The role of financial markets in the effectiveness of economic activity (with reference to the Islamic point of view)

Abstract

There is no doubt that economics deals with the future as long as the largest part of it deals with the future essentially, and in view of the desire to know or predict the future, traders in the financial markets need, before making important decisions regarding buying and selling operations, to feel the future and be familiar with the tools and conditions. Which governs it, and therefore there has emerged an urgent and important need to anticipate and predict the future of securities prices. This requires the availability of complete and accurate data about the past, in addition to relying on laws or theoretical hypotheses that explain the relationships between phenomena. The stock market is one of the prominent features that reflects the extent of the development of the financial system, as long as He was able to better exploit the available financial resources by pooling national and foreign savings and investing them in companies and projects with good economic feasibility. In addition, they are considered one of the important savings and investment devices in countries that enjoy economic freedom.