Market Structure and Classifications

<p>Interest rate-based instruments (A)</p> Signup and view all the answers

<p>To invest in highly liquid, short-term instruments (C)</p> Signup and view all the answers

<p>Qard acceptance loans (B)</p> Signup and view all the answers

<p>Capital market (C)</p> Signup and view all the answers

<p>Secondary markets involve previously issued securities (C)</p> Signup and view all the answers

<p>To hedge risks for producers and manufacturers (C)</p> Signup and view all the answers

<p>An agreement to buy or sell an underlying asset at a predetermined price on a set future date (D)</p> Signup and view all the answers

<p>Options convey a right without an obligation to buy or sell (A)</p> Signup and view all the answers

<p>The price the buyer pays at settlement (A)</p> Signup and view all the answers

<p>To invite Islamic banking institutions to place surplus funds with the Bank. (B)</p> Signup and view all the answers

<p>To hedge against potential price fluctuations (A)</p> Signup and view all the answers

<p>Purchase a specific asset at a specific price before expiration (C)</p> Signup and view all the answers

<p>Crude palm oil (D)</p> Signup and view all the answers

<p>A market for trading financial assets with maturity exceeding one year. (B)</p> Signup and view all the answers

<p>They are bilateral agreements where parties exchange cash flows based on different financial products. (A)</p> Signup and view all the answers

<p>Instruments paying interest, such as bonds and sukuk (B)</p> Signup and view all the answers

<p>Market volatility risk impacting the underlying asset prices (D)</p> Signup and view all the answers

<p>Sell the securities according to their preference. (D)</p> Signup and view all the answers

<p>Shariah compliant stocks are traded on Bursa Malaysia. (D)</p> Signup and view all the answers

<p>It must comply with Shariah requirements. (B)</p> Signup and view all the answers

<p>The private debt securities market (C)</p> Signup and view all the answers

<p>It is sponsor-driven and focuses on growth prospects. (C)</p> Signup and view all the answers

<p>Issuing new securities to raise long-term capital. (D)</p> Signup and view all the answers

<p>The first sale of stock by a private company to the public. (C)</p> Signup and view all the answers

<p>Secondary Market (B)</p> Signup and view all the answers

<p>It is a market for established companies meeting certain standards. (B)</p> Signup and view all the answers

<p>They determine the financial details of the IPO. (C)</p> Signup and view all the answers

<p>The primary market concerns the first sale of securities, while the secondary market involves trading existing securities. (C)</p> Signup and view all the answers

<p>The market value of a company's outstanding shares. (D)</p> Signup and view all the answers

A market dealing with short-term debt securities with a maturity period of less than a year. These instruments are highly liquid and considered low-risk due to their short maturity.

Funds that invest in highly liquid, short-term debt instruments. They are considered a low-risk investment option due to their high liquidity and short maturity.

Central banks use these operations to manage the amount of liquidity in the banking system. This helps them achieve their monetary policy goals. Examples include buying or selling government securities.

A type of money market instrument where banks lend money to each other overnight. Used to balance daily cash flows and liquidity needs.

The objective of the Bank's monetary operations in the Islamic money market is to influence liquidity through Shariah-compliant instruments, primarily using Qard acceptance (loans).

A loan extended by a lender to a borrower, where the borrower is expected to repay the principal amount along with a profit margin. It is a Shariah-compliant instrument used in Islamic finance.

A type of market where long-term debt and equity instruments are traded. These instruments typically have a maturity period of more than a year.

In the primary market, new securities are issued for the first time. This is where companies raise capital by selling stocks or bonds directly to investors. In the secondary market, existing securities are traded among investors.

A financial market where debt securities are traded. Companies and governments raise funds via long-term debt instruments like bonds, sukuk, and loans, which are bought and sold on this market.

The market for trading equity securities, such as stocks, shares, and other exchange-traded instruments. It allows shareholders to buy and sell ownership portions of businesses.

The mechanism for transferring funds from surplus to deficit units in the economy. It enables investors to allocate funds based on risk tolerance, desired returns, and investment periods.

Involves placing surplus funds with a bank, utilizing Commodity Murabahah Programs (CMPs), or other liquidity management strategies to ensure sufficient funds are available for operations.

A liquidity management strategy where a bank utilizes commodity-based contracts, such as those involving crude palm oil, to facilitate fund management. This involves trading on platforms like Bursa Suq Al Sila’.

Securities with a fixed maturity period of more than one year. These can be shares without a fixed maturity, corporate stocks, public or private debt securities, and government bonds.

A regulated market where Shariah compliant stocks are traded. It categorizes stocks into three submarkets: the Main Board, Second Board, and MESDAQ market.

Rules and regulations that must be adhered to by Islamic Equity Products to ensure they meet the requirements of Islamic finance.

The initial market for securities, where companies issue shares, bonds, or other securities to raise capital for the first time.

Shares, bonds, or other securities that are traded after their initial issuance.

A market where established companies with strong track records, large market capitalization, and proven business operations are listed.

A market designed for companies with growth potential, typically smaller and often in emerging sectors.

An initial public offering (IPO) is the first time a company sells its shares to the public.

A market where investors buy and sell securities without the involvement of the issuing company.

The underlying financial instrument used to create an Islamic equity product, ensured to be free from prohibited activities like gambling, interest, and certain types of trade.

The process of structuring and designing Islamic equity products, ensuring they comply with Shariah law and principles.

An agreement between two parties to buy or sell an asset at a specified point in the future. The price of the underlying instrument is paid before control of the instrument changes. This process is used to hedge risk, speculate, or take advantage of the quality of the underlying instrument.

A standardized contract traded on an exchange to buy or sell a specific asset at a certain date in the future at a predetermined price. This provides certainty for both parties regarding the price and quantity.

Financial instruments that give the holder the right, but not the obligation, to engage in a future transaction on an underlying asset at a specific price. This provides flexibility to the holder.

An agreement between two parties to exchange cash flows based on a specific underlying asset. This helps to manage risk by transferring it to another party.

A type of derivative instrument used to hedge against price fluctuations in the underlying commodity. The party who sells the forward contract agrees to sell the commodity at a predetermined price and date in the future, while the buyer agrees to purchase it.

A type of futures contract used to hedge against price fluctuations in the underlying commodity. These contracts are traded on an exchange and offer standardized terms, ensuring liquidity and transparency.

A type of option contract used to hedge against price fluctuations in the underlying commodity. The holder of the option has the right, but not the obligation, to purchase the commodity at a specific price and date in the future.

A type of swap contract used to exchange cash flows based on a specific underlying commodity. This can be used to hedge against price volatility or to take advantage of anticipated price movements.