Is it haram to invest in the stock market? I understand that in order to earn a profit an effort should be exerted. Is investigating a stock or hearing about a good deal enough? Or is it haram?
Achtung
ive read different opinions on this matter.
the most purported one ive read is that one can as long as the company meets with certain criteria. dont recall the criteria, but it had to be a halaal operation(obviously).
others have stated that its haraam because of the interest issue, etc.
sorry if i wasnt able to help. if you want i can find some sources, as i had them before.
Learn to love yourself, then learn to love one-another
I dont know how one can ascertain whether or not a company is involved in any haram business or not. There is interest involved in just about every business there is....even in Pakistan, so how does one escape from it? As for simply investing in the stock market, thats not haram. Its a simple investment in a company, which is perfectly legal. Other than that, it really not possible for one to find a 'legal' business in the market. So if one were to be absolutely sure, he would have to avoid all sorts of investments, period. And if one has a liberal mind, he could invest in just about any company, cause weeding out companies based on what u think as haram is not gonna solve ur problem. No matter what, a company will somehow be charging, or paying interest to someone somewhere. So it really is a personal decision.
Those are some interesting points I didn't even think of. My question actually was more along the lines of the parallels between the stock market and gambling. Making money for doing nothing - exerting no effort. The recent Forbes, has in it the names of 400 billionares, a handful are new to list and made there billions on the stock market. There are analogies between the stock market and gambling. I don't know enough about the stock market to comment.
Achtung
But achtung you can invest in a business and be a partner and also make money from its profits...as long as the business is halal..and the arguments i've heard say that stock market shares is essentially the same.
SALAM DOSTO!!!
It is certainly permissible to invest one's money in buying and selling shares, provided that the
shares you buy or sell are that of a business that is permissible to operate. Thus, it is perfectly permissible to
own shares in a furniture company, an iron and steel corporation, a supermarket, a travel agency, a computer
business, etc. The list is endless. It is not permissible, however, to own shares in a wine company, a brewery, a
gambling shop, etc. because all these either sell things that are forbidden or provide services that are also
forbidden. That makes any profits earned from such business forbidden to have. A bank that operates on the
capitalist system of finance belongs to this second category, because much of its operations are interest
charging. When you buy shares in a bank, you are actually owning a portion of that bank which means you are
involved in all its operations. In a way, you are actually helping in all its operation. Therefore, it is forbidden to
own shares in a bank where interest is the basis for most of its transactions. What I have mentioned applies to
buying shares in the bank itself, which means that you are a shareholder of the bank. This is different from the
service operated by many banks nowadays, where the bank is an agent, buying and selling stocks and shares
for customers in different companies. If those companies are engaged in permissible trade and rendering
permissible services, then there is nothing wrong with dealing with them. Even this bank operation itself is
permissible, because it is simply a service agency. You only need to make sure that the companies in which
the bank buys shares for you do some legitimate business. If your shares are in the bank itself, you simply need
to get rid of them. You only need to offer them for sale, and there will be some purchasers to give you the
market value for that. It is not in your interest or in the interest of Islam or the Muslim community to forgo the
shares in the bank without claiming the price you paid for them, or their market price.
GooDLuck!!!
Jaawan
Till next time*K_I_S_S*