Resolutions-of-Islamic-Fiqh-Council-1

The First Resolutionon the Stock MarketAll praise be to Almighty Allah.Blessing and peace be on His Prophet Muhammadafter whom there is no prophet, and on all thosewho followed his way of guidance.The Islamic Fiqh Council during its 7 th session held between11-16 Rabi Al-Aakhir 1404H looked into the issue of stockmarket and the contracts which are concluded there for purchaseand sale of the currency-notes, company shares, government andcommercial bonds as well as commodities; either in cash orcredit.The Council also discussed the positive and useful aspects ofthis market as well as its negative and harmful aspects in theview of economists and those who deal with the stock market.A) The positive and useful aspects are in the following:1. It represents a durable market which provides a meeting pointfor sellers and buyers, and offers the cash and credit deals ofshares, bonds and commodities.2. It facilitates the process of financing the industrial,commercial and government establishments through the saleof shares and bonds.3. It facilitates the sale of shares and bonds to others in order tobenefit from their value, as the companies which issue themdo not set their values for their owners.167