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Paying zakat on Stocks

Answered as per Hanafi Fiqh by Qibla.com

Answered by Shaykh Faraz Rabbani

In regards to paying zakat on stocks:
 1. Are stocks regarded as ‘trade goods’? They are not really goods but perhaps investments or even loans which appreciate/depreciate with a company’s equity.
2. If there is a change in value from when first purchased – is the zakat is calculated on the year-end value or otherwise?

In the Name of Allah, Most Gracious, Most Merciful

Al-Salam alaykum

1. According to the preferred view of contemporary Hanafi scholars, shares in public companies are regarded as stock in trade as it is relatively easy to trade them.

2. Zakah is payable on the market value of such shares on the Zakah evaluation date.

And Allah alone gives success.

Abu Usamah

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