Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
...the broker knows which one you bought first....

Yes, he does. All the trades are date/time stamped down to a gnat's patootie--there are too many trade/execution liabilities involved to not have such close tracking. But the the taxman does let/make me treat same-day executions as simultaneous.

Here's another instance where that's useful, not directly related to this board. There is a rule (72T?) that generates the following condition. If I sell stock A, I can use the unsettled proceeds from that sale to buy stock B, but the rule says that I cannot then sell stock B until the sale of stock A actually settles (typically three days after that sale). I can, though, sell stock B at any time on that 3d day, or on the 4th day, at my convenience.

I don't have to wait until 72:00:00.0000 business hours after the moment of execution of the stock A sale.

Eric Hines
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement