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Please answer A through D thank you! Transaction costs in late Decenber you decide to sel a losirg positon that you hold in Twither so
Please answer A through D thank you!
Transaction costs in late Decenber you decide to sel a losirg positon that you hold in Twither so you can capture the loss and use it to offted some captal gaint, thus reducing your taxes for the current year. However, sice you beleve that Twimer is a good longtem investrent, you wish to buy back your postion in February ned year. You call your Charles Sehwab beokarage aceount manager and request that he sell your 1.400 shareb of Twither and bey them back in fotruary. Charfes Schivab charges a comerission of $25 for broked assitied trades. a. fluppose that your ickal transection costs for seling the 1,400 shares of Twitter in Decenber were $4500. What was the biglask spread for Twither at the bme your trade was neeculed? b. Given trat Twitler is listed on the NYSE, do your total transacton costs for December seem ressonable? Exglain why or why not. c. When your Fetruary satement arrives in the mal, you see that your lotel transaction costs for buying the 1,400 shares of Twitter were $40.20. What was the bid/ask spread for Twitter at the time your trade was execuled? 4. What are your todal round tro transaction costs for both seling and buying the shares, and what could you have done diflerently to reduce the total costs? a. The bisark spread sor Twitter, at the time your trade was execuled, is s (Round so tour decimal places) Transaction costs in late Decenber you decide to sel a losirg positon that you hold in Twither so you can capture the loss and use it to offted some captal gaint, thus reducing your taxes for the current year. However, sice you beleve that Twimer is a good longtem investrent, you wish to buy back your postion in February ned year. You call your Charles Sehwab beokarage aceount manager and request that he sell your 1.400 shareb of Twither and bey them back in fotruary. Charfes Schivab charges a comerission of $25 for broked assitied trades. a. fluppose that your ickal transection costs for seling the 1,400 shares of Twitter in Decenber were $4500. What was the biglask spread for Twither at the bme your trade was neeculed? b. Given trat Twitler is listed on the NYSE, do your total transacton costs for December seem ressonable? Exglain why or why not. c. When your Fetruary satement arrives in the mal, you see that your lotel transaction costs for buying the 1,400 shares of Twitter were $40.20. What was the bid/ask spread for Twitter at the time your trade was execuled? 4. What are your todal round tro transaction costs for both seling and buying the shares, and what could you have done diflerently to reduce the total costs? a. The bisark spread sor Twitter, at the time your trade was execuled, is s (Round so tour decimal places) Step by Step Solution
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