When One Has Accumulated Shares of a Stock or a Mutual

question 38

Multiple Choice

When one has accumulated shares of a stock or a mutual fund over time at different prices, for minimizing taxes, which of the following shares should be sold?

• A) Those that cost the most
• B) Those that cost the least to provide a larger capital gain
• C) It does not matter since the company will automatically compute a weighted average of your various purchase prices
• D) It does not matter since the company will automatically sell the shares which cost the least
• E) None of the above

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Definitions:

Environmental Influences

External factors or conditions that affect an individual's development, behavior, or lifestyle, including social, physical, and cultural factors.

Meiosis

A type of cell division that reduces the number of chromosomes in the parent cell by half, producing four gamete cells, fundamental for sexual reproduction.

Genetically Identical

Refers to organisms or cells that have exactly the same genetic material.

Genetic Sex

Determined by the chromosomes an individual possesses, typically XX for females and XY for males, influencing biological sex.