标题: Constructive Sale [打印本页] 作者: cfa10yrplan 时间: 2011-7-11 19:20 标题: Constructive Sale
I understand the reason for this tax provision but I do not understand the mechanics of it.
The mechanics are presented here:
(Level III Volume 2 Behavioral Finance, Individual Investors, and Institutional Investors , 4th Edition. Pearson Learning Solutions p. 280).
Can someone explain it with an example, please?
Thanks.作者: ll11 时间: 2011-7-11 19:20
If you undertake certain strategies with your existing position in the stock, the stock is considered "sold" for tax purposes and you will have to pay taxes on the gain.作者: NakedPuts00 时间: 2011-7-11 19:20
the certain strategies refer to the use of derivatives to `sell`the position without actaully selling the underlying.
