Holding shares in companies and banks
Q 1: What is the ruling on holding shares in companies and banks? Is it permissible for a person subscribing in a company or a bank to sell his own shares after subscription to offices working in shares selling and buying, which are likely to sell them for prices higher than those of subscription? What is the ruling on the interest that the subscriber receives annually on the value of his subscription shares?
A: Subscribing in companies and banks dealing in usurious transactions is impermissible. However, if a subscriber wants to get rid of his Riba-based shares, he may sell them at the market price, then keep his original capital only and should spend the rest on charitable causes. It is not permissible for him to take any of the interest or Riba-based profits of his shares. However, profits of subscribing in a company that does not deal in usurious transactions are Halal (lawful). May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.
Buying shares in ban...
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