Natalie expects to be in the 35 percent tax bracket with respect to her ordinary income for this year. So far this year, she has a $5,000 short-term capital loss. As of June 1, she is holding 1,000 shares of Dritco stock purchased on June 15 of last year for $15,000.The market value of the stock as of May 21 is $27,000. Lately the value of the stock has been decreasing and Natalie feels it may go down by

$1,000 or so in the next month and probably stabilize thereafter. Advise Natalie as to the various courses of action she might take.

AppendixLO1