Your Questions About Paper Trading Stocks

John asks…

Finance Majors, Please Help with project?

I have a project due on Tuesday in which i have a hypothetical 100k to invest in 5 stocks 1 bond. However, the professor barely explained the project and pretty much just gave us a bland sheet of paper with what he calls instructions””

Anyway…I have to calculate my gains and losses, but I hope my calculations come out correct. I printed out historical prices for all my stocks and my bond….but am not sure if i was supposed to do that in order to calculate my gains/losses. We’re supposed to base our earnings in the time frame starting Sept. 10 thru Nov.12th. That’s 46 days, I don’t wanna print 46 sheets with each of my stocks daily trading activity if that’s not what im supposed to do! “Well why didn’t you ask the teacher?”

Answer: He doesn’t answer my questions

John answers:

On Sept 10 you bought $100,000 worth of stocks and bonds at the time of twelve noon for example.
On November 12th you sell/sold the shares in the stocks and the bond at the close of the market for———>
x____ number of shares you bought x [times] the closing for each stock

[for simplifying the calculation of the return on the bond maybe you could say you hypothetically bought shares in _______________ mutual fund that consisted entirely of _________ type of bonds

the sale prices of the stocks are ______________ number of shares times the sales price =

The total sales price was/is a gain of ________________ or a loss of_________________

in relationship to the the purchase price/s paid???????????
Take into account the brokerage fee/expense/s.
Take into account, in the case of 46 days, the short term capital gains tax implications if you had a gain.
If you had an overall loss you might make a statement regarding carrying over your tax loss to the next tax periods [you have to check the current tax code]

Sharon asks…

Question about taxes and trading. Thanks you?

Does IRS get to know how much money you have been playing with ?
Lets say I make $4500 in a year. Is there gonna be any indication of the amount of the money I invested during the year on the IRS papers such as 140 sheets and W2 forms?
I am getting financial aid from college, and have been playing with 10,000 dollars [borrowed from my aunt] in the stock market. I’m gonna pull the money out of stocks when it is time to file taxes. My problem is that I’m scared that the college will get to know that I have 10,000 dollars and avoid giving me financial aid [which is about $2300 each semester].
Any thoughts and advice is appreciated. I’m single, 22 years old, living with parents and claimed as dependent. Parents’s annual income is about 25,000. Household is consisted of 4 people. Ask me questions if something is not clear. Thanks again.

John answers:

The only monies that are reported to the IRS by the brokerage industry, is any interest and/or dividends that you have received and any interest you have been charged in margin accounts.

All sales transactions are reported to IRS the first quarter following the end of a year. No gains/losses are reported, just the net dollar amount of each sale.

If there are substantial sales, then this may be a red flag, but knowing the IRS you’re not dealing with smartest government agency that’s out there.

The value of your account, nor any balances in your account are every reported to the IRS

You do (or should be) filing your own tax return, in which you report all gains/losses from security transactions. Failure to report such income can be a nasty problem, especially if the Service decides to audit your return, if they found your failure to report income, they could place a lean or bring other charges against you, this would be reported on your credit report and be picked up by those that provide student aide.

I strongly suggest that you get tax advice from a real tax professional and one that would provide honest answers rather than give you answers you want to hear.

Betty asks…

Question about taxes and trading. Thanks you?

Does IRS get to know how much money you have been playing with ?
Lets say I make $4500 in a year. Is there gonna be any indication of the amount of the money I invested during the year on the IRS papers such as 140 sheets and W2 forms?
I am getting financial aid from college, and have been playing with 10,000 dollars [borrowed from my aunt] in the stock market. I’m gonna pull the money out of stocks when it is time to file taxes. My problem is that I’m scared that the college will get to know that I have 10,000 dollars and avoid giving me financial aid [which is about $2300 each semester].
Any thoughts and advice is appreciated. I’m single, 22 years old, living with parents and claimed as dependent. Parents’s annual income is about 25,000. Household is consisted of 4 people. Ask me questions if something is not clear. Thanks again.
The money is in my account. And I AM going to report it. I’m not talking about tax fraud. all I am asking is whether they will know if I made 4500 by playing with 5000 or 10000 or 100,000 dollars. It is ok for me to report 4,500 dollars in a year, cos I don’t have any other job as a student. I am asking to know if they will konw that I have 10,000 dollars besides that?

John answers:

On Schedule D, you report the amount of stock that you sold and the amount for which you purchased it. You do not do this until you sell the stock. If you do not sell it, then you do not have to report it.

Donald asks…

how to manage files and paper for a small company?

i work as a clerk in a trading company. my bos asked me to re-arrange and manage all the list of goods. the problem is our list of goods always be updated, so, our forms like ‘stock request’, ‘stock return’, ‘price list’ etc also must be changed.

fyi, it almost changed everyday since this company is new and always keep looking for goods to sell and has to update all the goods whether to sell or not and all the forms now are mixed up!!

BUT

(pleaseeee help me) what should i do so that all the forms are has standard list. there are almost a hundred of goods on the list. i’m afraid that i might miss anything and make mistake.

being scolded by your bos is bad.
being scolded by your bos everyday is worse.
but
being scolded by your bos who is your brother, it is worst.

please give some ways or advises for this problem. thank you sooooo much

John answers:

It sounds like a good old fashion file cabinet and index cards system might be the answer.

George asks…

What does “bid out” mean from a broker in terms of options/stock trading? “paper sold, bid out”?

broker wrote “…paper sold, bid out”

John answers:

It means it was sold on bid price, which was what was supposed to be.

Powered by Yahoo! Answers

This entry was posted in Uncategorized. Bookmark the permalink.