The Pebble Dictionary of Money

999 Fineness (24 Karat) 999 fineness means gold that is 99.9% pure — the same as 24-karat, the standard grade for investment gold AAOIFI AAOIFI is the international body that sets widely-followed Shariah standards for Islamic finance, including the rules for trading gold. AMC (Asset Management Company) An AMC is a licensed firm that creates and manages mutual funds, pooling investors' money and investing it per each fund's objective. Compounding Compounding is when your returns earn returns of their own, so your money grows on top of its past growth. CPI (Consumer Price Index) The CPI is the measure used to track inflation — it prices a fixed basket of everyday goods and reports how much it has risen. Digital Gold Digital gold is real, vault-backed gold you buy in tiny digital units instead of storing bars or jewellery at home. Diversification Diversification means spreading money across many investments so no single loss can sink you — not putting all your eggs in one basket. Dividend A dividend is a share of a company's profit paid to shareholders, usually in cash — income from a stock on top of price gains. Dollar-Cost Averaging Dollar-cost averaging is investing a fixed amount on a regular schedule, regardless of price — so you buy more when prices are low. ETF (Exchange-Traded Fund) An ETF is a fund that trades on the stock exchange like a single share, giving you a basket of investments you can buy and sell anytime. Gharar Gharar is excessive uncertainty in a contract — about price, goods, or delivery — which Islam prohibits. Inflation Inflation is the rate at which prices rise across the economy, lowering what your money can buy over time. IRIS IRIS is FBR's official online portal — the only place to register as a taxpayer, file your income tax return, and check your status. KSE-100 Index The KSE-100 is the main benchmark index of the PSX, tracking the 100 largest companies — the headline number for the Pakistani stock market. Milli Tola Milli tola is the smallest unit of gold you can buy on PMEX — one-thousandth of a tola (0.011664 grams) Money Market Fund A money market fund is a low-risk mutual fund investing in short-term, safe instruments — protecting your money while paying a modest return. Mutual Fund A mutual fund pools money from many investors and a professional manager invests it across many assets, giving instant diversification. NAV (Net Asset Value) NAV is the per-unit price of a mutual fund — the value of everything it owns, divided by the number of units. Nisab Nisab is the minimum wealth a Muslim must hold before Zakat is due — the value of 87.48 grams of gold (or 612.36 grams of silver). NTN (National Tax Number) Your NTN is the number FBR uses to identify you as a taxpayer — for an individual in Pakistan, it is simply your CNIC. PMEX (Pakistan Mercantile Exchange) PMEX is Pakistan's only SECP-regulated commodities exchange, where you can buy and hold gold, silver, and other commodities. PSX (Pakistan Stock Exchange) The PSX is Pakistan's stock market, where shares of listed companies are bought and sold. Its main benchmark is the KSE-100. Qabz (Possession) Qabz is taking possession of something you've bought — physically or constructively — required for a valid sale of gold. Riba Riba is interest or usury — a guaranteed, predetermined return on a loan — which is prohibited in Islam. Ribawi Item A ribawi item is a good — like gold, silver, or currency — that Islam subjects to strict exchange rules to prevent riba. SECP (Securities and Exchange Commission of Pakistan) The SECP is the government regulator that licenses and oversees Pakistan's markets — brokers, mutual funds, and the PMEX commodities exchange. Shariah-Compliant Shariah-compliant describes a financial product structured to follow Islamic law — avoiding riba, gharar, and haram activities. Spread The spread is the small gap between an asset's buy price and sell price at the same moment — a cost you pay each time you trade. Sukuk Sukuk are Islamic investment certificates — often called "Islamic bonds" — that represent ownership in a real asset and pay from it, not interest. Tola A tola is the traditional unit for weighing gold in Pakistan — 11.664 grams, or 1,000 milli tola. Zakat Zakat is the obligatory annual charity in Islam — about 2.5% of qualifying wealth held for a lunar year, above the Nisab threshold.