Comments on: How soon after purchase may I sell stock shares and avoid penalty for selling too soon?

By: Max M

Max M — Tue, 09 Mar 2010 08:36:59 +0000

There's no penalty for selling shares. You can sell immediately after you bought it.
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By: LG

LG — Tue, 09 Mar 2010 08:13:59 +0000

You can sell the shares almost immediately after buying…

Things to consider is the short term gains vs long term, short term gains are taxed are a higher rate.

The other is not to use the money from that sale until after settlement day (3 business days after the transaction) If you do your firm may put a trading violation on your acct. They wil prevent you from buying and selling until settlement (no big deal)

If you plan on doing this type of trading look into MARGIN and avoid the possible trading violation
References :
in the industry

By: Ted

Ted — Tue, 09 Mar 2010 07:50:59 +0000

There is no penalty for selling "too soon". There is a tax break for long term gains, and you won't get this. However, one sure way to lose money is to worry more about the taxes than the actual investments. If you don't want it, sell it.
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By: Yorky

Yorky — Tue, 09 Mar 2010 07:02:59 +0000

There isn’t an explicit penalty for selling a stock too soon after buying however, there are two considerations: 1. Long term gains/losses for tax purposes, and 2. The possibility of a trading violation by using the proceeds of a sell before the settlement date to buy another stock.
References :
Business Degree and 40 years stock investing

By: MadMan

MadMan — Tue, 09 Mar 2010 06:53:59 +0000

There is no tax penalty for selling shares. After all, how do you think day traders operate? If you sell the shares within one year and you make a profit on the sale, you have to pay short term capital gains tax on the profit. If you sell them after one year and make a profit, you pay long term capital gains tax on the profit, which is lower.
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