Not investment advice: Random post: Capital Ga
Post# of 1023
Random post:
Capital Gains / Losses / Flipping / More shares... yada yada yada
If someone were to buy a position at .0009 for $1000 they'll end up with 1,111,111 shares.
Let's say they own that position for less than a year and then sell it at .008. They'd make $8,888 profit. They can take that money and go buy themselves something really nice. But its important to remember, they didn't actually make $8,888 in profit.
If they sell their position and don't own it for a year or longer, they'll get taxed at a higher tax percentage (I believe from 10% up to 39%). So, if they got taxed at 25%, they'd actually only made $6,666 profit. But then they have to subtract the original $1000 investment which means they made $5,666 profit.
For a short term investor, this is still a pretty good deal if they take the $5,666 and run, but if they want to flip and reinvest that $5,666 back into the stock at a lower price, they better hope they can get back in at a lower price than what they originally sold at.
Even if the stock goes down to .005, and they reinvest $5,556 (putting future taxes for the sale aside for next year) they'll end up with only 1,133,200 shares; only 22,089 more shares than they originally owned. Which means they paid $2,222 in taxes to own 22,089 more shares.
Of course, if they reinvested the whole $8,888 and chose to forget about paying taxes until next year, they'll own 1,777,600 shares which still isn't that great of a deal because they could have owned 1,777,600 shares originally at 0009 for only $600 more.
Everyone has their own investment strategies and should talk with their advisor prior to investing. This post is pretty much a filler post as we wait for the chart to reset and do its thing. If you want to flip, flip, if you want to sell, sell, if you want to hold, hold, if you want to buy, buy. Do NOT invest based on this post or any other post.
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