Understanding Preferred Shares in Islamic Finance

Gain essential financial skills to navigate Shariah-compliant practices

In the context of Islamic finance, the concept of preferred shares (PS) can be complex. Often, these conflict with Shariah principles, but with the right understanding, they can be structured to comply with Shariah law.

This comprehensive course from INCEIF University, a leading body in Islamic finance education, breaks down this concept to help you better navigate the complexities of PS.

In just three weeks, you’ll gain a strong financial foundation that complies with Shariah principles by examining the key characteristics of PS, their role in Islamic finance, and the perspectives of the Shariah Advisory Council (SAC) on their compatibility with Islamic law.

Grasp the fundamentals of preferred shares

Start this course by learning how PS differ from common stock and why they are a key topic in Islamic finance.

You’ll get an introduction to their basic features, advantages, and relevance, helping you understand their role in both conventional and Islamic contexts.

Unpack key characteristics and types of preferred shares

You’ll then explore the unique attributes that set preferred shares apart, uncovering their diverse types and how their features align with different investment goals.

With this understanding, you’ll be able to identify the challenges preferred shares pose to Shariah compliance, including issues like riba and gharar.

Examine Shariah considerations and the SAC’s perspective

Finally, you’ll wrap up this course with a discussion on Shariah Advisory Council (SAC). You’ll learn how the SAC addresses concerns surrounding preferred shares and their rulings on structuring them in a way that aligns with Islamic principles.

This course is ideal for finance professionals, Shariah compliance officers, accountants, and legal experts looking to deepen their understanding of Islamic finance.

It’s also valuable for anyone interested in exploring the intersection of Islamic finance, banking, and Shariah law, particularly in relation to preferred shares (PS).

This course is ideal for finance professionals, Shariah compliance officers, accountants, and legal experts looking to deepen their understanding of Islamic finance.

It’s also valuable for anyone interested in exploring the intersection of Islamic finance, banking, and Shariah law, particularly in relation to preferred shares (PS).

• Identify the features of Preferred shares (PS)
• Assess the concerns raised by prominent Islamic finance bodies, such as the International IIFA-OIC and AAOIFI, regarding the compatibility of PS with Shariah principles
• Describe the position of the Shariah Advisory Council (SAC) of the Securities Commission Malaysia on Preferred Shares