Question:

I inherited an IRA account. From what I can tell, the investment company, Vanguard, invests the funds in a wide range of stocks in various stock markets around the world. Regarding the ownership of the company: “The company is owned by its funds. The company’s different funds are then owned by the shareholders. Thus, the shareholders are the true owners of Vanguard.” Do I have to be concerned about the interest earnings?

Answer:

Although the company may be owed by the investors, but the person who invested in the company is also an investor. Therefore all profits gained were not from a loan, but from a real partnership, and joint investment. This is not considered a loan, therefore it would not have an issue of ribbis.  

 

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