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Helen holds 1,000 shares of Fizbo Inc stock that she purchased 11 months ago. the stock has done very well and has appreciated $20/shares since
Helen holds 1,000 shares of Fizbo Inc stock that she purchased 11 months ago. the stock has done very well and has appreciated $20/shares since Helen bought the stock. when sold, the stock will be taxed at capital gains rate (long-term rate is 15 percent and short-term rate is the taxpayer's marginal tax rate ). ignore the value of money.
a. if Helen's marginal tax rate is 35 percent, how much would she save by holding the stock an additional month before selling?
b. what might prevent Helen from waiting to sell?
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