The issue in this case is whether the shares in the blue $-$ chip companies trading stock for Rumpole $?$ Trading stock is an asset $,$ but is one of the general exceptions of capital gain tax $.$ Division $70$ ITAA$97$ contains a statutory tax accounting regime for $"$ trading stock $".$ Section $70-10$ defined $"$ Trading stock $"$ and it includes anything produced $,$ manufactured or acquired that is held for purposes of manufacture $,$ sale or exchange in the ordinary course of a business ; and livestock $.$ The key to determine trading stock is the purpose of holding $.$ Livestock is defined under s $995-1(1)$ as maintaining animals for the purpose of selling them or their bodily produce and taking or culturing pearls or pearl shell which is a primary production business $.$ In conclusion $,$ the shares in the blue $-$ chip companies are not a trading stock for Rumpole $.$ This is because it does not fall in any category under trading stock $.$ A share trader buys shares will not make the all of their shares a trading stock $.$