is not stock/share a more sharia compliant financial tool than keeping money in bank and getting interest?
the so-called "sharia-compliant islamic banking" promoted by the gulfi nations is a charade... let us look at the big picture... are the gulf nations capitalist or not... are they working with interest-banking at some level or not... who are their protectors but the capitalist western governments... so they are no one to claim innovation in business.
actual islami finance is not about finance for the sake of finance... it is about co-operative business... a person seeking a loan will allow a financier to hold a percentage of partnership in the project or company of the loan seeker... the financier will risk his money and the loan seeker will promise profits to the financier according to the deal they made in mutual agreement.
the above is decentralized, private, law-protected agreement and will more precisely look at sharia-compliance.
a stock market is centralized, chaotic and ends up becoming a place where money is made from money, where every company tries to rise on the rate chart by hook and crook... two crimes rise from it...
1. stock markets work on speculation... meaning that a stock-broker and his mba advisor are not different from some astrologer... all three make mathematical predictions about some company or product, about the said item rising or falling in some strangely calculated number... without considering that these items live in the real-world which is influenced by real-world factors not connected to that company or product... speculation is haraam because it is same as astrology which is a nonsense field... and pakistan has interest rates, internally and for external transactions... so how is it sharia-compliant??
2. any stupid or unnecessary or wrong company or product can put itself in the stock market, and its stock prices may rise too because the consumers of that company or product are idiotic people... and therefore that company will get more investors who will help that wrong company or product to continue production... for example, a company which makes food for dogs, or one making burqa, or a female slimming center company, or a cell phone company, or a 100cc "poor man's motorcycle" company... these are all wrong things, yet some idiot may say that they are sharia compliant.
do tell me if it was confusing... i am only trying to simplify something that is an unnecessary complicated thing.
but all this complication is not required... pakistan's internal economic structure should have been, since 1947, like socialist muslim nations, especially like libyan jamahiriya... half of its problems would not have existed ( the other half being cultural ).
and beyond all this is of course the ultimate economic solution... no economics, through abolishment of money system.
Money making is easy in stocks if you select good stocks and have a good understanding of corporates working around you and the economy. Its just made much easier if the other investors are stupid. KSE has both of them
We do have a list of sharia compliant stocks and an index for them i.e. KMI 30
please look my above post.
Communism is bigger enemy of Islam, rather than Capitalism. Islam abolish the basic principles of Communism.
do you know what communism means??
