8. Shares

Shares are parts of a company. When you buy shares, you are essentially buying a small portion of a company. Therefore, a portion of the income earned by the company may be distributed among the shareholders as Dividends. You should note that only certain types of businesses are deemed as Halal to invest in. As mentioned earlier, companies involved in Haram activities and businesses such as Commercial Banking, Alcohol, Gambling, Tobacco, Pork and Sex should be avoided. Shares from these industries will be Haram. What you do with the shares are also important. Short-term investments where a person buys and sells shares quickly based on the fluctuating market is considered gambling and is Haram to do so. Long-term investments and dividends earned are considered safe and Halal.

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