What is the ruling on trading shares of international technology companies via global stock exchanges?
Shares represent a stake in a company's capital, and they are of two types: shares in prohibited institutions (which are not permissible to sell or buy, as Allah Almighty says: "And cooperate in righteousness and piety, but do not cooperate in sin and aggression") and shares in permissible institutions (which are permissible to sell and buy, provided they are free from usury).
As for trading shares through international stock exchanges, it has positive aspects (such as a continuous market that facilitates the meeting of buyers and sellers and provides financing) and many negative aspects (such as futures contracts which are not a true sale, selling what one does not own, repeated selling before possession, monopolization, and artificial influence on prices).
It is permissible to engage in stock trading through the stock exchange if these prohibitions are avoided, while taking into account not to fall into short selling and that the contracts are free from usurious interests.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- 31570
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- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy