It is well known that investors in stocks in the Kuwait Stock Market either invest their money to wait for the stock dividend at the end of the year and benefit from it,
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The questioner : It is well known that investors in stocks in the Kuwait Stock Market either invest their money to wait for the stock dividend at the end of the year and benefit from it, or a man invests in stocks for speculation, or he sells the stock when its value rises. We would like to know your opinion on these two types: is there any observation regarding them or not? And what is the amount of zakah taken on the stock dividend.
The Shaykh : Regarding zakah, this is not applicable. This previous statement was an answer to... Yes, but regarding the sale of these stocks, it appears to me, and Allah knows best, that if the stock has a real entity in the sense that the partners who subscribed to it have established a business and produced a fruit, then in this case, it appears to me, and Allah knows best, as I mentioned 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, because it is selling wealth for wealth, wealth for wealth with an increased amount, and this is not permissible unless it becomes a reality and a company that invests these capital funds, in which case selling and buying is permissible thereafter. But without observing the difference in price over the period, as we have mentioned more than once, that this difference is riba (usury or interest) by explicit text in the hadith of the Messenger of Allah (peace and blessings be upon him).
The Shaykh : Regarding zakah, this is not applicable. This previous statement was an answer to... Yes, but regarding the sale of these stocks, it appears to me, and Allah knows best, that if the stock has a real entity in the sense that the partners who subscribed to it have established a business and produced a fruit, then in this case, it appears to me, and Allah knows best, as I mentioned 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, because it is selling wealth for wealth, wealth for wealth with an increased amount, and this is not permissible unless it becomes a reality and a company that invests these capital funds, in which case selling and buying is permissible thereafter. But without observing the difference in price over the period, as we have mentioned more than once, that this difference is riba (usury or interest) by explicit text in the hadith of the Messenger of Allah (peace and blessings be upon him).