Black Box

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Black Box

1. Any complex investment strategy or model. In general, a black box involves a computer using complicated formulas to achieve returns in the desired way. Because an investor may not understand the model (and may not be able to do so), a black box can lead to unforeseen problems. See also: Black box syndrome.

2. In Islamic finance, a strategy that allows one to invest funds in a Sharia-compliant way but still link the returns to non-compliant investments. Using a black box is very controversial and some Islamic finance scholars reject it as un-Islamic.
References in periodicals archive ?
Joint business-goal-setting has no significant effect on NPD team effectiveness, although it becomes more important when suppliers are undertaking gray box development.
Linda Thomas, who carried Tut out of the school in a secure gray box, said Tut probably survived on rodents and found warm places to live.
For homes served by underground power lines: Look at the gray box that holds the meter, as well as the attached pipe that extends into the ground.
In a converted textile mill in Andover, an electrical engineer named Rouzbeh Yassini proudly displays a oddly shaped gray box he believes will change the world.
During the period most recently as an electronic trader and consultant, he created gray box software, data feeds and distribution, charting capabilities for professionals and other custom applications for his trading group.