For Minimal Tax Consequences, When Your Stock Increases in Value

question 53

Multiple Choice

For minimal tax consequences, when your stock increases in value it should be held for

• A) four months or longer.
• B) over a year.
• C) under a year.
• D) five years or longer.

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Definitions:

Total

The sum or aggregate amount resulting from the addition of individual items or elements in a set.

Credit Purchase

Buying goods or services and deferring payment to a later date, typically recorded as accounts payable.

Liabilities

Economic responsibilities or liabilities a corporation has towards other entities, necessitating repayment through transferring assets like money, merchandise, or services eventually.

Assets

Economic resources controlled by a business, capable of producing value, and are expected to benefit future operations, including cash, inventory, and property.