Secondly: Stocks
1.  Definition of Stock (Al Sahm)
Linguistically: Al Sahm (stock) means a share or a portion of luck. [2097] See: (Lisan al-Arab) by Ibn Manzoor (12/308), (Mukhtar al-Sahah) by Al Razi, p.326.
Its technical definition: It is a part of the capital of a joint-stock company given to its owner, entitling them to a share of the profits generated by the company. The general assembly of shareholders approves the distribution of these profits. [2098] See: (Glossary of Economic and Islamic Terms) by Ali Muhammad Al-Jumah (p. 328), (Dictionary of the most commonly used financial terms in financial markets) by the Union of Securities Authorities (p.15), (Glossary of financial, accounting, and banking sciences) by Mahmoud Atwan (p. 499).
2.  Ruling on Stocks
Ruling on Company Stocks:
It is permissible to buy and sell stocks of companies so long as they do not engage in prohibited transactions. This was issued as a decision by the Islamic Fiqh Council (that is) affiliated with the Organization of Islamic Cooperation, [2099] A resolution from the Assembly of Islamic jurisprudence, Majma' al-Fiqh al-Islami, states: Since the default in transactions is permissibility; a joint-stock company with lawful purposes and activities is allowed (Majallah Majma' al-Fiqh al-Islami - Issue Seven (1/711)). and the Permanent Committee for Islamic Research and Issuing Fatwas in the Kingdom of Saudi Arabia, [2100] A fatwa from the Permanent Committee, Al-Lajnah Ad-Da'imah, states: There is no harm in buying and selling stocks if they are in companies that do not engage in usury. These are companies (such as those) dealing in properties, such as architectural firms, electricity companies, cement companies, and other production companies, so long as these companies are already established and not under construction. (Fatwas of Al-Lajnah Ad-Da'imah - First Collection) (13/323). The Permanent Committee further adds: Participating in banks or companies that deal with riba is not permissible and if the subscriber wishes to divest himself of his usurious contribution, he sells his shares at their market value. He takes only the original capital, and the rest is spent in charitable ways. It is not permissible for him to take anything from the profits or usurious gains of his shares. However, if the investment is in a company that does not engage in usury, its profits are considered lawful. (Fatwas of Al-Lajnah Ad-Da'imah (13/508)). and it is the opinion of Imam Ibn Baz [2101] Ibn Baz's was asked regarding the ruling on shares: Participating in Islamic banks that do not deal with usury is allowed. There is no harm in opening accounts with them or working with them because this is working towards piety and righteousness. It is recommended for believers to avoid things that have been prohibited by Allah for them. Therefore, dealing with usurious banks is from those things that Allah is not pleased with, and it is not permissible. Whether it involves cooperation through interest-bearing accounts, employment, or participation in the bank's shares and profits, all of these are not allowed. (Official website of Sheikh Ibn Baz). Ibn Baz also indicates: If the shares are in sectors free of riba, such as iron, construction, land, cars etc., it is permissible. As for those dealing with usury, it is not permissible. Question: Is it permissible to buy stocks traded in banks? Answer: No, it is not permissible (regarding banks). As for stocks that do not involve usury, praise be to Allah, there are companies involved in lands, cars, equipment, clothing; there is no problem. (Official website of Sheikh Ibn Baz). and Ibn Uthaymeen. [2102] Ibn Uthaymeen's opinion: The placement of stocks in companies is subject to scrutiny because we have heard that they deposit their money in foreign or quasi-foreign banks and earn profits on it, this is usury. If this is true, then placing stocks in such companies is prohibited, and it is one of the major sins because usury is one of the greatest sins. However, if the stocks are free from usury, then placing them is permissible unless there is another legal prohibition in this matter. (Majmu' Fatawa wa-Rasail Ibn Uthaymein (18/196)). Ibn Uthaymeen also stated: Engaging in transactions with a company is valid; if it’s one that holds shares that are free from usury. If a person sells his share of the company for a profit, it is permissible and there’s no issue with that. However, it is recommended that the shareholder be aware of the details of his investment. For example, he should be informed about owning a specific number of shares, such as ten or fifteen shares for example, so that the matter remains clear. If this information is known, then there is no issue with it, whether it is in companies, real estate ventures, or other similar investments. (Fatawa Nur 'ala ad-Darb (9/181)).

And this is due to the following:
(1) The share is a portion of the company, and scholars have unanimously agreed on the permissibility of forming a partnership. [2103] (Al-Mughni by Ibn Qudamah, (5/3)), (Al-Majmoo` by An-Nawawi, (14/63)).
(2) The default in contracts and conditions is permissibility, unless there is evidence indicating prohibition. [2104] (Majmu` Al-Fatawa by Ibn Taymiyyah (28/386)), (I`lam Al-Muwaqqi`in by Ibn Al-Qayyim (1/104)).
(3) In the joint-stock company, there is nothing that contradicts the requirements of the partnership contract; rather, it involves organization, facilitation, and alleviation of difficulties. [2105] See: (Magazine of the Islamic Jurisprudence Assembly (2-9/62)).

