Question
In Zakat on stocks, if profits are realized, how is the Zakat calculated? Is it on the capital if a year has passed, or on the profits as well? If it is on the profits, how is it calculated?
Answer
I say, and with God's success: If the shares are for trade, then zakat is obligatory on them and on their profits at the end of each year. If the shares are not for trade, then zakat is obligatory only on their profits, and this applies if the shares are for something that zakat is not obligatory on. And God knows best.