mufti sahib,what about the stock exchange business in islam.Is the income from stock exchange hillal.
The stock exchange business is the business of purchasing and selling shares of companies. By purchasing shares of a company one becomes shareholder of that company. Therefore, it would be permitted to buy and sell shares of the companies if the following conditions are met:
1) The main business of the company must be Halaal
2) The company must have some illiquid assets
3) The shareholder must object the interest dealing, if the company is involved in any
4) The unlawful income, if the company gained any must be given in charity without the intention of getting any reward
5) All the conditions for a valid transaction must be met
If the above-mentioned conditions are met then the stock exchange business is permissible and hence the income is also Halaal. However, there are other transactions taking place in the stock market likes of futures, hedging which are not permitted because of not meeting the conditions of a valid transaction.