If an Investor Sells Some of the Securities in a Block

question 1

True/False

If an investor sells some of the securities in a block but can't identify which ones were sold, she is presumed to have sold the securities with the latest acquisition date.

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Definitions:

Opportunity Costs

The price paid for not selecting the next most favorable choice when a decision is made.

Asset Replacement

The process of substituting old assets with new ones to maintain or improve operational efficiency.

Asset Expansion

The process of increasing a company's investment in current and fixed assets to boost its capacity and efficiency.

Pretax Proceeds

The amount of money generated from a sale or transaction before any taxes are deducted.