Equity Securities and Islamic Capital Market

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What are equity securities?

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Equity securities are defined as ownership in a company, commonly known as stocks or shares.

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What is the difference between Islamic Equities and Conventional Equities?

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Islamic Equities align with Shariah principles and avoid prohibited sectors, while Conventional Equities have no specific restrictions on investment sectors.

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What are the requirements for earnings in Islamic Equities?

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Earnings must be derived from permissible (halal) sources, and any income from prohibited activities must be purified through donations to charity.

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What is the role of a Shariah board in Islamic Equities?

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A Shariah board oversees investments to ensure compliance with Islamic law.

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What are Ordinary Shares?

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Ordinary Shares are known as common shares or stock, representing undivided ownership in a company, allowing shareholders to earn dividends and vote on corporate policies.

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What are Preference Shares?

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Preference Shares are undivided ownership in a company that provides contractual dividends but no voting rights, with types including cumulative, non-cumulative, convertible, redeemable, and exchangeable.

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What is the Securities Commission Malaysia?

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The Securities Commission Malaysia regulates and supervises the capital market, ensuring compliance with the Securities Commission Act and the Capital Market and Services Act.

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What is Bursa Malaysia?

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Bursa Malaysia acts as a stock exchange where equity securities are traded, ensuring fair and transparent trading.

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What are the benefits of the Shariah Compliance Review Process?

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Benefits include attracting institutional investors, ethical investors, and linking to MENA investors seeking Shariah-compliant investments.

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What is the first step in the Shariah Compliance Review Process?

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The first step is the extraction of relevant financial information from audited financial reports and other material information.