Islamic Finance

[DKleinecke]

In the current recession a lot of big companies have gone bankrupt. It
is my understanding that under western financial rules that means that
people who own stock have lost all the money they invested in the
stock (if not always - then in many cases).

It is my understanding that under Islamic financial rules the
stockholders not only lose their investments but are liable for their
portion of any debt that cannot be matched against an asset.

That would lead a remarkable result for stockholders in a company like
AIG which I believe has gone into debt (to the government) for around
150 billion dollars.

Am I correct in believing that Islamic financial rules require
stockholders in a company to be responsible for the company's debts as
well as sharing in the company's profits?

If I am correct would it then follow that Muslims should not hold
stock in companies in legal situations where they would not be
responsible of the debts?