The Ruling on Dealing in the Stock Market
Machine translationRead the Arabic original
Question:
What is the ruling on dealing in the stock market, where one buys shares in some companies and then sells them when the price rises, knowing that there is a high probability of the price falling, meaning there is a possibility of both increase and decrease?
Answer:
And by Allah, the issue of stocks. It is a thorny issue because ignorance enters into it, riba (usury or interest) enters into it, and many other things enter into it. But if the stocks are in stable companies, companies of assets such as factories, agriculture, or transport vehicles, if they are in assets, it is permissible for him to sell his share of them because it is the sale of his property. He sells his shares in the electricity company, he sells his share in his stocks from a cement factory, for example, stable things. He sells his share from such-and-such a farm, these are all things, or from such-and-such a piece of land, these are all stocks in stable assets. As for stocks in speculation, stocks in debts, and stocks in these, by Allah, I am not comfortable with them and I do not know them. Most of them are gambling and maysir (gambling). Yes.
The presenter:
May Allah reward you, Honorable Shaykh,
What is the ruling on dealing in the stock market, where one buys shares in some companies and then sells them when the price rises, knowing that there is a high probability of the price falling, meaning there is a possibility of both increase and decrease?
Answer:
And by Allah, the issue of stocks. It is a thorny issue because ignorance enters into it, riba (usury or interest) enters into it, and many other things enter into it. But if the stocks are in stable companies, companies of assets such as factories, agriculture, or transport vehicles, if they are in assets, it is permissible for him to sell his share of them because it is the sale of his property. He sells his shares in the electricity company, he sells his share in his stocks from a cement factory, for example, stable things. He sells his share from such-and-such a farm, these are all things, or from such-and-such a piece of land, these are all stocks in stable assets. As for stocks in speculation, stocks in debts, and stocks in these, by Allah, I am not comfortable with them and I do not know them. Most of them are gambling and maysir (gambling). Yes.
The presenter:
May Allah reward you, Honorable Shaykh,
Source
75-اللقاء الأسبوعي مع الشيخ صالح الفوزان - 32 — archive.org (48:10)
The Arabic text is a machine transcription of the audio recording.