Madinat al-Muslimeen Islamic Message Board
| [MADRASA] Trading in Shares, Stocks, Islamic Investments |
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| MuSLiMa |
| 07/09/01 at 03:11:20 |
| Assalaamu Alaikum Just wondering, do any of you know about the validity in Islam in trading in shares? No, I don't trade, but my boss has me do it for him on the side at work via the internet. Would really like some closure on this. JazaakAllahu Khairun Suha |
| Re: Trading in Shares |
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| proudtobemuslim |
| 10/20/00 at 11:10:51 |
| Assalam-u-Alaikum As far as my limited knowledge goes, you ARE allowed to buy shares but only if the products produced are halaal e.g. you're not allowed to invest in Budweiser since it makes alcoholic drinks. Another point is that the dividend that you make must not be guaranteed i.e. there is always a risk involved in losing the money you invested. Most of the shares are of this type (i.e. risky) but i think there might be some where you are guaranteed a return on your investment (i think that would then constitute ribaa). I hope this helps until the bros/sis give you a better answer. Wassalam-u-Alaikum Uzer |
| Re: Trading in Shares |
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| MuSLiMa |
| 10/21/00 at 09:07:50 |
| Wa Alaikum Assalaam Uzer JazaakAllahu Khair for your reply. My boss is a Muslim so insha-Allah he buyz "halaal" shares i guess and he told me he does not consume the interest ... i guess the problem i have with this shares thing is the "risk" factor which kinda equates to "gambling". |
| Re: Trading in Shares |
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| abc |
| 10/21/00 at 11:06:37 |
| Assalamalikum wa rahmatullah This question was answered recently on islam-qa. though the answer is almost the same as what proudtobemuslim said. ---------------------------------------- Many Muslims invest in stocks (stock market). The argument is that, since there are risks where one can lose or gain, that it constitutes doing business so long as one does not buy stocks on the margin or be involved in direct interest bearing investments. Please explain the limits of investing in the stock market or if it is forbidden and why? Praise be to Allaah. There is nothing wrong with selling or buying shares if they are shares in permissible companies. If it is an agricultural company, for example, which produces permissible agricultural products, then it is permissible to buy and sell shares in it; the same applies to companies which deal in real estate, manufacturing, etc. It is permissible to buy the shares of other people and pay them the price immediately, so that one will not be selling a loan for a loan. Excluded from this are companies which deal in haraam things, such as selling alcohol, tobacco and music tapes. It is not permitted to have shares in these companies, or to buy these shares. If the company openly deals in ribaa (usury, interest), then it is not permissible to deal with it. but if a manufacturing, agricultural or business company is compelled to deposit its money with the bank in order to protect it from being lost or stolen, then it is permissible because of that necessity for the owners of the company to get rid of the interest which the bank gives them on their deposits. Companies should also avoid using riba-based loans in order to set up production lines and factories; that should be achieved by using cash and the money of the shareholders. And Allaah is the source of strength. |
| Re: Trading in Shares |
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| jannah |
| 10/21/00 at 23:27:46 |
| This thread was also discussed before brought up by abooboo, and some url's and articles were posted, so you may want to check a couple of pages ago in this forum. |
| Re: Trading in Shares |
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| MuSLiMa |
| 10/22/00 at 00:59:34 |
| jazaakallahu khairun for ur replies and for forwarding that answer abc |
| Re: Trading in Shares |
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| proudtobemuslim |
| 10/24/00 at 06:27:41 |
| Assalam-u-Alaikum, I thought I should explain why i think that the risk involved in buying shares is not the same as gambling... This is because one can use one's mind to deduce which shares are going up and therefore worth buying and which one's aren't doing well and could result in a loss. On the other hand, in gambling, one has no idea of the probability of getting or losing money, while with shares there is a probability... i.e. the shares that are doing well are more likely to get you good returns (but there is still a chance that the shares suddenly fall). I don't think I explained this very well... Anyway, I have my own question... Are we allowed to invest in companies that borrow from banks and therefore pay interest? Wassalam-u-Alaikum |
| Re: Trading in Shares |
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| MuSLiMa |
| 10/25/00 at 06:47:01 |
| Proudtobemuslim ... yeah don't worry, i understand what you are trying to highlight in regards to the risk factor and underlying difference between gambling and shares ... as for the question you posed ... i don't know the answer to that one sorry, but i think it would be extremely hard to find a company who did not have a connection to interest in one way or the other ... not that i'm saying that justifies that act, just saying how the situation is. Suha |
| Re: Trading in Shares |
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| Arsalan |
| 10/25/00 at 09:46:56 |
| Abooboo! Whatever happened to him??? |
| Re: Trading in Shares |
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| jannah |
| 10/25/00 at 23:51:49 |
| His wife came back (another albanyian btw) and i guess he'sreally busy again :) |
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