What Should I Do? – Investing in the Stock Market

June 7, 2021

I. Details about the situation

Mariam has some extra money saved up after having paid her annual khums and she wishes to invest it in the stock market. What kinds of stock are permissible for her to invest in?

II. Background

Islam encourages trading and investing in any field provided that it does not involve unlawful transactions because of the significant impact earning has on the soul and maintaining its purity, both positive and negative. Therefore, it is crucial for anyone who wishes to partake in stock trading to learn the rulings of these transactions in order to avoid committing an unlawful act.

III. Ruling

Investing in stocks is permissible if it does not involve unlawful transactions, such as selling alcoholic beverages, pork, or promoting indecency, or those transactions that involve usury (riba).

 IV. Action

Mariam must avoid investments that involve unlawful trading as outlined above. In the event she chooses to hire a firm to invest on her behalf, she must provide a list of unlawful transactions and areas of trade that she does not want to participate in.