Posted by EngineeringProfit > 2024-03-27 12:29 | Report Abuse

Interest-Based Transactions: Many conventional stock market transactions involve interest-based elements, such as margin trading, short selling, and the use of leverage. These practices are not permissible in the stipulated finance, which prohibits riba (usury) and any form of interest-based transactions.

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5 comment(s). Last comment by EngineeringProfit 2024-03-27 12:47

Posted by EngineeringProfit > 2024-03-27 12:30 | Report Abuse

Uncertainty and Speculation: Its principles emphasize the avoidance of gharar (excessive uncertainty) and maysir (gambling/speculation) in financial transactions. Stock market trading, particularly in speculative or high-risk assets, can involve elements of uncertainty and speculation that are not aligned with the stipulated finance principles.

Posted by EngineeringProfit > 2024-03-27 12:44 | Report Abuse

Lack of Asset Backing: Its finance emphasizes the concept of tangible asset backing and real economic activities. In stock market trading, especially in derivatives and financial instruments with no underlying assets, the lack of tangible asset backing can raise concerns about the legitimacy of the investment.

Posted by EngineeringProfit > 2024-03-27 12:45 | Report Abuse

Debt-Based Securities: Some securities traded in the stock market, such as bonds and debentures, are based on debt instruments that involve interest payments. These debt-based securities are not considered compliant due to their reliance on riba (interest).

Posted by EngineeringProfit > 2024-03-27 12:46 | Report Abuse

Excessive Risk and Speculation: Its finance encourages prudent risk management and discourages excessive speculation and risk-taking. However, stock market trading, particularly in volatile or speculative markets, involving high levels of risk and speculative behavior that are not aligned with its principles.

Posted by EngineeringProfit > 2024-03-27 12:47 | Report Abuse

Lack of Transparency and Ethical Screening: Its finance requires transparency and ethical screening of investments to ensure compliance with its principles. However, the stock market may lack comprehensive ethical screening mechanisms, leading to investments in non-compliant or questionable assets.

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