Buying Shares in a Company that Operates on Shabbos
Question: Is it permitted to buy stock shares in a public company managed by non-Jews, who operate the company on Shabbos and Yom Tov?
Discussion: Yes, it is permitted. The poskim explain that buying shares in a company is not the same as becoming a partner in the company. Buying shares is merely a method of investing. The buyer hopes that the value of his shares will rise and enable him to turn a profit when he sells them; he has no intent or interest in becoming an owner or a manager of the business. Although all publicly traded companies must have an annual meeting where officers are elected by the shareholders, it is well known that this is merely a formality, and after all is said and done, the power to run the company remains in the hands of the board; the individual minority shareholders have no say or power to speak of. Thus, buying minority shares in a non-Jewish company which operates on Shabbos and Yom Tov is not considered as if one is becoming a partner with a non-Jew, or as employing the non-Jewish employees, and is permitted.[1]
What about buying stock shares in a public company whose board members are non-observant Jews who operate the company on Shabbos and Yom Tov? Is that considered as if the investor is contributing to the company’s finances and thereby aiding and abetting Shabbos desecrators? Most contemporary poskim rule that buying stock shares is not considered to be aiding and abetting Shabbos desecrators as there is no shortage of investors who are ready and able to buy shares. Anyone who buys shares does so for his own investment purposes and not for the purpose of financing the company.[2]
[1] Igros Moshe, E.H. 1:7; Minchas Yitzchak 1:72; 3:1-27; Rav Y.S. Elyashiv (written ruling, published in Mamon Yisrael, pg. 32). For a dissenting opinion, see Bris Yehudah, pg. 43. [Whether or not it is also permitted to buy enough shares that the board would have to take his opinion into consideration is questionable: Although Igros Moshe, E.H. 1:7 clearly forbids doing so, he seems to have recanted in Igros Moshe, O.C. 4:54.]
[2] Igros Moshe, E.H. 1:7; Minchas Yitzchak 5:18.