{"id":14649,"date":"2020-05-02T10:29:51","date_gmt":"2020-05-02T10:29:51","guid":{"rendered":"http:\/\/daruliftabirmingham.co.uk\/?p=14649"},"modified":"2020-05-02T10:29:51","modified_gmt":"2020-05-02T10:29:51","slug":"halal-investments-into-shares","status":"publish","type":"post","link":"https:\/\/daruliftabirmingham.co.uk\/home\/halal-investments-into-shares\/","title":{"rendered":"Halal Investments into Shares"},"content":{"rendered":"

\n\tFatwa ID: 03637<\/strong><\/span><\/span><\/span><\/span><\/span>\n<\/p>\n

\n\tAnswered by: Maulana Tahsin Alam<\/span><\/span><\/strong><\/span><\/span><\/span>\n<\/p>\n

\n\t \n<\/p>\n

\n\tQuestion<\/u><\/strong><\/span><\/span>\n<\/p>\n

\n\tI am contacting you with a question regarding halal investment. A few years ago, I purchased stock\/shares in my previous employer (a publicly-traded energy company), via my employer's stock purchase plan for employees. I initially assumed my investment was halal, but have now discovered that some stock investments are not shariah compliant. While the company's source of income must be halal for the stock to be shariah-compliant, I have now discovered that there are key financial ratio requirements that a company must meet in order for its stock to be halal – I've listed these requirements below (details here). There are now stock screeners (including Zoya\/Investroo) that provide the shariah compliance status of investing in a company's stock.<\/span><\/span>\n<\/p>\n

\n\tWhile the energy business is a halal source of income, given my newfound knowledge about shariah compliance for stocks, I have discovered that my investment is not shariah-compliant as my previous employer does not meet the financial ratio requirements outlined below (e.g. the company has more than 33.33% debt). My investment has appreciated since I made the purchase – if I sell the stock now, I will make a profit. Should I sell the stock as soon as possible since I now know it is not a halal investment? If so, what should I do with the profit I've made? Also, I am invested in another company that does not have a halal source of income, which I did not know before I made my investment. If I were to sell the stock now, what should I do with the proceeds? <\/span><\/span>\n<\/p>\n

\n\tFinancial ratios requirements for halal stock investment:<\/span><\/span>\n<\/p>\n