The one question keeping me up at night

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   I have been distressed out of my mind and would like an expert's opinion on this.

I am looking to invest in the stock market. Not just invest but to start a fund and get thousands of people to invest millions of dollars in my fund.

Now I know the stock market is not haraam per se because it is like buying a business. My question is that almost all and I mean about 90% of the companies trading on the stock exchange operate on debt. They keep extra cash in the bank for interest, issue bonds and borrow from the bank which is obviously on interest. So does that mean that despite the fact that their business is 100% halal e.g car/computer manufacturing, they still operate on debt and that debt is in a way making them the profit which in turn is used to give out dividends?

Answer's would be much appreciated. This has really been plaguing me for the last two months.

Thank you!

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revolution865 Members Profile Send Private Message Find Members Posts Add to Buddy List Starter. Male Joined: 21 February 2017 Location: Pakistan Status: Offline Points: 1	Post Options Post Reply Quote revolution865 Report Post Thanks(0) Quote Reply Topic: The one question keeping me up at night Posted: 22 February 2017 at 5:50pm
	I have been distressed out of my mind and would like an expert's opinion on this. I am looking to invest in the stock market. Not just invest but to start a fund and get thousands of people to invest millions of dollars in my fund. Now I know the stock market is not haraam per se because it is like buying a business. My question is that almost all and I mean about 90% of the companies trading on the stock exchange operate on debt. They keep extra cash in the bank for interest, issue bonds and borrow from the bank which is obviously on interest. So does that mean that despite the fact that their business is 100% halal e.g car/computer manufacturing, they still operate on debt and that debt is in a way making them the profit which in turn is used to give out dividends? Answer's would be much appreciated. This has really been plaguing me for the last two months. Thank you!

Ceo3 Members Profile Send Private Message Find Members Posts Add to Buddy List Groupie Joined: 18 September 2016 Status: Offline Points: 80	Post Options Post Reply Quote Ceo3 Report Post Thanks(0) Quote Reply Posted: 02 March 2017 at 11:13pm
	A salaams brother, In todays economy and financial systems riba is so intricated its hard to find 100% truly Shariah compiant financial products. However the Ulama have put in place some guidelines (please note i have not found agreement among Ulama on what muslims can invest in). My best advice is to enlist the services of a shariah compliant financial advisor. They have the expertise from both shariah and finances to assist. They inturn use guidelines from AAOIFI and Figh council. The following guidelines are from UK based company Yaseer. Apart from allowable investee companies producing halaal product financial ratios should: -Debt less than 33% of total assets -Cash and interest bearing items less than 33% of total assets -Accounts receivableand cash are less than 50% of total assets -Total interest and non-compliant activities income should not exceed 5% of total revenue. Hope this helps and you can get some sleep now. Insha Allah may Allah swt bless your undertaking. And Allah swt knows best. A salaams.

Tim the plumber Members Profile Send Private Message Find Members Posts Add to Buddy List Senior Member Male Joined: 30 September 2014 Location: United Kingdom Status: Offline Points: 944	Post Options Post Reply Quote Tim the plumber Report Post Thanks(0) Quote Reply Posted: 04 March 2017 at 1:53am
	If you don't understand that shares are a form of debt then you are somebody who should not be playing in the stock market with other people's money because you lose it.