English–Arabic finance glossary for CME study
Connect a term to its meaning and a small example before trying to memorize it. These bilingual explanations are a study aid; consult the current official material for the exact wording used by your examination.
Make terminology part of your practice
Read the definition, cover it, then explain the example in your own words. Keep a personal list of terms you confuse and add the relevant syllabus chapter. A calculation example is deliberately simplified: it is not a product recommendation or a description of every contractual or regulatory condition.
Search either language, or browse all terms without JavaScript. Related course links indicate useful study context, not a complete or officially weighted syllabus. Regulatory definitions and permitted activities must always be checked in their current official context. Record the distinction that confused you, then test it with a fresh example.
Asset / أصل
A resource with economic value. In investing, distinguish the underlying asset from the legal claim or wrapper through which you hold it.
Learning example: A fund unit gives exposure to the assets held by the fund; it is not the same instrument as a share held directly.
Equity / حقوق الملكية
An ownership interest and a residual claim after liabilities. A shareholder can benefit from business growth but does not receive a guaranteed return.
Learning example: If a simplified balance sheet has assets of 150 and liabilities of 90, book equity is 60. This is not necessarily the market value.
Bond / سند
A debt instrument that sets contractual payment obligations for an issuer. Credit quality, maturity and market interest rates affect its risk and price.
Learning example: A bond with face value 1,000 and a 5% annual coupon promises a coupon of 50 per year under its terms, assuming the issuer pays.
Sukuk / صكوك
Certificates structured around specified assets, benefits or investment activities under their contractual terms. Do not assume every sukuk has identical ownership rights or risk.
Learning example: Before comparing two sukuk, inspect the structure, cash-flow source and recourse. The same expected distribution rate does not make their risks equal.
Primary market / السوق الأولية
The market in which new securities are issued to investors. Distinguish raising new capital from investors trading existing securities with one another.
Learning example: A company issuing new shares to raise funds is using the primary market; a later sale between investors is secondary trading.
Secondary market / السوق الثانوية
Trading in securities that have already been issued. Secondary liquidity can support investors’ ability to enter and exit positions, but it does not guarantee a sale at a desired price.
Learning example: Buying an existing listed share from another investor generally transfers ownership; it does not by itself provide new capital to the issuer.
Liquidity / سيولة
The ability to trade an asset promptly in a useful size without an excessive price impact. Trading volume alone does not describe every aspect of liquidity.
Learning example: An asset quoted at 100 may be difficult to sell in a large quantity without accepting a lower price; the quoted price is not a liquidity guarantee.
Bid–ask spread / الفارق بين سعري العرض والطلب
The difference between the quoted buying price and selling price. The direction depends on whose perspective is used: a buyer normally pays the ask and a seller receives the bid.
Learning example: With a bid of 99 and an ask of 101, the spread is 2. Buying then immediately selling at those quotes loses 2 before other costs.
Market order / أمر سوق
An instruction to trade at the available market price under the venue’s rules. It prioritizes execution over a specific price and can execute at several prices.
Learning example: A thin order book may fill a purchase partly at 100 and partly at 102. The last displayed trade is not a promised execution price.
Limit order / أمر محدد السعر
An instruction with a maximum purchase price or minimum sale price. It controls the acceptable price but does not guarantee execution.
Learning example: A buy limit at 98 will not accept 100. If the market never offers a suitable quantity at 98 or below, the order may remain unfilled.
Clearing / مقاصة
The process of establishing and managing obligations arising from trades before settlement. Depending on the market, it can include matching, netting and risk management.
Learning example: After several purchases and sales, clearing may determine the net obligations that must be settled. That calculation is distinct from the final transfer.
Settlement / تسوية
The completion of a trade through the required transfer of securities and money. A trade can be agreed before it has settled; use current market rules for timing.
Learning example: An executed trade creates obligations. Settlement completes the transfers; do not treat an execution confirmation as proof that settlement has finished.
Custody / حفظ الأصول
Safekeeping and administration of financial assets under an agreement. The custodian’s role is different from deciding how a portfolio should be invested.
Learning example: Recording a dividend and safeguarding securities are custody tasks; selecting which shares to buy is an investment decision.
Diversification / تنويع
Spreading exposure across investments whose risks are not perfectly aligned. It can reduce concentration risk, but does not eliminate market-wide losses.
Learning example: Holding several companies in one industry may still leave heavy exposure to a shared economic driver. Count exposures, not just the number of holdings.
Volatility / تقلب
The variability of returns over a defined period and measurement method. It is one view of risk, not a complete measure of the chance of permanent loss or inability to sell.
Learning example: Two portfolios can have the same average return but different fluctuations. Specify the period when comparing their volatility.
