Frequently Asked Questions (FAQs)
Q: When was Qatar Exchange (QE) established?
A: Qatar Exchange (QE) was created on June 19, 2009 and is the successor of Doha Securities Market. QE will be an international exchange based out of Qatar, offering liquidity and a diverse product range, operating according to international best practices. The new company builds on the achievements of Qatar Exchange and the leading position of NYSE Euronext in the global markets.
The two shareholders of QE are Qatar Holding and NYSE Euronext. This partnership paves the way for Qatar to take a prominent role in global capital markets. NYSE Euronext will provide state of the art technology and business services to QE.
Furthermore, QE and NYSE Euronext will work together to enhance liquidity, transparency, product range and participation in the market.
Q: How are share prices determined at the Qatar Exchange?
A: Prices of shares traded at QE are determined through the interplay of supply and demand, similar to any other products or commodities and any other securities market.
Q: What is the Role of Brokerage Companies licensed by the Qatar Exchange?
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 QE can not be performed amongst investors themselves but only through licensed brokerage companies.
Q: How do I choose the appropriate broker?
A: First, it is essential for the investor to make certain that the broker is licensed to provide services at QE. If you have an enquiry about any of the licensed brokerage companies, simply contact the QE or visit QE website by clicking on this link+. 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 QE 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.
Q: What type of information available on licensed brokerage companies?
A: The QE Website has contact information on all brokerage companies in addition to licensing requirements for the brokers and their agents. Other available information includes brokerage companies’ total trade value and volume in a monthly basis. To access this information, simply click here:+
Q: What is the commission rate charged by the licensed brokerage company?
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.
Q: What does Secondary Market mean?
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.
Q: What does Primary Market mean?
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).
Q: What does Initial Public Offering (IPO) mean?
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”.
Q: What does Private Placement mean?
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.
Q: What does Earnings per Share (EPS) means and how it is computed?
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) = ___Net profit for the period___
Number of subscribed shares
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.
Q: What does Dividend Yield means and how it is computed?
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 (%) = ______Cash Dividends______ * 100%
Current Market Price per Share
Q: What is Price Earning Ratio means and how it is computed?
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) = _Market Value Per Share_
Earnings per Share (EPS)
Q: What does Price to Book Value Ratio means and how is it computed?
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) = Market Value Per Share
Book Value per Share
Q: What is Mutual Fund?
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.
Q: What is the difference between 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.
Q: Is there any type of taxes to be paid by an investor on the return of investment as a result of investing at the Qatar 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 recommend consulting with your tax advisor.
Q: What types of information available on the companies listed at the QE?
A: In general, there are three types of information on the listed companies available on line at the QE website. The three types of available information are as follows:
- General information: Access to the general information section can be done by visiting QE Website-the main page and simply click on "Listed Companies" This section includes overview of each listed company such as the date of establishment, objectives, activities, address and their websites.
- Corporate Actions: Access to corporate actions can be found at Company's Profile page or can be searched by clicking here.
- Financial Statements of Listed Companies: Access to this section can be found by entering the main Website of QE and by clicking on "Financial Statements"
Q: What are the Trading Hours at the QE?
A: The trading hours at QE are as follows:
Pre-Open: 9:00 am.
Open Session: 9:30 am.
Close Session: 1:15 pm.
Q: How can a company list at QE?
A: There are rules and regulations for new listings at the QE - 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 QE main website under Regulations and Instructions.
Q: Does QE publish Educational Publications?
A: Yes. The QE 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 QE 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 QE.
Q: What is a shareholder Number?
A: A shareholder number is a special number issued to the investor by QE personal located at ground flour of QE building. The fee for issuing a number is QR 100 and the number will ease any transaction dealing.
Q: What is Statement of Account?
A: Statement of Account is a statement issued by the Central Registration Department, a department at the QE, which shows the names of the companies over a specific time period, as well as the shareholder holdings at the statement date.
Q: How to obtain a Statement of Account?
A: As an investor, you have many ways to obtain a statement of account. Obtaining a Statement of Account can be done by either your physical presence at QE building, ground flour, counter section or on- line by visiting QE Website. Simply register in e-Statement service found in QE Website. Additionally, the investor can obtain a statement of account through Voice Gateway. For this kind of service and for security reasons, the investor is required to complete the Statement of Account Form and present it to one of QE staff located in QE ground floor or, on-line by visiting QE Website and following the instructions provided thereof. Once completed, the investor will be provided with a pin code, to access the statement of account feature available through the Voice Gateway.
Q: What are the advantages of the Voice Gateway?
A: The Voice Gateway is one of the many services offered by QE. Voice Gateway is a free of charge type service that allows the investor obtain information at any time and from anywhere in the world. The Voice Gateway includes many features such as inquiry about the prices of the shares listed at QE, the trading process, the market index and its changes, information about listed and brokerage companies as well as obtaining a statement of account.The investor can take advantages of this feature by calling this number: +974-4420-1111. Once the number is dialed, the investor will be prompted to listen to the instructions on how to use the optimal Voice Gateway for the desired information needed.
In case the investor wishes to obtain a statement of account feature through Voice Gateway, the investor will be requested, for security reasons, to complete the Statement of Account Form and present it to one of the staff members located in the QE ground floor or on-line, by visiting QE Website and following the instructions provided thereof. Once completed, the investor will be provided with a pin code, to access the statement of account feature. Other services/features available through Voice Gateway only require dialing the number mentioned above.Additionally, the investor can send any suggestions to QE Management either by leaving a voice message or by sending email message to the following address: email@example.com. The investor can also fax to +974-4431-4778.