sorry for the hijack, lil pun. i think i threw everyone off with my post about the $4,000. restaurants, i agree, are no good - but i got in at 2.75 for NWRG and i think that Einstein Bros. has enough similarities to Panera Bread to grow hard, quick, and fast. besides, i'm in it for the long run. Question: how does taxation work? can someone definitively tell me the benefits of holding stock for one year and selling it after that? i remember something about a 15% tax rate??
If you sell a security after a year and a day that you bought it, you qualify for the long term capital gains (LTCG) tax rate, which varies depending on your AGI (or is that your modified AGI?, I forget). If you sell a security before the year and a day, you must pay the short term capital gains (STCG) tax rate, which is the same rate as your income tax bracket. LTCG are always lower than STCG. The current LTCG rates are 15-10-5% depending on your AGI. IIRC Bush got these lower rates as a part of a "temporary" tax cut package. I am unsure if they have been made permanent or when they are due to expire.
