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Not sure if this is the correct spot to post this. I'm sorry if it's not. Is this scenario correct?

Scenario: I buy 100 shares of Company XYZ at $50/share. I hold, and it drops to $20/share. I decide to buy 50 shares more.

When I decide to sell, the shares I sell come from the first 100. So, if the price goes to $40 and I sell 50 shares, I take a $10/share loss because the 50 I sold are not the 50 I bought at $20/share. Is that correct? First in, first out?

Thanks,
Mike
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Greetings Mike,

When I decide to sell, the shares I sell come from the first 100. So, if the price goes to $40 and I sell 50 shares, I take a $10/share loss because the 50 I sold are not the 50 I bought at $20/share. Is that correct? First in, first out?

That is correct assuming no commissions to buy or sell the stock and also that it isn't a wash sale.

Regards,
JB
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That is correct assuming no commissions to buy or sell the stock and also that it isn't a wash sale.

Perfect. Thanks! And yes, I left out commissions and exceptions for the sake of simplicity.

Mike
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