Stock

The stock (also capital stock) of a corporation is all of the shares into which ownership of the corporation is divided. In American English, the shares are commonly known as "stocks". A single share of the stock represents fractional ownership of the corporation in proportion to the total number of shares.

198938

India . Stock

Is it allowed to trade in India through brokers for stock derivatives like futures and options?

Sayyed Mohammad Al-Musawi, Sayyed Mohammad al-Musawi is originally from Iraq and heads up the World Ahlul Bayt Islamic League in London. Other than being involved in various humanitarian projects, he frequently responds to... Answered 6 months ago

The Marja' of Taqleed needs very clear picture of every situation to be able to reply the question. Can explain very clearly the full meaning of these terms:

Derivatives

Futures

O0ti9ns.

After receiving the full meanings of these terms and studying them, then they will be able to guide according to Shariah.

Wassalam.

196499

Stock . Halal . Haram . Interest . Income . Investment

Is it permissible to invest in a company that primarily engages in Halal activities but has minor Haram elements, such as receiving interest income?

If the income of the company is a mixture between lawful and unlawful, then we must avoid investing in such company. Receiving interest from non Muslim banks is not considered unlawful according to many Muslim scholars.

Wassalam.

191889

Riba . Money . Stock

What is my responsibility if I own stocks that have increased in value or have obtained profits gained from Riba?

Increase in value does not create any problem if the activities of the company are lawful and no Haraam activities are involved like RIBA. If the company deals with RIBA or does any Haraam business, it will be Haraam to buy or keep such shares. Money generated from RIBA or any other Haraam activities is unlawful to use in any way even in charity. It must be given to the Marje; of Taqleed to spend it on deserving cases or seek his permission to give it in charity.

Wassalam..

183780

Day Trading . Stock

Is day trading or swing trading with technical analysis considered allowed in Islam?

Yes it is allowed as far as it is real trading and not gambling, and the companies are not indulged in unlawful business.

'Wassalam.

152323

Forex . Haram . Gambling . Stock

Shouldn't trading in forex and stocks be considered disallowed since gambling is forbidden?

Gambling is definitely not allowed but not all dealings in forex and stocks are gambling. Trading is allowed and gambling is not allowed.

Wassalam.

179140

Stock . Investment . Options trading

Is it permissible to trade in futures and options in the stock market?

According to many leading scholars Ulama, it is permissible to trade in Futures and Options in the stock market as far as the shares or binds deal with lawful business only.

'Wassalam.

172073

Stock . Short Selling

Is it permissible to engage in short selling in the stock market as some online resources argue against it, citing the principle of "not selling what you do not own"?

Short selling is permissible as far as you deal with shares of companies engaged in lawful business only and not indulged in unlawful activities like usury, alcohol, gambling, etc.

‘When you buy a share for a short while, you will own that share for that short period, then sell it.

Wassalam.

165619

India . Bank . Stock

Is it permissible to trade in Nifty50, which consists of shares from the top 50 companies in India, including 6 banks? Should we deduct or give away 12% from the profit as purification for the banking portion?

It is not allowed to invest in any share of a company which deals with unlawful business like usury, alcohol, gambling, etc. Giving away the profit from such companies does not solve the problem.

Wassalam.

99302

Stock . Investment

What are the Islamic rules regarding participation in the stock market? Is it permissible to buy and sell shares in the stock market for investment purposes?

Yes it is permissible to buy and sell in the stock market as far as the shares you want to deal with are from a company which is doing lawful business. Shares of companies indulged in unlawful business are unlawful to buy or sell or to mediate in as brokerage.

'Wassalam.

154173

Insurance . Investment . Mutual Fund . Stock

Is it permissible to invest in mutual funds or any market-linked insurance plans considering that we don't have knowledge of where the fund manager might be investing our money, which could include stocks, bonds, derivatives, and so on?

Yes it is allowed to invest in mutual funds as far you don't know that they use your money in unlawful business like alcohol, gambling, usury etc.

Wassalam.

141712

Stock . Khums . Investment

I have recently started investing into the stock market on a monthly basis and I would like to request some advice on how I approach Khums?

1. Investing in the stock market is allowed as far as you avoid the shares or bonds of unlawful business like usury, alcohol, sinful films, gambling etc.

2. Khums is obligatory on your wealth on the your date of Khums. You must calculate the real market value of your stocks on your date of Khums.

Wassalam.

140424

Stock . Day Trading

Is it allowed to day trade in stocks such as buying and selling on a 1 min time frame?

Stocks of companies dealing with unlawful business are Haraam to deal with in any type of dealing. If the company deals in lawful business only, you can day trade with its stocks.

Wassalam.