How is the legitimacy of profit determined from selling shares of a financial brokerage company in the stock market, if the sale of shares occurred before the company began its actual operations, knowing that this company deals with various types of companies in its work (some of which are forbidden due to their earnings, some of which invest part of their money in forbidden things, and some of which are permissible)?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
If the company's shares are sold after it has commenced its commercial activity, then an amount equivalent to the percentage of the forbidden transaction must be extracted and disposed of by spending it on Muslim welfare. However, if they are sold before it has engaged in any activity, then whatever exceeds the purchase price must be disposed of, because it is liquid capital, and the excess is usury (riba).
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/71570
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 71570
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy