Question $3$

Arden purchased $300$ shares of AMC common stock $($NYSE: AMC$)$ several years ago for $$1,500.$ On April $30,$

Arden sold the shares of AMC common for $$500$ and then purchased $250$ shares of AMC preferred stock two

days later for $$700.$ The AMC preferred stock is not convertible into AMC common stock. What is Arden's

deductible loss from the sale of the $300$ shares of AMC common stock? Blank $1$ What regulation sections

leads you to this conclusion? Blank $2$

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