Islamic Investment

My Teacher and I [19]

Market sentiment – rising prices would indicate a bullish market sentiment, while falling prices would indicate a bearish market sentiment. – Investopedia My Teacher and I [18] Image: vijilent.com

Investing in Stocks

Investing in Stocks by Hadi Rofiee

When you buy stock, you buy part of the corporation that issued the stock, or offered it for sale in an initial public offering (IPO). As a stockholder, you have equity, or ownership, in the corporation. From an Islamic legal perspective, this is lawful because you become a partner in the business.

Your equity is likely to be small. Most corporation issues millions or billions of shares. As an individual investor, you’re likely to own hundreds or thousands of those shares, equal to just a fraction of 1% the company. But your equity gives you the right to vote on some of the company’s policy decisions and for the board of directors. And you can profit if the stock’s price increases, if the company pays you dividends, or a portion of its profits, or if both of those things happen.[1]Read More »Investing in Stocks

My Teacher and I [18]

Value investment. Always keep track of the companies’ chart movement as well as its financial and business performance. We do not look into charts only. When you study a company or counter, look into their P&L and shareholders too. My Teacher and I [17]