What is the position when share certificates are sold?

Answer

Islam does not recognize the capitalist concept of a company which is owned by a fictitious donkey termed 'legal entity' with rights and obligations according to the hallucinatory laws excreted by the capitalist kuffaar. According to Islam, the shareholders are the actual owners of the business and its physical assets. They don't only own the pieces of scrap papers called share certificates which in terms of capitalist law entitles them to only riba, called deceptively 'dividends'.

When a share certificate is transferred to a person, then according to the Shariah, he/she becomes a proportionate shareholder in the physical assets of the business and will be entitled to his share of the profit. If the shareholder at any time wishes to opt out, he has this right. At that juncture, the financial position of the business has to be ascertained in order to pay him his share of the assets and profits. The manner in which shares operate in the capitalist system is haraam.