If a company makes income from interest, can I still invest in it even though the company is based mostly on lawful transactions, and what are the conditions?
It is permissible to invest in companies that are not based solely on unlawful transactions, such as companies that manufacture alcohol and pork. The money received from such companies is unlawful to dispose of without referring to the jurist (marja’). But if a company is not fully based on unlawful transactions, rather some of its transactions are lawful and others are not, for example, Costco or Target where most of their transactions are lawful except for a small portion that deals with alcohol and pork, then it is permissible to invest with such companies, however, the following must be noted:
1) If it is possible to stipulate in the investment agreement that the money is not to be used in the unlawful portion of the investment such as alcohol, then one must stipulate this condition, and money received as profit is permissible.
2) If it is not possible to stipulate the aforementioned condition, then there are two cases:
a- If the percentage of the unlawful portion can be identified, one must separate it and refer in its disposal to the jurist (marja’).
b- if the percentage of the unlawful portion cannot be identified, then one must estimate it to a number that is close enough to the actual, and then settle it with the jurist (marja’).
Settling the amount with the jurist (majra’) means that the jurist may require giving the amount as a charity to the poor, or disposing it on a matter that he specifies, or requesting handing it over to him.