Question

Eric purchased stock on the open market with a trade date of August 28, 2017, if...

Eric purchased stock on the open market with a trade date of August 28, 2017, if he wants to have a Long-term Gain he should sell his stock on or after?

a: August 27, 2018
b: August 28, 2018
c: August 29, 2018
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Answer #1

The right answer is option b: on or after August 28, 2018.

Brief Explanation: The asset is a financial asset or financial instrument so, the holding period for this case would be 12 months. At the end of the day 27th August 2018 it completes the 12 months because the date of purchase is included in the holding period. So if it is sold on or after 28th August 2018 then the gain or loss arising from the sale would be considered as a long term gain.

Thank You..!!

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