Is investing in the stock market haram?

Sources

• ✓ 2:195 · Al-Baqara

  2:195 · Muhammad Marmaduke Pickthall

  وَأَنفِقُوا۟ فِى سَبِيلِ ٱللَّهِ وَلَا تُلْقُوا۟ بِأَيْدِيكُمْ إِلَى ٱلتَّهْلُكَةِ ۛ وَأَحْسِنُوٓا۟ ۛ إِنَّ ٱللَّهَ يُحِبُّ ٱلْمُحْسِنِينَ

  Spend your wealth for the cause of Allah, and be not cast by your own hands to ruin; and do good. Lo! Allah loveth the beneficent.

• ✓ 2:266 · Al-Baqara

  2:266 · Muhammad Marmaduke Pickthall

  أَيَوَدُّ أَحَدُكُمْ أَن تَكُونَ لَهُۥ جَنَّةٌۭ مِّن نَّخِيلٍۢ وَأَعْنَابٍۢ تَجْرِى مِن تَحْتِهَا ٱلْأَنْهَٰرُ لَهُۥ فِيهَا مِن كُلِّ ٱلثَّمَرَٰتِ وَأَصَابَهُ ٱلْكِبَرُ وَلَهُۥ ذُرِّيَّةٌۭ ضُعَفَآءُ فَأَصَابَهَآ إِعْصَارٌۭ فِيهِ نَارٌۭ فَٱحْتَرَقَتْ ۗ كَذَٰلِكَ يُبَيِّنُ ٱللَّهُ لَكُمُ ٱلْءَايَٰتِ لَعَلَّكُمْ تَتَفَكَّرُونَ

  Would any of you like to have a garden of palm-trees and vines, with rivers flowing underneath it, with all kinds of fruit for him therein; and old age hath stricken him and he hath feeble offspring; and a fiery whirlwind striketh it and it is (all) consumed by fire. Thus Allah maketh plain His revelations unto you, in order that ye may give thought.

• ✓ Tafsir Ibn Kathir on 2:195

  Sunni

  Tafsir Ibn Kathir · 2:195

  The hadith collectors, including al-Bukhari, report from Hudhayfah that the verse “And spend in the cause of Allah and do not throw [yourselves] with your own hands into destruction” was revealed concerning spending in the path of Allah, specifically about stinginess and withholding from giving. This is indicated by a narration from Abu Wa’il quoting Hudhayfah, stating that this verse was revealed about the act of spending charity often called an-Nafaqah. Many narrations from Ibn Abbas, Mujahid, Ikrimah, Sa'id ibn Jubayr, Ata, ad-Dahhak, al-Hasan, Qatadah, as-Suddi, and Muqatil ibn Hayyan provide similar explanations. An important contextual report from Aslam Abu Imran narrated by Yazid ibn Abi Habib tells of a man among the Muhajirin who charged alone against the enemy ranks at Constantinople, even piercing them through. People criticized him, saying he cast himself into destruction, to which Abu Ayyub al-Ansari responded that the verse was revealed regarding the Ansar during the early Islamic battles. When Islam spread and the Muslim community grew, the Ansar began to focus on their families and wealth rather than continuous striving. This verse came as a warning against settling back into personal comfort and neglecting the struggle, which would be tantamount to casting oneself into ruin. This narration is recorded by Abu Dawud, Tirmidhi, an-Nasa'i, Ibn Abi Hatim, Ibn Jarir, Ibn Marduwaih, Abu Ya’la in his Musnad, Ibn Hibban in his Sahih, and al-Hakim in his Mustadrak. Tirmidhi comments that the hadith is good and authentic and al-Hakim confirms its soundness according to the Shaykhayn’s criteria, although neither Bukhari nor Muslim included it. There is another narration from Abu Ishaq as-Sabi’i recorded by Ibn Marduwaih and al-Hakim from Isra’il from Abu Ishaq that clarifies “casting oneself into destruction” refers specifically to rashly charging the enemy without support, which is a vice in the path of jihad. The verse implies not to recklessly throw oneself into harm. Ibn Abi Hatim and other scholars relate an incident in which a man among the people of Damascus rode alone into enemy lines and was censured by the Muslims. Amr ibn al-As was informed and sent a reply quoting this verse to remind them not to recklessly throw themselves into harm. Ata ibn al-Sa’ib recited from Ibn Abbas the interpretation that the prohibition is not about fighting but relates to withholding spending in Allah’s cause – in other words, to be miserly in giving. To neglect spending in the way of Allah is considered casting oneself into ruin. Al-Hasan al-Basri explains “do not cast yourselves into destruction” as forbidding stinginess. Simak ibn Harb relays from Nu’man ibn Bashir that it also means a person committing sins and despairing of forgiveness, doing more sins until he brings his own destruction. This is supported by al-Nu’man’s explanation and numerous other scholars such as Ubaydah as-Salmani and Ibn Sirin. Ibn Abi Hatim quotes a narration from Ali ibn Abi Talhah from Ibn Abbas stating that destruction here is the punishment of Allah. Further scholarly consensus relates that the verse warns against mismanaging resources so badly that one jeopardizes one’s survival in the path of Allah. For example, it was common for people to bring more provisions than others in battle and generously share them with the needy, draining their own supplies; the verse warns not to extend oneself to such an extent as to cause harm. This was explained also by Ibn Wahb, who reports from Zayd ibn Aslam that some men would go on military expeditions without provisions, relying on Allah. God commanded them through this verse to take provisions and spend it in the way of Allah without casting themselves into destruction, such as death from hunger or overexertion. The essential command of the verse is to encourage spending in Allah’s cause in all forms of good deeds, especially spending wealth in fighting the enemies to strengthen Muslims. It warns about neglecting this duty by being stingy, which leads to ruin if persistent. Then it adds the encouragement to do good excellently, as Allah loves those who do good with excellence.

