CHAPTER 1: Introduction
Financial asset
Debt vs Equity
Price and risk of financial asset
Financial asset vs tangible asset
Financial market
1-1
Role of financial asset
Role of financial market
Classification of financial market
Market participant
Globalization of financial market
1-2
Islamic equity instrument
The price of a financial asset and risk
Financial asset vs tangible asset
1-3
Role of financial asset:
(i) to transfer fund from one to
another and
(ii) to redistribute unavoidable risk
through investment mechanism.
1-4
Financial market
Islamic financial market
Role of financial market
Classification of financial market:
(a) claim based (b) maturity based
(c) seasoning based (d) delivery based
1-5
Market participants:
Households
Partnership & corporations
Government
Government agencies
Brokers
Dealers
Specialists and
Regulators.
1-6
Globalization of financial market
Derivative markets
Market Efficiency:
(a) Operational efficiency
(b) Pricing efficiency
1-7
Efficient Market Hypothesis (EMH)
1. Weak form efficient market
hypothesis
2. Semi-strong form efficient
market hypothesis
3. Strong form efficient market
hypothesis
1-8