Question
Choose the correct statement (s). You may choose more than one answer. One of the advantages of Islamic Capital Market is that it does not
Choose the correct statement (s). You may choose more than one answer.
One of the advantages of Islamic Capital Market is that it does not entail any risk to both the issuers and investors.
Capital market, Islamic or Conventional serve the same essential purpose; they provide platform for the deficits and surplus units, funds to trade in financial instruments as a means of raising large amounts of financing or for a long term investment.
Capital markets facilitate the mobilisation of funds and act as an efficient conduit to channel these savings for the financing of long term projects only for private sector businesses.
The financial and investment instruments offered in Islamic Capital Market, its practices, its operations and management must abide to the principles of shariah, among others, be devoid of riba (injustice), gharar (uncertainty), maysir (gambling), deception and fraudulent activities.
The Islamic Capital Market represent the equity markets, it does not include debt markets.
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