Is it permissible to buy company shares for the purpose of speculation and earning profits from their price increase, or must the intention behind the purchase be to obtain annual dividends from the company?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
It is permissible to buy shares with the intention of obtaining annual profits, and to sell them when their price rises, even if it is before a year. A condition for the permissibility of trading shares is that they must not be in usurious banks or deal with forbidden commodities. In addition to that, the company must not deposit a portion of its funds in usurious banks and receive interest on them, because this introduces usury to all shareholders.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/31269
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 31269
- 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