Is Zakat obligatory on money invested in Halal stocks before the completion of a full year (Hawl)?

If you possess the nisab (definition) (minimum taxable amount) of gold, and you sell it or part of it and invest the proceeds in trade goods, the hawl (one lunar year for zakat (definition) calculation) is not interrupted. Zakat becomes obligatory on you based on the hawl of the gold. Commercial assets, gold, silver, and currency are treated as one single type of wealth for zakat purposes.

If you purchase stocks with the intention of trading them, you must consider their market value, add it to your gold, and pay zakat in Ramadan (definition).

However, if you purchase stocks with the intention of holding them and benefiting from their dividends, without trading in their principal, then zakat is only due on the dividends, unless the assets themselves are subject to zakat, such as gold and silver, or if there are cash holdings alongside the assets, in which case zakat becomes obligatory on the cash.

In this situation, if there are no cash holdings, gold, or silver, the hawl for the gold's zakat is interrupted because the nisab has been exchanged for a different category of asset. But if there are cash holdings, gold, or silver, then the hawl for the portion corresponding to the gold's value is not interrupted. In this case, it is more cautious to pay zakat on the stocks based on the hawl of the original gold that you sold and used to purchase these stocks.