What is the ruling on buying shares in companies?

The questioner : He saysThe questioner : What is the ruling on buying shares in consumer cooperatives and other entities that serve the public interest, such as the electricity and water company?

The Shaykh : As far as I know, all companies today deal in riba (usury or interest), and there is no company that does not deal in riba. Therefore, it is not permissible for a Muslim to deal with a company. Rather, I advise that if a wealthy Muslim is found, and there are other wealthy people like him around him, and they adopt working according to the rulings of Islam, I advise that they form a company against the banks. That is, the money they collect to establish a company, for example, is placed in a special fund to which the hand of riba does not reach. This is undoubtedly a work that requires the application of intellect and mind to devise a plan for establishing a fund into which riba does not enter at all. Upon this, the company is established. Then, if shares are issued and converted into merchandise or into a company and business, it is permissible at that time to sell and buy them. But before that, it is not permissible, as companies do today.