Fatwa ID: 22199
Title: stocks investment
Category: Financial Transactions
Scholar: Dr. Main Khalid Al-Qudah
Date: 07/12/2005
Question
What is the difference between Halal & not halal investment stocks? Can I buy stocks at a local bank in U S A that is not harmful. Thank you.
Answer

Transactions in the stock market must be restricted with the lawful business companies from an Islamic perspective.

So, transaction in stocks of any insurance company, conventional bank, mortgage, casino, pornographic movies, pork products, intoxication, gambling companies...etc, is not allowed.

On the other hand, possessing the stocks is a stipulation for the validity of re-selling them.

Allah knows best