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Islamic perspective of stock market an analysis based on Shari`ah principles

Osmani, Noor Mohammad and Abdullah, Faruk (2009) Islamic perspective of stock market an analysis based on Shari`ah principles. In: Internatioinal Seminar on Muamalat, Islamic Economics and Finance 2009 (SMEKI'09), 20-21 October, 2009, Equatorial Hotel, Bandar Baru Bangi, Selangor.

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There is no denying to the fact that the stock market is an integral part of the economic development of a nation. The current economic crisis was largely due to the fall of the giant global stock exchanges in New York, Europe, Japan and others. As the world today looks for an alternative for the capitalistic economy, and considering Islamic financial system as its powerful alternative, there is an urge to find out the legal status of the conventional stock market in Islamic shari`ah. The purpose of this paper therefore is to provide a theoretical framework for Islamic stock market and to see the validity of the existing products in the conventional stock markets such as common shares, preferred shares, short selling, margin trading, options, futures and the bonds etc. It would examine if the existing products conform to Shari`ah principles of prohibition of Riba, Gharar, Maysir, Qimar and maintaining fairness in price and so on. The paper adopts an inductive and analytical method to examine issues based on the traditional texts and modern literatures. It is expected that the paper will reach some conclusions and provide clear recommendations to provide an Islamic alternative to the conventional stock and securities market.

Item Type: Conference or Workshop Item (Full Paper)
Additional Information: 4471/4254
Uncontrolled Keywords: Stock market, Islamic shari`ah, principles, values
Subjects: H Social Sciences > HG Finance > HG4001 Financial management. Business finance. Corporation 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: 07 Oct 2011 08:29
Last Modified: 24 Nov 2011 15:41
URI: http://irep.iium.edu.my/id/eprint/4254

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