Is It Necessary To Pay Zakat On Stocks?

Is it necessary to pay zakat on stocks?

A person who purchases shares of a company becomes partners on the building, machines and stocks of the company at the rate of his shares. In this situation the shareholder has right jointly on profit or loss of the company. If the company makes profit and the profit share of the shareholder, alone or together with his other goods, reach nisab amount and one year passes upon ownership, the zakat for the profit share of the shareholder is given at the rate of 1/40 (2,5%).

If the mentioned shares are owned with the purpose of sale and purchase instead of being kept for profit, these shares are considered as tradable goods. If their value reaches nisab amount together with the other goods subject to zakat, their zakat is given at the rate of 2,5% according to their market value (Zuhayli, al-Fiqh al-Islami, II, 774, 799).

Source: Presidency Of Religious Affairs The Turkey, High Board of Religious Affairs FATWA