Analysis of Stock Exchange Market and Shares Tag El-Din (1996)

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Why have Muslim scholars been examining the stock exchange market?

To analyze the economic impact of stock exchange markets

To develop an Islamic model that aligns with their beliefs (correct)

To assess the regulatory framework of different stock exchanges

To determine the best investment strategies for individuals

What challenges are highlighted regarding the development of an Islamic model for stock exchange markets?

Ignoring the economic dimension of stock exchange markets

Adhering strictly to secular laws in all countries

Addressing issues like interest, uncertainties, and fraud (correct)

Ensuring rapid financial gains for investors

What does El Gari suggest about the role of stock exchange markets in modern economies?

They are irrelevant in today's economic systems

They are only suitable for non-Muslim investors

They are a necessity for present-day economies (correct)

They should be completely avoided by Muslim investors

Why does the text mention the importance of considering the regulatory framework of stock exchange markets?

To point out variations in regulations across different countries Signup and view all the answers

How does the text suggest one can approach the development of an Islamic model within secular law?

By advocating for amendments to accommodate Islamic principles Signup and view all the answers

What is the main reason why equity finance is considered the most desired way of Islamic finance and investment?

It involves profit and loss sharing Signup and view all the answers

Why is the contribution of stock in the investment world minimal according to the text?

Challenges in building Islamic indexes Signup and view all the answers

What does the paradigm shift in the text focus on?

Liability Signup and view all the answers

What is one of the main reasons for the prevailing situation within the arena of Islamic finance discussed in the text?

Differences of opinion among Muslim scholars Signup and view all the answers

What is the second reason mentioned in the text for the minimal contribution of stock in the investment world?

Complexity in building Islamic indexes Signup and view all the answers

Why is it important to differentiate the personal right of the shareholder and the real right of the company?

To ensure proper Islamic direction Signup and view all the answers

What aspect warrants parallel research according to the text?

Development of Islamic indices Signup and view all the answers

Why is a deeper study of conflicting views regarding investing in common stocks necessary according to the text?

Due to the importance of stock exchange markets for economic development and fund raising Signup and view all the answers

Which author proposed the possibility of establishing an Islamic Securities House within secular stock exchanges?

Tellner (1425 AH) Signup and view all the answers

What area has not been extensively debated in academic works according to the text?

Development of Islamic indices Signup and view all the answers

What historical context led to the emergence of shares in the 17th century?

Encouraging risky ventures for the expansion of the British economy Signup and view all the answers

In the Solomon v/s Solomon Ltd case, what was the significant judgment made by the House of Lords?

Shareholders are distinct from the company Signup and view all the answers

What was the original perception of shares based on in terms of ownership?

Proportional ownership of company assets Signup and view all the answers

What factor has led to corporate law being one of the most frequently amended laws?

The complexity surrounding share subscriptions Signup and view all the answers

What does Tag El-Din focus on in his analysis of the stock exchange market?

The general principles and special constraints of the normative Islamic Stock Exchange Signup and view all the answers

How have Muslim scholars approached the permissibility of shares and stock exchange markets based on the text?

They have debated the evolving stance on shares and stock exchange markets Signup and view all the answers

What important juristic issue does Tag El-Din raise regarding the stock exchange market?

The permissibility of shares and limited liability companies Signup and view all the answers

What did the All India fiqh Academy conference reveal about the permissibility of shares and companies?

There is a lack of complete consensus Signup and view all the answers

According to Nizam Yaqubi, what can be observed about the views of Arab Jurists regarding stock exchanges?

There are conflicting views that still persist Signup and view all the answers

What is the key factor leading to the globalization of transactions in the stock exchange market?

Growing information technology in the field Signup and view all the answers

What is one of the main features of Islamic finance mentioned in the text?

Developing asset-backed financial products Signup and view all the answers

Why did shari’ah scholars establish specific criteria for the sale of shares on the stock exchange?

To ensure shares are mal Signup and view all the answers

What is one of the reasons for Islamising indexes like the FTSE Islamic Index?

To enable Muslims to explore halal income sources Signup and view all the answers

What is the purpose of establishing an Islamic Share Index, according to the text?

To explore halal income avenues for Muslims Signup and view all the answers

Why do shari’ah scholars feel the need to reassess the criteria for shari’ah-compliant transactions in stock exchanges?

Due to changes in the early criteria and ongoing discussions on improvement Signup and view all the answers

What is the rationale behind the criterion that a company must meet specific financial constraints to be included in an Islamic share index?

To comply with Islamic laws on financial transactions Signup and view all the answers

What is the significance of the legal maxim 'the majority deserves to be treated as the whole of things' in determining which companies can be included in the Islamic share index?

It emphasizes the importance of considering both liquid and illiquid assets. Signup and view all the answers

What condition must be met regarding the illiquid part of a company's asset combination to be considered negotiable according to the ahnaf school?

It must not be in an ignorable quantity. Signup and view all the answers

Why is it stipulated that the price of an asset combination should be more than the value of the liquid amount contained therein?

To avoid falling within the purview of riba (usury) Signup and view all the answers

In developing an Islamic share index, what role does the third financial constraint play?

Limiting interest or unlawful gains to less than 5% of total revenue Signup and view all the answers

Which school's view permits negotiability of asset combinations regardless of liquid ratio, under certain specified conditions?

Ahnaf school Signup and view all the answers

Why is it important for the illiquid part of an asset combination to not be in an ignorable quantity?

To meet Islamic financial constraints Signup and view all the answers

Which principle guides Islamic finance in ensuring that transactions are asset-backed?

'Dealing with a combination of liquid and illiquid assets' Signup and view all the answers

What happens if the price of an asset combination is not more than the value of the liquid amount contained therein?

The transaction falls under riba and is disallowed. Signup and view all the answers

Why is it emphasized that interest or unlawful gains should represent less than 5% of total revenue in creating an Islamic share index?

To adhere to specific financial constraints guided by Islamic principles. Signup and view all the answers