Is it permissible to purchase shares in local companies on the stock exchange?

It is not permissible to buy shares in a company that deals with usury or other forbidden things, even if it is a small percentage, because the forbidden return becomes a common part of its funds. The Islamic Fiqh Academy has decided that establishing companies with permissible objectives and activities is permissible, and it has forbidden contributing to companies with a fundamentally forbidden objective. Similarly, it is not permissible for a Muslim to buy shares in companies and banks if some of their dealings involve usury and the buyer is aware of it. If he becomes aware after purchasing, he must withdraw from them. The prohibition of this is clear from the Sharia evidence, because buying shares in this case means the buyer's participation in dealing with usury, as the share represents a common part of the company's capital, and the shareholder owns a common share in the company's assets, and therefore has a share in every fund the company borrows or lends with interest.