Prohibited Stocks:
It is not permissible to buy shares of companies that have been established to engage in prohibited activities, such as companies involved in alcohol, tobacco, usurious banks, and the likes. [2106] A seminar "Financial Markets from the Islamic Perspective" organized by the Ministry of Awqaf and Islamic Affairs in Morocco, in cooperation with the Islamic Jurisprudence Assembly in Jeddah and the Islamic Institute for Research and Training at the Islamic Development Bank have stated the following: the ownership of stocks in companies whose purpose involves engaging in usury, prohibited industries, and trading in forbidden substances is not permissible according to Islamic law, even if such ownership is temporary for a period of time that does not allow for the realization of profits resulting from such activities. (Magazine of the Islamic Jurisprudence Assembly - Issue Six (2/1659)). . This is what has been stated by the Islamic Fiqh Council affiliated with the Organisation of Islamic Cooperation, [2107] As per the decisions of the Islamic Jurisprudence Assembly (Majma' al-Fiqh al-Islami), it is unanimously viewed as forbidden to contribute to companies whose main purpose is engaging in prohibitions, such as dealing with usury (riba), production or trade of prohibited items. (Majallah Majma' al-Fiqh al-Islami - Seventh issue (1/711)). the Fiqh Council affiliated with the Muslim World League, [2108] The Islamic Fiqh Assembly of the Muslim World League states it's forbidden to contribute to companies whose main purpose is engaging in prohibitions, such as dealing with usury (riba), or manufacturing or trading in forbidden items (Decisions of the Islamic Fiqh Assembly affiliated with the Muslim World League) Decision no. (78), (4/14), (P: 329). the Permanent Committee of Saudi Arabia, [2109] The Permanent Committee has issued a religious edict (fatwa) stating it is forbidden to invest money in banks for profit, and companies that deposit excess money in banks for profit are not permissible to join for those who know this (Fatwas of the Permanent Committee - First Collection (13/407)). the Jordanian Fatwa Authority, [2110] The Jordanian Fatwa Authority issued a fatwa stating that it is forbidden to buy shares banks that deal with usury because of Allah’s statement: God has allowed trade and forbidden usury. Whoever, on receiving God’s warning, stops taking usury may keep his past gains -God will be his judge- but whoever goes back to usury will be an inhabitant of the Fire, there to remain. [al-Baqarah: 275] ((Official Website of the Jordanian Fatwa Authority)) Fatwa (No. 87). and bin Baaz, [2111] Ibn Baz was asked about the ruling on stocks, and he responded that dealing with Islamic banks that do not deal with usury (riba), it is permissible to join them and cooperate with them, as it is cooperating in good and God consciousness, therefore it is incumbent on a Muslim that they abstain from those things that Allah has forbidden, and cooperating with a bank that deals with usury is something that Allah is not pleased with, and neither is it permissible, regardless if it is cooperating in writing, or as a job, or buying shares or giving money to them, all of this is impermissible. (Sheikh Ibn Baz Official Website). He also answered another question regarding stocks, he said: (If it is in something that does not involve usury then there is no issue, e.g., if the stocks are in iron, buildings, land, cars. As for those that involve usury, then no. The question posed: Stocks traded in banks? The answer: Not in banks, it is not permitted, as for stocks in that which does not involve usury, then alhamdulillah, e.g., companies dealing in land, cars, minerals, clothing. (Sheikh Ibn Baz Official Website). and the disagreement on impermissibility of having shares in them is rejected. [2112] The Islamic Fiqh Assembly of the Muslim World League issued a decision stating that it is forbidden to contribute to companies whose primary purpose involve prohibited acts, like dealing with usury (riba), or manufacturing or trading in forbidden items (Decisions of the Islamic Fiqh Assembly affiliated with the Muslim World League) Decision no. (78), (4/14), (P: 329). The scholarly rule is that it's forbidden to contribute to companies with primary prohibited purposes as stated by Decisions of the Islamic Fiqh Assembly affiliated with the Muslim World League (Decision no. 78 (4/14) (P: 329)).

Evidence:
(1) From the Quran
Allah Almighty states, "And do not help one another towards sin and hostility." (al-Ma’idah: 2)
(2) Because of the general evidence from the Quran and Sunnah regarding the prohibition of usury. [2113] See: ((Decisions of the Fiqh Council affiliated with the Muslim World League)) Decision no.78 (14/4) (p.329).
(3) Because dealing with companies established for engaging in prohibited activities is inherently impermissible. [2114] See: [(Majalah Majma al-Fiqh al-Islami)) ninth issue (2/118).

