Document Details

Document Type : Article In Journal 
Document Title :
Zakah on Stocks: Some Unsettled Issues
زكاة الأسهم: قضايا لم تحسم
 
Subject : Zakah on Stocks: Some Unsettled Issues 
Document Language : Arabic 
Abstract : Issues relating to zakah on equity shares are far from settled if one considers the available fatawa and observed practices in many Muslim countries. The most basic questions pertain to the correct method of valuation of equity shares for the purpose of estimation of zakah liability. This paper reviews alternative methods of valuation and argues in favour of market-based valuation. It also raises serious questions on the permissibility of exemption of fixed assets from zakah liability in the accounting based framework, notwithstanding its actual use in some Muslim countries. A market-based valuation framework is rooted in the notion of market efficiency, which dominates modern finance theories for over a century. The paper seeks to push forward the concept of "average price" as the basis of valuation as also of estimating zakah liability. It argues that the concept not only follows logically from the efficient market theory, but also is backed by sound Shari'ah evidence. 
ISSN : 1018-7383 
Journal Name : Islamic Economics Journal 
Volume : 21 
Issue Number : 1 
Publishing Year : 1429 AH
2008 AD 
Article Type : Article 
Added Date : Sunday, July 4, 2010 

Researchers

Researcher Name (Arabic)Researcher Name (English)Researcher TypeDr GradeEmail
عبدالعظيم إصلاحيIslahi, AbdulAzim ResearcherDoctorateaaislahi@hotmail.com
محمد عبيداللهObaidullah, Mohammad ResearcherDoctoratem_obaidullah@yahoo.com

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