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How long must one wait after selling a stock before one can repurchase again?
Wiki User
∙ 12y ago
It's an important strategy for saving income taxes. You sell the stock at the end of the year to take the loss and buy back because you believe in the stock for the long term. The risk is that the stock will have a run up after you sold and before you bought back.
I'm not sure how long you have to wait (per IRS) to buy it back though. That's why I bumped into this question.
Wiki User
∙ 12y ago
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What is the impact of a stock repurchase on a company's debt ratio?
Stock repurchases increases the debt equity ratio towards higher debt.
What is When selling your stock the broker will deduct before passing the money on to you?
that's a commission
What happens if you own stock before a stock repurchase and do not sell any of your stock?
If the company decides to repurchase stocks, the number of shares outstanding is reduced. If you don't sell your stocks your interest in the company is increased for your stocks make up a higher percentage of all outstandig stocks. Stock repurchases are often performed by companies whose earnings growth is mediocre in order to increase earnings per share. This factor influences stock prices, so stock repurchases are often welcomed by investors. Companies also decide to repurchase stocks because the increase in the value of your stocks is not taxable, unlike dividend payments. If a company sells new shares the earnings per share are reduced, which often affects stock prices in a negative way. In order to maintain your stake, you have to buy new shares, if not, your stake becomes lower. If the sale of new stocks is necessary because of aquisitions this is much more favorable instead of capital that is raised in order to pay debts because this would not likely increase per share earnings.
Is issuing stock the same as selling stock?
Not necessarily. If you are the company whose name is on the stock and you are selling shares of stock that were just created, that would be issuance. If you are a market maker, an individual investor or a company who sells stock they bought from an investor, that would be sales.
What does it mean to sell stock?
Large companies often sell parts of their company (not physical parts) to the public. This is called stock. Selling stock can refer to the company actually selling the stock to someone or whomever has already bought the stock can sell it to someone else.
What is a short cover in stock investing?
A short cover is a repurchase of any asset after selling it short, which means selling something you don't own at the moment to buy it back later at a lower price.
Why would a corporation repurchase its own stock?
A corporation might repurchase its own stock in order to invest in itself. This allows the company to retain ownership of itself.
Is the repurchase of stock reported on the equity statement?
no, i dont think so
What is a buyback?
A buyback is a repurchase of something previously sold, especially of stock by the company which issued it.
What is the impact of a stock repurchase on a company's debt ratio?
Stock repurchases increases the debt equity ratio towards higher debt.
What is it called when a company buys back its own stock?
It is called a stock repurchase and is posted to an account called Treasury Stock, a contra-account in the Equity section.
What is When selling your stock the broker will deduct before passing the money on to you?
that's a commission
How long does someone has to keep a stock before selling it?
you can sell it immediately (within seconds) of buying it
What is the definition of a stock on sale?
AnswerI think you are referring to value priced stocks. They are stocks that are cheaper than they ought to be for some reason. In other words, their value is more than the value they are selling for. That would be like buying something on sale, right?THIS PART IS ADDED TO THE ANSWER ABOVE!!!!It is the repurchase of a previously bought stock.-Ov nick 11
Did the Federal securities act regulated the selling of stock on stock market?
No, the federal securities act did not regulate the selling of stock on the stock market. :)
Did the federal securities act regulate the selling of stock on the stock market?
No, the federal securities act did not regulate the selling of stock on the stock market. :)
What is stock repurchase?
Companies offer a privilege to repurchase its own shares from the shareholders with higher price comparing to the market. A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares, because a share repurchase reduces the number of shares outstanding (i.e. supply), it increases earnings per share and tends to elevate the market value of the remaining shares.
