Islamic Capital Markets: A Comparative Approach; Copyright; Contents; Preface; Overview of Contents; Additional Materials; Acknowledgments; Chapter 1: Founding Thoughts-Adam Smith, Capitalism, and Islamic Finance; Introduction and Overview; Chapter Topics; Chapter Objective; Key Terms; 1.1: The Roots: The Economy, Real and Financial Sectors, Risk and Islamic Finance; 1.2: Uncertainty and Risk; 1.3: Why Is There Uncertainty and Risk?; 1.4: Types of Risk; 1.5: Risk in the Real Sector and in the Financial Sector; 1.6: Financial System of Capitalism: The Foundations; 1.7: Smith and Arrow. 1.8: Smith and Ethical Rules1.9: An Arrow-Debreu Economy; 1.10: What Happened to the Smith-Arrow Risk-Sharing Ideal?; 1.11: Can Economics Explain a Positive Predetermined Rate of Interest?; 1.12: Islamic Finance: The Foundations; 1.13: Islamic Rules Governing Exchange; 1.13.1: Property Rights; 1.13.2: Contracts and Trust; 1.13.3: Markets; 1.13.4: Markets of the Prophet; 1.14: Islamic Financial Markets and Instruments; 1.15: Islamic Finance Industry at Present; 1.16: What Does the ""Paper Economy"" Look Like Today, Some Five Years After the Crisis?; Summary; Questions and Problems. 2.3.9: Karachi Stock Exchange (Pakistan)2.3.10: Muscat Stock Market (Oman); 2.3.11: Abu Dhabi Securities Exchange (ADX); 2.4: The Debt Markets; 2.5: The Money Markets; 2.6: The Derivatives Market; 2.7: Risks in Capital Markets; 2.7.1: Market/Price Risk; 2.7.2: Interest Rate Risk; 2.7.3: Default/Credit Risk; 2.7.4: Liquidity Risk; 2.7.5: Political Risk; 2.7.6: Regulatory/Moral Hazard/Inflation Risks; 2.7.7: Transparency and Misreporting Risks; 2.7.8: Shariah Risk; Summary; Questions and Problems; References and Further Reading; Websites. Chapter 3: Islamic Finance: Underlying Philosophy, Contracts, Instrument Design, and RequisitesIntroduction and Overview; Chapter Topics; Chapter Objective; Key Terms; 3.1: Introduction; 3.2: Underlying Themes and Fundamentals of Fiqh Mu'amalah; 3.3: Requirements for Islamic Capital Market Instruments/Transactions; 3.3.1: Riba; 3.3.2: Gharar; 3.3.3: Maisyir; 3.3.4: Jahl; 3.4: Shariah-Based Contracts for Financial Transactions; 3.4.1: Other Commonly Used Capital Market Contracts; 3.5: International Regulatory Institutions for Islamic Finance.

A comprehensive examination of Islamic capital markets Taking a comparative approach to the subject, this text looks at the similarities and differences between Islamic capital markets and conventional capital markets. The book explains each particular topic from both the conventional and the Islamic perspective, offering a full understanding of Islamic capital markets, processes, and instruments. In addition to a full explanation of Islamic products, this approach also ensures a holistic understanding of the dual markets within which Islamic capital markets operate.

FIN934