Ahmad sabahi; Ali ranjbaraki
Abstract
This study disires to investigate the possibility of using interest payment method and floating outcome in securities consistent with interest free banking operation in Iran. According to the dominant situatcon on financial markets of the country, the application of these securities can leads to the ...
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This study disires to investigate the possibility of using interest payment method and floating outcome in securities consistent with interest free banking operation in Iran. According to the dominant situatcon on financial markets of the country, the application of these securities can leads to the use of existing financial and credential capacities in the country. In this article, floating securities, functions, and its properties will be introduced at first. Then, adaption of this method of profitability is investigated by interest free banking operation in Iran. For this purpose, after explaining the concept of interest in Islam and its examples, all types of floating securities which are useful in financial markets in Iran are recommended.
The method of interest payment or floating outcome is one of the financial innovations that have transformed international financial markets. This new financial tool has been developed due to the reduction of risk of keeping securities and reduction of exchange costs in long-term period. The results shows that, granting benefit through floating method for all types of securities based on collaboration and floating securities depending on inflation index is possible. Also the application of all mentioned securities has no conflict with interest free banking operation.
