Zakat on Business Shares vs Personal Shares

Zakat on shares depends on why you own them. Shares owned for trading are zakatable differently from shares owned as long-term investments.

If you buy and sell shares as a business (trading), pay Zakat on the full market value. If you hold shares as a long-term investment, the calculation is slightly different.

Trading Shares

Treat them like inventory. If you actively trade shares (buying and selling frequently), they are considered business inventory. On your Zakat date, calculate the total market value of all shares you own and pay 2.5%.

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