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Shares as Subject-Matter of Murabaha

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

Modern Applications of Qard

The contract of qard (interest-free loan) may be put into practical use in many shari'ah-compliant ways, key among which are...

Forms of Ijarah Contract

In Islamic finance parlance, ijarah means leasing of a property against a preset amount of money (consideration or in Arabic...

Difference Between Conventional Audit and Islamic Audit

Audit is a form of assurance that involves an appraisal and examination of the financial statements of an entity with...

Disadvantages of Implementation Shortfall

Implementation shortfall (IS) is defined as a measure of trading inefficiency- i.e., it measures the cost of trade implementation. For...

Example of a Handle

A handle (root price or big figure quote) is the whole dollar portion of a price or a quotation. More...

Difference Between Counterparty Risk and Default Risk

Counterparty risk is the potential loss that results from a counterparty to a derivative contract (specifically a forward contract or...

Legality/ Permissibility of Murabaha

Murabaha is a type of trust sale (buyu al-amana) whereby acquisition of assets is financed on short or relatively long...

Uses of Murabaha

By definition, murabaha is a type of sale (ba’i or bay’) in which the seller candidly reveals to the buyer...

Subsidized Swap: an Example

A firm has issued a debt of $5 million nominal amount maturing in 2 years and is referenced to the...