Stock market speculation
Is stock market speculation lawful? I purchased 10, 000 EGP worth of stocks which generated huge profits over a two-year period. A year ago, a friend of mine told me that this kind of transaction is impermissible in Islamic law. I did not heed his words and my profits from speculation continue to increase daily.
If stock market speculation is unlawful, what am I to do with the money I earned from
Stock market trading, with the intention of trading and not manipulating the market, is permissible provided:
• The business of the company is lawful.
• The company has known and established assets and credentials.
If the above conditions are met, your money is lawful since, in principle, the stock market is an instrument of finance and not a gambling market. Whoever deviates from its objective is legally blameworthy.
Allah the Almighty knows best.