CHAPTER 5 EQUITY SECURITIES

What are equity securities commonly known as?

• Derivatives

• Bonds

• Options

• Stocks

Which of the following is a type of equity securities?

• Currency

• Ordinary Shares

• Commodities

• Real Estate

What is the primary focus of Islamic equities?

• Aligning with Shariah principles

• Maximizing profits

• Investing in all sectors

• Avoiding ethical considerations

What is the role of the Securities Commission Malaysia?

• To provide loans to investors

• To regulate and supervise the capital market

• To manage corporate governance

• To issue shares

Which act governs the activities in Malaysia’s capital market?

• Islamic Financial Services Act 2013

• Capital Market and Services Act 2007

• Companies Act 1965

What is a key requirement for earnings in Islamic equities?

• Must be derived from permissible sources

• Must be maximized

• Must be diversified

• Must be reinvested

What is the main difference between Islamic and conventional equities regarding income sources?

• Islamic equities have no restrictions

• Conventional equities must be halal

• Islamic equities must purify prohibited income

• Conventional equities require Shariah compliance

What type of shares provides voting rights to shareholders?

• Redeemable Shares

• Preference Shares

• Ordinary Shares

• Convertible Shares

What is the purpose of the Shariah compliance review process?

• To increase market share

• To reduce operational costs

• To ensure compliance with Islamic law

• To maximize profits

What is the first step in the Shariah compliance review process?

• Extraction of relevant financial information

• Compare with Shariah financial benchmark

• Engage with investors

• Tabulate results