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Offline Reader Questions

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Share Dealing
« on: June 18, 2012, 10:58:59 PM »
Sir,

Is buying and selling shares (involving in share market/stock exchange) halal or not? I am planning to invest but i am afraid if this comes under the term 'riba'


Offline Joseph Islam

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Re: Share Dealing
« Reply #1 on: June 18, 2012, 11:04:58 PM »
Salamun Alaikum

Your question is not so straight forward to answer in terms of ‘halal’ or ‘haram’ as many matters need to be carefully considered in light of the Quran’s overarching guidance. We must be careful not to simply class things in categories of ‘halal’ and ‘haram’.

However, pertinent questions are always worth asking. For example, how speculative is the dealing? Are you truly investing or looking to make a quick buck by 'betting' on a speculative market? How advanced is your capability to truly understand, analyse and discern the investment market and do you really have the intention to help the company succeed by investing in it? Or are you simply taking a 'punt'?

Have you actually understood the business scope with a view to help it profit? Do you truly know its business remit, dealings and plans? What does the business invest in? What are the business ethics? Are the business's transactions based on sound ethical foundations which do not contravene Islamic concepts? Does it deal in Riba? What is your capacity as a shareholder? What can you influence decisions collectively? There are undoubtedly many more pertinent questions one could ask.

Speculative markets can be a 'grey area' and the complexity of modern day share-dealing and what it entails can often make any assessment even harder from an Islamic perspective in my humble opinion.

There is nothing wrong in ethical trading and investment but one must be careful not to contravene Islamic teachings.

I hope that helps in some small way, God willing.

Regards,
Joseph.
'During times of universal deceit, telling the truth becomes a revolutionary act' 
George Orwell