Investment Environment

A good characteristic of financial market

• Buyers anywhere

• Price continuity

• Sellers here and there

• Cheap assets

Usable money market instrument during war time and deflation

• Bankers acceptance

• Repurchase agreement

• Eurodollars

• T-bills

Holder of short term Islamic money market instrument would likely get...?

• Principal plus interest

• Principal plus sadaqah

• Principal plus zakat

• Principal plus hibah

Sales of existing shares with no new issuance in primary market.

• Public offerings

• Private placement

• Offer for sale

• Public issue

An order at a specified price within a period until cancelled

• Stop loss order

• Limit order

• Market order

• GTC order

Disadvantage of over the counter (OTC) contract

• Opaque dealing

• Customized contract

• Involved participants

• Direct contract

Common market makers

• Speculators

• Regulators

• Brokerage houses

• Investors

The following is not the cost of trading in stock market:

• Clearing fees

• Brokerage fees

• Stamp duty

• Trustee fees

Adding leverage to existing investment

• Insider trading

• Margin trading

• Short selling

• Intraday selling

Why is a developed capital market essential?

• Reduces inflation

• Eradicate corruption

• Generates productivity

• Support local Malaysian products