Q254: Buying Shares

Question

Assalamualaykum shaykh.

I wanted to ask regarding the permissibility of buying shares. Is it allowed in Islam?

Answer

Not all shares are allowed and not all shares are haraam. When you buy a share in a company, you become part owner of that company, so think – if you were to open a business of your own, would you be allowed to open it for yourself?  If yes, then it is ok, otherwise no, e.g. you can’t open a brewery of your own, so you can’t buy shares in there.