Prices in financial markets are determined as a result of a diverse range of participants trading various assets and instruments. Two fundamental theories are widely shared regarding valuation and pricing in financial markets. Intrinsic Values First is that prices are formed in the markets based on the intrinsic economic value of assets and instruments that are traded, so they are theoretically explicable.
Prior to the “Wealth of nations” (1776), he published “The Theory of Moral Sentiments” in 1759 – a work, Smith himself considered to be a superior work to his magnum opus. To sum up: Islamic Banks seek to maximize their profits just like other banks. They have to comply, however, with Shari’ah law – without being religious institutions.