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Scholars differ Money & business

Is trading in stocks halal?

Short answer

Most contemporary scholars permit buying shares in companies whose main business is lawful, with conditions. Shares in companies whose main business is haram (alcohol, interest-based banks) are forbidden. Scholars differ about companies that are mostly lawful but have a small amount of interest income, and about margin buying and short selling, which most forbid. Check the company and ask a scholar.

Evidence

Quran

يَٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوا۟ لَا تَأْكُلُوٓا۟ أَمْوَٰلَكُم بَيْنَكُم بِٱلْبَٰطِلِ إِلَّآ أَن تَكُونَ تِجَٰرَةً عَن تَرَاضٍۢ مِّنكُمْ ۚ وَلَا تَقْتُلُوٓا۟ أَنفُسَكُمْ ۚ إِنَّ ٱللَّهَ كَانَ بِكُمْ رَحِيمًۭا ﴿٢٩﴾

信道的人们啊!你们不要借诈术而侵蚀别人的财产,惟借双方同意的交易而获得的除外。你们不要自杀,真主确是怜恤你们的。

This is general information, not a fatwa. For your own situation, ask a qualified scholar.

Questions about halal and haram

Is trading in stocks halal?

Most contemporary scholars permit buying shares in companies whose main business is lawful, with conditions. Shares in companies whose main business is haram (alcohol, interest-based banks) are forbidden. Scholars differ about companies that are mostly lawful but have a small amount of interest income, and about margin buying and short selling, which most forbid. Check the company and ask a scholar.

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