Twitter shares found suitable for Islamic investment
Shares in Twitter Inc have been found eligible for investment by Islamic funds, according to IdealRatings, a company that screens stocks to determine whether they meet Muslim principles.
IdealRatings said it had vetted Twitter in response to requests from fund managers and individual investors around the world. The social media company’s share price soared in last week’s New York Stock Exchange debut after a $1.8 billion initial public offer.
Islamic fund managers follow guidelines such as bans on investment in firms involved with tobacco, alcohol and gambling. Since Islam frowns on monetary speculation, they also shun some companies that use interest payments or have high debt levels.
Twitter joins some other big US technology firms, including Google and Microsoft, in being found compliant with Islamic or sharia principles by IdealRatings, a California-based firm which provides screening services to major fund managers and compilers of equity indexes.