10-28-2004, 03:28 AM
Dear Friends
Stocks/shares are basically of two kinds common and preferred. If the preference in preferred shares in financial such as guaranteed minimum return, priority in payment at time of liquidation and the like, preferred stocks/shares are then prohibited because equal owners of the companies principal must be treated equally. They are forbidden to issue, buy, own and sell. In pak u know preference stocks/shares r not issued...
Common stocks are not prohibited from this point of view.
If
we have to resonable belive that stocks/shares belongs to companies that are fully compatible with the Shari'ah in establishment and all business activities .....& islam allows trading in stock of such companies.... irrespect of nature of income i.e.capital gain or dividend
Further....Idrees is correct.there should not be realted aparty transaction ..confilct of interest..& other activities that dilutes the risk with rewards.....
This is an extract of anarticle in the monthly news letter of Islamic online........FATWA given by Dr. Monzer Kahf, Scholar in Islamic Economics & Financial Expert,
Regards,
Kh. Ehrar Ul Hasan
APA,ACMA,CIA(Usa),MA(Eco),CIMA(Inter),IBP-Stage-I (Only Sky is the limit.$$$.....
Stocks/shares are basically of two kinds common and preferred. If the preference in preferred shares in financial such as guaranteed minimum return, priority in payment at time of liquidation and the like, preferred stocks/shares are then prohibited because equal owners of the companies principal must be treated equally. They are forbidden to issue, buy, own and sell. In pak u know preference stocks/shares r not issued...
Common stocks are not prohibited from this point of view.
If
we have to resonable belive that stocks/shares belongs to companies that are fully compatible with the Shari'ah in establishment and all business activities .....& islam allows trading in stock of such companies.... irrespect of nature of income i.e.capital gain or dividend
Further....Idrees is correct.there should not be realted aparty transaction ..confilct of interest..& other activities that dilutes the risk with rewards.....
This is an extract of anarticle in the monthly news letter of Islamic online........FATWA given by Dr. Monzer Kahf, Scholar in Islamic Economics & Financial Expert,
Regards,
Kh. Ehrar Ul Hasan
APA,ACMA,CIA(Usa),MA(Eco),CIMA(Inter),IBP-Stage-I (Only Sky is the limit.$$$.....
