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mikeg1382: {{{{I am fairly new to investing, and I am not sure this is the right place to post this, but any help would be appreciated.
A while back I bought 15 shares of GE at $38, and now they are down to $32. Should I sell them, then buy again at this price? I am pretty sure that the company is not going under and their price will rise again, but it would be a short term sale (under a year) and I am not sure if it would be worth it.}}}}

joebedford: "Um, well, you're not really giving us enough info here. :-) What would be your goal in selling, then repurchasing? For some reason, I feel like you are trying to lower your cost basis, but are you considering that you are taking a capital loss by selling? (You bought them for $570, but you are only going to get $480 if you sell now.) Are you trying to offset capital gains elsewhere in your portfolio? I'm really not sure where you are going with this."

I am as in the dark as joe. Also, you do not appear to be aware of the wash sale rules. If you repurchase within 30 days of the sale, it is a wash sale and recognition of the loss is delayed. And, it does no good to buy the replacement shares within the 30 days before the sale, because that would also make it a wash sale.

The FAQ on the Tax board covers this topic (wash sales) well. When you understand the wash sale, I would still ask why you propose to do what you are proposing. Plus, you seem to be ignoring transaction costs; even a $10 commission on a $500 buy/sell transaction is 2%.

Regards, JAFO

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