Q. “How is zakah calculated and paid on the unquoted shares which cannot be sold through stock Exchange? “
(Nafesa Raja Hong Chik, Malaysia)
A. Zakah is obligatory on the market value of the shares of every joint stock company. Although the market value of the unquoted shares cannot be determined through the stock Exchange, yet there are two ways to determine their value.
1. Some unquoted shares are sold and bought through “over the counter” transactions i.e. by mutual agreement of the buyer and seller and without the meditation of a stock Exchange. These “over the counter” transactions may determine the market value of the unquoted shares.