Is a fixed interest rate paid on stock transactions permissible?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
For the permissibility of shares in companies, two conditions must be met: that the company's activity is permissible (halal), and that it does not engage in forbidden transactions, such as depositing funds in interest-bearing usurious banks. It is not permissible for the company to give the shareholder a fixed amount as profit; rather, his share must be a common percentage of the profit, unless it is a percentage added to the profit.
Summarized from the full answer at Ftawy · imported
Read the full answer on Ftawyhttps://ftawy.com/en/questions/89957
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- Ftawy
- Original fatwa ID
- 89957
- Imported
- Translation status
- Source text, unreviewed
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