Why is trading in some of the stocks currently in the market considered gambling?
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The questioner : A questioner asks and says, "These stocks that are called in the Amman Stock Exchange, the dealing in them, he asks why it is gambling, meaning, did you say it is gambling?"
The Shaykh : Because ... without commercial regulations ... !
The questioner : ... the interest of these ... the stocks are tied to the factory according to its profit and loss, so when the factory opens, you get the price of the stocks, and when the factory loses and its production decreases, the stocks decrease, so on this basis, the sale ... ?
The Shaykh : I do not think so, but this, meaning this process, I compared it to the fall and rise of the dollar and the pound ... and so on, this has no commercial reasons, but rather reasons attributable to the state that owns the currency, so it is they who raise it and they who lower it, likewise these stocks, on the condition that stocks are of two types: stocks that are still currency and will not turn into a factory, workshop, or actual trade. This is clear, this picture.
The questioner : ... ؟
The Shaykh : This is a natural matter, meaning every company that is intended to be established, every factory, every workshop, before this workshop has an existence and an entity on the ground, it has stocks, this is a natural matter.
The questioner : It is based on the stocks, and if the stocks did not exist, the factory would not exist.
The Shaykh : Absolutely not, so these stocks, before they turn, as we said, into a factory, they are listed in the market, so this stock whose value is, for example, one hundred, either becomes ninety, ninety-five, or one hundred and five, or one hundred and ten. This has become like ... selling currency for currency, meaning debt for debt, or selling a dirham for two dirhams, or a dirham and a half, to ... and so on, because there is no trade in the matter except in the currency itself. Meaning, he has a stock of one hundred, he pays one hundred, he will take one hundred and five, or he will take one hundred minus five, who came with the profit, who came with the loss, this, the matter is still currency, clear, meaning the most prominent thing is that it is, meaning, gambling, then the other picture that you asked about comes, which is that there will be an established company, meaning these stocks have turned into a trading company, or a workshop, or a factory, or something similar. If we assume that the rise and fall of these stocks is based on the fruit of this company or this trade, and its profit and loss, then this appears at first glance to have nothing wrong with it, but I do not think the matter is in the picture that you are imagining. This is attributable to the founders of this company, so here are the ones who raise and the ones who lower, so if there is an expert who says that the matter does not exceed profit and loss in any trade of the types of trades, then in that case, it can be said that there is nothing wrong with it. What is your knowledge of the matter?
The questioner : By Allah, Professor ... they work like this and they work ... the controller ... the Amman financial market is the controller of the stocks, not the production capacity of ... the same market is the controller, meaning people buy stocks ... they raised them, other people lowered them, they go down with them, the Arab Bank ... meaning stagnant ... in the eleventh month ... it will be at one hundred and twenty-four dinars, it suddenly becomes one hundred and fifty dinars, why? Because they distributed the profits, so people buy stocks ..., meaning this is what I observed with my own eyes in the newspaper ...
The questioner : The sale of stocks, their dealing in ... meaning ...?
The Shaykh : Meaning this is another aspect, aid, meaning with the banks.
The questioner : The company's interest-bearing profits with the original ones, together with the banks.
The Shaykh : Because ... without commercial regulations ... !
The questioner : ... the interest of these ... the stocks are tied to the factory according to its profit and loss, so when the factory opens, you get the price of the stocks, and when the factory loses and its production decreases, the stocks decrease, so on this basis, the sale ... ?
The Shaykh : I do not think so, but this, meaning this process, I compared it to the fall and rise of the dollar and the pound ... and so on, this has no commercial reasons, but rather reasons attributable to the state that owns the currency, so it is they who raise it and they who lower it, likewise these stocks, on the condition that stocks are of two types: stocks that are still currency and will not turn into a factory, workshop, or actual trade. This is clear, this picture.
The questioner : ... ؟
The Shaykh : This is a natural matter, meaning every company that is intended to be established, every factory, every workshop, before this workshop has an existence and an entity on the ground, it has stocks, this is a natural matter.
The questioner : It is based on the stocks, and if the stocks did not exist, the factory would not exist.
The Shaykh : Absolutely not, so these stocks, before they turn, as we said, into a factory, they are listed in the market, so this stock whose value is, for example, one hundred, either becomes ninety, ninety-five, or one hundred and five, or one hundred and ten. This has become like ... selling currency for currency, meaning debt for debt, or selling a dirham for two dirhams, or a dirham and a half, to ... and so on, because there is no trade in the matter except in the currency itself. Meaning, he has a stock of one hundred, he pays one hundred, he will take one hundred and five, or he will take one hundred minus five, who came with the profit, who came with the loss, this, the matter is still currency, clear, meaning the most prominent thing is that it is, meaning, gambling, then the other picture that you asked about comes, which is that there will be an established company, meaning these stocks have turned into a trading company, or a workshop, or a factory, or something similar. If we assume that the rise and fall of these stocks is based on the fruit of this company or this trade, and its profit and loss, then this appears at first glance to have nothing wrong with it, but I do not think the matter is in the picture that you are imagining. This is attributable to the founders of this company, so here are the ones who raise and the ones who lower, so if there is an expert who says that the matter does not exceed profit and loss in any trade of the types of trades, then in that case, it can be said that there is nothing wrong with it. What is your knowledge of the matter?
The questioner : By Allah, Professor ... they work like this and they work ... the controller ... the Amman financial market is the controller of the stocks, not the production capacity of ... the same market is the controller, meaning people buy stocks ... they raised them, other people lowered them, they go down with them, the Arab Bank ... meaning stagnant ... in the eleventh month ... it will be at one hundred and twenty-four dinars, it suddenly becomes one hundred and fifty dinars, why? Because they distributed the profits, so people buy stocks ..., meaning this is what I observed with my own eyes in the newspaper ...
The questioner : The sale of stocks, their dealing in ... meaning ...?
The Shaykh : Meaning this is another aspect, aid, meaning with the banks.
The questioner : The company's interest-bearing profits with the original ones, together with the banks.