A contract of guaranty in which some party becomes a guarantor (kafeel or dhamen) if certain conditions are met. In…

The up-front price a call option buyer (long) pays to a call option seller (short) against the right to exercise…

A floating-rate note (FRN or floater) in which coupons are reset quarterly or semi-annually to the coupon on the newly…

A contract of guaranty which is used to secure commercial transactions. In Islamic jurisprudence, there is a host of shari’a-compatible…

A convertible bond in which the conversion price is not predetermined but is kept floating. This bond converts into the…

A capped-style option in which a cap interval is subtracted from its strike price in order to establish a modified…

A type of sinking fund bonds (sinkable bonds or sinkers) in which an equal percentage of bonds are redeemed from…

Arabic (عقد المعاوضة) for compensatory contract (commutative contract) whereby one party receives compensation/ consideration (iwadh) from another party in return…

A preferred stock that has no redemption date. In other words, this fixed-rate equity instrument allows the holder no participation…

A unilateral promise or undertaking which is associated with a financial transaction. ‘Ahd is a promise from one party (promisor)…