Legitimacy of dealing in the stock market: the ruling on dealing in the stock exchange



Contents

  • 1 The stock and exchange market
  • 2 The meaning of securities and stock exchanges
  • 3 Ruling on dealing in the stock market and the stock exchange
    • 3.1 Ruling on dealing in commercial stocks - shareholding companies
    • 3.2 Ruling on dealing in bonds
  • 4 References

Stock and stock market

Commercial markets have been known for centuries. In these markets, merchants can offer and promote their merchandise, and motivate people to buy it even if they do not want to. After trade flourished and trade between humans expanded to include all aspects of economic life, both administrative and administrative , and commodities entered into trade that are difficult to offer in specific regional markets, or intangible goods, such as: stocks , bonds, services, partnerships, and brands; the need arose to Finding markets to offer those intangible products. What are the securities and the stock market, and what is the Islamic Sharia view of them, and what is the juristic ruling for dealing with them?

The meaning of securities and stock exchange

Securities and stock exchanges are: papers and deeds issued by governmental or public or private bodies, such as: public and private companies and institutions in general, with the aim of moving investment in these companies, and finding financial liquidity in them, and these papers carry the status of circulation, so that they accept buying and selling at any time so that they accept buying and selling at any time so that they accept buying and selling at any time so that they accept the sale and purchase at any time so that they accept the sale and purchase at any time so that they accept the sale and purchase at any time so that they accept the sale and purchase at any time so that they accept the sale and purchase at any time so that they accept the sale and purchase at any time so that it accepts the sale and purchase at any time so that it accepts the sale and purchase at any time so that it accepts the sale and purchase at any time so that it accepts the sale and purchase at any time so that it accepts the sale and purchase at any time so that it accepts the sale and purchase at any time so that it accepts the sale and purchase at any time so that it accepts the sale and purchase at any time so that it accepts buying and selling at any time Immediately as cash is bought and sold, it represents a financial and economic right of its owner to the issuing authority, and it is usually issued in the same values. Among the most prominent of these securities are stocks , bonds. [1]


Financial markets and the stock market can also be defined as: An activity that relies on buying shares and bonds and selling them within a fixed general level every day, and it is defined as the place or means by which the demand for money and its supply is combined, whether through direct contact, or indirect communication, And that is through brokers or companies working in this field. [2]

Ruling on dealing in the stock market and the stock exchange

The principle in all transactions is permissible unless a legal text indicates that it is forbidden; accordingly, all financial transactions are permissible unless what is stated in the true text is that they are forbidden, or it is inferred that they are forbidden by measurement or due diligence based on a correct basis; forbidden in transactions is an exception It is what was invented in contemporary transactions, and it did not have a picture that the companions used to deal with in the past, because it did not receive an explicit ruling on the permissibility or the sanctity of the jurists, but it remains on the basis on which all financial transactions are; and it is permissible; Financial markets, stock exchanges, and companies that contribute in all their forms and forms, are permissible, provided that they are free of what turns the legal ruling of them into inviolability. [3]

What turns the legal ruling of financial transactions into inviolability: usury, fraud, monopoly, deception, injustice, and deceit, and this is limited to dealing with stocks only, but bonds that are the common part in financial markets after the shares are in fact long-term loans pledged by the company To pay the value that you took from the shareholder at predetermined times, with an increase in financial benefit agreed upon between them according to an underwriting instrument, so each part of these two parts of the financial markets has an independent judgment based on the practical picture of it, and with the statement of that : [3]

Ruling on dealing in commercial stocks - shareholding companies

  • The majority of contemporary scholars see the legitimacy of dealing in commercial shares by buying and selling according to specific rules and conditions, and who said this: Sheikh Muhammad bin Ibrahim, Abdul Aziz bin Baz, Ibn Uthaymeen, Abdul-Razzaq Afifi, Sheikh Abdullah Al-Manea, and many others from the scholars of the contemporary era Which must be available in the shares in order to be permissible, the following: [3] [4]
    • That the shares intended for sale and purchase are issued by companies with legitimate business activities; they deal only with what is permitted by law, such as: pharmaceutical companies, permissible food, clothing, and oil derivatives, etc., but if their business is prohibited, such as: companies that sell and produce alcohol, Or deal with pig derivatives, as such companies may not share their shares with Muslims in agreement.
    • Dealing with shares does not entail legal prohibitions, such as: deception, which is ignorance of the thing and its reality, in addition to usury, and the unlawful eating of people's money, and an example of those forbidden shares is an agreement known as concession shares, where these shares give their owner the right to obtain fixed profits Whether the company won or lost, and that appointed forbidden usury, and also prohibits dealing in the shares of enjoyment that give its owner the right to profit without being an actual partner in the company, not in terms of contributing to capital or even effort, and this is considered to be consuming people's wealth unlawfully.
  • Some scholars see the prohibition of dealing in commercial shares , and whoever went to that: Sheikh Taqi al-Din al-Nabhani, and Sheikh Issa Abdo, and this was indicated by a number of evidence, including: that dealing in shares is free from being a contract between two parties, because there is no contract form, and it is free of the will Expressing the intention of the contractor to establish the contract, or not to create it, so it will act according to the contract’s will.

Ruling on dealing in bonds

Most contemporary scholars have argued that dealing in bonds is forbidden in Shariah, because bonds are in fact, they are usurious loans with specific interest. This was indicated by the Islamic Fiqh Academy in the sixth session of it, which is the opinion of the majority of the scholars of the era, while some scholars disagreed with that and authorized the dealings By bonds, they measured it against the lawful speculative company, as there was no text in it from the Qur’an or Sunnah, not even in the Messenger’s work - may God’s prayers and peace be upon him - or his report of the companions ’actions, but were taken from the work of the Companions, so the jurists deduced provisions and details, and who said that : to talk nonsense Light SM Ali, Mohamed Sayed Tantawi, Dr. Ahmad Chalabi, and Sheikh Mohammed al - Ghazali. [3] [4]

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