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Shariah-Compliant Funds

Shariah-Compliant Funds Shariah-compliant funds are investment funds that adhere to Islamic principles, including the prohibition of halal and interest-based activities. They follow a set of guidelines based on Islamic law, known as Shari’a, which emphasize ethical and socially responsible investing. Key Principles of Shariah-Compliant Funds: Prohibition of Haram Activities: Investments in industries that are deemed […]

2 mins read

Consolidation

Consolidation Consolidation is the process of combining smaller accounting units into a single set of financial statements. It is commonly used when a company controls a majority of another company, known as a subsidiary. Types of Consolidation: Full consolidation: Involves combining all assets, liabilities, and equity of the subsidiary with the parent company’s financial statements. […]

2 mins read

Ultra-Short Bond Fund

Ultra-Short Bond Fund An ultra-short bond fund is a type of bond fund that invests primarily in very short-term debt securities, such as Treasury bills, government security certificates, and commercial paper. These securities typically have maturities of less than one year. Investment Objectives: Preserve capital Generate low-cost short-term liquidity Hedge against inflation Provide a safe […]

2 mins read

Trailer Fee

A trailer fee is a charge levied by certain transportation companies for the use of their trailers to haul cargo. It is typically a separate charge from the cost of transporting the cargo itself. Reasons for Trailer Fees: Equipment depreciation: Trailers are expensive assets that require significant maintenance and repair. Trailer fees help offset these […]

1 min read

Isin,International Securities Identification Number

The International Securities Identification Number (ISIN) is a unique 12-character code used to identify securities worldwide. It is commonly used by investors and professionals to track and manage investments across different markets. Here’s a breakdown of the ISIN structure: Format: XXYYMMDDCCC XX: Country code (e.g., US for the United States, CA for Canada) YY: Year […]

1 min read

Coupon Bond

Coupon Bond: A coupon bond is a type of fixed-income security that pays interest payments, known as coupons, to the investor on a regular basis. Coupon bonds are typically issued by corporations or governments. Key Features of Coupon Bonds: Interest Payments: Coupon bonds pay interest payments to investors at a specified rate, known as the […]

2 mins read

Credit Balance

Definition: A credit balance is a situation where a person’s available credit limit is greater than their current credit utilization. This means that the person has available credit that they can use, if needed. Explanation: Credit balance: Positive balance in a person’s credit account, where the total amount of credit available exceeds the total amount […]

1 min read

Interpolation

Interpolation is a mathematical technique that estimates missing data points in a function or set of discrete data points. It involves finding a smooth curve or line that best fits the existing data points and then using that curve or line to estimate the missing points. Types of Interpolation: 1. Linear Interpolation:– Estimates missing points […]

1 min read

Overlay

The word “overlay” has a few different meanings, depending on the context. Here are the most common meanings: 1. Overlaying Images: This is the most common meaning of “overlay.” It refers to the process of placing one image on top of another image, usually for the purpose of creating a composite image. This can be […]

1 min read

Market Risk Premium

Market Risk Premium (MRP) The market risk premium (MRP) is a statistical measure that quantifies the extra return that investors require for holding investments in a particular market compared to a risk-free asset. It is the difference between the expected return on an investment and the risk-free return. Formula: MRP = E(r) – Rf where: […]

2 mins read

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