How is zakat calculated on circulating shares that may be held for years or continuously sold, and is zakat obligatory on them regardless of the passing of a hawl (a lunar year)?

A Muslim must be meticulous in their financial dealings. Therefore, it is impermissible for them to invest in companies or stock exchanges whose transactions are forbidden by Sharia, because they become a partner in them to the extent of their shares. Zakat is obligatory on shares intended for trade, just like other trade goods.

Method of Zakat Calculation: If a Muslim possesses the nisab (minimum threshold) of wealth (equivalent to 85 grams of gold or 595 grams of silver) and a full lunar year (hawl) passes, even if they bought and sold shares during the year, they should value their shares and whatever money, gold, and silver they possess at the time the hawl is completed. They then pay a quarter of a tenth (2.5%) of the total value.