marine2
963 posts
msg #33280
- Ignore marine2 |
9/16/2004 9:08:27 PM
Hello fellow Stockfetcher Forum members, just wondered about this question, since I just traded out of a particular stock today after holding it for 2 days, making a nice profit, can I trade back into this same stock anytime I want without any repercussions from S.E.C. or IRS?
I do know that there is a "wash-sale" rule out there when you sell a stock at a loss but I haven't heard of any news on not allowing you to go back and buy the same company you just sold, for a profit, within a tight time frame.
Can anyone out here in our forum put some light to this question? If so I will appreciate it deeply, thank you. Please note, I do my trades inside my I.R.A. account so there wont be any tax liabilities until I cash out someday.
Marine2
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thanatos
1 posts
msg #33282
- Ignore thanatos |
9/17/2004 12:54:55 AM
Whenever you say, sell some stock it takes three days for the transaction to "settle". Supposedly your not supposed to trade on those "unsettled" funds until they settle. I'm a bit muddled on how it's supposed to work myself, for example. I can cash out on ABC, and buy into XYZ on the same day, and I get a warning about using unsettled funds, but the trade still goes through, if I then try to sell XYZ the same day, then I get like a nasty warning or something to the effect that my account could get cancelled if I do this kind of thing again. (Only happened to
me once).
I think it's actually pretty broker specific (I use Scottrade currently ). Someone else here can probably give you a better answer than mine.
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cegis
235 posts
msg #33292
- Ignore cegis |
9/17/2004 10:02:03 AM
thanatos,
I think what you say is NOT broker specific. The rule does not apply to margin accounts (because you can technically cover the trades with margin), but IRA accounts CAN'T have margin.
This is what I think is the case. I'd strongly suggest that anyone with these types of question speak to a qualified accountant (which I am NOT).
HTH,
C
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marine2
963 posts
msg #33297
- Ignore marine2 |
9/17/2004 5:41:09 PM
Thanks to both Thanatos and Cegis for your response to my question concerning when I can re-buy a stock that I just sold. True, the settlement timing which usually takes a few days to clear then I would think it would be ok to re-buy it again but yes talking to an accountant that is well versed in the legality of this re-buy would be a good idea. Too, I think, I should call my brokerage house and ask them their opinion and guidance also.
I know you all have had this situation presented to yourself when dealing with a stock that seems to bounce quite nicely and often and would like to buy it repeatedly to catch its bounces.
Again, thanks for your input. If anyone else has a comment about this please let me know.
Marine2
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