then, if he purchased the shares with the intention of taking the annual dividend and not for the purpose of trade—so that they are treated like income-bearing assets, in keeping with the resolution of the Islamic Fiqh Academy at its second session regarding zakah on non-agricultural rented real estate—the shareholder owes no zakah on the principal value of the shares themselves. Zakah is due only on the dividend, at the rate of one quarter of one tenth, once a full lunar year has elapsed from the day the dividend is received, provided the general conditions for zakah are met and no impediments exist.

But if the shareholder acquired the shares with a view to trading, he treats them as trading inventory: when his zakah year ends and the shares are still in his possession, he assesses them at their current market value. If no market price is available, he values them according to the appraisal of experts. He then pays one quarter of one tenth (2.5 %) of that valuation, and also of any profit the shares may have generated.

Fourth: If a shareholder sells his shares during the zakah year, he adds the sale price to his other assets and pays zakah on the total when his zakah year falls due. The purchaser, for his part, pays zakah on the shares he has bought in the manner described above. Allah knows best.