Welcome Stockaholics!

We are a new and fast growing financial forum! Sign up for free and let's talk stocks!

  1. Do you want to help develop this community? We are looking for contributions from investors and traders like you! What stocks do you follow? What is hot right now? Sign up and get in on the ground floor of the newest, fastest growing financial forum!
    Dismiss Notice
  2. You will notice a live chat widget on the right. Click in to join us and lets hear about how you nailed that last UWTI trade!
    Dismiss Notice

Buy and sell same stock over and over?

Discussion in 'Ask any question!' started by Thyran, Mar 20, 2020.

  1. Thyran

    Thyran New Member

    Joined:
    Mar 20, 2020
    Messages:
    2
    Likes Received:
    0
    Hi, I'm sorry for this newbie question. I admit I know very little to nothing of stocks. My spouse got a new job which allows employees to buy their stock at a 15% discount. They told him he could instantly sell the stock for full price and profit that 15%.

    He could just spend all of his check on the stock at 15% less, (I've head of a 3 day wait rule to sell) and then sell it and profit that 15%. Let's say we don't need to use his paycheck for anything else... and we continue to buy and sell and continue to profit 15%.
    That seems almost too easy. Is there any additional rules to this, anything we need to know before actually trying this?
     
  2. StockJock-e

    StockJock-e Brew Master
    Staff Member

    Joined:
    Apr 3, 2016
    Messages:
    6,995
    Likes Received:
    2,017
    The question would be if its more or less beneficial to make +15% today, or hold for a few months or years and make a lot more?

    If the stock is dropping, then its obviously better to get out, but if the company is solid and the long term looks good, keep it and building on it would be better right?
     
  3. Thyran

    Thyran New Member

    Joined:
    Mar 20, 2020
    Messages:
    2
    Likes Received:
    0
    I understand that. But my question is still the same. For example, we have $6k in savings, spending the whole savings on his company's stock and then selling it (assuming no change in price) will gain us $900 on top of the $6k back. This seems like really easy money, too easy. That's why I asked the question I asked. Is there anything else we should know? (Besides the 3 day rule, and short term capital gains tax)
     
  4. StockJock-e

    StockJock-e Brew Master
    Staff Member

    Joined:
    Apr 3, 2016
    Messages:
    6,995
    Likes Received:
    2,017
    If every stock purchase is 15% below market value, and you can sell it after three days at a profit, then Im not seeing the risk here.

    I would be surprised if there is no restrictions placed on this, check with your broker and if he says its good, then enjoy your 15% every month!
     
  5. akam

    akam New Member

    Joined:
    Feb 23, 2019
    Messages:
    1
    Likes Received:
    1
    Please check the other conditions. There must be other rules for ex. you can only put certain % of the money to buy these stocks. Also, sometimes you have to deduct money every month and can only buy in summer or winter. If you sell immediately, there will be more capital gain tax that you may have to pay so ultimately it will not be 15% profit. Please confirm the other conditions for the company
     
    StockJock-e likes this.

Share This Page