The topic of promotions is of considerable interest, since many people encounter it in practice.
What are shares (al-saheem)?
Shares represent a share in the value of a real-life firm or enterprise that the buyer purchases for a certain price. Thus, the value of the firm is divided into parts, and the buyer becomes the owner of one of these shares.
Why should a firm or enterprise actually exist?
In order for the buyer to accurately determine its share and total value, the firm or enterprise must have a specific value of the product.
Types of promotions
All shares available for sale can be divided into three categories::
- Shares of pure firms and enterprises.
- Shares of prohibited companies or enterprises.
- Shares of mixed companies or enterprises.
Shares of clean firms and enterprises
Shares of pure firms are securities owned by enterprises whose activities fully comply with the norms of Islam. This means that the activity of the company itself is not prohibited, its charter does not contain any prohibitions, and management is carried out within the established rules.
For example, a firm that sells rice, coffee, sugar, or machinery is clean in terms of Sharia law. The charter of such a firm should not contain any references to the use of prohibited bank usurious loans or illegal financial transactions. Management should be carried out in accordance with the charter, without any deviations.
Most modern Islamic scholars allow the purchase of shares in such firms, without seeing anything forbidden in this.
Promotions of prohibited companies or businesses
Shares of prohibited firms or enterprises are securities owned by companies whose activities are either completely prohibited or contain prohibited elements. This may be due to the fact that there are violations in the company's activities, or the fact that the charter contains prohibitions on certain types of activities or financing of the company. Such firms are considered prohibited.
For example, if a firm's charter states that it is financed by prohibited bank usury loans, then this makes it prohibited under sharia law.
Some modern scholars believe that if there are both permitted and prohibited elements in the activities of a firm or its charter, then such firms can be called "mixed". However, this is not entirely true, since the presence of prohibitions in the activities or bylaws makes such firms prohibited.
Can I buy shares of such firms?
No, you can't buy or sell shares of banned companies, because this is contrary to Sharia law."
Shares of mixed companies or enterprises
Shares of mixed companies are securities of companies whose activities are permitted, and their charter does not contain prohibitions. However, when managing a firm, the owners may commit some violations, for example, take loans from a bank at interest, which is contrary to the company's charter.
Although the charter and activities of such firms do not prohibit them, they are not "clean" because of possible violations in management.
Attitude to "mixed firms" and their shares
"Mixed firms" should be treated as things that are called "questionable". Scholars of Islam define "questionable" as a matter that simultaneously falls under two rules and fundamentals. One basis inclines him to what is permissible(halal), and the second-to what is forbidden (haram). This is the best criterion for determining "questionable" behavior.
To better understand this, scientists often give an example that is not related to human trafficking. We are talking about bleaching women's eyebrows to match their skin color, so that they appear thinner.
What happens in this situation?
A woman, discoloring her eyebrows, changes what God has created, but for the sake of beauty. On the one hand, it is like those who pluck their eyebrows, and this can be perceived as a violation of the will of Allah. On the other hand, it does not pluck, but only changes the color of the eyebrows, and changing the color of the hair under certain conditions is considered permissible for women. In such situations, it is said that the question belongs to the "doubtful" category, that is, its permissibility or prohibition is not obvious.
What is the rule in such matters?
When there are any ambiguities, Sharia law encourages a person to avoid such actions, so as not to get into a forbidden situation. Although it does not say that a person is a sinner if he does not commit forbidden acts, Sharia encourages him to be careful.
Scientists believe that the same applies to buying and selling shares of mixed firms. They recommend that people avoid such activities in order to preserve their religious purity.