The early repayment effect on the price of Musharakah Mutanaqisah due to early settlement

Abstract

This research aims to clarify the early repayment effect on the price of Musharakah Mutanaqisah due to early settlement upon the exit from the contract between the bank and the customer, and also to analyze the mechanism that should be followed in that pricing since every good and service must have a specific selling price. The research followed the analytical method to reach the mechanisms that are relied upon in the pricing of shares. The research reached some results that the market price mechanism is considered the most important mechanism adopted in pricing, as for the diminishing participation, The price of the selling part should not be determined at the beginning of the contract or at a different time from the sale time, because the price of the sold shares may change with the change in the value of the product on the market.