What is the ruling on zakah in shareholdings?

Question:
Is zakah due on shareholdings?

Answer:
A shareholding varies:
If the shareholding is in land for trade or sale, or in cars for sale, or in items for sale, then zakah is due whenever the lunar year has passed, and one must pay zakah on both the principal and the profit.
However, if the shareholding is in something that remains—such as a factory that remains, or land for agriculture that is cultivated—then there is no zakah on the principal, but one pays zakah on the profits obtained when the lunar year has passed over them, or if it is cultivated, one pays zakah on the grains. As for the principal, it is not subject to zakah because it is intended to remain and not for sale. Thus, the factory is not subject to zakah, and the machines are not subject to zakah because they are intended to remain and not for sale. But if the money is placed in something that is sold—land that is sold, cars that are sold, doors that are sold, chairs that are sold, clothes that are sold—then one pays zakah on both the principal and the profit, because they are merchandise for trade.