If an investor has purchased a company's shares at various times and identified each group, when he sells them his capital gains will be calculated on

Question

Quizplus · Accepted Answer

The capital gains will be calculated on first in - first out (FIFO) basis, which means that the shares purchased first will be considered as sold first. This method is commonly used in the United States for tax purposes.

If an Investor Has Purchased a Company's Shares at Various