Ruling on Buying Commercial Stocks
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Some people buy stocks and do not intend to trade in them; rather, they invest before the allocation in order to wait for the stock prices to rise. What is your opinion? May Allah reward you with good.
Regarding the purchase of stocks, we must know what it is that one wants to invest in. If it is something forbidden, such as banks, then investing in them is absolutely forbidden, and it is not permissible for anyone to invest in them. As for other investments, the original ruling is permissibility until evidence establishes that this investment is forbidden.
And among the forbidden matters in investment is if the company deals in riba (usury or interest), even if its original business is not interest-based,For example: by depositing its funds in banks and taking riba on them, or by taking from banks and paying riba, thus becoming one who consumes riba and one who facilitates it. The Prophet (peace and blessings be upon him) cursed the one who consumes riba and the one who facilitates it . So if we know that the company does this and it is necessary for them, then investing in it is not permissible. And if we do not know—as I told you—the original ruling is permissibility. But if you invested and it later became clear to you that the company deals with banks in the manner I described, then when you receive the profit and you know the amount of the interest-based percentage, you should extract it to purify yourself from it. And if you do not know the amount, you should give half of the profit in charity as a precaution, not for your own benefit or to your detriment. So if you know this rule regarding investments, it is summarized as follows: First: Investing in banks is forbidden without exception.
Second: The original ruling for investing in anything else is permissibility, except if you know that it deals with banks in an interest-based manner, in which case it is not permissible to participate. And if you have already become involved, you should extract the interest percentage from the profit given to you. And if you do not know the percentage, you should extract half of the profit.
This is the summary of the ruling on investments.
As for a person investing before the allocation in order to wait for the stock prices to rise, there is nothing wrong with that.
Regarding the purchase of stocks, we must know what it is that one wants to invest in. If it is something forbidden, such as banks, then investing in them is absolutely forbidden, and it is not permissible for anyone to invest in them. As for other investments, the original ruling is permissibility until evidence establishes that this investment is forbidden.
And among the forbidden matters in investment is if the company deals in riba (usury or interest), even if its original business is not interest-based,For example: by depositing its funds in banks and taking riba on them, or by taking from banks and paying riba, thus becoming one who consumes riba and one who facilitates it. The Prophet (peace and blessings be upon him) cursed the one who consumes riba and the one who facilitates it . So if we know that the company does this and it is necessary for them, then investing in it is not permissible. And if we do not know—as I told you—the original ruling is permissibility. But if you invested and it later became clear to you that the company deals with banks in the manner I described, then when you receive the profit and you know the amount of the interest-based percentage, you should extract it to purify yourself from it. And if you do not know the amount, you should give half of the profit in charity as a precaution, not for your own benefit or to your detriment. So if you know this rule regarding investments, it is summarized as follows: First: Investing in banks is forbidden without exception.
Second: The original ruling for investing in anything else is permissibility, except if you know that it deals with banks in an interest-based manner, in which case it is not permissible to participate. And if you have already become involved, you should extract the interest percentage from the profit given to you. And if you do not know the percentage, you should extract half of the profit.
This is the summary of the ruling on investments.
As for a person investing before the allocation in order to wait for the stock prices to rise, there is nothing wrong with that.