Trading shares and stocks : trading in stocks

Fatawa Question

Assalamu Alaykum Wa Rahmatullahi Wa Barakatuh, I have read on your website about trading stocks and have a question. I recently attended a stock trading training course with a view to trade stocks of companies that are not involved with the likes of alcohol, weapons, gambling, etc. However, whilst at this course I learnt that most big companies trade options and futures, and make a significant portion of their money from such activities, which I believe are not allowed in Islam. Examples were mainly ones that were very rich in cash, such as large energy companies. Another was dell computers, the lecturers at the course said that dell made more money from trading options than it did from it's profits from selling computers. This has given me a lot of doubts as to whether I can trade in any large company, as it is likely to be similar to investing in a bank, since the majority of profits are made from Haram sources. Could you please advise me on this. I have looked at the Dow Jones Islamic Index website, and their methods for excluding companies does not seem to consider the matter of those that make significant money from futures and options, which according to the course I did, is quite a lot of big companies. Jazakum Allahu Khairan for your constant help

Fatwa

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Publication Date

2006-11-19

Main Subjects

Economics & Business Administration
Islamic Studies

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-790453

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