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What is the Islamic ruling on investing in stocks?

Investing in common stock of a company is permissible if the company’s main business is permissible, interest-bearing loans are <30% of market value, interest-bearing deposits are <30% of market value, and unlawful income is <5% of revenue. Unlawful income should be purified. Also note that the following are not permissible: preferred shares, margin trading, short selling, CFDs, futures, forwards, options, and other derivatives.

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Zakat on Retirement Accounts

Zakāt on retirement funds is an annual obligation due on the withdrawable amount – meaning the amount one would possess if they were to liquidate the account and pay any penalties and taxes.

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