The following question and answer by Sheikh Yusuf Talal DeLorenzo attendees of the Dow Jones University Courses on Islamic Investement.

Question:: What is the Islamic view on employee stock options?

Answer: This is one which many Muslims puzzle over, and with good reason. To begin with, the term "options" often leads to confusion because most Muslims recognize it as perhaps having to do with the options market; and the buying and selling of options is clearly prohibited owing to the element of uncertainty, or gharar, at the time of contracting. (For a detailed discussion of gharar, see: "Lesson Two, Riba and Gharar").

The following question and answer by Sheikh Yusuf Talal DeLorenzo attendees of the Dow Jones University Courses on Islamic Investement.

Question:: What is the best way to invest in a 401(k) plan. Are we allowed to invest if Islamic Mutual Funds are not listed on the Mutual Funds list. How should we convince the Employer to have Islamic Mutuals Funds.

Answer: We are not in the best position to answer the first part of your question as we lack the proper financial advisory credentials. If enough company employees request Shari'ah compliant investment vehicles (resulting in respectable amount of assets for Shari'ah permissible management), then the employer will at least take notice of the demands. The key issue is for Muslim employees to begin making these demands, and then to point to the direction of, say, the Dow Jones Islamic Market Index as a universe of Shari'ah

The following question and answer by Sheikh Yusuf Talal DeLorenzo attendees of the Dow Jones University Courses on Islamic Investement.

Question:: Can riba money be used to pay off a riba loan? If so, would this be considered purification of wealth?

Answer: It was explained in the section on Purification (Lesson Six, Section Six) thatincome from interest must be given away, and that? "as a general principle, sincethe money being distributed represents impure income, it must not be used in a way that

The following question and answer by Sheikh Yusuf Talal DeLorenzo attendees of the Dow Jones University Courses on Islamic Investement.

Question:: As a follow-up to Sarah's question on company granted stock options, I'd like to ask about the Zakat that is due on gains received via these options. In certain cases (as with some of the recent IPO's in the tech sector), the compensation achieved fromstock options can be huge -dwarfing the other benefits an employee receives (i.e.salary). According to at least one booklet I've read about Zakat calculation, the rate

The following question and answer by Sheikh Yusuf Talal DeLorenzo attendees of the Dow Jones University Courses on Islamic Investement.

Question:: In the second lesson, there is a reference to Nabil A. Saleh's Unlawful Gain and Legitimate Profit in Islam, London 1992. This is the second edition. Can you tell me whether it is substantially improved from or better than the first edition? I ask because I own a copy of the first edition. Thank you.

Answer: The only copy I have is of the second edition and so I am unable to compare. Likewise, there is nothing in the Introduction to indicate any major changes or

The following question and answer by Sheikh Yusuf Talal DeLorenzo attendees of the Dow Jones University Courses on Islamic Investement.

Question:: What is the consensus about investing in Israeli companies, or companies that invest in Israel? Should those not be excluded by the Shari`ah screens like companies that deal with Alcohol, pork, banks, etc...? Salam R Tarek

Answer: To our knowledge there is no Shari'ah dialogue involving investment prohibition against Israeli companies or companies that invest in Israel. The Shari'ah screens do not take political background/identity or religious affiliation into account. The Prophet himself, upon him be peace, is known to have transacted with people of other

The following question and answer by Sheikh Yusuf Talal DeLorenzo attendees of the Dow Jones University Courses on Islamic Investement.

Question:: My question is, even though certain companies, ie CitiBank, GE, AOL become un-investable in due to the Shariah screen, dont you think that if Muslims are going to change the way these companies do business, then they should become shareholders andhelp steer the direction of companies that do conduct Haraam activities. Also, don't youthink that by investing in companies like GE, and Disney etc etc, Muslims can help the

The following question and answer by Sheikh Yusuf Talal DeLorenzo attendees of the Dow Jones University Courses on Islamic Investement.

Question:: I am employed in an insurance company (my whole career of 28 years) in the capacity of an M&A analyst and management professional. Is there guidance around theacceptability of this employment --- in context of the exclusion of insurance industry from Shariah acceptable companies? Does my salary have to be purified? If so, how --- your lessons are focused on shareholders, not employees? What if, after so many years and having reached an older age, I am not easily employable at even 30% of my income if I shift industries?

The following question and answer by Sheikh Yusuf Talal DeLorenzo attendees of the Dow Jones University Courses on Islamic Investement.

Question:: The discussion about which kinds of companies Islamic Equity Funds should avoid includes those companies dealing in gold and silver. What is the basis for this? Surely trade in gold and other precious metals/minerals is permissible in Islam?

Answer: Trading in gold and other precious metals/minerals is indeed permissible in Islamic law. Mining and exploration operations are often financed by Islamic banks and financial institutions by means of perfectly acceptable Islamic contracts. Moreover, the DJIMI universe includes several companies involved in the mining of precious metals like gold and silver.

The following question and answer by Sheikh Yusuf Talal DeLorenzo attendees of the Dow Jones University Courses on Islamic Investement.

Question: It seems to me that the best way a Muslim can object to the way the company might be dealing with Riba is not to hold any of its shares. Furthermore acquiring shares of a company with the intention of objecting to its practice does not seem logical because as a very small shareholder any protest will just be ignored and would not cause the company to alter the way it does business. Any comments will be appreciated.