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The question

Is a fixed interest rate paid on stock transactions permissible?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

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 Ftawy
Source platform
Ftawy
Original fatwa ID
89957
Imported
Translation status
Source text, unreviewed
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