Assalamualaikum,
I work for eBay as a Software Developer. As part of my compensation, eBay pays me in two forms: one is cash and second is stocks (also knows as Restricted Stocks Units). I do not have the option of taking full cash and no stock as this is the company policy that compensation is paid partly in cash and partly in stocks.
However, I am also aware of the AAOIFI guidelines for Shariah Compliant Stocks. And eBay stocks may or may not be Halal as per those guidelines.
https://zoya.finance/ app puts eBay stock under “Questionable” category. (See https://help.zoya.finance/en/articles/4189815-what-are-questionable-revenue-segments)
So let us assume that eBay stocks are not Shariah compliant.
- Will the money I make from selling these stocks(at the original grant price or appreciated price) be halal?
- Will the dividend money I earn on these stocks be halal?
Assalaamu alaykum,
If you work under the assumption that eBay stocks are not compliant, then yes, the profits will be unlawful and should be purified.
However, you will be entitled to keep the initial and original capital investment.
The dividend will be unlawful too.
Walaikumsalam,
In which of the following 2 ways should I calculate the profits?
- Sell Date Price - Grant Date Price
- Sell Date Price - Vest Date Price
Stocks are usually granted at a specific date and cannot be sold until vest date. If I quit the company before the vest date, I lose the grants.
Wa alaykum salaam,
Vest date seems more accurate.
As per your response “I will be entitled to keep the initial and original capital investment”.
If stock one vests at a price of $40 and is sold for $30, $10 is lost from “original and capital investment”.
Similarly, if stock two vests at a price of $10 and is sold for $30, there is $20 extra on top on “original and capital investment”.
Can you please clarify how much money will I need to take out to purify in this scenario?
a. $20 (profit from stock two)
b. $10 (profit from stock two - loss from stock one)
As per another Mufti, I will need to take out $20. Loss of one stock shall not be recovered from gain of another.