as the shareholder holdings at the statement date.
A: As an investor, for obtain a statement of account. can be done by Qatar Central Securities Depository.