The ruling on doing Business with Shares of Companies

Question :

What is the Islamic ruling regarding shares of compa- nies that circulate on the markets? Is it permissible to do business in this?

Answer:

I cannot answer this question because the present companies in the markets differ in their transactions with Riba. If you know that this company deals with Riba and distributes the profits of Riba among the shareholders, then it is not permissible to have a share in that company. If you were already a shareholder and then you found out afterwards that this company deals in Riba, then you should go to the administration and request to be removed as a shareholder. If this is not possible, then you remain with the company and when the profits come, and the stock report clarifies what these reported profits are, you take the lawful profits and the forbidden Riba profits you give in charity to get rid of it. If you did not know about this, then it is safer for you to give half the profit in charity to rid yourself of it (the Riba) and the remainder is for you. This is because this is what you are able to do, and Allâh has said:

"So, fear Allâh as much as you are able."

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