Assalamo alaykoum
Is it permissible to buy fractional shares? Say I want to invest in Google, but since the price of a full share is pretty high, I buy 0.25 of a share. I donโt think certificates are issued for fractional shares but we do received dividend. Is this shariah compliant?
Jazak allah kheir
Ismail
Wa alaykum salaam,
Fractional shares in and of themselves are fine. Brokers essentially hold shares as nominees for traders, with legal title vested in the brokers and beneficial ownership with the traders. Brokers therefore attribute smaller portions of shares internally to individuals.
Allah knows best
ุงููุณููุงู ู ุนูููููููู ููุฑูุญูู ูุฉู ุงููููู ููุจูุฑููุงุชู
@Mufti_Faraz_Adam , isnโt fractional shares held by brokers a form of Gharar? By having a share listed on a paper, which part of the paper does the person own in terms of factional shares? Nobody knows this, there has to be clear ownership which is held by you to be an owner of factional shares but what brokers do, you donโt have a clue since itโs OTC and completely unregulated on how they do this. How can this be considered Halal?