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Many Shariah scholars proposed criteria for determining whether a company or stock is Shariah-compliant.

As a result, the attention was shifted to businesses that engaged in both allowed and disallowed activity according to Shariah. The major goal of the proposed criteria was to include a company in the list of shariah-compliant companies that had an allowed core business activity as well as low degree of prohibited features that can be screened through different financial ratios.

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