Shares and Stocks

It is certainly permissible to invest one’s money in buying and selling shares, provided that the shares you buy or sell are that of a business, which is permissible to operate. Thus, it is perfectly permissible to own shares in a furniture company, an iron and steel corporation, a supermarket, a travel agency, a computer business, etc. The list is endless.

It is not permissible, however, to own share in a wine company, a brewery, a gambling shop, etc. because all these either sell things that are forbidden or provide services that are also forbidden. That makes any profits earned from such business forbidden to have.

A Bank that operates on the capitalist system of finance belongs to this second category, because much of its operations are interest charging. When you buy shares in a Bank, you are actually owning a portion of that Bank which means you are involved in all its operations, in a way, you are actually helping in all its operation. Therefore, it is forbidden to own shares in a Bank where interest is the basis for most of its transactions

Interest on Bank deposits

In interest-infected countries, interest from hostile non-Muslims or from those non-Muslims whose avowed object is to destroy the Muslims whenever opportunity arises is quite legal. What is true of non-Muslim individuals is true also of non-Muslim Banks and organizations.

TYPES OF WEALTH ON WHICH ZAKAAH ARE IMPOSED

1. Gold and silver, in any form
2. Cash, bank notes, stocks, bonds etc.
3. Merchandise for business, equal to the value of Nisaab
4. Livestock
5. On income derived from rental business

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