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Types of Kifalah

Literally, kifalah (كفالة) means the assumption of responsibility on behalf of others or the presenting of suretyship to the benefit...

Transfer of Ownership to the Purchase Orderer in Murabaha

Murabaha (also spelled murabahah) is a shari’a compliant mode of debt financing which involves the sale of a commodity mostly...

Arkan Aqd al-Bay’

The primary elements (arkan; sing. rukn) of a contract of sale (aqd al-ba'i/ aqd al-bay'- عقد البيع), according to the...

Elements of a Contract of Sale (Aqd al-Bai’)

The primary elements (arkan; sing. rukn) of a contract of sale (aqd al-ba'i/ aqd al-bay'- عقد البيع), according to the...

Arkan Aqd al-Musharakah

Musharakah is a profit and loss sharing contract whereby two or parties or more pool and invest their capital (cash,...

Arkan Aqd al-Ijarah

Ijarah is a commutative contract that entails the transfer of the right to the usufruct (manfa’ah) or benefit of a...

Financial Leverage: Example

Financial leverage (FL), with the right mix of debit-equity, may positively impact return on equity (ROE). Suppose, for example, two...

Financial Leverage and Risk

A firm's capital structure affects the riskiness inherent in the firms common stock and thus affects its required rate of...

Estimating Default Probabilities Using Credit Spreads

One of the most popular proxies of credit spread is the CDS-bond basis, which captures the excess of the CDS...

Elements of Musharaka Contract

Musharaka is a profit and loss sharing contract whereby two or parties or more pool and invest their capital (cash,...