Towards an Islamic financial market

Stock exchanges are an essential part of contemporary economies. They are effective methods of obtaining saving and investing. Since the Qur'an prohibits gambling, distinguishing between gambling and taking stock-market risks is a must. According to shari`a, a good being sold must be capable of being delivered and its price must be determined during the sale meeting. It must be accurately described in the contract. All dealings should involve the production of real goods and services. Shari`a also prohibits dangerous speculation and dangerous sales. Shari`a allows contracting parties to use permissible risk-reduction techniques. Stock-market speculation should be restricted.