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Financial Planning / Tax Strategies
|Subject: Re: Calculating a loss||Date: 1/31/2000 1:32 PM|
|Author: CheetahChrome||Number: 26459 of 122538|
> Subject: Calculating a loss
> Author: jbet Date: 1/31/00 Number: 26458
> I bought 100 shares of stock X at 43. Six months
> later I bought 100 shares of the same stock at 20.
> Last month, I sold 100 shares of the stock at 18.
> Is my loss taken from the sale of the first block.
> If so, I guess I have a $2500 loss and am looking
> for a new broker!!!!
By default, lots are sold in FIFO order (first in first out). So, unless you say otherwise at the time of sale (see below), you sold the first 100 shares you bought (at a price of $43).
If you want to sell shares in an order other than FIFO, you must tell your borker at the time of sale & have him/her send you sometning in writing indicating this.
BTW: why would the order of sales have anything to wo with whether you retain your broker?
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