# Question

As Salamu ‘Alaykum

I would like to explain my question with the following example,
Lets assume, I invested in ABC company stocks worth \$100. After couple months, I sold all ABC stocks (this was a short term investment). I recieved \$300 for my \$100 investment, \$200 is profit.
Now, I re-use all the money i.e., \$300 to buy stocks of XYZ company. This is a long term investment.

The question is, how do calculate my zakat for the above scenario given?
Will I need to consider both short and long term scenarios while calculating my zakat i.e.,
short term = initial investment \$100 on ABC stocks-> \$300 * 2.5% = \$7.5
long term = initial investment \$300 on XYZ stocks-> based on current market value, lets say the equity is \$500 -> (\$500 * 40%) * 2.5% -> \$500 * 1% = \$5
So in this method of calculation, \$7.5 + \$5 = \$12.5 will be my total zakat for the above example?

or, will I need to consider just the long term scenario as the money from the short term transaction is now invested in long term stocks?

I am sorry for the weird scenario question. I hope you find the explanation easy.

JazakAllah Khairan