My question is that I have amount of money that reaches Nisab, I used part of it to buy stock.
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One of our brothers/sisters has asked this question:
My question is that I have amount of money that reaches Nisab, I used part of it to buy stock, shortly after, the time to give out zakat come, am I going to payout only on the money I have with me, or I will include the one I invested in the stock market, even though the investment did not reach one year? Note that the money I invested are part of the money that met one year, but the investment itself did not reach one year of investment.
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If the total net worth of any believer (man, woman, or child) is more than the prescribed nisaab (app. 85 grams of gold or app. Value US$2,100.00), then the person is liable to pay the obligatory zakah at 2.5% on their excess wealth which has been in their possession for a full calendar year.
Lets assume that you had 10,000.00 cash at the beginning of the calendar year, and half-way through the year you decided to invest 5,000.00 of that into the stock market. At the end of the calendar year you would be liable to pay zakah on the 5,000.00 cash with you, plus the market value of your investment of 5,000.00 which you made in the stock market.because it is you who is the inherent owner of both your cash and your investments.
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