Can Muslims buy shares ?
I am at present thinking of going into shares. I have been told different things and was wondering if you can clear things for me.
I am interested in doing short term shares so if i invest in a company i can sell them anytime and move onto another business so whether they go up or down that's a
risk i take. I was told this cannot be done as is form of gambling.
On the other hand i was told this is allowed as long as we do not invest in
companies that do interest i.e banks or brewery companies.
There is a dispute amongst the scholars regarding shares. In essence, shares are taking ownership in a company, which gives a person many rights including a right to a vote in the Annual General Meeting, and a right to any profit the company makes. When shares are based in this way, they are not forbidden in Islam.
Others however, buy shares with one purpose only; to sell them later at a higher price. They do not view the shares as a portion in the company’s interest but simply a means of a quick profit. The problem with this is that the price is not always guaranteed to go up. Secondly, it does somewhat resemble gambling, in the sense that there is a lot of dependence on chance.
On this basis, it is better to refrain from investing large amounts of money in shares, with the intention of making a quick profit. At best, this practice is Mashkuk (doubted) in Islam.
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