Question 1

Is Tesla (TSLA) halal to invest in?

Accepted Answer

Tesla passes AAOIFI Shariah screening. Its debt-to-market-cap ratio is under the 30% threshold, and prohibited income (insurance segment) is approximately 1.77%, well below the 5% threshold. However, Tesla holds Bitcoin on its balance sheet, which some scholars consider speculative. Screen any stock free at HalalScreener.

Question 2

How do I calculate zakat on stocks?

Accepted Answer

Zakat on stocks is 2.5% of the market value of your zakatable holdings, calculated on your lunar year anniversary. Only stocks held for investment (not trading) use the market value method. For actively traded stocks, use the full market value. HalalScreener provides a free zakat calculator that handles this automatically.

Question 3

Is gelatin halal?

Accepted Answer

Gelatin derived from halal-slaughtered animals (beef or fish) is halal. Pork-derived gelatin is haram by consensus of all schools. Plant-based gelatin alternatives (agar-agar, carrageenan) are always halal. When in doubt, check the source: many food products use bovine or fish gelatin which is permissible.

Question 4

What is the difference between Sunni and Shia rulings on investing?

Accepted Answer

Both Sunni and Shia scholars agree that riba (interest) and prohibited business activities make stocks haram. The key differences are in threshold calculations and the role of ijtihad. AAOIFI standards (used by most Sunni scholars) set specific financial ratio thresholds. Shia marjas like Ayatollah Sistani emphasize the underlying business activity. HalalScreener lets you compare Sunni and Shia rulings side-by-side.

Question 5

Is Bitcoin halal or haram?

Accepted Answer

Scholarly opinion is divided. Those who permit it argue Bitcoin functions as a digital asset with real utility and limited supply. Those who prohibit it cite excessive speculation (gharar) and lack of intrinsic value. Many contemporary scholars permit holding Bitcoin as an investment but caution against speculative day-trading. AAOIFI has not issued a final standard on cryptocurrency.

Question 6

What is stock purification and how does it work?

Accepted Answer

Stock purification is the process of calculating and donating the portion of your investment returns that came from non-compliant (haram) income within an otherwise halal company. For example, if a halal stock earns 2% of revenue from interest income, you purify 2% of your dividends or capital gains by donating it to charity. HalalScreener's purification calculator automates this for your entire portfolio.