Search results
Results from the WOW.Com Content Network
Sharia prohibits riba, or usury, defined as interest paid on all loans of money (although some Muslims dispute whether there is a consensus that interest is equivalent to riba). [4] [5] Investment in businesses that provide goods or services considered contrary to Islamic principles (e.g. pork or alcohol) is also haraam ("sinful and prohibited").
This meant that not only were interest-bearing loans, accounts, and bonds not allowed, but many financial instruments and activities common in conventional financial markets have been forbidden by most Muslim scholars because of their connection with maisir or gharar [Note 1] (and also sometimes because they involve payment of interest).
Its strategy meshes with the "guiding principles" or objectives of Islamic finance, and with the needs of Muslim-majority countries where a large fraction of the world's poor live, [Note 27] many of them small entrepreneurs in need of capital, and most unwilling or unable to use formal financial services.
This yield premium, or spread, can widen due to a decline in the issuer’s creditworthiness or a decrease in the bond’s liquidity, causing its price to fall. 3. Downgrade risk
Brokerage Account: At brokerage platforms you can select from municipal or corporate bonds and Treasury bond funds. Ines is a senior business reporter for Yahoo Finance. Follow her on Twitter at ...
For premium support please call: 800-290-4726 more ways to reach us
Bonds need only comply with laws of country/locality they are issued in. [41] [42] Pricing: The face value of a sukuk is priced according to the value of the assets backing them. Bond pricing is based on credit rating, i.e. the issuer's credit worthiness. [41] [42] Rewards and risks: Sukuk can increase in value when the assets increase in value.
Being Muslim in America means… “To be in a position to make a positive difference in the world and hopefully bring about more understanding and peace and reconciliation between people of diverse cultures and faiths. It’s a time where all of us as humans are being forced to learn to live together, and the only way that we can is in peace.