Investing in stocks and shares

8-2-2004 | IslamWeb

Question:

My question is about investing money in Stocks and Shares. Some brothers use a sophisticated computer software to analyze the movements in the Stock Exchange. Based on this, they then buy or sell stocks and shares in order to make profit on their investment. My question is whether this is considered Halal or Haram and if there is any evidence to support your Fatwa.

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Answer:

Praise be to Allah, the Lord of the Worlds; and may His blessings and peace be upon our Prophet Muhammad and upon all his Family and Companions.

For the ruling concerning stocks and shares, please read Fatwa: 82020. As for using sophisticated computer software to analyze the movements in the stock exchange, this is lawful provided the stocks themselves are lawful.

Allah knows best.