[Ruling on Companies Selling Quantities of Their Shares]

Mufti:

Alsayyed Muhammad b. Abdallah Awad Al-Muayyady

تاريخ النشر: January 16, 2026

Fatwa number: 20285

Number of views: 0

Print the fatwa:

[Ruling on Companies Selling Quantities of Their Shares]

Fatwa number: 20285

Question: There are companies that announce their desire to sell quantities of their shares, stating the price of each share as such-and-such riyals, knowing that the price of a single share can rise or fall. As with trade goods, the buyer may profit or lose, or break even. What is the ruling on entering into this kind of trade?

Answer—and Allah is the Guardian who grants success: Major commercial companies today do not scruple to enter into usury, nor do they refrain from engaging in unlawful gains. If that is the case, it is not permissible for a Muslim to enter into the company. However, if it is known that the company does not enter into usurious dealings, and that it is conscientious in its transactions and refrains from the unlawful in its profits, then entering into it is permissible.
Source: Min Thimār al-ʿIlm wa al-Ḥikmah vol.2