Understanding Stock Investing #
Original Question: Sabana recently announced that they will remove the shariah compliance feature. My fiancé has some units invested there, is it still okay to continue or should he liquidate his units?
In practice we have two options:
- To sell off his shares once it reaches the investment cost.
- Wait for it to become compliant. It may not be named shariah compliant but it could still be shariah compliant if we do the necessary filters. Just need to do the purification on this choice.
So if Sabana gives out its quarterly dividends, we’ll need to purify it based on the non-compliant income of Sabana.
When you liquidate and the price of the stock is lower than the investment cost, you can take the full amount.
