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Difference Between High-Water Mark and Claw-Back Provision

The high-water mark (HWM) is an industry standard that is used to determine payment of performance fees (to a hedge...

VWAP Calculation

The volume-weighted average price (VWAP) is the dollar amount traded for every securities transaction divided by the total number of...

Elements of Sale Contract

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 Qard Contract

The elements (arkan) of qard (interest-free loan) are as follows:  Contact form (sighah): offer and acceptance using what denotes qard...

Ijarah versus Conventional Lease

A conventional lease is a commutative contract between a lessor and lessee whereby an asset (property) is placed at the...

Volume-Weighted Average Price Formula

The volume-weighted average price (VWAP) is the dollar amount traded for every securities transaction divided by the total number of...

Elements of Musharakah Contract

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

Variation of Murabaha Mark-up

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

Ijarah Sukuk Structures

Ijarah sukuk are the most widely used type of investment sukuk. They constitute certificates that carry equal value and are...

Yields on Discount Instruments

A discount instrument is one that sells at a discount to par value such as Treasury bills, commercial paper, and...