Investors in stocks in the Kuwaiti market are of two types: one type invests his money to wait for the stock dividend at the end of the year and benefit from it

The questioner : There is a question about stocks.

The Shaykh: Yes.

The questioner : It is known that investors in stocks in the Kuwaiti market either invest their money to wait for the stock dividend at the end of the year and benefit from it, or they invest their stocks for speculation or sell the stock whenever its value rises. We would like to know your opinion on these two types; is there any objection to them or not? And what is the amount of zakah that is taken on the stock dividends?

The Shaykh : As for zakah, that is not the issue; that previous statement was an answer to... Yes, that is right. But regarding the sale of stocks, it appears to me—and Allah knows best—that if the stock has a real entity in the sense that the partners who invested in it established a business and produced a result, then in this case it appears to me—and Allah knows best, as I said earlier—that it is permissible to sell and buy it; because it is an existing investment. But before that, it is not permissible; because it has no reality, and it is merely selling wealth for wealth, wealth for wealth with an increased amount. This is not permissible unless it becomes a reality and a company that invests these capital funds. After that, selling and buying is permissible, but without considering the difference in price over time, for as we have mentioned more than once, this difference is riba (usury or interest) by the explicit text of the hadith of the Messenger of Allah (peace and blessings be upon him).