stock exchange The original meaning of the phrase ‘stock exchange’ was (and still is to some extent) the building in which stocks and shares were traded. Buyers and sellers would literally shout out their prices and deals would be done there and then. Since the advent of the telephone, and latterly networked computing, physical presence in the exchange is no longer required. Modern stock exchanges allow the trading of companies’ shares, unit trusts, derivatives, pooled investment products and bonds. A company needs to be listed at a stock exchange before it can trade there. Most major capital cities have a stock exchange, but some non-capital cities such as New York in the US and Frankfurt in Germany are home to their nation’s main exchanges. Other major stock exchanges are located in London, Hong Kong, Shanghai, Singapore, Tokyo and Mumbai.
stock market The stock market is the generic term used to describe the trading of company shares and derivates at an agreed price. It encompasses the stock exchange itself and the intangible essence of trading.
stop loss order The stop loss order is a means of limiting potential losses in a security by instructing the broker to sell should their value fall to a nominated price.
stop order An instruction to a broker to buy or sell a security once it reaches a specified price. This can either be to prevent excessive loss (a stop loss order) or to achieve a desired profit, depending on the direction of the market.
strike price The price at which the underlying asset is valued when an agreement is made, for example, in a futures contract. This price is fixed no matter what happens to the market value of the assets. If the market price rises, the seller loses out; if the market price falls, the buyer loses out. However for both parties it offers stability and the knowledge of exactly how much money will be required by the buyer or made by the seller when the purchase is completed.
sudratul muntaha The Lote Tree, whose location is symbolic of the closest one can get to Allah in heaven.
Sufi One who practices Sufism; and adjectival form of, or pertaining to, Sufism.
Sufism The inner, intense or mystical interpretation of Islam. The word comes from suuf, meaning wool, because adherents would often wear coarse, uncomfortable woolen clothing as an act of asceticism. Sufism is not associated with Sunnism or Shi’ism, but is an attempt to reach the inner, fundamental meaning of what it is to be a Muslim.
suftajah, suftaja, suftajal A debt transfer whereby a debtor authorises his agent or a second debtor to pay an amount to a third party to whom he owes his debt.
sujud Alternative form of sajdah, the prostration adopted during prayer, when the toes, face and hands touch the floor and the Muslim faces Mecca or, more specifically, the Ka’bah.