There is something in my mind that has been bugging me for a while, which i would like to share. Is the buying, maintaining and selling of shares allowed in Islam allowed? A friend of mine has compared this to gambling (you invest some money which you can increae or have the risk of losing). Now i have some money invested in some shares so i need to know whether this is true, can you pls let me know.
Thankyou Peeps
The fear of hell is hell itself, and the longing for paradise is paradise itself.
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Originally posted by Miss Chatterbox:
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Is the buying, maintaining and selling of shares allowed in Islam allowed? A friend of mine has compared this to gambling (you invest some money which you can increae or have the risk of losing). Now i have some money invested in some shares so i need to know whether this is true, can you pls let me know.
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Buying shares cannot be compared to gambling, because you are buying equity. You are taking ownership of a company. You do that after looking at company's financial position and stuff. It is pretty much like buying a company. You buy it because there is a chance of making profit. But the company could very well go under too. But that is a calculated risk that any transaction entails.
Buying shares is permitted in Islam because you are taking ownership of a company.
Gambling is different. It is like lottery. You don't own nothing after the dice is thrown.
With shares you still own part of the company even if it does go under.
I hope this helps.
Shah-e-Mardan Sher-e-Yazdan,
Quwwat-e-Parwardigar,
Lafatah illa ALI,
La Saif ila Zulfiqar
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There is a very good and useful web site called www.islamiq.com
There are links for Islamic Stocks and Funds. The web site tell you which share is Halaal and which one is Haraam. It also tells you which company is gaining or losing. There are links to Fatawas by different scholars. Hope this helps.
Wassalaam.