Retirement Planning/Stock Selling
The following question is a hypothetical situation:
If an investor made two separate stock purchases of 100 shares each, is it better to sell all 200 shares at once at a profit rather than to break up the 200 shares and sell at different times, for example, sell 100 shares on one day and sell the remaining 100 shares at some other day?
I'm curious because it will cost him twice as much on commission fees to sell on two separate days than to sell all shares at once.
I thank you for your reply.
I am not an expert on the stock market. You should send this question to an expert on stocks.
However, I am pretty good at math. The answer all depends on if the differential between the sales price of 100 shares on the second day and the sales price of the other 100 shares on the first day is enough to cover the second commission. On the other hand, if the stock price is higher on the second day, then the investor will probably wish that s/he had waited to sell the first 100 shares.