Stock Markets Exposed - Is investing in a stock Haraam?

Is investing in a stock Haraam?

I know this question was asked a few hours ago, but explain why and how it would be Haraam? If research is done to make sure that the stock does not use interest and it is not a Haraam company (i.e. McDonalds), then what's wrong with it? If you say because it's like gambling, profit/loss, then wouldn't that make buying gold Haraam? What about a house? These things are also subject to increase/decrease in value!

Public Comments

it is haram if you invest or provide funding to western or zionist companies. DEATH TO THE INFIDELS!
To my knowledge its not Haram Make sure 1. The companies you invest in are not dealing in Haram 2. Make sure that you are investing in the company, with good financial backing, and not just pure market speculation. Market speculation can be like gambling.
buying shares is permissable as long as the company does not sell or provide a service that is haram Also, ........since hardship always calls for relaxation, they argue for exceptionality at this time and until a time when there will be reasonable number of halal stocks available to absorb the investments of Muslims, which may be even theoretically a long time. Yet, this exception has certain conditions that can be summarized in three groups: a The company’s main line of activity must not be haram in itself such as interest-based banks and insurance companies and Las Vegas type entertainment business, etc. b The degree of involvement in prohibited transaction must not be high, and here they argue that depending on interest-based loans, maintaining high percentage on receivables that in most of the times carry interest and having high percentage of interest in the company's net income or giving donations to prohibited causes, etc. may be indications that should be considered, obviously the ideal is zero on all these, but one may say that 5%, 10%, 25%, 33% or the like may not to be a high to induce the prohibition on any or some of these points. c There always must be active process of cleaning your investment, i.e., to do away with the income that results from prohibited transactions by giving it to charity since according to the Shari'ah you really do not own it, and remember you are, Allah willing, rewarded for this action of cleaning but not as a Sadaqah nor Zakah. Thus, investing according to these indices or stocks in them is on one hand an exception of the basic principle and on the other hand calls for cleaning your income, both from dividend and price increment that may have resulted from Shari'ah unlawful activity of the company. Read this too http://www.islamonline.net/servlet/Satellite?pagename=IslamOnline-English-Ask_Scholar/FatwaE/FatwaE&cid=1119503543638
As long as the thing your investing in is halaal.
It is haram because it is like gambling. You could invest and lose ur money which could be better spent helping the needey. And if u make lots of money that could make u greedy.
The first link is explaining the Shariah Law in regards to stock. The second link is a company that actually offers financial services including buying stock.
You are right if the businesss is halal then investing in it is halal. If you go overboard it can be considered gambling. Any business endeavor has it's risk of failing and basically by owning stocks you own part of the business therefore you need to make sure the busines is halal just as if you started the business yourself. Sonia, you can buy a house with cash but you need to start small.
The shares of trade companies or factories which limit their dealings or their manufacture to what is lawful according to the Sharia are lawful under the conditions that such companies do not deal in Riba (usury + interest). It is, however, forbidden to buy or sell shares from any other companies that do not limit their dealings and activities to what is lawful because any profit that one gets from them is resulting from a forbidden act. Indeed, dealing with these companies is a kind of cooperation with them and advertisement for them. Allah Says: (Help you one another in righteousness and piety. But help you not one another in sin and rancour). [5:2]. In other words, of the company u r investing in, for example Mc Donalds, doesn't deal with anything haram, u can invest there. If you talk about a house, then its not for the business purpose. nothing haram on it. Gold, you pay zakah on it and there is no Riba involved in it. its halal. Hope its clear to u brother~!