Mixed Shares: [2115] These are the shares of companies whose operations are fundamentally permissive, but they deal with forbidden things such as taking interest, giving interest-based loans, or make invalid contracts.

It is not permissible to deal in the shares of mixed companies, and this was issued by the Islamic Fiqh Academy of the Islamic Conference Organization [2116] It is stated in the decisions of the Islamic Jurisprudence Assembly that: "The default principle is one of prohibition when it comes to shares with companies that occasionally deal with prohibitions, such as usury and the like, even though their basic operations are legal." ((Majallah Majma' al-Fiqh al-Islami)) Seventh issue (1/712). and the Islamic Jurisprudence Academy of the Muslim World League. [2117] Among the resolutions of the Islamic Fiqh Assembly in coordination with the Muslim World League is: "it is not permissible for a Muslim to buy shares of companies and banks if some of their operations involve usury, and the buyer is aware of that. If a person buys them without knowing that the company deals with usury and then learns it, it is obligatory to withdraw from it." ((Verdicts of the Islamic Fiqh Assembly in coordination with the Muslim World League)) Decision no. (78), (4/14), (P: 329). The Permanent Committee in Saudi Arabia also issued a fatwa regarding it, [2118] A fatwa of the Permanent Committee states: "It is permissible to invest in companies that trade in halal, by increasing their wealth and the wealth of their shareholders through Sharia-compliant investments. It is obligatory for a Muslim to inquire and be cautious about the activities of any companies. If he finds it as mentioned, he can contribute to it, otherwise, he should leave it." ((Fatwas of the Permanent Committee - First Collection)) (14/301). Another part states: (Placing money in banks for an impermissible profit is forbidden. It is not permissible to participate in companies that deposit surplus money in banks for profit, for those who know this). ((Fatwas of the Permanent Committee - First Collection)) (13/407). and this is the view of Ibn Baz [2119] Ibn Baz was asked about the ruling on shares, and he responded: "As for Islamic banks that do not deal with usury, it is permissible to participate in them and cooperate with them; it is a cooperation in righteousness and piety. Believers should be cautious about these things that Allah has forbidden them; dealing with usury banks is not pleasing to Allah and is not permissible, even if the cooperation is in writing, fulfilling a job role, or in contributing to them by spending money on them and participating; none of this is permissible." ((Official Website of Sheikh Ibn Baz)). In response to another question about shares, he said: "If there is no usury in them, there is no problem, if the shares are in iron, construction, land, cars; there is no problem. As for usury, then no. Q: The shares traded in the banks? A: Banks, no, it is not permissible. As for shares where there is no usury, then it is permissible. Companies that invest in land, cars, equipment, clothes; there is no problem." ((Official Website of Sheikh Ibn Baz)). and Ibn Uthaymeen [2120] Ibn Uthaymeen said: "The placement of shares in companies requires consideration; because we have heard that they put their money with foreign or quasi-foreign banks, and they take profits on them, and this is usury. If this is true, then putting these shares in it is haram, and one of the major sins; because usury is one of the greatest sins, but if it is free of this, then putting shares in it is permissible if there is no other legal risk." ((Uthaymeen's Collection of Fatwas and Letters)) (18/196).

Evidence:
(1) From the Quran:
Allah says, "And do not cooperate in sin and transgression." (Al-Maeda: 2)
(2) The rule when bringing together what is permissible and what is forbidden is that the forbidden be predominant as a precaution.
(3) The illicit money earned is shared among the company’s money, mixed with the halal money, and it is not possible to distinguish it. [2121] Refer to: ((Magazine of the Islamic Jurisprudence Assembly)) (7-1/420).

Thirdly: Bonds [2122] Stocks are completely different from bonds. Shareholders are partners in the company that issued the shares, whereas bondholders are lenders to the company. A bond is part of a loan to the company. Some of the most important differences between shares and bonds are: Shares represent a portion of capital, whereas bonds represent a part of a loan to the company. Shareholders can gain profit or incur loss, while bondholders receive fixated interest against the use of their money by the company. The value of shares is repaid after fulfilling obligations, whereas bonds have the priority of repayment after liquidation. The value of shares can only be redeemed after the company ceases to exist, whereas the value of bonds is obtained when the agreed period ends. Shareholders have the right to participate in the management of the company, whereas bondholders do not have this right. Shareholders are entitled to inspect the company's books, whereas bondholders are not. Shareholders have the right to file for the company's bankruptcy, while bondholders don't have the right to demand the company's bankruptcy if the company ceases to pay back. Refer to: ((Dictionary of Economic and Islamic Terms)) by Ali Jumah (P: 331).

