Hello everyone, I have a question regarding the concept of earnout or value-based earnings in halal investing, especially as it relates to stock purification.
Many platforms focus mainly on interest income, debt ratios, and business activities to determine if a stock is halal or not. However, some scholars and platforms consider the earnout structure — where a significant part of a company’s profit or payment depends on future valuations or performance-based payouts — as potentially problematic or uncertain (gharar/maysir).
For exp. NVTS stock
My question is:
How does Zoya view earnout or value-based earnings in the context of halal investing and purification?
• Do you consider earnout-generated income as halal by default if interest income is zero?
• Or is earnout income regarded as speculative or uncertain, thus requiring special purification or even avoidance?
• How do you practically handle purification for stocks where a large portion of returns come from earnout agreements rather than traditional business operations?
I would really appreciate detailed insight or references to your scholars’ rulings on this matter.
Thank you!