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If you're an individual investor you cannot buy shares of private stock, but you can sell them. In most cases, the easiest option is to sell your shares of stock back to the company that issued ...
Borrow cost is the fee paid to a securities lender for borrowing the stock or other security. The cost of borrowing the stock is usually negligible compared to fees paid and interest accrued on the margin account – in 2002, 91% of stocks could be shorted for less than a 1% fee per annum, generally lower than interest rates earned on the ...
If you place a market order to sell a stock, you will sell at the highest bidding price. Limit order: With a limit order, you specify to the broker what price you want to get on the trade.
If the price of XYZ stock falls to $40 a share right before expiration, then Trader A can exercise the put by buying 100 shares for $4,000 from the stock market, then selling them to Trader B for $5,000. Trader A's total earnings S can be calculated at $500. The sale of the 100 shares of stock at a strike price of $50 to Trader B = $5,000 (P).
After a sale is identified as a wash sale and if the replacement stock is bought within 30 days before or after the sale then the wash sale loss is added to the basis of the replacement stock. The basis adjustment preserves the benefit of the disallowed loss; the holder receives that benefit on a future sale of the replacement stock.
When the price of a stock reaches a level that cannot be justified by even the best estimates of future business performance, it could be a good time to sell your shares.
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