The following question and answer by Sheikh Yusuf Talal DeLorenzo attendees of the Dow Jones University Courses on Islamic Investement.

Question:: I asked previously and received no reply what are the essential components to a contract according to the different madhhabs? Also, some say that the offer and acceptance element of the contract is not present if you are a shareholder because you have a very limited say. is this accurate?

Answer: The classical jurists are in agreement that every legal contract is composed of a pillar

The following question and answer by Sheikh Yusuf Talal DeLorenzo attendees of the Dow Jones University Courses on Islamic Investement.

Question:: First, Praise be to Allah for this course, the designers and instructors of it. I pray Allah continue to bless each of you. My question pertains to the interpretation of verses 3:130 and 3:132, not to be argumentative or dogmatic, but because the verses were used in the lessons.

Since Allah leaves nothing to "chance," and with Him there is no such thing as "chance,"

The following question and answer by Sheikh Yusuf Talal DeLorenzo attendees of the Dow Jones University Courses on Islamic Investement.

Question:: You have detailed the screening process for investing in the equity market. What about Supermarkets Companies.... they do sell haram meat including pork and sell wine. Therefore would these be excluded or the profits be regarded as a small percentage of their income and therefore acceptable.

Secondly, a slightly varied form of investment. Suppose I own a property, can I rent

The following question and answer by Sheikh Yusuf Talal DeLorenzo attendees of the Dow Jones University Courses on Islamic Investement.

Question:: In the quiz for the lesson called What is Islamic Investment I have answered question number 8 as True, (a. true), and my answer was wrong (only one wrong in ten questions; I have answered the rest correctly.) Then I have reviewed my wrong answer,the explanation was that "Currently, funds claiming to be Islamic are not required toprove that they are Shari'ah compliant. Many do not employ the stringent criteria of

The following question and answer by Sheikh Yusuf Talal DeLorenzo attendees of the Dow Jones University Courses on Islamic Investement.

Note: The course referred to in the answers is available only via the Dow Jones University. Muslim-Investor.com does not have access to this course material. Please contact the Dow Jones University directly for more information. 

The following question and answer by Sheikh Yusuf Talal DeLorenzo attendees of the Dow Jones University Courses on Islamic Investement.

Question:: It has been stressed a number of times the that "the Muslim investor will be morally bound to inform management that s/he cannot approve of such transactions." How should a Muslim investor structure a letter to satisfy such a criteria andwhat kind of items and "arguments" should he put forward to the management/investorrelations of a company so that the letter satisfies the Islamic requirement and is

The following question and answer by Sheikh Yusuf Talal DeLorenzo attendees of the Dow Jones University Courses on Islamic Investement.

Question:: "Owing to this prohibition, then, one may not sell high quality wheat for a larger quantity of low quality wheat". What if the money value of the high qualitywheat and the larger quantity of lower quality wheat is similar or the same? Re: ribaof deferment. "Owing to this prohibition, then, one may not sell low quality wheat nowfor high quality wheat later". Am I to understand that the person who is bartering the

The following question and answer by Sheikh Yusuf Talal DeLorenzo attendees of the Dow Jones University Courses on Islamic Investement.

Question:: In the topic of Gharar, could it be safe to say that investing in the stock market is Gharar? There is a certain amount of risk involved in investing in the stock market without any assured returns so does this qualify as Gharar?

Answer: In section five of Lesson Two I wrote:

"Obviously, if we equate gharar to uncertainty and risk, then these are things

The following question and answer by Sheikh Yusuf Talal DeLorenzo attendees of the Dow Jones University Courses on Islamic Investement.

Question:: I would like to know if it is halal to lease from a kufar financialinstitution?

Answer: If a lease can be structured in a way that conforms with Shari`ah principles (as in an ijarah contract), it will be lawful, regardless of whether the lease originates from a conventional financial institution or otherwise. Many Islamic banks, investors, and financial institutions participate in leasing operations that comply with Shari`ah principles and yet involve conventional financial institutions.

The following question and answer by Sheikh Yusuf Talal DeLorenzo attendees of the Dow Jones University Courses on Islamic Investement.

Question:: If in mudarabah partnership, mudarib has had some losses and inanother transaction he reaps profit. This means that profit should be taken to offset thelosses first and the remaining profit, if any, can be distributed to all the parties according to the pre agreed proportion. My question is which losses should be offset? Losses in capital owned by robbul maal or loss in mudarib's effort?