What is the ruling on participating in financial bonds and their expiation?

The questioner : May Allah grant you success. In some cases, money is placed in the form of bonds. A bond is a type of financial participation in the activities of one of the companies, such as construction companies or others, or one of the industrial companies. Bonds contain two sections: the nominal value, which is the purchase price, and this rises and falls until it can be lost entirely in trade. The second value is the profit value. The profit value changes; it is an annual profit, an annual profit rate that also rises and falls according to the magnitude of the gains and losses in the company in which one is a partner. Does this contain any type of riba (usury or interest), or what is the ruling on this matter?

The Shaykh : It is the very essence of riba.

The questioner : There is no power or might except with Allah.

The Shaykh : Yes. However, without this means, the checks you are asking about—today, all companies are following the path of the disbelieving companies that know neither what is lawful nor what is forbidden. They deposit their money in banks and benefit from this deposit through the forbidden riba gains, which they call by a name other than its true name, namely "interest." It is like adding a small load to a heavy one, as the saying goes. This is the situation you presented and asked about just now. It is not permissible for a Muslim to engage in such a thing under any circumstances.

The questioner : May Allah reward you with every good.

The Shaykh : And you as well.

The questioner : What is the expiation for this matter, since this situation has continued for a period of time? What is the expiation for the gains or other things, and what is to be done with them? And what is required of us regarding this action so that we may break away from this matter?

The Shaykh : The answer to this question lies in the well-known verse: However, in my opinion, it is not easy to distinguish between lawful money and forbidden money. Therefore, the one afflicted by this must, above all, repent to Allah (Blessed and Exalted is He) with sincere repentance, the conditions of which are known to every Muslim, if Allah wills. Second, he must be cautious in distinguishing between forbidden money and lawful money. If it is not clear to him, he should mix some of the lawful money with the forbidden. Then, this combined amount of forbidden and lawful money should not be used by him for any benefit, nor given to a specific person, but rather spent on public facilities. This is what someone like me can clarify and explain. As for the practical aspect, its application is left to those who are afflicted by committing what Allah has forbidden.

The questioner : Yes, indeed. May Allah reward you with every good, O Shaykh.

The Shaykh : And you as well, may Allah will it.