We calculate partial sales using the First In First Out method (FIFO method). This is the default accounting method in the US. It presumes that you’re selling the oldest shares first.
For example:
You buy 100 shares of a stock for SAR 50 each, and a year later you buy 100 more at SAR 60 each. By the next year, when the stock is trading at SAR 80 each, you sell 50 shares. In this example, as per the FIFO method, it would mean selling your SAR 50 shares first, resulting in a capital gain of SAR 30 per share, or SAR 1,500 in total.
Your gains or losses will be reflected daily in your account.
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