Buy fractional shares

Investment Questions and Chats Stocks
#1

Assalam Ustaz im Faiz From Malaysia , i want to ask question

Its buy “fractional shares” is permissible in islam ?

i want to open an account at Etoro , i read on FAQ

Would i own share on Etoro ?

** When you open a non-leveraged BUY (long) position on a stock, you are investing in the underlying asset. The stock is purchased by eToro and recorded in our system under your name.

** If you open a stock position on eToro, you are not issued a stock issuance certificate or allocated voting rights. Nonetheless, should the company issue dividends, your balance will be updated in accordance with your holdings.

Does Etoro pay dividend ?

** Yes. If you invest in shares of a company on eToro, you will be paid in proportion to the number of stocks you own whenever that company issues dividends.

Thanks you ustaz

#2

Wa alaykum salaam,

In principle, if you gain ownership of the shares, and the company has passed the financial screening for the quarter you are investing in, then it is permissible to invest even if fractional shares are issued.

Allah knows best

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