THE PROOFS YOU'VE ALL BEEN WAITING FOR

Society Religion & Philosophy
1

To Prove that Stocks are HARAM (brief)

Firstly it must be stated that in Islam every action requires evidence.

In Sharia company is a contract between 2 or more people, in which they agree to perform a financial work with the intention to make a profit.

What types of companies are allowed in Islam

1 The company of anan (equal)
2 the company of abdan (bodies)
3 the company of mudharabha (2 or more)
4 the company of waji (faces)
5 the company of mufawadha (negotiation)

Evidence for formation of companies generally:
Narrated by Abu Hurairah that the Prophet(saw) said:“Allah the Supreme said ‘I am the third of 2 partners unless one of them betrays(cheats) his companion, if he betrayed, I would go out from them’”

[other evidences left out]

1 the company of anan

two persons (by their bodies) participate with their (capital) so that they work with the capital exclusively, dividing the profit between them.

allowed from sunnah and ijma as sahaba…

the profit is according to what the contracters stipulated and the loss would be according to what the capital share (proportion of capital contributed)!!!
evidence:
The Prophet(saw) said: “The profit is according to what the contracters stipulated, and the loss according to the quantity of the property”.

2 company of bodies (abdan)

2 persons participate by their bodies only, w/o their properties. profit is according to their agreement, whether equally or variable between partners.

Evidence:
abu daoud and al athrarn narrated about Abdullah bin masood about his father: “I shared with Ammar bin Yasser… what we gained at the day of Badr…”

3 the company of 2 or more(mudharaba)

somebody pays his capital to another so as to trade with it, such that the profit obtained is divided among them according to their agreement. The loss in their mudharabah is put on the capital, and none of it is put on the body(mudharab)

second form of mudharab: capital of both of them associated with body of one.

ijma as sahaba: narrated by bin masoud and hakeem bin hizam “that they loaned in mudharabah”

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other companies discussed in next article…

2

"Firstly it must be stated that in Islam every action requires evidence."

My understanding is that something is halal by default unless made explicitly haram, the direct opposite of what you state.

I'll try and confirm the above as the remainder of your post rests on this.

Farouq Taj.

3

Assalam Alaikum

Jalal-Ud-Din

Mashallah!!

farouq_taj

Actions are not put under the criteria of Halaal by default and Haraam if explicitly stated that only refers to food.

All actions are generally restricted.

Assalam Alaikum

4

I still don't understand why you claim stocks are haram. Could you please be more explicit. Until you make your proof more clear, I agree with what Farouq said. What I mean is, that with what you have so far proves nothing to me.

5

My understanding of Islamic fiqh is that every action (not limited to food) is halal i.e. acceptable unless explicitly forbidden. I'll take a quick look at my copy of "The Reliance of the traveller" by Nu Hum Keller (a translation of the Shafi book of fiqh). The Shafi fiqh in this respect is almost certainly the same as Hanafi.

If declaring stocks haram the onus is on you to prove that it is haram not the other way around. Every time a new form of transaction is created we don't have to go looking for proof that it is acceptable by default it is acceptable unless proven otherwise. I repeat my earlier statement that this is the position of all the major schools of fiqh.

The hadiths quoted define transactions that were common in the 7th century they do not outlaw stock markets as they exist today. Indeed the concept of global markets as they exist today is something completely unknown at that time.

Farouq Taj.

6

Ok, i have a question!!

Farooq, u have been talking about Shafi'e fiqah and hanafi fiqah. I mean what is the difference between these 2 and between the all others like Maliki, wahabi, Shafi'e, hanafi and all, and which 1 should we follow???

I am confused!!!

7

Salams
didn't realize you created a new thread.
i'm still confused about this.
if stocks are money taken by a business and profit is shared how different is this from your 3rd example?
also i can understand not supporting haram institutions i.e. alcohol etc
but please clarify
thanks

8

Koi mujhay bhi jawab day do bhai???

9

salam.to friendlyghost as far as following hanafi shafi etc is concerned:the prophet (saw)used to as an example pray various methods and do wuzu etc differently throughout his life therefore it is proven without doubt that difference of opinion is allowed in such things.other issues also are not clear cut so as long as one follows an opinion or action proven from the sunnah and hadith it is acceptable.therefore ifd you have been taught hanafi it is acceptable to follow because it has evidence based in quran and sunnsh.shafi etc is based in quran .therefore stick to the way you have been taught be it maliki or shafi etc
your brother in islam.

