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| *Ostroff, Fair and Company>>>Investing |
What is the main difference between selling and trading? |
What is the main difference between selling and trading? With stocks..."trading" could be either "buying" OR "selling"...in terms of the transaction. "Selling" is just that...a "sale". In the stock market selling and trading are synonomous. Are you talking about stocks and bonds or crafts or what? I believe that trading of non-financial assets is a non-taxable event. "Trading" in the financial world refers to the buying and selling of financial assets, which has tax consequences. None I think the distinction may stem from the capital and income argument. I will discuss this with relation to real property (houses). A trader in houses will flip (or rapidly buy and sell houses) trying to make a profit. Because it is his line of business, any profits he makes will be taxed as income. Selling of property though usually implies, that you have held the property for some time and did not necessarily intend to make a profit from the house when you bought it. Even if you do make a profit from the subsequent sale, the profits will be taxed as capital (which may give you concessional treatment depending on the circumstances). find a dictionary & find the meaning selling is 4 what u have trading is 4 what u not have & not want 2 have |
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