Zakat on Shares and Stocks
Shares and stocks are zakatable. The method of calculation depends on whether you are a trader or a long-term investor.
If you own shares in a company, Zakat is due. Traders and long-term investors calculate Zakat differently, but both must pay.
Zakat for Traders
Pay on the full market value.
If you buy and sell shares frequently (trading), treat them like inventory. On your Zakat date, calculate the total market value of all your shares and pay 2.5% Zakat on the full amount.
tip
Simplified Approach
Enter the current value of your shares.
Calculate Zakat on Your Portfolio