"Islamic Finance Researches" (IFR)
Analysis of Common Stock of Companies Listed at Tehran Stock Exchange on Object of the Sale (Mabi) Position
Document Type : Paper
Authors
1 Professor of the Institute of Islamic Culture and Thought
2 Assistant Professor Imam Sadiq University
3 Professor, Faculty of Management and Economics, Islamic Azad University, Research Sciences Branch
Abstract
Common stock is the most important and popular instrument in our capital market. Every day, large volumes of stocks are traded on the Tehran Stock Exchange and their ownership is transferred from one investor (natural or fictitious persons) to others. 'Sales' is the term commonly used for this act in capital market and among investors. Our hypothesis is that the common stocks could be traded as object of the sale (Mabi) in the sales contract (aghd al- bay). To test this hypothesis, we used descriptive and analytical method.
In the description section, we have defined common stock, explained shareholders' rights and clarified different views about the nature of common stocks. Also we have explained sale contract (aghd al- bay) and conditions of object of the sale (Mabi) according to Imamiah jurisprudence.
The conclusion is that a corporation is an independent entity and each shareholder is the co-owner of this contractual entity. The hypothesis is thus confirmed: According to Imamiah jurisprudence, the common stocks could be traded as object of the sale (Mabi) in the sales contract.
Keywords
Volume 4, Issue 1 - Serial Number 7
November 2014Pages 5-44
- Receive Date: 25 December 2014
- Revise Date: 10 October 2015
- Accept Date: 10 October 2015