Question:
What does the Shari'a state about trading shares? Is it Halal or Haram?
Answer:
Trading in shares is just like any other business. It is allowed as long as it meets the following requirements:
A. The shares belong to a company, which deals in Halal business. Some companies engage in depositing some of their monies in banks and draw interest upon it. This type of business would be considered Haram.
B. Also ensure that the company is not dealing in any ambiguous type of sales (like commodities which are non-existent at the time of the sale or there is ambiguity about their quantity or quality etc).
What does the Shari'a state about trading shares? Is it Halal or Haram?
Answer:
Trading in shares is just like any other business. It is allowed as long as it meets the following requirements:
A. The shares belong to a company, which deals in Halal business. Some companies engage in depositing some of their monies in banks and draw interest upon it. This type of business would be considered Haram.
B. Also ensure that the company is not dealing in any ambiguous type of sales (like commodities which are non-existent at the time of the sale or there is ambiguity about their quantity or quality etc).
