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Basis (or cost basis), as used in United States tax law, is the original cost of property, adjusted for factors such as depreciation. When a property is sold, the taxpayer pays/(saves) taxes on a capital gain /(loss) that equals the amount realized on the sale minus the sold property's basis.
The par value of stock has no relation to market value and, as a concept, is somewhat archaic. [when?] The par value of a share is the value stated in the corporate charter below which shares of that class cannot be sold upon initial offering; the issuing company promises not to issue further shares below par value, so investors can be confident that no one else will receive a more favorable ...
The capital gain on this transaction is how much you sold it for minus the cost basis: $1,500 – $1,000 = $500. ... of the stock. Your cost basis goes up because the reinvested dividends are used ...
Following is a glossary of stock market terms. All or none or AON: in investment banking or securities transactions, "an order to buy or sell a stock that must be executed in its entirely, or not executed at all". [1] Ask price or Ask: the lowest price a seller of a stock is willing to accept for a share of that given stock. [2]
Schematic representation of naked short selling of stock shares in two steps. The short seller sells shares without owning them. They later purchase and deliver the shares for a different market price. If the short seller cannot afford the shares in the second step, or the shares are not available, a "fail to deliver" results.
Finding the cost basis of inherited stock may sound intimidating, but it’s actually simple. It depends on the value of the stock at the time the previous owner died. The only exception is if the ...
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.
A short seller borrows stock from a broker and sells that into the market. Later the investor expects to repurchase the stock at a lower price, pocketing the difference between the sell and buy ...