Ask Question
BusinessBusiness
8 November, 02:58

A client sells a stock short in their portfolio. The client plans to cover the short sale but prior to covering, calls to ask the RR how to achieve long-term status for capital gains purposes on the short sale. How should the RR respond?

+3
Answers (1)
  1. 8 November, 03:05
    0
    Since the client sold the stock short he is anticipating a decrease in share price hence he wants to know how to achieve long-term status for capital gains purposes.

    What the RR has to do is to communicate to the client that the short sales made is not eligible for long-term capital gains treatment, irrespective of how long the stock was sold short in the account of the client, the capital gains rate on short term will always be short term.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A client sells a stock short in their portfolio. The client plans to cover the short sale but prior to covering, calls to ask the RR how to ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
What is an AA? (From college) What other training programs do they offer (certification programs other than getting an AA) ?
Answers (1)
In collaborative problem solving, it is important for the initiator to: a. acknowledge the truth of every claim made by the respondent b. avoid drawing evaluative conclusions and attributing motives to the respondent c.
Answers (1)
The common stock of gt enterprises is selling for $63.09 a share. the company pays a constant annual dividend and has a total return of 11.64 percent. what is the amount of the dividend?
Answers (1)
legal capital is best defined asa. the amount of capital the state of incorporation allows the company to accumulatea corporate form of business organization, legal capital is best defined asover its existence. b.
Answers (1)
Read the excerpt from "a modest proposal." i desire those politicians who dislike my overture, and may perhaps be so bold to attempt an answer, that they will first ask the parents of these mortals, whether they would not at this day think it a
Answers (1)
New Questions in Business
Employers bond employees who handle cash receipts because fidelity bonds reduce the possibility of employing dishonest individuals and Deter dishonesty by making employees aware that insurance companies may investigate and prosecute dishonest acts.
Answers (1)
1. A complaint of sexual harassment by a part-time worker in a hardware business was upheld when the Tribunal found that the employer had failed to take sufficient action in relation to the employee's report of inappropriate behaviour.
Answers (1)
Suppose that the government sets a price floor for milk that is above the competitive equilibrium price With the price floor, consumers are willing to purchase the quantity indicated where the price floor intersects the With the price floor, the
Answers (1)
Choose the best revision of the previous sentence. Because many executives have access to company jets boards of directors have a responsibility to ensure that shareholders are not footing the bill for personal travel.
Answers (1)
Who puts the federal budget together?
Answers (1)
Home » Business » A client sells a stock short in their portfolio. The client plans to cover the short sale but prior to covering, calls to ask the RR how to achieve long-term status for capital gains purposes on the short sale. How should the RR respond?
Sign Up Forgot Password?