I need to understand Zoya basis for deciding if the stock is shariah compliant or not. Also, how do you cleans the profits made from the stocks.
There are a few different schools of thought when it comes to purification. If you follow the dividend purification method, then you would only need to purify any dividends received. For instructions on how to calculate it, see my post here . All the underlying numbers can be found in Zoya on the Revenue Breakdown section of the shariah compliance report.
The AAOIFI purification method, however, requires purifying regardless of whether or not the company pays dividends. The process is a little more involved but we’ve outlined it in our FAQs here.