When selling stocks, which method of calculating basis provides the greatest opportunity for minimizing gains or increasing losses?

Question

Quizplus · Accepted Answer

The specific identification method allows investors to choose which shares to sell, potentially minimizing gains or increasing losses depending on which shares they select. With FIFO, LIFO, and weighted average methods, investors must sell shares in a specific order and may not have as much control over the specific gains or losses realized.

When Selling Stocks, Which Method of Calculating Basis Provides the Greatest