Is share tradung allow in islam
Mu' meneen Brothers
and Sisters,
As Salaam Aleikum wa
Rahmatullahi wa Barakatuh. (May Allah's Peace, Mercy and Blessings be
upon all of you)
One of our
brothers/sisters has asked this question:
is share tradung
allow in islam
(There may be some grammatical and spelling errors in the above statement. The forum does not change anything from questions, comments and statements received from our readers for circulation in confidentiality.)
Answer:
Shares Stocks
In the
name of Allah, We praise Him, seek His help and ask for His forgiveness.
Whoever Allah guides none can misguide, and whoever He allows to fall astray,
none can guide them aright. We bear witness that there is no one (no idol, no
person, no grave, no prophet, no imam,
no dai, nobody!) worthy of
worship but Allah Alone, and we bear witness that Muhammad (saws) is His
slave-servant and the seal of His Messengers.
According to the view of most scholars in Islam, there is
nothing wrong in the investment of shares and the stock market in its essence.
But the scholars have given a few guidelines to follow, to
make sure that that the earnings of the company whose stocks are bought are
legal according to Shariah.
The three main factors that make a stock haraam according
to the scholars is as follows:
The company should not deal in a product which is declared
haraam in its essence in Islam. Eg. alchohol,
prostitution, usury, pork, etc.
The company should not deal in a product which is used to
harm a muslim country. Eg. Arms
manufacturing in a pagan country, etc.
Only the pure buying, holding, and selling of stocks is
termed halaal by the scholars. All
types of other derivative transactions like shorting the stock, buying calls, selling calls, buying puts,
selling puts, straddles, or any other variations are not lawful.
Whatever
written of Truth and benefit is only due to Allah’s Assistance and Guidance,
and whatever of error is of me alone.
Allah Alone Knows Best and He is the Only Source of Strength.
Your Brother in
Islam,