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Is it permissible to subscribe to a forbidden company and sell its shares immediately upon their flotation on the market?

1 min readAlso available in العربية

The ruling on subscribing to shares in companies varies depending on their activity. It is forbidden to subscribe to shares in companies whose core business is unlawful, such as usurious banks. It is permissible to subscribe to shares in companies whose core business is lawful and that do not engage in transactions that violate Islamic law. As for companies whose core business is permissible but that deposit a portion of their funds in usurious banks for interest, the preponderant view is that it is not permissible to participate in them. The intention to sell immediately does not change the ruling, because the shareholder acknowledges the usurious transaction and authorizes the board of directors to engage in this forbidden act.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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