What Is Intrinsic Value?

Intrinsic value is a measure of what an asset is worth. This measure is arrived at by means of
an objective calculation or complex financial model. Intrinsic value is different from the
current market price of an asset. However, comparing it to that current price can give
investors an idea of whether the asset is undervalued or overvalued.

Financial analysis uses cash flow to determine the intrinsic, or underlying, value of a
company or stock. In options pricing, intrinsic value is the difference between the strike price
of the option and the current market price of the underlying asset.

Key Takeaways
 There are various ways to calculate intrinsic, or true, value.
 Discounted cash flow analysis is used for many intrinsic value calculations.
 Intrinsic value is a core concept that value investors use to uncover hidden investment
opportunities.
 In options trading, intrinsic value is the difference between the current price of an asset and
the strike price of the option.
 When an asset's market price is below its intrinsic value, it may be a smart investment.

An Introduction to Islamic Finance

This free online course teaches about the fundamental principles, business ethics and rules of
Islamic finance.
Have you ever wondered how an Islamic finance structure works or how it differs from
conventional finance? Explore the fundamentals of Islamic finance and the moral, social and
legal aspects of business and commercial transactions. We will show you the idea of Islamic
insurance and its various products and the practical applications of Islamic finance with a
particular focus on its scope in the UK financial market.

The fundamental concept of Islamic finance is that money has no intrinsic value and should
be only used to measure wealth. We will show you the fundamental principles, basic
elements and different characteristics of Islamic finance. Islam is a religion that emphasises
ethical values and moral codes in all areas, including financial matters. You'll learn about
Islamic business ethics, including the rules of commercial and financial institutions. Islamic
finance is based on a body of fundamental principles that form the backbone of any Shariah-
compliant banking product. You'll study the status of profit-loss sharing, interest, market
speculation, market uncertainty and many more. The major difference between an Islamic
investment fund and a conventional one is that the former adheres to Shariah principles and
the latter does not. You will gain knowledge of the primary form of an Islamic Investment
Fund and various Moslem finance structures.
‘Takaful’ is a process of agreement among a group of people to handle the losses resulting
from specific risks to which all are vulnerable. Explore the concept and various models of
Takaful, also known as ‘Islamic insurance’. On top of that, you will learn about different
Takaful products available in the Islamic finance market. Islamic finance is closely linked to
the concept of profit and loss sharing. Any business deal or transaction that excludes the
possibility of loss is not allowed in Islam. We will show you the ideas of profit and loss
sharing in Islamic finance and its role in retail and wholesale markets. Islamic finance was
introduced into the UK with the first transaction and establishment of an Islamic bank in
1982. We will show you the history of Islamic finance and the regulatory development of
Islamic finance in the UK. Having learned that, you will discover some of the country's
pressing challenges Islamic finance faces.

We designed this course for people who want to enter the Islamic finance sector or invest in
Islamic banks. It is helpful for professionals who are already working in this field and want to
refresh their knowledge in Islamic finance. This course compares various aspects of Islamic
and conventional financial structures to give a clear idea about their strengths, and it doubles
as a tool that helps learners decide which suits them best. The government authorises five
Shariah-compliant banks in the UK to operate freely. This course specialises in Islamic
finance in the UK because of its functional Islamic banks and the large Muslim population.
Islamic banking appeals to many as it is based on fairness and justice in which both the bank
and investor share profit and loss. Join this course now and learn about Islamic finance for
free!

What You Will Learn In This Free Course

 Describe the fundamentals of Islamic finance and the Islamic economic model
 List the features of Islamic finance
 Outline the ethics and principles of Islamic finance
 Discuss the primary form of an Islamic investment fund and various Islamic finance
structures
 Distinguish between various forms of financial risk
 Define ‘Takaful’ (Islamic insurance)
 Analyse different types of Takaful products available in the
 Islamic finance market
 Evaluate the concept of profit-loss sharing in the Islamic finance market
 Compare the Islamic and conventional finance systems
 Explain the regulatory development of Islamic finance in the UK

Learning Outcomes
Having completed this module, you will be able to:

 Describe the fundamentals of Islamic finance and the Islamic economic model.
 List the features of Islamic finance.
 Outline the ethics and principles of Islamic finance.
  Discuss the primary form of an Islamic investment fund and various Islamic finance
structures.
 Distinguish between various forms of financial risk.
 Define Takaful (Islamic insurance).
 Analyse different types of Takaful products available in the Islamic finance market.
 Evaluate the concept of profit-loss sharing in the Islamic finance market.
 Compare the Islamic and conventional finance systems.
 Explain the regulatory development of Islamic finance in the UK.

https://alison.com/course/an-introduction-to-islamic-finance