Overview

musharaka


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The generic term for business partnership or “participation financing,” of which there are a variety of forms. The most popular in modern Islamic banking is inan, or limited liability partnership, in which partners share agency (not suretyship), contribute their work and their capital, divide profits in accordance with their agreement, and share losses in proportion to their contributed capital. The different legal schools treat the forms variously, affording an unusual degree of maneuverability to the contracts.

See also Banking (Islamic)

Subjects: Economics — Islam.


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