Asalamu 'alaikum wa rahmatullah,
I feel I need to ask this question since I am entering the world of trade inshaa Allah. From what I have read, we pay zakat on the "current market value", which is the current price of the product? So, if the total market value of merchandise adds upto that of the nisaab of gold or silver, we pay zakat on this amount? What if, some of the market value is used again to buy more merchandise? Or is zakat only on stock that has not yet been sold?
For example: Total market value "£2000" at the end of the year and the stock hasn't been purchased, do we pay zakat for all those merchandise?
If all of the stock has been sold, yet some money from the profit has been put into savings- do we still have to pay zakat on that sold stock?
Another sub question, the nisaab for gold amounts to a higher amount of money and the nisaab for silver is lower. Does this mean, if one has enough money to meet the nisaab for silver...but not enough to meet the nisaab for gold, that they are obliged to pay zakat?
Sorry, if I am confusing anyone, I haven't paid zakat ever before. Can anyone also suggest to me a simplified book on the fiqh of trade and zakat inshaa Allah?