Is it permissible for the employee who knows the secrets of their company and what increases its shares to buy such shares?
A:
First: If the shares are fixed, and are intended to procure a yield, such as those of a factory that produces and sells its products - like the shares of cement, electricity, transportation or agricultural companies or other fixed (established) companies, in which the profit, not the capital, goes to the shareholder, there is no objection in selling and buying this kind of shares. As for unfixed shares (Part No. 11; Page No. 124) such as those related to commercial speculation companies, where the shareholder's capital and share of profit return to him if the company is dissolved, and where sometimes the capital or part of it may be lost, or it may return to the shareholder, such kind of shares should not be sold or bought because it is unknown selling that includes risk. Moreover, it includes the selling of a dirham in return for an absent (nonexistent) dirham.
Thus, it is Riba Al-Nasi'ah (usury of delay, conditional excess for delay of payment), and it may become
Riba Al-Fadl (usury of excess, selling an item for another of the same type, on the spot, but in excess), if the amount differs, and both kinds of Riba and selling of the unknown are Haram.Second: If the company prevents its employees from buying some of its shares and seeing into its secrets, the employees should not breach its regulations. This is according to what the Prophet (peace be upon him) said:
Muslims are bound by their conditions, except the one that makes the unlawful lawful or the lawful unlawful.
This condition involves consideration of the company interest and warding off harm from it. Thus, it is a sound condition.Third: The money you earned through this kind of transaction is Haram; and you should get rid of it by donating it to a public charitable project, or to the poor and needy, with the intention of getting rid of it; not the intention of Sadaqah (voluntary charity). This should be accompanied by repentance to Allah (Exalted be He) and the intention not to return to this kind of transactions again.May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family and Companions.