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A. Option C
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NEW QUESTION: 3
Which of the following correctly describes how the holding period of a security is calculated when determining whether its sale will result in a short-term or a long-term capital gain?
A. The holding period begins on the settlement day of the purchase and ends on the day the sell order is submitted.
B. The holding period begins the day after the buy order is submitted and ends the day the sell order is submitted.
C. The holding period begins on the settlement day of the purchase and ends on the settlement day associated with the sale.
D. The holding period begins on the settlement day of the purchase and ends on the day the sell order is submitted.
Answer: B
Explanation:
Explanation/Reference:
Explanation: In determining whether its sale will result in a short-term or long-term capital gain, the holding period of a security begins the day after the buy order is submitted and ends the day the sell order is submitted.
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