Here, we attempt to clarify some terms that are used by Muslims, and their meaning.
Also check the following links:
- InvestorWords is a database of more than 5,000 key investment terms, connected via 15,000 links to related words and concepts.
- Failaka Glossary of Islamic Financial Terms
- SoundVision Glossary of Islamic Economics
The One True God, Creator of the Universe, and the only God to be worshipped. Muslims believe that Allah is the same God worshipped by the Judeo-Christian prophets (Abraham, Moses, Jesus, ...etc.).
Another term for Sunnah.
- Pillars of Islam
The five pillars of Islam are:
- Shahada. One bears witness that there is no God other than Allah, and that Muhammad is the last prophet.
- Salat. Five daily prayers.
- Sawm (Fasting). refraining from Eating, Drinking or Marital relationships from Dawn to Sunset during the lunar month of Ramadan
- Zakat. See below
- Hajj. Pilgrimage once in a lifetime to Makkah (Mecca), if one is able to do so (health and financials wise).
- Prophet Muhammad The last messenger from Allah to mankind.
Islam's Holy Book, believed by Muslims to be the direct word of Allah revealed to the Prophet Muhammad.
The sayings and acts of the Prophet Muhammad. This is the second source of Islamic law, next to the Quran.
The Arabic word for "Usury". Usury is explicitly and clearly prohibited as a major sin in the Quran, as well as The Prophet's TraditionsSunnah. Most modern scholars agree that fixed rate interest from financial institutions (e.g. banks, brokerage houses, ...etc.) is the same as Usury, and is thus not permissible for a Muslim to give nor receive Interest.
Zakat originates from the Arabic root for "Purify". It can be equated to the modern concept of Charity, and is one of the Pillars of Islam. A Muslim is supposed to give "alms/charity" to the poor and needy on an annual basis. For monetary instruments, the amount is 2.5% of capital invested in one year.