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Equity Trade On Stock Exchange
(1) The four conditions mentioned for a valid stock market transaction are correct and among the conditions that apply. However, it is not correct to state that because transactions are happening every second without actual delivery that they are impermissible thereby. If the sale is at spot, it is not a condition that delivery be immediate for many stocks because the concept of constructive possession applies in such cases, where the rights and responsibility are handed over even if delivery of the actual asset i...
 
Investing in Shares And Government Securities
Mufti Taqi Usmani: Principles of Shariah governing investment in shares and equity funds Dealing in equity shares can be acceptable in the Shariah subject to the following conditions: 1. The main business of the company is not in violation of the Shariah. Therefore, it is not permissible to acquire the shares of the companies providing financial services on interest, like conventional banks, insurance companies, or the companies involved in some other business not approved by the Shariah, such as the companies manufacturing, selling or offering liquors, pork, haram meat, or involved in gambling, night club activities, pornography etc. 2. If the main business of the companies is halal, like automobiles, textile, etc. but they deposit there surplus amounts in a interest-bearing account or borrow money on interest, the shareholder m...
 
Stocks And Shares
Stocks (or shares) are securities that represent an equity stake in a company and are a claim against the company's earnings and assets; stocks are lawful provided all of the following conditions are present: 1) the primary business of the company is lawful; 2) if the company earns a lesser portion of its income from interest earnings, the shareholder is obligated to voice (by letter, phone or in person at the annual shareholder’s meeting) his disapproval of the interest dealings (thereby discharging his responsibility to condemn the unlawful in a business partnership); 3) when dividends are distributed or when money is earned on capital gains (the positive difference between the stock’s selling price and purchase price), the shareholder should remove the unlawful portion...
 
Permissibility Of Gold ETF GLD
More details about the specific documentation of the fund is required for an accurate answer. However, for your information, exchange-traded funds that invest in commodities, or exchangetraded commodities,track the performance of an index and their prices rise and fall like a stock. The entity investing on behalf may own the commodity, but the investor in the entity's shares does not direct...
 


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