Category: Riba, Loans and Working in Banks

The ruling on buying Shares of Banks

Question :

What is the ruling on buying shares of banks and selling them after a period of time, where 1,000 become 3,000 for example? Is that considered a form of Riba?

Answer:

It is not permissible to sell shares of banks or buy them, because it is selling money for money without stipulating any equivalency and on the spot exchange. This is also because they (the banks) are Riba establishments. It is not permissible to cooperate with them, whether it is by buying or selling. This is due to the Statement of Allâh:
"Cooperate in righteousness and piety, and do not cooperate in sin and transgression."

This is also due to what is confirmed from the Prophet that he cursed the person who devours Riba, the person who gives it, the person who writes it and its witnesses, and he said:
"They are the same (in sin)."

This was recorded by Imam Muslim in his Sahih. You do not get anything other than the capital sum of your money.

My advice to you and to others beside you among the Muslims is to beware of all Riba transactions, warn others against them and repent to Allâh from whatever you previously did of that. Because Riba transactions are a form of waging war against Allâh and His Messenger, and they are from the causes of Allâh's anger and His punishment, as Allâh said:
"Those who devour Riba will not stand (on the Day of Resurrection) except like the standing of a person beaten by Satan leading him to insanity. That is because they say: 'Selling is only like Riba,' whereas Allah has permitted selling and forbidden Riba. So whosoever receives an admonition from his Lord and stops eating Riba, he shall not be punished for the past; his case is for Allah (to judge); but whosoever returns (to Riba), such are the dwellers of the Fire - they will abide therein forever. Allah will destroy Riba and will give increase for Sadaqat (deeds of charity, alms, etc.). And Allah does not like every disbelieving sinner."

And He said:
"O you who believe! Fear Allah and give up what remains (due to you) from Riba (from now on), if you are (really) believers. And if you do not do it, then take a notice of war from Allah and His Messenger. But if you repent, you shall have your capital sums. Deal not unjustly (by asking for more than your capital sums), and you shall not be dealt with unjustly (by receiving less than your capital sums)."