What are your total round trip transaction costs for

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What are your total round-trip transaction costs for both selling and buying the shares, and whatcould you have done differently to reduce the total costs?Transaction costsIn late December you decide, for tax purposes, to sell a losing posi-tion that you hold inTwitter, which is listed on the NYSE, so that you can capture the loss and use it to offset some capital gains,thus reducing your taxes for the current year. However, since you still believe that Twitter is a good long-terminvestment, you wish to buy back your position in February the following year. To get this done you call yourCharles Schwab brokerage account manager and request that he immediately sell your 1,200 shares of Twitterand then in early February buy them back. Charles Schwab charges a commission of $4.95 for online stocktrades and for broker-assisted trades there is an additional $25.00 service charge, so the total commission is$29.95.Suppose that your total transaction costs for selling the 1,200 shares of Twitter in December were$59.95. What was the bid/ask spread for Twitter at the time your trade was executed?
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Term
Spring
Professor
McCollum
Tags
Sales, Charles R Schwab

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