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Sophia, a single taxpayer, is one of the founding shareholders of Davis Corporation.She acquired her Davis Corporation Section 1244 stock four years ago for $163,000.During the current year, Sophia sold all of her Davis stock to an unrelated party for $40,000.There were no other capital gains or losses reported on her tax return for the year.What is the maximum amount of loss that can be deducted on Sophia's current year tax return for the Davis stock?
Investment Objectives
Define the financial goals and strategies of an investor or an investment fund.
Risk
The potential for loss or unfavorable outcomes in any given situation, often assessed in finance as the variability of returns on investments.
Return
Return refers to the gain or loss on an investment over a specific period, including income received and the change in value, usually expressed as a percentage of the investment’s initial cost.
Investment Horizon
Time horizon for purposes of investment decisions.
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