Trading in stock market
Fatwa No: 82105

  • Fatwa Date:6-2-2000 - Thul-Qi'dah 2, 1420
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Is trading in the stock market haram? If it is haram, what can I do with the shares I have right now and its value is less than the price I paid? How I can invest my money in a country like Canada and our countries have almost the same structure?


Praise be to Allah, the Lord of the Worlds; and blessings and peace be
upon our Prophet Muhammad and upon all his Family and Companions.
The rule of trading in stock markets differs according to the kind of shares that are involved. Thus, the shares of trade companies or factories which limit their dealings or their manufacture to what is lawful according to the Sharia are lawful under the conditions that such companies do not deal in Riba (usury + interest). It is, however, forbidden to buy or sell shares from any other companies that do not limit their dealings and activities to what is lawful because any profit that one gets from them is resulting from a forbidden act. Indeed, dealing with these companies is a kind of cooperation with them and advertisement for them. Allah Says (Interpretation of meaning): (Help you one another in righteousness and piety. But help you not one another in sin and rancour). [5:2]. If you have already bought some of the forbidden shares, you should repent to Allah and get rid of them to show to Allah your true intention and give up all forbidden things. And whoever gives up something for the sake of Allah, He (Allah) will compensate that thing with a better one. Allah Says (Interpretation of meaning): (And for those who fear Allah, He (ever) prepares a way out of every difficulty. And He provides for him from sources he never could expect).[65:2,3). We advise, then to invest your money -which is a favor from Allah - in the ways of investment made lawful by Allah. Do not reciprocate Allah's favor with a sin. So, do not invest your money in what Allah has forbidden. Finally, think about the meaning of the following sound Hadith: The Prophet Muhammad (Blessings and peace of Allah be upon him) said: "A servant of Allah will remain standing on the Day of judgment till he is questioned about his life, how he spent it; and about his knowledge and how he utilised it; and about his wealth from where he acquired it and in what (activities) he spent it, and about his body as to how he consumed it" .[Tirmizi]. Allah knows best.

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