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muslimsister1
10-02-2009, 10:35 AM
:sl:

im jst wondering are muslims allowed to have shares in companys?
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ardianto
10-02-2009, 01:28 PM
Profit sharing is halal in Islam, and Muslims are allowed to have shares in a company, even in public companies.

There is no problem if you want to buy stock in stock market and sell it when the price is going higher. It gain is not riba.

EDIT :
I forget something.
If you want to have shares in a company, make sure that company doesn't sell haram stuff like alcohol or pork.
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kawaiigardiner
10-02-2009, 01:48 PM
Originally Posted by ardianto
Profit sharing is halal in Islam, and Muslims are allowed to have shares in a company, even in public companies.

There is no problem if you want to buy stock in stock market and sell it when the price is going higher. It gain is not riba.

EDIT :
I forget something.
If you want to have shares in a company, make sure that company doesn't sell haram stuff like alcohol or pork.
Not only that but also their business practices are ethical as well - that they treat their employee's, well, they don't get involved with corruption etc. Most investment firms these days have 'ethical investing' portfolios. Green energy is one example I could think of.
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ardianto
10-03-2009, 04:10 AM
Originally Posted by kawaiigardiner
Not only that but also their business practices are ethical as well - that they treat their employee's, well, they don't get involved with corruption etc. Most investment firms these days have 'ethical investing' portfolios. Green energy is one example I could think of.
Have shares of companies like these is a good choice, because every shareholder is actually owner of the company although the shareholder has less than 1% shares. That is why Muslim should avoid hold shares of beer company.

But of course, not every company sell haram stuff, I see many 'halal' companies in the list of listed companies.
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kawaiigardiner
10-03-2009, 04:17 AM
Originally Posted by ardianto
Have shares of companies like these is a good choice, because every shareholder is actually owner of the company although the shareholder has less than 1% shares. That is why Muslim should avoid hold shares of beer company.

But of course, not every company sell haram stuff, I see many 'halal' companies in the list of listed companies.
I'd assume that halal investing would have to go beyond simply avoiding companies associated with pork or alcohol - what about arms companies who sell weapons? companies which have a poor environmental record. To say you can't invest into a alcohol company but its ok to invest in a company whose hiring practices are unethical seems like a contradiction.
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ardianto
10-03-2009, 04:45 AM
Originally Posted by kawaiigardiner
I'd assume that halal investing would have to go beyond simply avoiding companies associated with pork or alcohol - what about arms companies who sell weapons? companies which have a poor environmental record. To say you can't invest into a alcohol company but its ok to invest in a company whose hiring practices are unethical seems like a contradiction.
There is no public company that sell weapons in my country, but I don't know in other countries.

Companies which have a poor environmental record, treat their employees very bad of have huge bad debt are cannot listing in stock market. However, if they lie about this, who knows ?.

I think if we want to invest in a company, we cannot believe their prospectus but we must see the facts.
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ardianto
10-03-2009, 07:46 AM
I don't know what happen to Kawaiigardiner ? he has banned.
But I think he was right when he asked me about invest in company that sell weapons.

There are some companies which Muslims are not allowed to invest money in it.
Those companies are sell or serve : Alcohol, tobacco, pork-related products, conventional financial service (banking, insurance, etc), weapons & defense, entertainment (hotel, casino/gambling, cinema, pornography, music, etc).

If you want to have shares in a public company, it is better if you chose companies from an Islamic Index. There are Islamic Index in some countries.
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