Earning through shares
| Fatwa #1062 | Category: Business & Trade | Country: Zambia | Date: 4th January 2024 |
| Fatwa #1062 | Date: 4th January 2024 |
| Category: Business & Trade | |
| Country: Zambia | |
Question
Asw ww
I wanted to find out that is earning through share market halal..?
as in let’s say there is a company named XYZ in the energy field or tech field etc.. so if one buys 10 shares at k90 in the morning and in the evening the price rises to k95 and then sells the 10 shares which means profit of k5 is made per share and k50 is made for the 10 shares.. so is this allowed as this is based on either price rises or price drops..
Because we don’t exactly know how the company operates but just that one buys shares not knowing whether the price will rise or drops.
Answer
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
Buying, holding and investing in shares in a company is an academically contested issue amongst contemporary Ulama. For more information on trading in shares, you may refer to the link below.
https://askimam.org/public/question_detail/46129
As for your exact query, it is technically permissible to purchase a share at a price and then sell it once its price has increased. However, one must make sure that one has become the owner of the share before selling it forward. Due to this, day trading is not permissible. You may refer to the link below for more detail on day trading.
https://www.askimam.org/public/question_detail/41513
And Allah Ta’āla Knows Best
Mufti Bilal Pandor
Concurred by
Mufti Muhammad IV Patel
Darul Iftaa Mahmudiyyah
Lusaka, Zambia