Zakat on shares

Question

There are some commercial institutions that deal (?) in shares; in common language a share may be called a “partnership stake”. Profit is paid on the money invested in such an institution, and the value of this stake keeps changing. Suppose I have shares worth one hundred rupees, and owing to the popularity of the institution these shares can be sold in the market for one hundred and twenty-five rupees. Will zakat be given on the amount of these shares as well?

Answer

This too is one form of trade: on completion of a year from the time you became a shareholder, zakat will be wajib on its market value.

Source: Fatawa Mahmudiyya

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