Is a fixed interest rate paid on stock transactions permissible?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
For the permissibility of shares in companies, two conditions must be met: that the company's activity is permissible (), 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.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/89957
Where this answer came from
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- Ftawy
- Original fatwa ID
- 89957
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy