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The rules are very complicated. In general, forgiveness of debt is considered taxable income. But there are many exceptions. One of the exceptions, as you noted, involves bankruptcy. Another exception, which might well apply to the situation described in the original post, involves insolvency...

It sounds like you are suggesting that you would buy the stock before the ex date, and simultaneously write calls with an expiration that is after the ex date. And that might work, in the sense that you are creating a position that has no risk from the movement of the stock. But that type of...

Did not know that, and that's a very interesting factoid. However... I would note that this does not mean that 25 million people are actually reading the magazine. The Watchtower is free, and it is a tool for recruiting new members. I'll bet there's a lot of "subscriptions" that go right...

If the original question was meant to refer to specifically financial publications, then I would hazard a guess that it's The Financial Times. BMK

You can't have be long and short the same stock in the same account at the same time. The positions will cancel each other out. If you are long the stock, it is not possible to sell the stock short. The broker will sell the stock that you own. If you are short the stock, and you place an order...

In the USA, it is not illegal to form an LLC and transfer assets into it. And to my knowledge it is not prohibited by any regulations (e.g., SEC, CFTC, etc.). As lindq has pointed out, the question of basis can get complicated, particularly if the LLC has more than one member. But there is no...

Your question is too broad. It depends on what you are trying to accomplish. www.optionsplaybook.com is a good starting point. BMK

As you go farther out in time, the premium increases, especially on an option that is near the money (in either direction). Then after you buy it, the premium erodes with time. I'm not saying one should never buy an option with six months or more to expiration. But it has to part of a concrete...

Our account is at Schwab. We have never had a margin call. I don't think we have ever even come close, because the size of our positions is pretty low relative to the equity in the account. We don't trade futures. We trade options and stock. We don't sell naked calls. But we occasionally short...

Excel 2007 no longer gets any kind of security updates from Microsoft. That supposedly creates vulnerability to malware. With that being said, I am still using Excel 2007, on a PC that is running Windows 7 (LOL). I have a new PC with Win 10 and Office 2019 on it, but I have not yet completed...

With a cash secured put, the risk is lower for the broker. "Cash secured" means that the account has enough cash to buy the stock if the put is assigned, without using margin, and without having to liquidate other positions that might not provide enough cash if they suddenly drop in value. Some...

As ph1l has pointed out, the original post was written by the same guy who wrote this a few weeks ago: So, first he wants to buy up an entire company by acquiring all shares of a penny stock. Now he wants to trade without a broker by opening his own clearing firm. He wants to operate at the...

How much money I need to open my own clearing firm? If you have to ask, you can't afford it.

Who is they? Are you talking about how your broker calculates your rate of return? Different brokers may do things differently. Can you provide a concrete example, including the prices you got when you put the spread on? One way of looking at it is take the amount of money you got to keep...

No, that would not be treated as a wash sale. That is certainly one reason why 1099 forms cannot be prepared on January 2. There are many other reasons. IRS regs state that the broker must provide the forms by February 1. Most brokers are going to move slowly and make sure they get it right...

Schwab also gives its customers access to Morningstar equity analyst reports, and some other sources of research and ratings, such as Ned Davis and Credit Suisse reports. Of course, not all these reports are available for every stock. Our account at Schwab is the most basic type of account they...

Schwab provides ratings, and I believe many other US brokers do also. Schwab offers something called an Equity Ratings Report. As Xandman said, it is primarily a buy, hold, or sell recommendation, but Schwab offers a little bit more. Of course, these reports are not available for every stock...

That link to reddit is broken

Shoptions wrote: When you sell stock short (regardless of whether you do it by placing a direct order to sell short or through the assignment of a short call), you are not borrowing money. You are borrowing stock. You borrow the stock just like you can rent a car, or borrow your neighbor's...