ELI5: Explain Like I'm 5

dow jones islamic index

So, you know how sometimes people buy things in the store and when they want to sell them later, they look at how much they paid for it and how much people are willing to buy it for now? That's basically what the Dow Jones Islamic Index does, but for companies that are run according to Muslim rules.

Now, you might ask, what are Muslim rules? Well, Muslims follow a set of guidelines called Shariah that tell them what's right and wrong. For example, they can't sell things that are forbidden in Islam, like alcohol or pork. They also can't gamble or charge interest on loans.

So, the Dow Jones Islamic Index picks out companies that follow these rules and puts them in a list. The list tells us how much it costs to buy a share in that company and how much money people are willing to pay for that share. People use this list to see how well Muslim-friendly companies are doing in the stock market.

Overall, the Dow Jones Islamic Index helps people who follow Muslim rules to make good choices when they want to invest their money.