When Selling Stocks, Which Method of Calculating Basis Provides the Greatest

question 4

Multiple Choice

When selling stocks, which method of calculating basis provides the greatest opportunity for minimizing gains or increasing losses?

• A) LIFO
• B) FIFO
• C) Weighted average
• D) Specific identification
• E) None of these

---

Definitions:

Current Health

A broad term that can refer to the present state of physical or financial well-being, but is NOT a specific finance key-term.

Regulation Fair Disclosure (Reg FD)

A rule implemented by the SEC aiming to ensure that all publicly traded companies disclose material information to all investors simultaneously.

Financial Statement Users

Individuals or entities that rely on financial statements to make decisions, including investors, creditors, analysts, and regulators.

Economic Events

Events that have a financial impact on the business and are recorded in the accounting systems.