Is Investing (Capital Markets) in Financial Institutions is Haram?

I've been wondering whether investing in financial institutions is considered haram. Many Muslims believe that since the primary income of these institutions (like Banks, Financial service Industries) is derived from interest, they make such investments haram. Primarily, the interests are derived from their lending products ie. Loans, Leasing. They argue that any association with interest (riba) is prohibited in Islam. However, capital markets operate differently. The value of instruments in these markets is driven purely by demand and fundamentals; the higher the demand, the higher the price goes. In this scenario, the profit of a financial institution (FI) isn't directly involved neither is touched. However, dividends are derived from the income that financial institutions generate (where interest is touched). Therefore, one could simply opt out of receiving dividends to avoid any haram income and proceed with investing in the Instruments/Security of FIs. What are your thoughts on this? Is it possible to invest in financial institutions without engaging in haram activities? Looking forward to your insights!