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Aqd al-Tabarru

Arabic (عقد التبرع) for noncommutative contract or gratuitous contract. This type of contracts (aqd) is based on voluntary charitable actions/donations…

Serial Redemption

The redemption of a serial bond. Such a bond may consist of a series of bonds each with its own…

Price Range

The upper and lower price boundaries within which an underwriter is expected to set the offering price in an initial…

Step-Up Bond

A bond (a variable interest bond) whose coupon payment starts to increase after an initial period. It pays an initial…

Piggybacks

A piggyback is a securities offering that combines primary and secondary shares. It is a public offering of securities that…

‘Ariyat al-Manafe’

An Arabic term (عارية المنافع) that translates as gratuitous loan of usufruct (iqradh al-manfa’ah– إقراض المنفعة). It arose from the…

Small-Issue Bond

A bond that is issued as part of a municipal bond issue not exceeding an aggregate face amount of $10…

Al-Mustarsil

Arabic (المسترسل) for a buyer who does not haggle over the price (i.e., takes the price for granted). In general,…

Step-Down

In the context of subprime deals, it is a provision that entails the conversion of deal structure from sequential pay…

Awaridh al-Ahliyah

Impediments to legal competence. More specifically, awaridh (plural of aridhah) are all emerging shortcomings or deficiencies that deprive a competent…