Capital market is one milestone in the current world economy. Many industries and companies that use institutional capital markets as a medium to absorb the investment and the media to strengthen their financial position.

Factually, capital markets have become the financial nerve-center (the world's financial nerve, Red) modern economic world. In fact, the modern economy could not possibly exist without the existence of capital markets with a well-organized. Every day trillions of dollars from this transaction through this institution.

As modern institutions, capital markets can not be separated from the weaknesses and mistakes. One of them is an act of speculation. In general the processes of business transactions that occur are controlled by speculators.

They are always watching the market change, making the analysis and calculations, and take action on the speculation in the purchase or sale of shares. Activity that makes the market remains active. However, this activity is not always beneficial, especially when the cause of depression is remarkable.

Speculative nature of the activity can be specified as follows. First, speculation is not really an investment, although in between there are similarities. A very fundamental difference between them lies in the 'spirit' of animating, not in shape. Speculators to buy securities to profit by reselling them in the future. Meanwhile, investors buy securities with the aim to participate directly in the business.

Second, speculation has increased unearned income for a group of people in the community, without them giving any contribution, whether they are positive or productive. In fact, they have taken advantage of the cost of society, which, however, very difficult to be justified economically, socially, and morally.

Third, is the source of speculation is the cause of the financial crisis. The evidence suggests that the activity of these speculators who caused the crisis on Wall Street in 1929 which resulted in great depression for the world economy in the 1930s.

Similarly, the 1967 devaluation of sterling, and francs, the currency crisis in 1969. This is just some examples. Even to this day, the monetary authorities and financial experts are always busy to take steps to anticipate the action and the impact that may have been caused by speculators.

And, fourth, speculation is the outcome of the mental attitude 'to get rich quick'. If someone has been trapped in this mental attitude, then he will try to justify all sorts of ways regardless of religious signs and ethics. Therefore, Islam strictly forbids acts of this speculation, because it is diametrically opposed to the values illahiyah and insaniyyah.

Basic principles
There are some basic principles for building a capital market system in accordance with Islamic teachings. As for implementation, it takes a long process of discourse. These principles, among others, not diperkenankannya sales and purchases directly. Currently, if a person or a company wants to sell or buy shares, he will use a broker or brokerage services. Then it will contact the broker jobbers and convey intention to transact, both in the purchase or sale of shares.

Then the jobber is offering 2 price rate, which rate prices would be bought that are usually lower and the rate that would sell price which usually higher. Furthermore the jobber is obligated to buy the stock. Transaction model provides implications 2. The first, the jobber will purchase shares even though they do not necessarily need it.

They bought shares in the hope that will be able to sell it back to the parties that need. This will open the door of speculation. The speculators know that they can be profitable to buy shares from the market because of the jobber was able to provide a ready stock.

Similarly, if the stock was less profitable, they can also quickly remove it. The next implication is the price change is determined solely by market forces, where there is no significant change of the intrinsic value of stocks.

In Islamic teachings, rules of capital markets should be made in such a way as to make the act of speculation as a business that is not attractive. For that, the procedure of purchase / sale of shares directly is not allowed.

Procedure, any company that has a quota of certain shares to give authority to the agent on the trading floor, to make a deal on the stock. The task of this agency is to bring together companies with potential investors, and not buy or sell directly.

The shares are sold or purchased if it is available. If many parties who want a particular stock, then they must first be registered as an applicant, and the stock is then sold / purchased with the principle of first-come-first-served (who came before him served, Red).

Price determination
Currently, the stock price is determined by supply and demand forces. Whereas in the Islamic rule, the determination of stock prices is different from pricing as it is today. If we look at the balance sheet of the joint stock company, it is seen that assets equal to the share capital plus liabilities. These assets represent the capital, where the obligation is assumed equal to zero.

Thus, stock certificates have a specific value, where value will be equal to the value of its assets. Every stock price is above or below the value of its assets, does not show the real condition.

But market forces are able to make the stock price is above / below its asset value. In the Islamic view, to prevent this distortion, the stock price should be in accordance with their intrinsic value.

The calculation formula is: the price of shares equal to the share capital + gains - losses + accumulated profits - the accumulation of losses, all divided by the number of shares (Muhammad Akram, Issues in Islamic Economics).

This formula will provide real value of the stock certificates, and would more describe the actual conditions. No one is allowed to buy or sell at various price levels except on the basis of price regulation has been set.

The question, whether a policy like this, speculators will not be interested in speculation activities? There are two reasons that explain this. The price will not change quickly. Price declared since the date of balance sheet and are valid until the next balance sheet date.

In addition, buying or selling stocks is not easy work, and a lot of uncertainty. The speculators will not be hasty in buying stocks before the balance sheet date. This will reduce speculative activity.

Another basic principle is to study carefully the account books. Standard practice of business management and accounting should be applied to all companies that have a certain quota shares. Then there is the need to audit and investigation of a sudden to examine the truth of a company's balance sheet.

In addition, each company should be required to announce its financial position once every three months, so the public will know how true intrinsic value of the stock at least 4 times a year.

Of course, a firm closing date will differ from other companies, so the date of announcement of its financial position would be different. Thus, almost every week throughout the year, there will be announcement of the closure and financial position, and this will continue to make active markets throughout the year.

This basic principle also forbids companies to sell their own shares. The next company is forbidden to sell his own shares in the market without any permission from the registrar / registrant Join Stock Company. In addition, there are credit restrictions for speculation purposes. Fund loans for the purpose of speculation in the stock market is strictly prohibited in Islam.

Forward transaction
One of the major part of the business venture is a forward transaction, where the two parties agreed to conduct transactions on the delivery of a specific date in the future. Usually between one to twelve months after the date of the transaction. On the London Stock Exchange, forward this transaction has been banned in a broader scale. In addition, there are also not allowed to short sell. It is selling shares before someone have it, hoping to buy it back with a lower price.

Contango also not allowed. There are two reasons why the contango will not happen in Islamic capital markets. First, the price will not change quickly because the price is determined by the intrinsic value of the shares. Then the second, funding for which comes from contango usury will not be available because Islam forbids usury, or the like.

Likewise option transactions, either single or double option second option is not allowed in Islam, as affirmed in the book Mishkat al-Bai. The existence of the overall supervision of capital market activities. To ensure effective implementation of Islamic capital markets, as well as to prevent deviation from Islamic values, it is necessary to an institution that has full authority, whose members not only financial experts, but also by legal experts / Islamic law.

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