If it is known that joint-stock companies pay zakah on the capital

The questioner : His question says: If it is known that joint-stock companies pay zakah on the capital, what should be done if the price of a single share increases or decreases from its original price? Does one pay zakah on the increase, or what do we do?

The Shaykh : This issue is among the ambiguous matters in reality, because it is based on a violation of the Shari'ah. That is, buying and selling shares and dealing in them is not in accordance with the religion, because the companies that are invested in deposit their money in banks and deal in forbidden things. It is not permissible to invest in such companies whose capital is based on depositing it in banks that deal in riba (usury or interest). If a person is afflicted with any of this, he must pay zakah on the capital, not on the company; each person according to his share and portion. This is because zakah is obligatory on the two types of currency (gold and silver), and it is not obligatory on goods for trade. If the shares have been converted into trade goods... or something similar, then there is no zakah on them. However, if these shares remain as preserved wealth in the fund, then at that time it is obligatory for every person to pay zakah on the shares that belong to him. If the capital of the shares has increased, then at that time... the zakah is on the original wealth and the increase, as established by the scholars... or... This is what I believe regarding this issue.

The questioner : May Allah reward you with good, and may Allah reward you.