Investing Question: What to do when shares stop being sharia compliant

Investment Questions and Chats Stocks
#21

Jazakallah mufti Saab

#22

Assalamu Aleykum, first and foremost thank you for all great work you do dear muslim brothers.

I have two questions:

  1. When you purify income from financial instruments:
    a) You find the income from deposits, etc and it is easily discoverable in the financial statement.
    b) What about debts, do we even purify that, because it is going be very difficult to find out the portion of the income that it is coming from debt money.
  2. Can you please help me out with 36 or 24 month average market cap, is there a website that provides this info, or it has to be calculated manually?

JazakumAllahu Khairan

#23

Wasalam

May Allah bless you.

  1. My opinion is that, you do not need to purify the income received from investing interest-based loan. This is because, taking a loan is halal in itself, and the money is halal to use. It is the payment of interest that is haram.

However, this does not mean that you can invest in a company which has a higher level of interest based debt( >33% of total asset).

  1. @Mohsin_from_IFG might be able to help on this one.

And Allah knows best!

#24

Dear Mufti_Billal, thank you so much for your reply.

I’d appreciate your support with another matter, we are suppose to purify the income from riba instruments, however, in financial statements many time we can see the financial income is negative, due to the fact that riba expenses exceed riba income, what do we do in this case? Do we go deeper in the statement and find out the breakdown, or do we just take it as negative and not purify?

#25

I’d also appreciate reply from @Mohsin_from_IFG about

  1. Can you please help me out with 36 or 24 month average market cap, is there a website that provides this info, or it has to be calculated manually?
1 Like
#26

Will also like a response to this if possible. I don’t think there are any free service with the data anymore. Ycharts is paid.

For now, i use www.wolframalpha.com. I just ask like “3 years historical market capitalisation + company name”. It will show the chart and average (or mean) somewhere in the result. It doesn’t work at times.

I am checking what is possible with Google Finance. Although they don’t have historical market cap (only present), they may have the inputs. Yet to figure it out. @Mufti_Billal

#27

JazakAllahu Khairan, thank you so much