Islamic investments have found their footing in the global stock exchanges by offering Shariah indexes and ETF’s. Mufti AHMED SULIMAN and YUSUF MOOLA discuss their features.
Investment in the stock exchange is not exclusive to any one state or country. The global trend has shown that stock market investments play a significant role in the economy. A good economic state of affairs leads to a boom in the stock market while a poor state of affairs sends the stock market crashing.
Setting the scene
The purchase of an ordinary share in a larger business is referred to as a Musharakah (partnership). Upon acquisition of the share one becomes a partner in the business.
There may be two scenarios here:
a. The company has liquid and illiquid assets
b. The company only has liquid assets (cash).