Stock trades and realized gains/losses

[Matthew Vanecek]

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On Fri, 2003-01-10 at 07:38, Hugh A.J. Kennedy wrote:
> Ok, I have worked on three stock exchanges, a national depository and for
> numerous exchange members so I have another viewpoint (which may be
> inappropriate for the private trader or even plain wrong).
>=20

Any insight from experience is valuable. :)

> I prefer accounting for shares in lots because many countries implement
> 'speculation taxes' that tax capital gains differently for short-term than
> long term holdings. It therefore becomes extremely useful to keep track of
> share packets depending upon when they were bought and their initial
> purchase price.
>=20

> Valuing a share on a minute by minute basis isn't so interesting unless we
> want to address the day-trader. For valuation purposes a once-per-day at
> closing or on-request (and wait) is fine.
>=20
I'd prefer on-request for ad-hoc, with actual 'official' reports based
on purchase cost +/- adjustments (note that adjustments are strictly
optional entries, but are still good practice, in gaap).

> The last point is for international processing, a share in Frankfurt is n=
ot
> the same as the same share in New York. The actual share is sitting in a
> registry at a central depository, either DTC in the case of the NYSE or
> Deutsche Boerse Clearing in the case of Frankfurt. What this means is that
> there may be additional costs if you wish to sell your Frankfurt share in
> New York or vice versa. It is therefore important to be able to keep the
> shares separate.
>=20

So you think we should treat them as different shares altogether, re
retrieving prices, etc?  That's logical--price in DM !=3D price in $.
Would the symbol be different in Frankfurt than in NY?

Thanks for weighing in.

--=20
Matthew Vanecek
perl -e 'print $i=3Dpack(c5,(41*2),sqrt(7056),(unpack(c,H)-2),oct(115),10);'
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*****
For 93 million miles, there is nothing between the sun and my shadow except=
 me.
I'm always getting in the way of something...

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