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Ba’i Bil Nasi’ah

A credit sale which has a fixed term at the end of which the buyer has to pay the agreed…

Neglected-Firm Effect

A theory that suggests that certain neglected firms tend to outperform darlings of the day or firms that receive much…

Ba’i al-Salaf 

Also ba'i al-salam. In Islamic finance, it refers to a type of sale in which payment for future-delivery goods is...

Specific WWR

It stands for specific wrong way risk; a type of wrong way risk (WWR) that comes into play because of…

Ba’i al-Mawquf 

A type of sale (ba’i) which is lawful in substance and description but is concluded by, or with the intervention/consent…

Economic Capital

The amount of capital that is required for a financial institution to be able to absorb losses over a certain...

Ba’i al-Isti’man

A case of sale (ba’i) in which the buyer doesn’t haggle over the price (i.e., takes it as a given).…

Reverse Sale and Buy-Back

A form of sale and buy-back (inah sale– بيع العينة) in which a commodity is sold for a spot price (thaman)…

Synthetic Preferred Equity Redemption Cumulative Stock

A preferred equity redemption cumulative stock (PERCS) that is designed to replicate its underlying mandatory conversion preferred stock. A key…

Purchase Orderer

The party (in Arabic الآمر بالشراء) to a murabahah contract/ cost-plus sale (specifically murabahah to the purchase orderer) who approaches…