Are Stocks Haram? Here's the law according to Islam and share tips according to sharia

Stock investment is currently the hot topic of everyone's conversation. In fact, not a few people are involved in stock trading. Not only experienced investors, but many new people or beginners also become investors and get involved directly in the world of trading. Especially with the emergence of many people who share their experiences on social media such as YouTube and TikTok about their success in carrying out this stock trading. Starting from capital and profits from investing to profits from stock trading are so large.

With so many people sharing their experiences about the success of this stock trading, almost everyone is very curious to try stock trading and get big profits. It has been recorded that from 2021 alone the number of stock investors has grown rapidly. According to data from the Indonesian Stock Exchange (IDX) as of September 2021, there were more than 6.1 million stock investors. However, the current question among many Indonesian people is whether stocks are haram? Is it in accordance with Islamic laws?

This question makes some novice investors hesitate to try this stock investment. So, before explaining whether it is haram or halal about the stock. You should get to know more closely what is a stock? From the understanding of the shares themselves so that later you can understand more about these shares.

Stocks are an investment instrument in which investors will be given proof of ownership of the value of a company or proof of equity participation. This means that these shares are buying and selling transactions of ownership papers over a company or limited liability company in the short term. Generally, the short term of the stock is seen from the market price every day. Not surprisingly, stock investors often see stock price developments at any time and can get big profits every day if they sell shares at the right time.

What are Illegal Stocks? This is the explanation according to Islam

In general, the law of buying and selling shares according to Islam is lawful if it is carried out in accordance with sharia requirements, that is, if shares are purchased with a definite transaction, free from confusing matters and do not contain elements of usury in the purchase. According to some experts, share purchase transaction activities are permissible. It's just that the company and its buyers who will conduct stock transactions must know each other. In addition, it is clear and does not contain usury. Stock investment itself is called the capital market. Based on the MUI fatwa, there are several opinions regarding shares, namely:

• Shares may be sold and pledged as long as they are in accordance with applicable regulations
• Shares that are allowed are shares of trading companies or manufacturing companies with the right conditions and without engineering.
• Stock law is okay.

Buyers of shares before buying shares must find out the business unit of the company whose shares are traded. If inside he has doubts about his business unit, it is more advisable not to buy the shares. There are several businesses that are forbidden in Islam, namely gambling and other types of games, conventional financial institutions that contain usury and businesses that lead to providers of goods and services that are haram both in terms of form and goods or services, are prohibited based on fatwa and cannot bring benefits.

Tips for Investing in Stocks According to Islam

To invest in stocks, of course, there are several things that must be done by everyone, especially for beginners. In order to avoid unwanted things. For this reason, here will be mentioned tips for investing in stocks according to Islam as follows:

Learn and analyze stocks

No one investor wants to experience losses. So, before deciding to buy shares, you should first study and analyze the company and what the company trades.

Starting from small capital

For experienced investors, they will definitely start with large capital. However, for those of you who are still beginners, the amount of capital should not be too high. Can remove your share capital slowly.

Those are some tips for investing in stocks for beginners that can be applied. According to Islam, it is permissible to get involved in the stock business as long as the process is in accordance with Islamic law.