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In plain terms
Musharakah
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Musharakah is a partnership in which two or more parties contribute capital and share both profit and loss by agreed terms. It differs from mudarabah, where only one party contributes capital. It is used in some Islamic financing products, including for property purchase.
Related terms
Mudarabah
Mudarabah is a partnership in which one party provides capital and another provides labor or expertise. Profits are shared by an agreed ratio, and losses fall on the capital…
Riba
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