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PostSubject: FIN630 2ND GDB SOLUTION   FIN630 2ND GDB SOLUTION Icon_minitimeFri Jun 25, 2010 9:00 pm

Selling stock is procedurally similar to buying stock. Generally, the investor wants to buy low and sell
high, if not in that order (short selling); although a number of reasons
may induce an investor to sell at a loss, e.g., to avoid further
loss.As with buying a stock, there is a transaction
fee for the broker's efforts in arranging the transfer of stock
from a seller to a buyer. This fee can be high or low depending on which
type of brokerage, full service or discount, handles the
transaction.After the transaction has been made, the seller is then
entitled to all of the money. An important part of selling is keeping
track of the earnings. Importantly, on selling the stock, in
jurisdictions that have them, capital gains taxes will have to be paid
on the additional proceeds, if any, that are in excess of the cost basis


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