Topic 8

ICM VS CCM

ISLAMIC CAPITAL MARKET

1. a market that works in ways that are not contrary to Islamic values
2. Free from prohibited acts and elements such as riba, maisir and gharar.
3. Products are built in compliance with Shariah law such as Sukuk , Islamic trust funds and
Islamic real estate investment trust
4. Restrain stocks of businesses engaging in criminal activities like gambling and alcohol
5. Sometimes investors may not have access to icm.
6. Risk sharing by ICM is necessary So the Shariah complaint is not considered an instrument
unless return is connected to risk.

Coventional capital market

1. Ccm does not refer to rules or guidelines of religion and huge compare to ICM
2. These activities are except money laundering and crime funding
3. The products of Ccm are quick and efficient such as shares, options, future, forward and
bonds.
4. Products are highly accessible across a wide variety of standard markets.
5. Most derivatives are built for risk preventative purposes, and risk-takers can make money
like gambling speculation. therefore, CCM RISK IS Better avoiding.

Topic 7

Future

1. Provide traders and other market participants

2. Is negotiated in the public market on an exchange is actively traded
3. Is standardized having and exchange specified contract unit expiration risk size
4. Notional value is regulated and has no counterparty risk since payment is guarantee by the
exchange clearing

Forward

1. is privately negotiated non transferable

2. has customized terms carries credit default risk since it is privately negotiated.
3. Fully dependent on the counterparty for payment and it is not regulated.