For Crying Out Loud!
Someone tell me if they’re halaal or not and what kind should I be playing in if any. So far what I’ve learnt is that they aren’t entirely condemned but certain stocks can be played with and others can’t.
I’d like to know whats there to it and how does it work.
Help a venturer out will ya :-p
stocks are not HARAM. they are halal. they are halal because you can LOOSE, and GAIN money its not a secure investment. interest is haram because you gain money on some one elses loss. buying stocks is like having a company. perfectly halal.
But, its haram to invest in companies which make haram things, like alcohol,etc.
From AskImam.com
[QUOTE]
A Muslim can acquire the shares of a joint stock company with the following conditions:
The main business of the company must be Halaal (permissible) according to Shariah. So, a Muslim cannot invest in a company whose main business is
Haraam, like the traditional banks, insurance companies, companies dealing in wines, etc.
If the main business is Halaal, but it is involved in borrowing money on Interest or placing its funds in an Interest bearing account a Muslim share-holder
should raise his voice against this practice in the annual general meeting of the company.
When a Muslim share-holder receives a dividend he must ascertain that proportion of the profit of the company which has accrued on its interest-bearing
accounts. Then a similar proportion from his own dividend must be given by him to a person or persons entitled to receive Zakaat.
If all the assets of a company are in a liquid form and the company has not yet acquired any fixed assets or any stock for trade, then the sale and
purchase of shares must be on their par value only.
If anyone of these conditions is contravened, the investment in a company is not permissible in the Shari'ah.
NB. The above ruling has been issued by Justice Mufti Muhammad Taqi Usmani.
By Mufti Ebrahim Desai
[/QUOTE]
Thanks Hskhan
Ok, so how would someone fresh start stocks. Whats good to get into?
Whats not?
Pros Cons?
Anything helpful.
if ur just starting out with this stuff, i suggest opting for mutual funds and then slowly growing into moderate to moderate-risky level stocks. consult with a financial advisor/analyst and get recommendations on the optimum mix of mutual funds or stocks suitable to you.
bottom line though: you can't go wrong with investing your $...would you rather let it sit in the bank earning a ridiculously low interest rate or opt for something that can give you a decent return on the $ as long as the market's in shape? evaluate your options and do what's right for you...and definitely consult with a financial professional, like i said.
:)
moona: i'm avoiding interest at all costs.