SHARIAH COMPLIANCE STOCK

Shariah-compliant equities are Bursa Malaysia-listed securities that have been categorised as Shariah-permissible for investment based on the company's adherence to Shariah principles in its core mandate and investing operations. Many Muslims are becoming more familiar with the stock market these days, and one of their options will be to participate in shariah-compliant securities.

Islamic Capital Instruments	Shariah Compliance Stock
Definition	Equities that have been classified as Shariah-permissible for investment by a public-listed firm based on the company's adherence with Shariah principles in terms of its principal business and investment operations.
Purpose	Provide an avenue for investors, who are concerned about Shariah standards on stock a place to invest while being free from activities prohibited by Islam.
Characteristics and Features	The Shariah Compliance Stock must fulfill the shariah-compliant securities screening and all the activities are prohibited from riba, gharar and maysir. All Investing activities must be lawful activities only and upholding of ethical and moral values at all times.
Types	1) Ordinary shares 2) Preference shares 3) Bonus Shares 4) Right issues
Shariah Contracts /Elements	1) Musyarakah
Example	Main Market -  Comfort Gloves Bhd (Industrial Products & Services) - IOI Properties Group Bhd (Property) - Dagang Nexchange Bhd (Technology) - Bank Islam Malaysia Bhd (Financial Services)

The Shariah Compliance Stock must pass a shariah-compliant securities screening, in which the SAC applies a two-tier quantitative technique to categorise these securities, applying business activity requirements and financial ratio benchmarks to assess their Shariah status. All investing operations must be legitimate, meaning they must not entail usury (riba), gambling (maisir), and ambiguity (gharar) and they must always adhere to ethical and moral standards.

Furthermore, there are four different sorts of shares, each with its own set of functions. The first is an ordinary share, it is the riskiest form of ownership in a limited business because dividend payments are provided only after all other obligations to creditors and holders of other securities have been met. A preference share, on the other hand, is a type of stock that allows investors to receive a fixed dividend. Preference shareholders are given priority over ordinary shareholders. Besides, a bonus share of stock is offered to current shareholders in a corporation based on the amount of shares the shareholder already owns. The profit is given as a dividend in shares, proportional to the nominal value of the shares owned. Finally, the right issue is a share that is issued at a discount to existing shareholders in proportion to their current shareholding, but it is not a requirement for shareholders to subscribe.

There is a shariah contract used in Shariah compliance stocks called Musharakah, which meaning profit and loss sharing. This instrument is based on a partnership agreement in which the investor invests in the ownership of a company in the form of shares. There are several main markets that we can invest in stocks, namely, industrial products and services, property, technology, construction, plantation, utilities, financial services and more. Investors can check the Securities Commission Malaysia (SC) official website twice a year, in May and November, for an updated list of Shariah-compliant equities.