Scholar Answers

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

Question:: Is there an area where buying and selling stock, even if it is acceptable stock, when itbecomes like gambling? Especially when it is short-term speculation. If it is, then where is thedividing line? And is day trading allowed by the Shari'ah in the qualifying stocks?

Answer: There is a well known hadith of the Prophet, upon him be peace, which is also an important

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

Question:: How does one goes about understanding the ruling of the different schools of thought (madhaahib) when so few people (in my world) know about the subject of finance?

Answer: This is a very good question. In fact, there are very few people qualified to help out in these matters at the present time. This is why Islamic financial institutions, if they are serious about Shari`ah compliance, will be sure to appoint Shari`ah Supervisory Boards.

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

Question:: Who are the scholars of the shari'ah board. What are their orientations, especially when it comes to interpreting the different schools of thought?

Answer: The scholars of the Dow Jones Islamic Market Index Shari`ah Board are featured, withtheir bios, at the DJIMI website. Obviously, they are a group of very accomplished scholars.With regard to their legal orientation, the members of the Shari`ah Board represent nearly all

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