Stocks

Not all stocks available confirm to Islamic principles. Therefore, a Muslim investor is faced with the dilemma of selecting stocks fromthe thousands of available companies.

Regular research available on the web does not address this aspect, at least up till now.

As you can see, there are several steps that a Muslim Investor must dobefore he can invest in a certain stock.

These steps include:

• Nature of business
• Percentage of income from interest
• Financial soundness

Please check our stocks section for full details.

In today's internet enabled market, there is no reason to go for the so calledBig Name "Full Service Brokers". These have been labelled as "Full Price Brokers" and justifiably so, since they tout their "research" and "advice" and make those services justify the high fees and commissions they charge per trade.

So, Muslims are against interest and this leaves a bank Savings Account out of the question as a vehicle for regularly saving a small monthly amount. This is also the "conventional" way to teach kids the basics of investment, and give them a motive to save rather than spend, and watch the money grow because of bank interest.

On the other hand, not everyone can afford the 2,000$ required to start a brokerage account, and the 10-20$ a trade fee is too high if I only want to save 50-100$ per month? Is there a way?

By owning a company's stock, you own a piece of a business as a silentpartner (you do not participate in the day-to-day running of the business).