What is Sharia Stocks?

Sharia stocks is securities or securities has the concept of capital investment to companies with the right to profit sharing that is not contrary to sharia principles (Sutedi : 2011). 

The definition of sharia stocks is a form of investment activity in the form of capital investment into a particular company which the company has no activities or business activities that violate sharia principles (Heykal : 2012). 

The meaning of sharia stocks is shares issued by issuers which business activities & procedures for managing their business are not violate or in line with sharia principles (Soemitra: 2009). 

Understanding sharia stocks are stocks that have been compliant shariah or characteristics in accordance with the islamic sharia law contained in the Fatwa of the National Sharia Council No: 40/DSN-MUI/X/2003 article 3 (Kurniawan : 2008). 

Islam is a perfect religion and in accordance with development of the times. Not only does it regulate how relationships are servant with his Lord but also how the relationship between fellow human beings. Interaction and need for each other human beings give birth to muamalah activities such as buying and selling, borrowing, even investing. 

Islam does encourage investment because by doing investment will benefit more people and make the property owned productive. Investment activities not solely done to obtain the benefits but spread the blessings of the treasure. With investment will open many new jobs and can move the wheels of the economy so that it can improve the common well-being. 

One form of investment is to buy shares or letters as a sign that we are investing in a company and later we will get a share of the profit the company in accordance with the shares owned. Investment like this is pretty much in demand because it is simpler and not troublesome than if we manage our own funds or capital such information. 

Judging from the concept of buying shares is a type of investment that allowed in Islam because there is an element of revenue sharing. If there is profit is shared according to the agreement and if the loss is also jointly. However, some Muslims are still doubt about the halalness of conventional stock transactions. They're worried. if there is a part of the transaction that violates Islamic law so that undoubted idolatry. 

Therefore, sharia stocks that provide confidence and security for Muslims who want to buy shares. Sharia stocks basically the same as conventional stocks, the difference between sharia requires that the issuing company of the shares in which we investments are companies whose principles and its operations do not violate Islamic law. 

For example, a company who do not do usury, companies whose products are not goods, companies that do not practice gambling, etc. In addition, sharia stocks also do not use the principle of interest, speculation, and gambling in the process of buying and selling shares. Sharia provided guideline that contains the rules of how sharia stocks such as how sharia-compliant investment practices, distribution of income, asset allocation, and so on. In short, sharia stocks are the type of stocks that should be based on the islamic rules and rules that have been described and stipulated in the Qur'an and Hadith.