| Posted: 06 May 2011 at 18:50 | IP Logged
|
|
|
Hello folks,
I don't understand this question from Becker:
For a cash basis TPer, gain or loss on a year-end sale of listed stock arises on the:
a. trade date
b. settlement date
c. date of receipt of cash proceeds
d. date of delivery of stock certificate
I am struggling between A and B, I reserched on line and got this: When it comes to buying shares, there are two key dates involved in the transaction. The first date is the trade date, which is simply the date that the order is executed in the market. The second date is the settlement date, at which time the transfer of shares is made between the two parties. It is the settlement date, however, that marks an official transfer of ownership from the seller to the buyer. While there may be differing rules for the various jurisdictions around the world, the general view is that ownership is transferred when the funds are given in exchange for the security, which happens on the settlement date.
But the answer is A, could anybody help explain?
Many thanks.
|
Active Topics 
Memberlist 
Search 
Help
Register 
Login
Topic: Question: trade date VS. settlement date
Topic Closed)