Credit risk / مخاطر ائتمانية
The possibility that an obligor fails to meet a payment or other credit obligation. Collateral and guarantees may change loss exposure but need their own assessment.
Learning example: A promised payment of 1,000 is not equivalent to cash today if the payer may default. The promised amount and expected recovery are different concepts.
Duration / مدة الاستحقاق المرجحة وحساسية السعر
A measure used in fixed-income analysis. Modified duration approximates price sensitivity to a small yield change; specify the duration measure before using it.
Learning example: With modified duration 4, a 0.5 percentage-point yield rise suggests roughly a 2% price fall, ignoring convexity and other changes.
Net asset value / صافي قيمة الأصول
The value of assets less liabilities. For a fund, NAV per unit divides this net amount by the relevant units outstanding under the valuation rules.
Learning example: If assets are 1,050, liabilities are 50 and 100 units are outstanding, NAV per unit is (1,050 − 50) / 100 = 10.
Asset allocation / توزيع الأصول
Dividing a portfolio among asset categories in line with objectives, constraints and risk. It is different from selecting individual securities within each category.
Learning example: A hypothetical 60% equity and 40% cash mix is an allocation. Choosing the particular equity holdings is a separate decision; the mix is not a recommendation.
Benchmark / مؤشر مرجعي
A reference used to evaluate performance or risk. A useful comparison should match the mandate, currency, period and return treatment closely enough to answer the question.
Learning example: Comparing a portfolio’s price-only return with an index including reinvested dividends can mislead. First put both measures on a comparable basis.
Suitability / ملاءمة
Considering whether a proposed investment or service fits a client’s circumstances, objectives and relevant constraints. The exact obligations depend on the applicable rules and service.
Learning example: A client needing money soon may face a mismatch with a long lock-up, even if the product’s expected return seems attractive.
Conflict of interest / تعارض مصالح
A situation in which competing duties or incentives could impair impartial judgment. Identification is only the first step; follow the applicable controls and escalation process.
Learning example: An analyst has a personal holding in an issuer being assessed. Record the conflict and obtain the required review instead of assuming disclosure alone resolves it.
Customer due diligence / عناية واجبة تجاه العميل
The process of understanding and verifying relevant customer information and risks as required by applicable rules. It continues beyond merely collecting an identity document.
Learning example: If an account’s activity no longer fits its stated purpose, a past identity check does not answer the new risk question. Review and escalate under the firm’s procedures.
Beneficial owner / مستفيد حقيقي
The natural person who ultimately owns or controls a customer or arrangement under the applicable definition. Legal ownership shown on a document may not fully explain ultimate control.
Learning example: A company may be owned through several other companies. Mapping that chain helps identify the individuals whose ownership or control must be assessed.
Market abuse / إساءة استخدام السوق
An umbrella study concept for conduct that harms market integrity, such as prohibited manipulation or misuse of inside information. Apply the exact legal definitions to the facts.
Learning example: Repeated orders intended to create a false appearance of demand raise a conduct concern. A genuine price move alone does not establish a violation.
Inside information / معلومات داخلية
Information subject to specific legal conditions and restrictions on its use or disclosure. Do not replace the official definition with the broad idea of any confidential information.
Learning example: A non-public development about an issuer needs assessment under the applicable criteria before anyone trades or shares it. Being a friend of the source changes neither the facts nor the need for review.
Leverage / رافعة مالية
Using borrowing or other structures to increase exposure relative to the investor’s own capital. It can magnify losses as well as gains, and financing terms introduce additional risks.
Learning example: Buy an asset for 100 using 60 borrowed and 40 of your own. If its value falls to 90, equity falls to 30: a 25% loss before interest and costs.
Present value / قيمة حالية
The value today of a future cash flow discounted at a specified rate over a specified time. Match the rate period to the number of periods and state the assumptions.
Learning example: Receiving 110 in one year has a present value of 100 at a 10% annual discount rate: 110 / 1.10. This illustration ignores taxes and uncertainty changes.
Enterprise value / قيمة المنشأة
A valuation measure for the operating business commonly reconciled to equity value using debt, cash and other relevant claims or adjustments. State the convention used.
Learning example: In a simplified case, equity value 80 plus debt 30 minus cash 10 gives enterprise value 100. Real transactions may require additional adjustments.
Due diligence / فحص نافي للجهالة
A structured investigation of information and risks before a decision or transaction. Its scope depends on the decision; financial, legal and operational reviews answer different questions.
Learning example: A buyer reconciles reported revenue to supporting records and examines unusual changes. A neat spreadsheet does not replace evidence for its inputs.
Sources and review
CMA / هيئة السوق المالية: Capital Market Qualification Examinations
Sources checked: 2026-10-17