Investments and shares

Investing in the stock market

Q: Please advise if investing in shares in publicly listed companies which sell the following is permissible or not: 

1. A Distribution/Retail business whose main business is pertaining to selling foods, cosmetics, appliances, bakery, butchery (haraam meat also sold) sells alcohol also. 

2. A mining, telecommunications or property holding companies that has conventional bank loans and fixed deposits that earn interest?

Investing in an apartment complex where rentals are shared equally

Q: Please advise if the following form of investment is permissible.

We purchase a two bedroom apartment in a complex which belongs exclusively to us. Nine other people also purchase two bedroom apartments in the complex. All ten of us then enter into a partnership and agreement (with an agent handling the entire portfolio) that we will all hand over our apartments to the agent for rental. However, the proceeds at the end of the month will be shared equally in the partnership among all ten of us, irrespective of whose apartment was leased out more in that period.

Will such a partnership agreement be permissible and valid?

Selling a share in a property at a higher price

Q: I had 2 clients, client A, who wished to buy a property. The client had an agreement with the seller to purchase a property being sold for R900 000. Client A wanted to get bank finance for the shortfall on the purchase price. We advised against it. We spoke to client B, who had R100 000 to invest. We brought both the parties together. Client B agreed to buy 1/9 of the property. Within a month client B agreed to sell his share at R120 000, an agreed of repayment was made and met.

Is the transaction a valid shariah agreement.

Not giving the profit to the shareholders

Q: If you had given someone a sum of money to invest in a property but they are now constantly making excuses not to give the money or the profit to you (but you don't know their situation - maybe they are struggling) would that be considered as just a debt or stealing? Does it make their income haraam? For instance, if they are hosting a function, would it be permissible to attend and partake of the food?

Investing in companies that deal in interest below 33%

Q: I am not too convinced with the present day Islamic finance which is applied in the conventional banks as well as those with Muslim names.

Similar is the issue with stock markets. One point that I have totally failed to understand is the concept of permissibility in investing in those companies which deal in interest on condition their interest earnings/dealings is below 33%.

By me buying shares in a company, I become a co owner. So being a co owner in a company dealing in interest is permissible as long as it is registered as a public limited company.

But then why is interest not permissible for me as a sole trader. If I have a shop which I run by myself then why can't I take loans and invest in interest based instruments and make sure it doesn't exceed 33%.

I am genuinely confused and have failed to understand the rationale in this 33% concept. Buying shares in a public limited company is permissible even if it deals in interest as long as it is till 33%. But by myself i can't be a sole trader doing the same. Please explain to me as i am really confused.