Posted by EngineeringProfit > 2024-03-27 12:50 | Report Abuse

Is the whole business of stock market s-compliant? 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. 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. 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. 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).