Finances

[rizla86]

Re: Finances

@goddamniamsoawesome

I’m not an expert on this and I’m sure someone more knowledgeable will give you some answers. In Islam, investing in a business is okay. Muslims are in fact encourage to engage in investment and partnerships to finance and run businesses. As far as I know, day-trading is not halal in Islam. Also fundamentally, you’re engaging in speculation and you’re not really investing. You’re essentially gambling on a share to jump in value and looking to sell when it does. Almost all the time you will engage in credit transactions so that’d invalidate its permissibility. Investing and Speculation; there’s a big difference between the two terms. So as far as my limited knowledge goes, trading shares in the stock market is not okay unless it is run on Islamic principles. I’d imagine those to be a minimum term for your investment to be locked in and utilized by the product/service you believe in and of course things like interest and the nature of the business itself (Halal/Haram).

Agreed.

Realistically speaking, it’s pretty much haraam to invest in Western stock markets given the fact that nearly all companies are likely to have some level of gearing. Even Pakistani public limited companies are mostly financed by interest based debt. So technically investing in stock is quite halal, practically it is quite difficult because of all the conditions attached.