How do I calculate Zakat on Shares and Investments?

When it comes to Calculation on Shares and investments there are three main scenarios to consider. 

Scenario 1: Day trading/short-term trading (Less than one lunar year)

 Include the entire value of your portfolio and pay Zakat on it.

Scenario 2: Long term investments (one lunar year or more) 

From the balance sheet of the company (in which you hold shares), use the following formula:

1. Amount Y =      Cash + Cash Equivalent + Accounts Receivables + Inventory
                                      Total Number of Shares Issued By Your Company
2. Your Zakatable Amount = [(Amount Y) x (Number of shares you own)]

Please note, if you are receiving dividends, please add them to your Zakatable assets. • 

Scenario 3: Cashing out Upon cashing out, the amount remaining after taxes and fees are added to your Zakatable assets.