Resolutions-of-Islamic-Fiqh-Council-1

date of the contract execution at a lower price and deliver atonce and put them in an awkward situation.5. This risk of the financial market comes from its being a meansof influence in the markets generally, because prices in thesemarkets are not fully based on actual supply and demand forthose who need to sell or buy, but the prices are alsoinfluenced by so many things; some of them are precipitatedby those who dominate the market or those who monopolizethe commodities or currencies in the market throughspreading a false rumour or the like. So here lies the legallyprohibited risk, because it leads to unnatural fluctuation in theprices which badly affects the economic life, and this is justan example.Major financers intentionally offer a bunch of financialpapers such as shares or bonds hence their price falls down dueto increase in supply. The small holders of such papers hurry upto sell them at a lower price, fearing more downfall in their priceand more loss to them, so once again their price falls down due tofurther increase in supply. The major holders turn to purchasethese papers at a lower price with the aim of raising their price atthe time of increase in demand. The matter ends with hugeearnings for major holders and heavy losses for small holderswho represent the overwhelming majority, due to their deceptionof the unreal offer of similar papers. The same case happens inthe market of commodities as well.This is why the stock market has created a major controversyamong economists. The reason behind it is that during certainperiods of the world's economic history, it has caused a heavyloss of wealth in a short period of time. On the other hand, it hasalso made many other people rich without any effort. In themajor crises which raged throughout the world, many of theseeconomists have called for its abolishment, for it causes within169