Contradiction In Trading Stocks
Thank you very much, Mr. Shahzad. However, what about the capital that companies like INTEL, TESLA, or QuantumScape keep in banks, which earns them interest in return? Even our salaries (in checking accounts) earn interest, which we donate at the end of each fiscal year. This is how corporations around the globe operate—either through interest-based debt or by earning interest on surplus funds in banks. While taking loans with interest isn’t explicitly mentioned as haram in the Qur’an, receiving interest is directly prohibited. Yet, our scholars often make decisions that can cause long-lasting losses/damages. For instance, Bitcoin was initially declared haram, even though it is purely digital currency and can function like debit or credit cards. When I check stocks for Shariah compliance, most turn out to be non-compliant for two reasons: either the companies have interest-based debt, or they earn interest from money kept in banks. Additionally, the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) has set some standards that aren’t directly derived from the Quran or Hadith. For example, AAOIFI permits a company to be Shariah-compliant if 80% of its products are halal, even if 20% are haram. I find it hard to agree with such rules, as many scholars either lack expertise in the subject or may be influenced by political motives. I would greatly appreciate your thoughts on this matter, as well as any Quranic references you can provide. Once again Jazakallah Khairan Mohammad USA