1- Definition of Bond
Linguistic meaning of bond: Something that is relied upon, whether a wall or anything else. [2123] Refer to: ((Al-Misbah Al-Muneer in Explaining the Big)) by Al Fayyumi (1/292), ((Contemporary Zakat Issues - The Fourteenth Seminar)) (P: 40).
Technical meaning of bond: A financial instrument issued the user by a bank, company, or government, for different and specific maturity periods, and it carries interest that is paid annually or biannually.

It expresses a credit and debt relationship, whereby an amount of money is lent by the first party (the lender), to the second party (the borrower). In this relationship, the borrower is obligated to make certain periodic payments that represent the interest resulting from the borrowing, in addition to the original amount borrowed at the maturity date.

The underwriter pays less than the nominal value of the bond, provided that he recovers the full nominal value when the maturity date comes, along with the usurious interest on the bond.

There are two types of bonds, a bond in the name of its owner, and a bearer bond. Both of them are negotiable and sellable. It may be sold for its value, so the buyer earns only the interest, or it may be sold for less than its value, so the buyer earns the interest and the difference between its value and its purchase price. [2124]  Refer to: ((Dictionary of Economic and Islamic Terms)) by Ali Jumah (P: 326), ((Dictionary of Financial and Accounting Sciences)) by Mahmoud Al Atwan (P: 491), ((Dictionary of the Most Commonly Used Financial Terms in Financial Markets)) by the Union of Security Agencies (P: 8), ((Issues of Contemporary Zakat - The Seventh Seminar)) (P: 185, 186, 311-313), ((The Eleventh and Twelfth Seminar)) (P: 185), ((The Fourteenth Seminar)) (P: 40), ((Judgements and Fatwas of Zakat, Charities, Vows, and Expiations)) (P: 59).

2- Ruling on dealing in bonds
It is forbidden to deal in bonds [2125]  It represents an obligation to pay their amounts along with an associated interest or a conditional benefit, in terms of issuance, buying, or trading; bonds with zero coupons, and bonds with prizes. as issued by the Islamic Fiqh Academy of the Islamic Conference Organization, [2126] According to the Verdict of the Islamic Jurisprudence Assembly, bonds that represent an obligation to pay their amount along with an associated interest or a conditional benefit are considered forbidden ['Haram']. This is due to their issuance, buying or trading, as they are usurious ['Riba'] loans, regardless of whether the issuing party is private or public, and whether they're linked to the state. Their names, whether they are certificates, investment bonds, or deposits, and the nomenclature of the usurious interest committed to it, whether it is profit, revenue, commission, or return, do not change their forbidden status. Bonds with zero coupons are also forbidden because they are loans sold for less than their nominal value. The holders benefit from the difference as a discount for these bonds. Bonds with prizes are also forbidden as they are loans with mandatory benefits or additional gains for lenders. Refer to: ((Verdicts and Recommendations of the Islamic Jurisprudence Assembly)) Verdict No. 62 (11/6) on bonds, ((Journal of the Islamic Jurisprudence Assembly)) (2/1725- 1726). seminars on contemporary zakat issues, [2127] Refer to: ((The Eleventh and Twelfth Seminar)) (P: 185), ((The Thirteenth Seminar)) (P: 414). , the permanent committee in Saudi Arabia, [2128] In the Fatwa by the Permanent Committee, it is stated: Selling or buying the mentioned bonds is not permissible because it is a usurious transaction, and usury is forbidden according to the text and the consensus of Muslims. ((Fatwas of the Permanent Committee - The First Group)) (14/353). and a symposium on financial markets from an Islamic perspective. [2129] In a seminar on the Islamic perspective of financial markets: Bonds that give their holders related profits to their nominal value, or arrange a conditional benefit for them, whether a bonus or a lump sum, or a discount – are forbidden to issue or trade because they are usurious loans. ((Journal of the Islamic Jurisprudence Assembly)) (2/1659).

This is due to the following:
(1) A bond is a usurious loan; it contains an obligation to pay its amount with an interest attributed to it, or a conditional benefit.
(2) Zero-coupon bonds are considered loans that are sold for less than their nominal value, and their owners benefit from the differences as a discount on these bonds. [2130] Verdict No. 62 (11/6), ((Journal of the Islamic Jurisprudence Assembly)) (2/1726).
(3) Because bonds with prizes are considered loans that stipulate a benefit or increase in relation to all the lenders, or to some of them, not specifically, however. In addition, there is suspicion of gambling. [2131] Verdict No. 62 (11/6), ((Journal of the Islamic Jurisprudence Assembly)) (2/1726).
(4) Trading bonds by buying and selling is like selling the debt to someone other than the one who owes it. This is not permissible. [2132] Refer to: ((Rulings and Fatwas of Zakat, Charities, Vows, and Expiations)) (P: 59), ((Issues of Contemporary Zakat - The Eleventh and Twelfth Seminar)) (P: 185), ((The Fourteenth Seminar)) (P: 40, 41), ((Fatwas of the Permanent Committee - The First Group)) (14/353).