Halal stocks are no different from other stocks listed on the stock market that achieve growth and provide shareholders with good returns on investment, but they differ in their commitment to some controls that comply with the provisions of Islamic law so that all funds earned from them are halal according to Islamic law. Among these controls that distinguish halal stocks are the following:
الاسهم الحلال في السوق الامريكي
The company to which the shares belong must be based in its activity on legitimate activities that do not violate Islamic law. The company's field of work must not be in explicit prohibitions such as trading in alcohol or gambling, and it must not work in buying and selling debts, and so on.
The company's financial transactions must not include lending and usury, as usury is explicitly prohibited in Islamic law. If the company is forced to deal with usurious loans, the value of the income resulting from them must not exceed 5% of the company's total income. If it exceeds that percentage, the company's shares become mixed and require purification.
It is not permissible to invest in the shares of any company whose debts exceed a third of its financial assets. If it exceeds that percentage, investing in it becomes forbidden even if the company's activity is permissible.
NXT MidCarder
