Islam Question and Answer - Is it permissible to lend shares?

Fri 13/1/1430 - 9/1/2009

» The company takes the down payment then buys the property then sells it to the purchaser.

» She learned of some faults in her fiancé and prayed istikhaarah about annulling the engagement, but it was not easy for her to do so.

» Ruling on giving everything one owns in charity.

» It is not essential for socks to be of leather.

» Eating ‘Ashoora’ food and spending extra because of someone’s birthday.

» Should he say that he belongs to Ahl al-Sunnah wa’l-Jamaa’ah or al-Salaf al-Saalih?.

» Should the one who has been affected by witchcraft see the one who put the spell on him during the ruqyah?.

» Conditions of wiping over socks .

» When the company buys the car and it comes into its possession, then it may sell it.

» She died and left behind a husband, two daughters, two sisters, a grandmother, a maternal uncle and two maternal aunts.

84357

Principles of Fiqh » Jurisprudence and Islamic Rulings » Transactions » Borrowing & Lending

Is it permissible to lend shares?

I need money, so I asked my friend to lend me some, but he said: I do not have any cash, but I have five shares in a cement company, which I will lend to you, and you can give me back five shares in the same company. I am going to take the shares and sell them to meet my needs, then after that I will buy him the same number of shares in the same company from the stock market. Is that permissible?.

Praise be to Allaah.

It does not seem that there is any reason why you should not do that, so long as you are going to repay him the same number of shares in the same company. Rises and falls in share prices will not have any effect on this loan.

Shaykh ‘Abd al-Rahmaan al-Barraak.

That is subject to the condition that the shares should not be shares in a financial company, such as shares in an Islamic bank, for example, because most of the shares in those companies have to do with currencies.

And Allaah knows best.

Islam Q&A

Hands

contacts

at you site

suggest

guestbook

send to friend

bad URL