Financial Glossary



Sale and Purchase Agreement - i. A written contract signed between the buyer and seller stating amongst others, the terms and conditions under which a property will be sold. ii. A written contract signed between the intended buyer of the property and the developer or seller of the property, stating among others, the terms and conditions under which the property will be sold.

Securities - Investment instruments traded on the stock exchange. They can be shares, warrants or fixed income securities.

Security  - Real or personal property that guarantees the repayment of a loan. The borrower risks losing the property if the loan is not repaid.

Selling Price - The price agreed for the Islamic banking institution to sell the property back to the customer which consists of the Islamic banking institution's purchase price (financing amount) plus its profit margin.

Senior Citizens - Malaysians and permanent residents aged 55 years and above

Separately Managed Equity Portfolio - A portfolio managed by fund managers where investors own the securities individually.

Service of Notices - Any notice or document required to be sent or given to a hirer may be sent or given in the following manner: By personal delivery; or By registered mail addressed to the hirer at the last known address

Shariah - The law of Islam, that covers every aspects of life, based upon the Quran, Sunnah (sayings and deeds of prophet Muhammad p.b.u.h.), Ijma’ (concensus of Muslim scholars)
and Qiyas (analogy).

Spending Plan - A plan of one’s income earned and how and what it will be spent on to ensure there is sufficient savings set aside to invest as well as for emergencies.

Stale Cheque - A cheque which has been issued for more than six months.

Stamp Duty on Loan Agreement - The duty payable to the Government (Stamp Office) for the stamping of an agreement, in this case, the Loan/Facility Agreement. Duty payable is based on the loan/facility amount. The current rate is 0.5% of the loan/facility amount or RM5 per RM1,000.

Start-up Capital - Capital needed to start or bring the business into existence.



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