Fatwa #40424 November 2001United States of America
1. Is short sales of stocks is Halaal. 2. Is it permissible to goto a person's house and eat when one knows that the income is partially haram. 3. Is it allowed to do iftaar in the masjid.
Question
1. Is it allowed to buy the shares when the values are low and then sell them in 2-3 weeks when they go up by 10-15% in order to make money? 2. I know a lot of people having businesses where they sell one or two items which are haram eg. selling alcohol/lottery in gas stations. Is it allowed to go to their homes and partake food when they invite us. 3. A lot of people bring things to masajids here for iftaar. We know that some of them have businesses which are haram. Is it allowed to go and eat in the masjid. The management of the masjid is not controlling it as everyone claims their income is halal with fatwa's from some one.
Answer
1. It is permissible to purchase shares in a stock market when the value is%0D%0Alow and sell them with a profit. Kindly refer below.%0D%0A2. In principle, if a persons major source of income is Halaal, it is%0D%0Apermissible to accept his%2Fher invitation. However, the host should be%0D%0Aadvised with Hikmah (wisdom) to refrain from any Haraam source of income.%0D%0A3. There are two aspects to your query; a) Making Iftaar in the Musjid, b)%0D%0AFoods provided by people having Haraam source of income.%0D%0AIt is permissible for a Mu'takif to make Iftaar in the Musjid proper. That%0D%0Ais not so for a person not making I'tikaaf. An area out of the Musjid%0D%0Aproper, commonly known as the 'Sahn' area may be utilised to make Iftaar for%0D%0Apeople not making Iftaar. As regards eating food provided by people, Shari'%0D%0Aah has emphasised on eating only Halaal and strictly prohibits Haraam. In a%0D%0Adoubtful situation, the food will be regarded as Haraam. (Hidaaya vol.4).%0D%0AThe terminologies, Halaal and Haraam, are general. It refers to the source%0D%0Aof consumption as well as the means of income.%0D%0AIn view of the above, ideally a person should make Iftaar with his own%0D%0Afoods. If the management decide to feed people and arrange Iftaar through%0D%0Acontributions, they may do so but ensure that the contributor's major source%0D%0Aof income if not Haraam as it is not permissible to partake of the meals%0D%0Afrom such an income. The management should put a mechanism in place to%0D%0Aachieve that. If they are unable to do that, they should not make an%0D%0Aarrangement to feed fasting people during Iftaar.%0D%0A%0D%0Aand Allah Ta'ala Knows Best%0D%0A%0D%0AMufti Ebrahim Desai%0D%0AFATWA DEPT.%0D%0A%0D%0AA Muslim can acquire the shares of a joint stock company with the following%0D%0Aconditions:%0D%0A1. The main business of the company must be Halaal (permissible) according%0D%0Ato Shari%E1h. So, a Muslim cannot invest in a company whose main business is%0D%0AHaraam, like the traditional banks, insurance companies, companies dealing%0D%0Ain wines, etc.%0D%0A2. If the main business is Halaal, but it is involved in borrowing money on%0D%0AInterest or placing its funds in an Interest bearing account a Muslim%0D%0Ashare-holder should raise his voice against this practice in the annual%0D%0Ageneral meeting of the company.%0D%0A3. When a Muslim share-holder receives a dividend he must ascertain that%0D%0Aproportion of the profit of the company which has accrued on its%0D%0Ainterest-bearing accounts. Then a similar proportion from his own dividend%0D%0Amust be given by him to a person or persons entitled to receive Zakaat.%0D%0A4. If all the assets of a company are in a liquid form and the company has%0D%0Anot yet acquired any fixed assets or any stock for trade, then the sale and%0D%0Apurchase of shares must be on their par value only.%0D%0AIf anyone of these conditions is contravened, the investment in a company is%0D%0Anot permissible in the Shari'ah.%0D%0A%0D%0ANB. The above ruling has been issued by Justice Mufti Muhammad Taqi Usmani%0D%0Aof the Shariat Appellate Bench - Supreme Court of Pakistan. He is also the%0D%0ADeputy Chairman of the Islamic Fiqh Academy - Jeddah.%0D%0A