I have been contemplating investing in stocks for pretty much the last year. My question is let’s say we bought stocks / shares based on AAOIFI and your analysis, and the scholarly census that it ok to invest in stocks as long as the debt / interest ration is < 5% of total assets, if in the hereafter we found out that investing in even these stocks was haraam (despite the above ruling), who will the onus be on? The mainstream scholars who came with this ruling or on the individual who invested in these stocks or on both parties?
@Mufti_Faraz_Adam@Mufti_Billal
Assalamualaykum wa rahmatullah wa barakatuhu,
Jazakumullahu khayran for giving us your precious time.
I would be glad if you could answer my question please.
In the beginning of this thread, the opinions of islamweb and Islamqa are presented claiming that the majority of scholars do not allow to invest in stocks with mixed income. They cite OIS and MWL.
But on seekersguidance and you say the majority do in fact allow it.
For me it is quite challenging to check who the majority is and how we define it.
Could you please explain whether the majority of scholars do allow investing in mixed stocks and who besides AAOIFI they are?
I want to get clarification with regards to stop loss and limits. Once these are in place if the share drops or increases to the limits you have stipulated the broker sells or actions the purchase but due to some delays the buy or sell is not always exactly the price you state it will sometimes be a few penny’s difference due to the time the transaction is completed. Therefore wanted to check if this is a valid transaction as I was under the impression the exact amount/ price has to be specifically defined in a transaction. It seems here it’s not always the exact amount is not always known as its done automatically. Any clarification on this would help. JazakAllah
Assalamou Alaykoume wa rahmatou Allah wa barakatouh, I am from Morocco and new to this forum.Jazakum Allah khayr for all this clarifications. I would like to start investing in Shariaa compliant stocks, however i have a fear, a fear of falling in Haram since this is ijtihad and it is investing in companies that deal with Riba even if its low, and the Prophet Alayhi salam said leave what you are not sure about to what you are sure about, Halal is bayine and Haram is Bayine…, therefore I see that it is more convenient to not invest unless there is no Riba dealings, please clarify me on this.
Furthermore, the main reason people invest is to gain money, and there are other ways to gain money, so investing is not a necessity, if it was i would understand the fact that we make ijtihad to invest in companies that are dealing with riba.
Finally drinking 1 beer is the same as drinking 10 beers, not just because you had only one it makes it Halal, isn’t it the same here with Riba
Thank you for clarifying me about these issues, jazakoum ALLAH khayr.
Walaykum salaam warahmatuAllah I have the same reservations, interest is interest no matter how much. Even zero/low debt companies reflect interest income in their financial statements. Since it’s not a necessity I prefer to avoid it. Allah knows best
It says in the first quote to not involve in any haram activity, but in the second quote it says that it is permissible to involve provided that it is less than 5%. I hope sheikh @Mufti_Faraz_Adam can help me on this clarification, please.
The 5% impure income is for those companies which have mixed products and services, but their core and primary business activity is not something outright non-compliant. An example of this would be a supermarket which primarily sells goods, but may have unlawful revenue generated from the sales of impure items.