Gharar is among the prohibited elements in commercial transactions. Nevertheless, unlike riba’, its prohibition is not absolute because some degree is tolerable. One must avoid only excessive uncertainty. Get Musaffa Premium Now Definition of Gharar Gharar literally means risk. Technically, it is something for which the probability of getting it and not getting it are […]
Definition of Gharar and the 3 Degrees of Uncertainty Read More »
Is the stock market halal for Muslims? Over the last decade, we have seen some enormous changes in market conditions. FTSE (footsie) could still manage to increase overall by 26%, even in that unpredictable situation. And this is a good sign for Muslims to explore more about the stock market and trading. The other reason
Is Stock Market Halal? 3 Things you Should Consider from Islamic Perspective Read More »
Have you ever wondered about what the differences between Institutional and Retail Investors? We got your back. Get Musaffa Premium Now Who is an investor? A person or organization who puts money into financial schemes with the expectation of gaining profit is called an investor. As an investor you can use different types of financial
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ETF is one of the popular investment instruments among investors. Similar to the mutual fund, ETF is a pooled investment by many investors, but it has a different structure and operation. This article will briefly explain the differences between ETFs and mutual funds, so it can help you to make an investment decision that suits
ETF vs Mutual Funds: Which one is better for you? Read More »
Definition of Stocks When a company needs money to grow, the company can choose to offer ownership shares to the public through stocks. A stock, also called equity, is a security that holds proportionate ownership of a corporation. When you own company stocks, you can earn more as the company grows, giving you shareholder voting
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Musharakah is a partnership agreement in Islamic finance in which partners share in the profits and losses of a business. Musharakah is a type of Shirkah al-Amwal (or partnership), which in Arabic means “sharing.” Since Shariah prohibits interest in lending, Mushakarah allows that partners distribute the profit on pre-agreed ratios, while each partner shares the
What is Musharakah? Definition, Example, and 2 Types of Musharakah. Read More »
Ijarah derives from Arabic, meaning “to give something on rent.” It is a type of contract in Islamic Finance that requires the bank to buy an item for a customer and then lease it back. Being very similar to the leasing contract, as a customer, you can use an asset or equipment, which an Islamic bank owns for
What is Ijarah? Definition and 2 Types of Ijarah Read More »
You may be wondering, why not all companies pay dividends to their shareholder? This article will explain to you the reasons. Get Musaffa Premium Now What are Dividends? The dividend is the distribution of profits given by the company and comes from the profits generated by its business. Dividends are given after obtaining approval from
Why Some Companies Pay Dividends and Some Don’t? The Reasons You Need to Know Read More »