Is it obligatory to ascertain that companies are free from usurious dealings before purchasing their shares, and how are shares disposed of if usurious dealings are proven, whether the sale is at a profit or a loss?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
A share is a tradable instrument representing ownership of a common stake in a company. Shares may only be purchased if the company operates in a permissible activity and does not deposit its funds in interest-based banks; otherwise, the shareholder would be complicit in sin. The participant bears losses commensurate with their share in the company and earns profits commensurate with their share in it. If any usurious element enters the profit, it must be disposed of and spent on charitable causes, not as an act of seeking closeness to Allah.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/56994
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 56994
- 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