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The Islamic Shariah Principles for Investment in Stock Market

Author

Listed:
  • Alam, Md. Mahmudul

    (Universiti Utara Malaysia)

  • Akbar, Chowdhury Shahed
  • Shahriar, Shawon Muhammad
  • Monzur-E-Elahi, Mohammad

Abstract

Due to chronic financial crises experienced during last several decades repeatedly and a failure to protect investors‟ rights as a result, the world is looking for an alternative form of stock market for quite some time so that interests of all relevant stakeholders can be safeguarded. At the same time, from the perspectives of devout Muslims, the current form of stock market restricts a Muslim to make investments in the market due to unsatisfying several provisions from the Islamic law, known as shariah. This study provides the criteria under which conditions the Islamic shariah permits making investments in the stock market. Hand in hand with that primary discussion, it has been eluded briefly why the Islamic shariah principles offer a better alternative against conventional practices of the stock market.

Suggested Citation

  • Alam, Md. Mahmudul & Akbar, Chowdhury Shahed & Shahriar, Shawon Muhammad & Monzur-E-Elahi, Mohammad, 2019. "The Islamic Shariah Principles for Investment in Stock Market," SocArXiv b7j4e_v1, Center for Open Science.
    • Handle: RePEc:osf:socarx:b7j4e_v1
    DOI: 10.31219/osf.io/b7j4e_v1
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    References listed on IDEAS

    as
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    5. Ainul Islam & Mohammed Khaled, 2005. "Tests of Weak-Form Efficiency of the Dhaka Stock Exchange," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 32(7-8), pages 1613-1624.
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