I have read the fatwā on stocks in limited liability companies at Muftī Desai’s site. In light of this fatwā, I have the following query. At my previous job at a publicly traded software firm, I received, as part of my compensation package, stocks of the employer corporation. I did not have to pay anything for these stocks out of my own pocket. Now, I would like to sell these stocks and make use of the money I receive thereby. Please let me know whether it would be permissible for me to do so or not.
Answer:
In the name of Allāh, Most Gracious, Most Merciful
Assalāmu ῾alaykum wa Rahmatullāhi Wabarakātuh
You may regard the stocks as a certificate of debt owed to you by the company.If the company has a buyback policy, then you may sell the stock back to the company at the current market value.
If the company does not have a buyback policy, then you may “sell” the stocks to another buyer with the intention of simply transferring the debt over to him.Hence, the buyer pays you the money owed to you by the company and will transfer the company’s debt (in the form of stocks) over to his name.
Since you are simply transferring over a debt, it is not permissible for you to earn a profit on this transaction, as this would constitute ribā’ (interest).Hence, you may only sell it at the market value of the stocks at the time you initially received them.If the stock price has decreased from its value when you initially received it, you should make the intention to forgive the difference in the value from the debt owed to you and, thereafter, transfer over the remaining amount.
If you have exhausted all avenues to accurately determine the stocks’ value when it was initially given, you may use your best judgment to estimate the value.If you estimate a slightly lower amount in order out of precaution, it would be from your taqwā and, inshāAllāh, merit much thawāb.
ولاينعقدبيعالدينمنغيرمنعليهالدينويجوزمنالمديونلعدمالحاجةإلىالتسليم
(البحرالرائق،كتابالبيوع: 5/280؛المعرفة)
بيعالدينإنمايجوزمنالمديون
(الدرالمختار،كتابالبيوع: 4/517؛الفكر)
فإنبيعالدينمنغيرمنعليهالدينلايجوز
(الفتاوىالهندية،كتابالإجارة،البابالخامس: 4/419؛الفكر)
فمنجملةصورةالفاسدةأنيبيعبخمرأوخنزير،ومنجملةذلكبيعالدينمنغيرمنعليهالدين
(المحيطالبرهاني،كتابالبيوع،الفصلالسادس: 6/414؛التراث)
ففيالبزازيةمنأولكتابالهبةوبيعالدينلايجوزولوباعهمنالمديونأووهبهجاز
(ردالمحتار،كتابالصلح،فصلفيالتخارج: 5/644؛الفكر)
ولاينعقدبيعالدينمنغيرمنعليهالدينلأنالدينإماأنيكونعبارةعنمالحكميفيالذمةوإماأنيكونعبارةعنفعلتمليكالمالوتسليمهوكلذلكغيرمقدورالتسليمفيحقالبائعولوشرطالتسليمعلىالمديونلايصحأيضالأنهشرطالتسليمعلىغيرالبائعفيكونشرطافاسدافيفسدالبيعويجوزبيعهممنعليهلأنالمانعهوالعجزعنالتسليمولاحاجةإلىالتسليمههنا
(بدائعالصنائع،كتابالبيوع،فصلأمايرجعإلىالمعقودعليه: 5/148؛الكتب)
And Allāh Ta῾āla Knows Best
Wassalāmu ῾alaykum
MuftiAbrar Mirza, (Chicago, US)
Checked and Approved by:
Mufti Ebrahim Desai
Dārul Iftā, Madrasah In῾āmiyyah