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Understanding Preferred Shares in Islamic Finance

Get an inside look at Islamic finance with INCEIF, exploring preferred shares, Shariah compliance, and their wider implications.

Understanding Preferred Shares in Islamic Finance

  • 4 weeks

  • 1 hour per week

  • Digital certificate when eligible

  • Introductory level

Find out more about how to join this course

  • Duration

    4 weeks
  • Weekly study

    1 hour
  • 100% online

    How it works
  • Unlimited subscription

    $244.99 for a whole yearLearn more

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.

Syllabus

  • Week 1

    Fundamentals of Preference Shares

    • A welcome message hanging on the wall in between staircases

      Welcome to the Course

      Hi everyone! Welcome to the course on Understanding the Shariah Compliance of Preference Shares. Let's get started!

    • Introduction

      Preference shares is one of the topics that is often discussed in Islamic finance. Understand its fundamental better in the following steps.

  • Week 2

    Key Characteristics & Types of Preferred Shares

    • Key Characteristics of Preferred Shares

      Discover the unique features that set preferred shares apart from common stock

    • Types of Preferred Shares

      Uncover the diverse world of preferred shares and their unique attributes

  • Week 3

    Shariah Considerations and Concerns Regarding Preferred Shares

    • Issues in Preferred Shares from Shariah Perspective

      Explore the issues surrounding preferred shares from the Shariah perspective

  • Week 4

    Shariah Advisory Council (SAC) View & Conclusion

    • Shariah Advisory Council (SAC) of the Securities Commission (SC)’s View on PS

      This step outlines the SAC's deliberations with regards to the appropriate Shariah principle to be applied in Shariah-compliant PS

    • Conclusion and Next Step

      A summary of what has been discussed throughout the week as well as an assessment step to measure your grasp on the subject

When would you like to start?

Start straight away and join a global classroom of learners. If the course hasn’t started yet you’ll see the future date listed below.

  • Available now

Learning on this course

On every step of the course you can meet other learners, share your ideas and join in with active discussions in the comments.

What will you achieve?

By the end of the course, you‘ll be able to...

  • 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

Who is the course for?

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).

Who will you learn with?

Aishath Muneeza

Prof. Dr. Aishath Muneeza currently serving as a Professor and Associate Dean for Students and Internationalization at INCEIF University in Malaysia.
CV: https://sedonaweb.com/members/aishathmuneeza/

Who developed the course?

INCEIF logo

INCEIF

INCEIF is considered to be the knowledge leader in Islamic finance through providing excellent teaching, research and thought leadership.

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Ways to learn

Choose the best way to learn for you!

Subscribe & save

$244.99 for a whole year

Automatically renews

Develop skills to further your career

  • Access to this course
  • Access to 1,000+ courses
  • Learn at your own pace
  • Discuss your learning in comments
  • Tests to boost your learning
  • Digital certificate when you're eligible

Cancel for free anytime

Buy this course

$109/one-off payment

Fulfill your current learning need

  • Access to this course
  • Learn at your own pace
  • Discuss your learning in comments
  • Tests to boost your learning
  • Printed and digital certificate when you’re eligible

Limited access

Free

Sample the course materials

  • Access expires 14 Mar 2025

Find out more about certificates, Unlimited or buying a course (Upgrades)

Sale price available until 3 March 2025 at 23:59 (UTC). T&Cs apply.

Find out more about certificates, Unlimited or buying a course (Upgrades)

Sale price available until 3 March 2025 at 23:59 (UTC). T&Cs apply.

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  • Complete 90% of course steps and all of the assessments to earn your certificate

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