Definitions for "Musharaka"
partnership, shareholding. This most often reflects a joint stock company or a general partnership. For instance, all investors are entitled to participate in manage-ment, but not required to do so. Profits may be shared in a pre-determined ratio, but losses are distributed in proportion to the investor's capital.
Quick definition: profit and loss sharing. This is considered to be the purest form of Islamic financing, because profits and shared in pre-arranged proportions and losses are shared in proportion to the investment made by each investor. Each partner within the Musharakah contributes capital and can make executive decisions however they are under no obligation to. Itï¿1/2s basically very similar to a partnership which involves owning voting stock in a limited company.
partnership or company