when selling stocks, which method of calculating basis provides the greatest opportunity for minimizing gains or increasing losses? a) lifo b) fifo c) weighted average d) specific identification e) none of the choices are correct.

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24-11-2022
Business

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when selling stocks, which method of calculating basis provides the greatest opportunity for minimizing gains or increasing losses? a) lifo b) fifo c) weighted average d) specific identification e) none of the choices are correct.

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shrivastavarupam shrivastavarupam · Answer 1 · 2022-11-29T13:29:19+01:00

Specific Identifications are the best methods for selling stocks that provide the greatest opportunity for minimizing gains or increasing losses. Hence, option D is appropriate.

What are stocks?

All of the shares used to split ownership of such a company or an organization constitute stock in the financial world. A single share of stock represents a fractional ownership interest in the company based on the total number or shares.

An investment in a business is known as a stock. Company can issue stock ability to raise capital to fund operational expenses and drive expansion, and investors purchase those stock shares in order to have the chance to make a profit.

Hence, option D is correct.

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