10

friendly_ghost:

All the major schools of fiqh are acceptable. They differ because the founding scholars such as Imam Abu Hanifa drew a slightly differing conclusion when interpreting the Quran and hadith. This is perfectly acceptable in Islam.

We follow a fiqh simply because we don't have time to study the Quran and Sunnah to the depth these scholars have. So instead we read their books. When you need legal advice you can either study law yourself or go to someone who has already studied law.

Hope this answers your question. Unfortunately there is no literature that I know of in English on this subject.

Farouq Taj.

11

Thank you Farooq Sahab!

Its very true that we ppl don't have time now a days But Farooq sahab, we have to read fiqah for that isn't it, thats too time consuming, so why don't we directly study the sunnah.

For example a very simple problem, Rafayadain, (to raise u'r hands when u say Allah O Akbar) I was not doing rafayadain before but a friend of mine told me that there is a Sahih Bukhari hadith which says that Prophet pbuh used to pray like that. Then i read that hadith myself, so u know now i am doing rafayadain!. The difference between different imams is that some hadiths might not have reached the concerned imam u r following. And our masjid mauzin told us that All imams have said that if u get a rule or saying from Quran or Hadith which is against my saying then u follow the Quran or hadith.

So about rafayadain, there are some ahadith which do say that Prophet pbuh did not do rafayadain, but the ones which say he has done rafayadain are authentic and their ravi is very strong.

Logically speaking, if u have 2 hadiths on the same topic, but 1 is written in Sahih bukhari (the most authentic book) and the other in some other book which is not that authentic or the ravi of the hadith is not strong. SO which one will u follow, of course u will follow the authentic one, isn't it.

And So many times in Quran Allah has said Follow me (Quran) and my Prophet (Sunnah). Its not written that we should follow imams. Isn't it???

Aap kia kehtay ho???

12

Friendly_ghost:

Following a particular fiqh is not an alternative to following the Quran and Sunnah and never has been.

Regarding following a particular hadith by all means do so however I think it is unlikely that any of the Imams failed to receive a particular hadith. Each Imaam will have given the matter some consideration.

By all means read the Quran and Sunnah, fiqh is not an alternative to either the Quran or the sunnah. Fiqh is there to help us interpret and understand the Quran and Sunnah not to replace it.

Sometimes reading hadith such as Bukhari can cause confusion if your not aware of the events that preceded and followed the occasion the hadith relates to. The interpretation of hadith can be complex in some cases.

Farouq Taj.

13

Hi

Thanks for replying Farooq Sahab

U r right in some cases, but u know its not always, i mean lets take anothers simple example Saying Ameen loudly in Fajr, Maghrib and Isha. Now there are many sahih ahadith in Bukhari and Muslim saying that Mohammed pbuh use to say Ameen loudly. So i am confused as to why a person does not say Ameen loudly or why does not consult the book of hadith.

The reason behind it (as it think) is that they just follow the imam stricktly, isn't it, imams were also human beings, so they might have missed some hadiths or some hadiths might not have reached them, and as they all have said by themselves that if u find a rule in hadith or Quran which is against my saying u follow whats in Quran and sunnah and not me. So they said it because they knew they r humans and there must be something which has not reached them.

U r right that fiqah is not the replacement of Quran and Sunnah, but farooq sahab then why do we have 4 fiqah, we should have one fiqah which should be according to Quran and Sunnah.

Farooq sahab things in Quran and hadith r not so difficult, i mean aap Sahih Bukhari lo ya phir Sahih Muslim lo, aap asani say samagh saktay hain, and now a days there r books which gives summary of hadiths so if some hadith is difficult one can refer the summary. These r available in English / Urdu and many languages.

Asal main hum ney apnay aap ko bilkul nikamma samagh lia hay, daikhain Allah ney Quran jo nazil kia hay aur Mohammed pbuh ki sunnat jo hay woh har aam banday key liay hay, sirf scholars key liay nahin, only there are some matters which are complicated which has to be consulted with scholars.

I hope aap mera matlab samagh chukay hongay.