Glossary of Financial Terms: P

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PBUH

“Peace Be Upon Him. Muslims say peace be upon him (pbuh) after every mention of Prophet Muhammad’s name, as a mark of respect.The Arabic translation of peace be upon him is sallallahu alayhi wa sallam which is usually abbreviated as S.A.W.”

Permanent Musharakah

See Musharakah, Permanent

PLS

Profit-and-Loss-Sharing. The term used to describe a mode of financing modes based on the principle of interest-free lending and featuring the use of mudarabah and musharakah.

Portfolio

A combination of assets held for its investment benefits, including financial and non-financial returns. The asset mix is usually varied in kind and size to maintain an acceptable level of risk and return.

Principal

In commercial law, the principal is the amount that is received, in the case of a loan, or the amount from which flows the interest.

Promissory Note

Promise to pay. Written contract between a borrower and a lender that is signed by the borrower and provides evidence of the borrower’s indebtedness to the lender.

PSA

Participants Special Account, as in Takaful.

Knowledge