The investment world is currently going through a mayhem with Wall Street Bets (WSB, a reddit group) going against the banks and other investment companies who are short selling and theres a short squeeze occurring at Amazon, Blackberry and Nokia amongst some other companies.
As such, buying shares now is a lot more lucrative in these companies - around 30-40%! Returns in a single day!
Some of these stocks are sharia compliant but I wanted to ask. If I were to buy in to these shares is it:
A) considered gambling because the main purpose of acquiring these shares are to ‘follow the money’, sell and use the returns to amplify my other investments, rather than looking at the company itself.
B) morally/ethically right to purposely acquire shares that will then come at the detriment of the short sellers or is this just market supply and demand forces at play thus resulting in winners and losers per se.
I want to keep my income halal!
Jzk molsab
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I am also very curious about this, and made this account just to follow this question and see what fellow Muslims think.
My initial thoughts are that it’s not halal. It strongly feels like gambling, the folks on WSB are throwing money at these stocks like GME and BB with little reason other to strike it rich. I’ve tried to do my investing either in the halal ETFs like SPUS or HLAL, or have tried to find companies that are halal.
It is very appealing to want to jump into this crowd and strike it rich, but I just can’t make myself feel comfortable enough to do so. Perhaps others can share their thoughts on this?
Wasalam
May Allah bless you.
If the share is halal and the transaction is in line with the correct shariah paramètres, then it is permissible to buy the shares.
However, morally it is wrong to take part in this sort of market manipulation. Under an Islamic system, the leader of the Muslims could even stop this type of behaviour.
If it is proven that such action causes harm to people, then it can even be considered as haram.
And Allah knows best!