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Trading In Banking Stock
Assalam walikum
Mera question banking stocks ko lekr hai, bank ke stocks mai hum investment to nhi kr skte kyuki bank ke profits zada tar intrest based hote hai, lekin bank ke stocks ki trading krna kesa hai kyuki trading mai hum bs stocks ko buy aur sell krke paise kmate hai isme intrest ka koi role nhi hota.
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3 Replies
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Trading In Banking Stock
updated 3 years, 7 months ago
3 Members
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3
Replies
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The only difference between trading and investing is that the former is conducted on a shorter time. In principle, they are both the same.
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if we buy bank stock and sell it at higher price we make profit on the value of share, which doesn’t involve intrest, how it could be same.
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The issue here is not of earning interest through trading of stock, rather it is to invest/trade in a stock of a company whose primary revenue generating activity is interest based.
Share price is backed by the activity of the company, therefore one is not only involved in keeping afloat the primary activity of the bank, which is riba based primarily hence prohibited, but is also involved in reaping benefits from the fluctuations in the share price of the bank.
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