Tuesday, December 2, 2008

Shari'ah Guidelines for Equity Investing.

Financial Ratio Screens:
No investment may be made in any company which:
The value of cash and interest-bearing securities exceeds 30% of the
market value of equity, where market value of equity is measured by
averaging the trailing twelve months market capitalization (i.e. the
product of the stock price and the number of outstanding shares).
Outstanding total debt exceeds 30% of the market value of equity (as
defined above).Receivables are more than 50% of total assets.

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