What is the ruling on the employee stock option plan where employees do not own the shares until after three years, with the company compensating the employee with the same subscription value if the share price falls after this period?
Source: FtawySummarized from the full answer at Ftawy · reviewed Sep 2, 2026
The permissibility of dealing in shares depends on their being lawful. It is forbidden to deal in shares of mixed companies that engage in usury, even if their primary activity is originally permissible. Accordingly, it is not permissible to deal in "SABIC" shares because they are considered mixed shares. A study of its 2005 financial statements revealed that they contain prohibited items, such as investment in government development bonds and usurious loans, and its obtaining usury from bonds.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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