Hakim ibn Hizam
Encyclopedia
Hakīm ibn Hizām is the principal narrator of a hadith
that has become very important is the development of contract law in Muslim
nations. His father was Hizam ibn Khuwaylid. Hizam was a merchant, who asked the prophet Mohammed whether it was permissible for him to sell to a customer goods that he doesn't yet possess ("short selling
" in Western parlance). Mohammed forbade that.
Short selling often has a speculative element, which may be the reason for the prohibition. If Abdul sells to Tariq some cattle deliverable in 90 days, at today's cattle price, then Abdul is speculating that cattle will decline in price over those 90 days, so he can buy it at the lower price in 89 days, deliver it to Tariq then, and pocket a profit. Tariq is making the contrary speculation.
Other forms of activity that might be calling "selling what is not with you" involve options
and futures contract
s.
The author of Sahih Muslim
states that Hizam had the unusual distinction of being born in the Kaaba
, and lived 120 years. (ref)
Hadith
The term Hadīth is used to denote a saying or an act or tacit approval or criticism ascribed either validly or invalidly to the Islamic prophet Muhammad....
that has become very important is the development of contract law in Muslim
Islam
Islam . The most common are and . : Arabic pronunciation varies regionally. The first vowel ranges from ~~. The second vowel ranges from ~~~...
nations. His father was Hizam ibn Khuwaylid. Hizam was a merchant, who asked the prophet Mohammed whether it was permissible for him to sell to a customer goods that he doesn't yet possess ("short selling
Short selling
In finance, short selling is the practice of selling assets, usually securities, that have been borrowed from a third party with the intention of buying identical assets back at a later date to return to that third party...
" in Western parlance). Mohammed forbade that.
Short selling often has a speculative element, which may be the reason for the prohibition. If Abdul sells to Tariq some cattle deliverable in 90 days, at today's cattle price, then Abdul is speculating that cattle will decline in price over those 90 days, so he can buy it at the lower price in 89 days, deliver it to Tariq then, and pocket a profit. Tariq is making the contrary speculation.
Other forms of activity that might be calling "selling what is not with you" involve options
Option (finance)
In finance, an option is a derivative financial instrument that specifies a contract between two parties for a future transaction on an asset at a reference price. The buyer of the option gains the right, but not the obligation, to engage in that transaction, while the seller incurs the...
and futures contract
Futures contract
In finance, a futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity and quality for a price agreed today with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange...
s.
The author of Sahih Muslim
Sahih Muslim
Sahih Muslim is one of the Six major collections of the hadith in Sunni Islam, oral traditions relating to the words and deeds of the Islamic Prophet Muhammad. It is the second most authentic hadith collection after Sahih Al-Bukhari, and is highly acclaimed by Sunni Muslims...
states that Hizam had the unusual distinction of being born in the Kaaba
Kaaba
The Kaaba is a cuboid-shaped building in Mecca, Saudi Arabia, and is the most sacred site in Islam. The Qur'an states that the Kaaba was constructed by Abraham, or Ibraheem, in Arabic, and his son Ishmael, or Ismaeel, as said in Arabic, after he had settled in Arabia. The building has a mosque...
, and lived 120 years. (ref)
See also
- SahabaSahabaIn Islam, the ' were the companions, disciples, scribes and family of the Islamic prophet...
- People reported to be born in the KaabaPeople reported to be born in the KaabaMuslim sources report of an early Muslim being born in the Kaaba, the cubical structure that is the focus of a Muslim's daily prayers and the holiest structure in Islam.-Introduction:The reports differ in nature...
- HakimHakim (title)' and ' are two Arabic titles derived from the same triliteral ḤKM "appoint, choose, judge". Compare the Hebrew title hakham.-Hakīm :...
- Hizam (name)