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Islamic Finance




Discount Sale


A sale (ba’i) where the seller parts with the underlying goods for less than the principal amount or the original cost of acquisition (i.e., with a discount on the original price. Stated another way, it is a sale in which the seller incurs a loss on underlying goods.

This may happen for multiple reasons including fire sales, liquidations, reaction to adverse market conditions, etc.

This sale is known in Arabic (بيع الحطيطة) as hatita sale (ba’i al-hatita).



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