• ✓ Majma al-Bayan fi Tafsir al-Qur'an on 2:195

  Shia

  Majma al-Bayan fi Tafsir al-Qur'an · 2:195

  Recitation Variants: None specifically noted for this verse. Language: "Al-Infaq" (the spending) means the transfer of something out of one's possession into the possession of another, for if it were transferred merely to destruction, it would not be called "infaq." "Al-Iqla'" (throwing) means causing something to go downwards; sometimes it is used metaphorically, as in "he was posed a question" or "he was confronted with a matter." Also, it can be applied to any action of undertaking, as saying "he threw his hands into it." Lobeid, the poet, said: "Until a hand was cast toward a disbeliever," and he used darkness or "the sun's cover" to mean nightfall. The terms "al-tahluka" and "al-halak" both signify destruction. It is said that "al-tahluka" is a verbal noun with a meaning akin to "al-halak," and this is rare in Arabic for a verbal noun to be on the pattern "taf'ila" with a dhamma on the letter 'ayn except here. Another explanation is that "tahluka" is anything whose consequence leads to destruction. The root of "halak" means loss or the state of being vanished or unknown. Thus, a disbeliever is called "halik," so is a deceased person, and so is one being punished. "Al-Haluk" is also the term for a large scythe, while "al-halki" is a blacksmith, coming from the tribe Bani Al-Halik bin Amr, who were blacksmiths, hence the general term was derived. "Al-Ihsan" (benevolence, doing good) means bringing beautiful benefit to others. One who fulfills obligations is not considered an "muhsin" (one who does good) merely by fulfilling his debt, even though his act is good. It is not said that God Most High is an "muhsin" by inflicting punishment, even if the punishment is just. Rather, "ihsan" is considered in the light of bringing good benefit, because if one causes a harmful thing to another, we do not say that he does good to him. Grammar: The letter "ba" in "bi-aydeekum" (with your hands) is additional; like in phrases "I pulled the garment and with the garment," or "I taught him and I taught him with (something)." The poet said: "I filled his skin with a portion of harm," meaning harm was filled into his skin. It is also said that the "ba" is not extraneous but comes from two origins: firstly, every transitive verb, when replaced by a verbal noun or inferred, shall have the "ba" as a preposition. Thus, from "I struck him" to "I did (the action) with (him)." Secondly, the meaning of the phrase is "Do not destroy yourselves with your own hands." Therefore, the "ba" is used here to show that the self-destruction comes by your own hand, not by another's. Meaning: After commanding fighting in the cause of God, God then commands spending in His cause: "And spend in the way of Allah." This means spending from your wealth in jihad, in religion, and in all good things God commands. The phrase "fi sabeelillah" means in the path of God, which is the road leading to God and His mercy and reward. The term is often used specifically for jihad because jihad involves risking one's soul, and thus is held in great esteem. "And do not throw yourselves with your own hands into destruction" has multiple interpretations: 1. Do not destroy yourselves by withholding spending in the way of God, so the enemy overwhelms you. This is the view of Ibn Abbas and several mufassirs. 2. Do not commit sins by despairing of forgiveness, as stated by Al-Bara ibn Azib and Ubaidah Al-Salmani. 3. Do not engage in battle without purpose or ability to defend from the enemy, according to Ath-Thawri, selected also by Al-Balkhi. 4. Do not be extravagant in spending such that you harm yourself, as reported from Al-Jubaiyi and by narration from Abu Abdillah who said: if a man spends all he has in Allah's cause, that is the best and most proper action with this verse "And do not throw yourselves with your own hands into destruction." "And do good; indeed, Allah loves the doers of good" indicates those who act moderately. Ikrimah said it means to have good expectations of God who will treat you well. Abdul Rahman bin Zaid said it means to be generous in returning to the needy. It is best to take the verse as encompassing all of these interpretations without contradiction. This verse indicates the prohibition of engaging in acts that endanger the self, and permits refraining from enjoining good in times of fear, for such would be casting the soul into destruction. It also implies the approval of making a treaty with disbelievers or tyrants when the leader fears for himself or the Muslims, as was done by the Prophet (peace be upon him and his family) at Hudaybiyyah, and by Amir al-Mu'minin (peace be upon him) at Siffin and in the reconciliation with Muawiyah when his situation became divided and he feared for himself and his followers. If one objects by saying that Imam Hussain (peace be upon him) fought alone, the answer is that his action may be considered in two ways: either he thought they would hesitate to kill him due to his noble standing from the Prophet (peace be upon him and his family), or because he judged that refraining from fighting would result in his death at the hands of the cursed Ibn Ziyad, as happened to his cousin Muslim. Hence, death with dignity in jihad was preferable to death by patience.