PIF2013 TUTORIAL CHAPTER 4

What are securities defined as according to the Capital Market Service Act 2007?

• Real estate investments

• Only shares in corporations

• Debentures, stocks, or bonds issued by any government

• Only stocks and bonds

How is ownership in a corporation determined?

• By the amount of profit generated

• By the number of shares a person owns divided by the total number of shares outstanding

• By the number of employees in the corporation

• By the total assets of the corporation

What is a characteristic of Shariah compliant securities?

• They can be sold without any restrictions

• They are classified as permissible for investment in Bursa Malaysia

• They are only available to government entities

• They have no risk involved

What does Mudarabah refer to in Islamic finance?

• A government bond

• A type of loan

• A profit and loss sharing arrangement

• A profit-sharing and loss-bearing arrangement

Which act provides empowerment to the Securities Commission in Malaysia?

• Financial Services Act 2010

• Islamic Finance Act 2005

• Capital Market and Services Act 2007

• Islamic Finance Service Act 2013

What is the role of Rabb al mal in Mudarabah?

• The capital provider

• The manager of the investment

• The investor's agent

• The regulatory body

What is one benefit of Shariah compliant securities?

• They attract ethical investors

• They are exempt from taxes

• They can only be traded within Malaysia

• They are guaranteed to provide high returns

What is the first step in the Shariah compliant review process by the SC?

• Tabulate the results

• Issue a list of Shariah compliant securities

• Extraction of relevant financial information

• Compare with Shariah financial benchmark

What does Wakalah represent in Islamic finance?

• A type of investment fund

• A profit-sharing agreement

• An agency relationship

• A partnership in ownership

What is the purpose of the Islamic equity market?

• To manage real estate investments

• To sell government bonds

• To transfer funds from surplus to deficit units

• To provide loans to businesses