Religion, ethics and stock trading: The case of an islamic equities market
Journal of Business Ethics 23 (2):145 - 159 (2000)
| Abstract | Islamic banking, based on the prohibition of interest, is well established throughout the Muslim world. Attention has now turned towards applying Islamic principles in equity markets. The search for alternatives to Western style markets has been given added impetus in Muslim countries by the turmoil in Asian financial markets in 1997. Common stocks are a legitimate form of instrument in Islam, but many of the practices associated with stock trading are not. In this paper the instruments traded and the structure and practices of stock markets are examined from an Islamic perspective. Speculation is not acceptable in Islam and measures would have to be taken to control speculative trading. In addition short selling and margin trading are severely restricted. The use of stock index and equity futures and options are also unlikely to be acceptable within an Islamic market. Regulatory authorities in Muslim countries will therefore find a vast array of problems in attempting to structure a trading system that will be acceptable. | |||||||||
| Keywords | No keywords specified (fix it) | |||||||||
| Categories | ||||||||||
| Options |
|
|||||||||
Download options| PhilPapers Archive |
Upload a copy of this paper Check publisher's policy on self-archival Papers currently archived: 5,672 |
| External links |
 |
| Through your library | Configure |
Similar books and articlesJames J. Angel & Douglas M. McCabe (2009). The Business Ethics of Short Selling and Naked Short Selling. Journal of Business Ethics 85:239 - 249.
Robert W. McGee (2010). Analyzing Insider Trading From the Perspectives of Utilitarian Ethics and Rights Theory. Journal of Business Ethics 91 (1):65 - 82.
Khalil M. Torabzadeh, Dan Davidson & Hamid Assar (1989). The Effect of the Recent Insider-Trading Scandal on Stock Prices of Securities Firms. Journal of Business Ethics 8 (4):299 - 303.
Panagiotis Lekkas (1998). Insider Trading and the Greek Stock Market. Business Ethics 7 (4):193–199.
Peter-Jan Engelen & Luc Van Liedekerke (2007). The Ethics of Insider Trading Revisited. Journal of Business Ethics 74 (4):497 - 507.
Joseph D. Beams, Robert M. Brown & Larry N. Killough (2003). An Experiment Testing the Determinants of Non-Compliance with Insider Trading Laws. Journal of Business Ethics 45 (4):309 - 323.
Mohammad Abdolmohammadi & Jahangir Sultan (2002). Ethical Reasoning and the Use of Insider Information in Stock Trading. Journal of Business Ethics 37 (2):165 - 173.
E. Mine Cinar (1999). The Issue of Insider Trading in Law and Economics: Lessons for Emerging Financial Markets in the World. Journal of Business Ethics 19 (4):345 - 353.
Analytics
Monthly downloads |
Added to index2009-01-28Total downloads41 ( #27,873 of 549,067 )Recent downloads (6 months)1 ( #63,185 of 549,067 )How can I increase my downloads? |
My notes
Discussion
