Speculation and the Stock Market

UAE Laws and Islamic Finance

On the ground of the Vatican: Taurus and Virgo

Thoughts from Iraj Toutounchian’s ‘Islamic Money & Banking: Integrating Money in Capital Theory’

The speculative valuation of share capital on the Stock Exchange does not in any way correspond with the economic productivity of the firm; hence it constitutes a sort of ‘double life’ for the share capital… The way in which this alter ego is born and repeatedly animated leads to gross misuse of capital.’  (Wilken 1982: 37)

It makes one wonder, along with Keynes, how ‘when Wall Street is active, at least a half of the purchases or sales of investments are entered upon with an intention on the part of the speculator to reverse them the same day.  This is often true of the commodity exchanges also.’  (Keynes 1936: 160 footnote)  The question at this point is: How in the world could speculators be thought to…

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