When screening a share, do not look only at the company’s business activity. Also ask what the share represents at the asset level: cash, receivables, inventory, plant, property and other assets.
Tradability is therefore a second layer of Shari‘ah screening after business permissibility.
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Equity Investment: When Are Shares Tradable?
When screening a share, do not look only at the company’s business activity. Also ask what the share represents at the asset level: cash, receivables, inventory, plant, property and other assets.
Tradability is therefore a second layer of Shari‘ah screening after business permissibility.