The valuation of an asset on the basis of the proceeds of sale at the prevailing market price (i.e., through liquidation). For example, in the case of sharika, the profit can be distributed on the basis of tandheedh haqiqi or tandid hukmi, depending on whether the musharaka assets are disposed of (liquidated) for good or kept on the venture’s books. Tandid haqiqi involves complete liquidation of the assets, while the rightful owner receiving the proceeds of liquidation in full.

Tandid haqiqi (also tandid fe’eli) is an Arabic term (تنضيض حقيقي) that translates as actual valuation/ liquidation.