Is Stock exchange haram?

[Hibo]

Hi nomads, just wondering if anyone knows? is it or not?

[Hibo]

 

 

I think the interest you earn on your investment is haram, but not the exchange it self, but they have options were u can trade with out earning interest and that should be save.

 

 

ps; allah knows best, this is just what i think.

[Sniper]

Illmatic is right the interst is what is haram...and if you know the principles of the stock exchange you'll understand that most of the profit is made through interest if not all of it...so watch out..though no body will say am safe from interest...in America

 

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[Bachelor]

hello Nomads!

The main problem is the "interest" however one can prefare not to take the interest as the same time can be a day trader. Every Muslim should abstain from any type of interest.

 

Growing old is inevitable, growing up is optional

 

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[Hibo]

If the Interest is Haram, what's the point of trading stocks at first place?

 

 

 

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[Hibo]

i don't see the interest you guys are talking about...i thought when you buy stock you get dividents if that's income stock or if its growth stock you buy in hope of selling it more than you bought with...in which case you are making money by trading the stocks and picking different ones....isn't that like an investment cuz you are making money if the company essentially your company makes money and you lose if they don't gain any profit

salam

 

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"Prayer is man's greatest means of trapping the infinite resources of God."

 

- J. Edgar Hoover

[Alisomali]

Inhadeeq is right. Also the DOW has a Islamic portfolio. That means you get to trade in companies that don't deal with alchol, porn and or pork products.Its called the DOW Jones Islamic Market Index(DJIMI). Put all your investments in the DJIMI, and don't worry if its haram or not.

[Kruella]

When dealing with stock market it's never clear on its stands on interest. American capitalism is without a doubt the product of interest. Tuition, credit cards, loans, morgage, all sorts of things. So you're bound to come across interest (riba) in these transactions.

 

"There is nothing wrong with selling or buying shares if they are shares in permissible companies. Excluded from this are companies which deal in haraam things, such as selling alcohol, tobacco and music tapes and any other sources of unlawful products or dealings. 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".

 

source: http://63.175.194.25/index.php?ln=eng&ds=qa&lv=browse&QR=8590&dgn=3

 

So it's up to you to research the company you want to invest in and see if it fits the permissible category.

 

salam

[Hibo]

So now trading in the money market and the bond market is out of the blue moon. Since u have interst return as income. But these investments vehicles are safe to invest thou. SHOUT NO CHOICE but to look else where's to invest.

 

But worst of all, trading in the stock market has alot of risk's and returns. Which it's so hard to beard with it unless u are a good investor.

 

Indhadeeq ya got a good point there girl. But not many companies offer dividends..u know..unless u' are investing on one of those Blue Chip companies like IBM.

 

Ta Ta Tiya*

 

 

[DIRAC_N_TIMZ]

Salaama To ALL

 

The whole Stock exchange business is done behind closed doors meaning you the consumer or the potential buyer of a bond...will have no say in where your investment is exchanged once u choose a designated company...let's say u are a share holder for General Mills Electric...who's to say General Mills won't exchange your little investment in the Playboy or Wine establishments in search of making you the consumer buy more bond or do further relations with the company u invested your money in. In my opinon, the stock exchange is haram in that it is a dirty little business which operates undercover meaning you won't see nor acknowledge where the company you invested in is exchanging or with who your company is dealing business with. My father brought me and my other siblings shares in Islamic institutes which was mentioned above.....and my dad keeps on top of things calling and watching where our investment is being put into to good use in return not putting riba( interest in the mode of debts) on our final money estimation...anywho there are good companies to invest your share in but you have to be an alert consumer and really wise in which company you buy a bond from...even tho you also will be selling but still there are Playboy,Wine and Casino establisments who exchange in the Market so in that matter it's haram i believe. It's a business where a win win situation is irralevent......it may seem so with all the 20 year old who have already hit the jack pot but you also have to know that Islam was not their religion at heart, my family has bonds but without riba and with only Islamic institutes around the world...one being SoundVision outlets.

 

AliSomali basically said what i mentioned above

 

 

Ma/Salaama

 

[This message has been edited by DIRAC_N_TIMZ (edited 05-09-2002).]

[terrorist]

this is not the place to ask questions relating to islam. man what r goin to tell Allah, that some dude gave u Fatwa over friggin discussion group online. if u r really serious go to the proper authority.

[Pig]

Stocks are your share of the business. You are not giving anyone a "loan" just to recieve back a bigger amount for your service of lending which is called Riba in the Islamic etiquette. You are buying shares of a business ... or should I say ...you and other investors are pooling money together to buy a business on which the original owner of the business is willing to take cash for part of his hard-earned assets.

 

My thoughts.