Is share market business allowed in Islam?
Submitted by on Sat, 24/01/2009 - 15:20
Dear Brother / Sister,
As it is known, the stocks which are issued by different trade and industry institutions and bought or sold over their daily value at the free market and stock exchange market are described as a partnership with a company which makes production, does business or a service and which is known by the buyer. Those who have these commercial shares become partners of the related company for its profit and loss in accordance with the value of the shares.
Stock exchange markets are the markets where stocks are bought and sold. The criterion of buying a stock is related to the property-holding of the company the buyer represents.
Accordingly, whether it is national or international; there is no drawback in our religion; -as long as the dealings of the company are not prohibited by religion- in buying the stocks of a company which makes production and does business lawfully and most of its capital is halal in terms of Islam and offers the stocks for sale and distributes the share bonus to their owners at the end of determined periods. In our religion, the dealings which include interest or contain buying and selling forbidden things have been declared haram. Besides, it is expressed by experts that stock exchange operations are open to manipulation.
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