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Towards an Islamic stock market: a review of classical and modern literatures

Osmani, Noor Mohammad and Abdullah, Faruk (2009) Towards an Islamic stock market: a review of classical and modern literatures. International Review of Business Research Papers, 5 (5). pp. 121-130. ISSN 1832-9543 (O), 1837-5685 (P)

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Share market plays an important role for the economic development of a nation. Companies and individuals purchase shares and bonds, and mostly uncertainties prevail over this market. The scholars, classical and modern, adopted different approach towards the validity or invalidity of such a market as it was not existent in the time of the Prophet or earlier generations. This paper tries to find its origin in Islamic Shari`ah to see its status and validity from Shari`ah perspective. Does stock market comply with the Shari`ah principles such as prohibition of Riba, Gharar, Qimar, and maintaining fairness in price and other rules? Does it contradict with Islamic ethical values such as ‘Adl,Amanah, sincerity, truthfulness, mutual cooperation and other values? The paper adopts an inductive and analytical approach to some of the available literatures from the traditional sources and also in modern writings on Islamic trade and finance. It is expected that the paper would shed some clear lights on the validity of the stock market, and if it is valid, how should it be.

Item Type: Article (Journal)
Additional Information: 4471/4247
Uncontrolled Keywords: Islamic financial markets, Stock exchange, Securities
Subjects: H Social Sciences > HG Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Kulliyyah of Islamic Revealed Knowledge and Human Sciences > Department of Qur’an and Sunnah
Depositing User: Dr. Noor Mohammad Osmani
Date Deposited: 06 Oct 2011 16:56
Last Modified: 02 Apr 2015 13:35
URI: http://irep.iium.edu.my/id/eprint/4247

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