Explaining the Challenges of Abnormal Speculation and Its Unuthorization from the Perspective of economics and with an Approach to Islam

Financial markets, along with monetary markets, help optimally equip and allocate resources, and consequently help increase production, employment and prosperity, but abnormal speculation damages the efficiency of these markets. Abnormal speculation in the stock market raises the risk, uncertainty, price fluctuations, and increases the gap between market value and intrinsic value of stocks, and prevents optimal allocation of funds to the most productive firms. Abnormal speculation makes the market volatile, makes prediction difficult and undermines decision-making and planning power. Abnormal speculation is the abnormal cause of price changes and pushes the market out of balance. An abnormal spectacle is associated with the formation of a price bubble and its devastating consequences. In this paper, the nature of speculation in the stock market, its abnormal forms, abnormal speculative psychology, the role of professional speculators, the role of abnormal speculation in financial crises, and the mechanisms for coping with abnormal speculation are examined. In response to the question of how abnormal speculation is in terms of economics and Islam, it is hypothesized that since abnormal speculation is associated with deceptive, gambling and deceptive behaviors, and disrupts the performance of the stock market, it is not permissible. This article seeks to provide a more complete explanation of the nature of abnormal speculation, and aims to provide more incentive to deal more severely with this very destructive phenomenon.