<![CDATA[This research aims to analyze Islamic stocks as an alternative investment that aligns with Sharia principles in the Indonesian capital market. The primary focus of the study is to understand the mechanism of Islamic stock investments, the legal foundations supporting them, as well as the challenges and opportunities for their development. Given the increasing interest in Sharia-compliant investments, this research also seeks to provide a deeper understanding of the contribution of Islamic stocks to the Indonesian economy and the importance of financial literacy in the community. The methodology used in this study is a qualitative approach with a literature review, which includes analyzing primary sources such as the Qur'an, Hadith, and relevant literature on Sharia investments and the capital market. Additionally, this research examines the regulations governing the Islamic capital market in Indonesia, including the screening process for Sharia-compliant stocks by the Financial Services Authority (OJK). The findings show that although the Islamic stock market in Indonesia has grown significantly, there are still major challenges regarding the lack of public understanding of the mechanisms and legal foundations of Islamic stocks. The strict screening process ensures that listed stocks comply with Sharia principles. The study also highlights the need for more comprehensive education and outreach regarding Islamic stocks to increase public participation in the Sharia-compliant capital market. This research is expected to provide insights for investors, regulators, and market participants in developing the Islamic capital market in Indonesia and enhancing financial literacy within the community. ]]>
