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Is investing in stocks halal or not?

Please find an excellent answer to stocks halal or not? by our team member on quora

Assalamualaikum,

Investing in the equity stock (or equity shares) is the actual halal process of doing business. However, on the following terms and conditions:

  1. The company offers products and services which are purely halal.
  2. The company doesn’t give or take interest.
  3. The company doesn’t involve in any illegal form of business process as per Islamic shariah or local government business laws.

Unfortunately, many people lack the knowledge in this field and thus come to uninformed assumptions and conclusions.

Equity stocks gives ownership in the company to the investor and voting rights. The investor will enjoy both profit and losses. As the company grows, the investors capital investment also grows as per the share value thus making him eligible to get higher capital investment amount in future.

For example an investor has invested an amount of Rs. 1,00,000/- at the share value of Rs. 100/- and say after two years, the share value of company increased to Rs. 200/-. It means if he wishes to withdraw the amount, he would get Rs. 2,00,000/- capital amount as a refund. And during this course of time, he also enjoys the profits. And at the same time, if the share value of the company drops to say Rs. 90/-, then the investor gets only Rs. 90,000/- as refund. What ever may be the case, the investor is also owner of the company and thus enjoys both profits and losses along with the company. This is actual halal form of investing as per Islamic Shariah.

However many companies which claim to be halal doesn’t offer equity share to investors. They just take amount and do business and when ever the investor asks for money, give back their principle amount which would be same even after 5 years. This is not the correct form of halal business.

Islamic Investments is the first company in India which is offering direct halal equity shares. And has a strong team of Islamic Finance experts who are looking to bring the actual halal investments process across India and abroad.

The best part is this company does not invest in any third party companies and develops its own projects. The total setup, maintenance and operations are taken care by the company itself.

For any queries on halal investment and stocks. You can contact the company website : Islamic Investments

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