CMA LAW: "Investment Rules and Fundamentals"

As part of the Capital Markets Authority's keenness in achieving one of its objectives being the protection of dealers in financial securities against misleading and illegal practices, and exchanges based upon rumors, the Authority would like to direct dealers in securities relevant activities to take utmost care and not to be driven by rumors and misleading information when making their investment decisions. This can be achieved by following the main investment fundamentals and rules upon taking the investment decision, in a manner that relies upon accurate reading of approved financial statements of the company whose shares are subject of investment, in addition to the indications derived from its financial indicators and the fundamental information disclosed by the company. They should also follow sound investment basics starting from studying the investment opportunities and drawing a careful balance between the risks surrounding a particular investment, and the benefits and returns expected thereof. In addition, they should correctly diversify their investment to match the objectives and directives of the investor.

The Authority also draws the attention of all dealers to the necessity of obtaining disclosed details and information from their official resources, and not to follow rumors, analyses, expectations and information from unknown sources and not to be deceived by them.

Traders and Licensed Persons can visit the Capital Markets Authority's website (www.cma.gov.kw), Kuwait Stock Exchange's website (www.kse.com.kw), and the Twitter account @cma_kwt to keep up with the Authority's awareness announcements.

Disclaimer: The information provided on this page is for reference purposes only, visitors are encouraged to review and understand the information provided in the official scanned document attached in the link above (if available). The CMA endeavors to ensure that the information on this page is complete and accurate, but the CMA does not guarantee the quality, accuracy, or completeness of any content at any time. In the event the information on this page is different from the content in the official scanned document attached in the link (if available), the official scanned document attached shall take precedence.