The ruling on selling shares at a price higher than their original value
Machine translationRead the Arabic original
Question:
Honorable Shaykh, may Allah grant you success, what is the ruling on selling shares at a price higher than their original value? And is that permissible if the company has not yet started operating, since the value of the shares may rise even before operations begin?
Answer:
There is a distinction regarding shares. If the shares are in riba (usury or interest) institutions, riba banks, or riba companies, then it is not permissible to invest in them or buy shares from them, because this is riba. However, if the shares are in honest companies that contain no riba, such as companies that produce milk, meat, cement, iron factories, or the like, which produce and sell, then these are honest companies in which it is permissible to sell and buy shares, because the shares here are financial assets. It is permissible as long as they are honest and contain no riba. Yes.
Honorable Shaykh, may Allah grant you success, what is the ruling on selling shares at a price higher than their original value? And is that permissible if the company has not yet started operating, since the value of the shares may rise even before operations begin?
Answer:
There is a distinction regarding shares. If the shares are in riba (usury or interest) institutions, riba banks, or riba companies, then it is not permissible to invest in them or buy shares from them, because this is riba. However, if the shares are in honest companies that contain no riba, such as companies that produce milk, meat, cement, iron factories, or the like, which produce and sell, then these are honest companies in which it is permissible to sell and buy shares, because the shares here are financial assets. It is permissible as long as they are honest and contain no riba. Yes.
Source
شرح بلوغ المرام من أدلة الأحكام [ صالح الفوزان ]، باب الشفعة — islamhouse.com (1:09:05)
The Arabic text is a machine transcription of the audio recording.