What is the ruling on purchasing shares of a permissible (halal) company with financing from the institution where the questioner works, provided that the institution recovers the loan plus 5% upon the sale of the shares? What is the ruling on trading shares, buying and selling, in the short term to generate profits? What is the ruling on the profits resulting from this operation, and is it permissible to use them to pay off debts if they were Haram (forbidden)?

There are three conditions for the permissibility of trading in shares: that the company's activity be permissible, that the company not deal with interest (riba), and that the shares belong to a company that practices actual commercial activity and is not in the founding and subscription stage. Otherwise, they would be considered money, and the rules of currency exchange would apply to them. If these conditions are met, there is no harm in trading shares. It is not permissible to take an interest-bearing loan; whoever does so commits a sin and must repent. The profits obtained from shares are not forbidden unless the companies deal in forbidden things, or if they are companies whose original work is permissible but they practice interest. In that case, the profits are forbidden to the extent of the interest practiced.