PSX Clarity
Sign inStart free
S
Glossary · PSX term

Sukuk.

A sukuk is a Shariah-compliant financial certificate similar in purpose to a bond.

Definition

Instead of paying interest, sukuk give holders a share in the returns of an underlying asset or project, structured to comply with Islamic finance principles. The Government of Pakistan and companies issue sukuk to raise funds.

Worked example

An investor seeking Shariah-compliant income may buy a government Ijara sukuk that pays periodic profit instead of interest.

Related on PSX Clarity

Term
Bond
Term
Treasury bills (T-bills)
Term
Shariah-compliant stock
Term
Coupon rate

More glossary terms

Browse all 199 terms →
Sector index
A sector index tracks the combined performance of companies in one industry, such as banks or cement.
Sector rotation
Sector rotation is the shift of money from one industry to another as conditions change.
Small-cap stock
A small-cap is a company with a relatively small market capitalisation and usually lower trading liquidity.
Special dividend
A special dividend is a one-off payout outside the company's normal dividend schedule.
Stock dividend
A stock dividend pays shareholders in extra shares instead of cash.
Share split
A share split divides each share into more shares with a lower face value, without changing total value.
Share buyback
A buyback is when a company repurchases its own shares from the market, reducing shares outstanding.
Shares outstanding
Shares outstanding is the total number of a company's shares currently held by all investors.
Strike price (IPO)
In an IPO, the strike price is the final price per share set from the book-building bids.