DUBAI FINANCIAL STOCK MARKET

Introduction:

The Dubai Financial Stock Exchange is a Stock Exchange, which is situated in Dubai. This Stock Exchange was started on the 26th of March, 2000. Till date, more than 40 firms have listed themselves on Dubai Financial Market. Most of these companies are locally based and some of them are established from other countries of the Gulf and have double listings. Some firms owing allegiance to the Dubai Financial Stock Exchange grant permission to people residing outside of Dubai to possess their shares. The financial years of 2004 and 2005, witnessed significant increment in the volume of traded shares and also the share prices of these firms. It is noted that, the ending of the fiscal year 2005 and the start of the financial year 2006, witnessed the dropping of share values to the extent of almost 60%. Similar trends were observed in majority of other Stock Exchanges of the Middle East.

Miscellaneous:

Apart from the Dubai Financial Market, there are three more Stock Exchanges in United Arab Emirates. Most prominent amongst them is the ADSM, known as the Abu Dhabi Securities Market. ADSM provides the listing of most of the companies based in United Arab Emirates. The second on the line is the DIFX or the Dubai International Financial Exchange. It was recently established and mostly deals in the merchandising of international funds.

Inference:

The main reason for the formation of the Dubai Financial Market was the founding of a public establishment. DFM have an autonomous corporal organization. DFM mostly acts as the subordinate market in security merchandising, brought forth by the populace belonging company and also, the funds brought forth by the local or the Federal Government. The DFM began its functioning on the 26/3/2000. Mostly two amalgamated schemes for the day-to-day functionings of the discharging, settlement and tradings are offered by DFM. These comprise of the Trading as well as the Clearance and Settlement System. The latter system is an automatized system, which mostly deals with the routine holdings of the job of settlement as well as clearance. On the contrary, trading system is mainly sought after by the brokers, which helps facilitate their routine functionings.