Can you buy and sell stock in the same day?
Yes..It is possible in both INTRADAY AND CNC delivery options. But risk associated with CNC delivery option is quit different.INTRADAY- you can buy and sell stocks on same day in this option. If you don't, your position will be automatically squared off on same day.But risk comes now below in CNC.CNC Delivery- if u buy shares on first day and sell them on same day or next day using this option, there is chance of short delivery of shares to the buyer to whom you sell the shares if u become victim of short delivery. According rules, the shares gets credited to your dmat account after T+2 days after u buy. If u sell them on same or next day of purchase day, it means that you are selling without having stocks in ur dmat account and you may be unable to deliver stock after T+2 days to whom you are selling and you will be penalised upto 20% of stock value or more than this by exchange board for short delivery.However short delivery will not happen everytime.When short delivery happens:Ans: When the person who sold the shares to you would have made short intraday selling and has converted order to CNC delivery without squre off. In that case he will not be able deliver shares to you after T+2 days. So intern you will also not be able deliver same shares to your buyer after T+2 days due to non availability of shares in your dmat account.Example: If you buy 10 shares of Coal india for Rs. 200 using CNC option on Monday from person ABC and sell them on same day for Rs. 204 to person XYZSince you bought shares on monday they will be credited in ur dmat account on Wednesday as per T+2 days rule. But you sold to XYZ without having shares in account and you have to deliver shares to XYZ on wedneday at any cost.Now, If person ABC had made short intraday selling on monday and transferred order to CNC delivery for tueseday, he will not be able to deliver 10 shares you on wedneday and ur account remains empty on Wednesday and intern u will also be not able deliver 10 shares to Person XYZ on Wednesday. So now you become a victim of short delivery to person XYZ and penalised by exchange board in T+3 day auction.So, Better to sell shares by CNC option when they appear in dmat account. No issue with Intraday.Thank you…
Can you really make money buying and selling stocks?
People who know very little about the stock market have this curious way of thinking: that if you buy and sell stocks and bonds, you're immediately on the road to massive wealth and riches. If they're INCREDIBLY lucky, yeah... I suppose some people make it - BUT A LOT MORE DON'T. There is a lot of risk in buying and selling stocks - even in situations where the buyer/seller has done a lot of background research and knows a lot about the companies involved. (I'm assuming you realise that it's not practical to randomly pick a stock and hope it's value goes to the moon - that just does not happen outside of the Movies). My own view is that now is not a good time to buy/sell anything. There are row upon row of fast servers, dedicated to buying and selling stocks within micro-seconds, with a view to making a tiny profit in that short space of time. It's going to be hard for slow human hands to compete with that. If you're buying - do a lot of research into prospective companies, then invest for the longer-term (anything up to 30 years or more). Within that time, you'll hopefully see an increase in the stock price, PLUS a return on dividends. Each buy/sell-cycle means you have to pay a broker to handle your transaction. Investing long-term lowers that cost.
Would I Get Tax Penalty for Buying Selling Stock in Year?
I heard you cannot buy and sell the same stock within the same year (is it calendar or 365?). I just did that, but it was a unique situation. I have an IRA and a non-IRA investment account. I sold shares of a stock in the non-IRA this year. But, I just bought shares of the same stock (3 months later) in my IRA. Does that make a difference. Or, do I owe a penalty? Thank you very much for the help!
How soon can you sell a stock after buying it? Is there a penalty for selling too soon?
You can sell it right after you bought it. There is no penalty for selling too soon. The tax consequences on doing so are ordinary income. Unless you make in excess of $349,700 it is not 35%. The average person pays around 25% or less for short term holdings and 15% for long term (greater than one year). Buying and selling again in less than the trade date plus the 3 days may be a problem if you don't have margin or enough cash to cover settlement. However the answer to your questions are immediately and no.
How many times can you buy and sell the same stock symbol in a day?
Hello guys! I recently opened a new Invidivual account with scottrade. I'm a very new to investing and I have a few questions that needs to be answered. I've been told that I can buy the same stock symbol as much as many times as I want but then I've been told by another person that I should the same stock typically once every 30 days and if I buy and sell more frequently, the IRS considers those wash sales and special rules apply. Here's my account summary. Tell me from my account summary that you see that I need to fix or put more in which you think might cause me trouble in the future. Settled Cash Balance Settled Funds at Scottrade $4,800.00 Unsettled Purchase and Sales -$2,436.89 Total Cash Balance $2,363.11 Cash Available for Withdrawal Settled Funds Available for Trading $118.46 Restricted Funds* $0.00 Total Cash Available for Withdrawal $118.46 Trades Waiting for Settlement Sales Waiting for Settlement $147.80 Purchases Waiting for Settlement $2,584.69 Total Trades Waiting for Settlement -$2,436.89 Funds Available for Trading Cash Balance $2,363.11 Funds Applied to Open Buy Orders -$2,096.85 Total Funds Available for Trading $266.26 Positions Market Value Stocks, Mutual Funds, CDs & Bonds Market Value $2,511.68 Options Market Value $0.00 Total Positions Market Value $2,511.68 Total Account Value (Positions + Cash Balance) Positions Market Value $2,511.68 Cash Balance $2,363.11 Total Brokerage Account Value $4,874.79 I'm not sure if I have a non-margin account but I've been told that if I do, I can buy and sell as many times as i like, provided I have enough settled funds to cover all those trades (i.e. you can't use unsettled funds for a new trade).
On Ameritrade, how long does it take to buy/sell stock?
If you place a market order, just a matter a few seconds in nearly every case. If it is a limit order, it may not ever get executed. Now you need to be aware of this. In those few seconds the price of the stock can change drastically. It is actually a 2 step process to placing an order and those 2 steps can take you about 30 seconds to complete. You first have to enter the order which involves entering the ticker symbol, the order type, and the quantity and if not a market order the price The 2nd step is to verify that the information entered is correct. During those 30 seconds the price might very well change a lot.
When I sell stocks, where does the money come from to buy them?
Your first assumption is wrong. The company has a finite amount of stock in circulation. Companies can issue additional stock, but that dilutes the value of the shares that are already out there. This angers the stockholders, so that seldom happens without legitimate reason. When you sell, someone else is buying. The money is coming from other buyers (who have more guts, or less brains, than you ;-). The price will continue to drop until it reaches a point that someone wants to pay. It's like a reverse auction.