al-Ashum - Hukmuha wa Atharuha
- Author died
- -
- Editions
- Dar Ibn al-Jawzi for Publishing and Distribution
al-Ashum: Hukmuha wa Atharuha (Corporate Shares: Their Legal Ruling and Impacts) is a contemporary Islamic jurisprudence treatise on the legal rulings governing corporate stock shares, market trading, and financial speculation, written by Salih ibn Muhammad al-Sultan, a professor at the College of Sharia at Qassim University .
Background and Publication
The work addresses contemporary financial developments (nawazil) surrounding joint-stock corporations and stock markets, which became widespread forms of investment and speculation . Noting the proliferation of conflicting juristic opinions, the author composed the study to analyze the underlying legal evidences, scrutinize legal maxims invoked by contemporary scholars, and evaluate the economic reality and legal objectives (maqasid) related to stock transactions . The book was published in its first edition by Dar Ibn al-Jawzi in Dammam in 1427 AH (2006 CE) .
Structure and Scope
The book consists of an introduction, a preliminary chapter (tamhid), five thematic research sections (mabahith), and a conclusion :
- Preliminary Chapter: Examines six foundational topics, comprising the definition and conceptual nature of shares, their characteristics, their valuation and categories, their types, the subject matter of the contract in selling shares, and the ruling on selling shares prior to their public circulation .
- First Section: Discusses the legal ruling on investing in companies whose primary commercial activity is permissible but which engage in incidental prohibited transactions, such as borrowing or depositing funds on interest (mixed companies), along with related branches and the case of discovering illicit transactions after acquiring shares .
- Second Section: Investigates the subject matter of the contract in stock speculation (al-ma'qud 'alayh fi al-mudarabah 'ala al-ashum) .
- Third Section: Examines the specific practices and behaviors of speculators in the stock market and their corresponding legal status .
- Fourth Section: Analyzes the functional reality and nature of short-term speculative trading in stock exchanges .
- Fifth Section: Assesses the broader financial and social effects of stock speculation .
The conclusion highlights disparities in public awareness and religious scruples concerning financial dealings, cautioning against laxity in distinguishing permissible investments from illicit gains . In contemporary legal literature, the work is cited among the references advocating the prohibition of speculative stock trading (al-mudarabah fi al-ashum) aimed purely at capturing price differentials, even in companies whose operations are otherwise compliant .
Answer updated