Bilow: <If you truly run your accounting the way you and ekid describe, you're basically idiots.>
Carl,
I'll try to make this explanation real simple, understandable by those with a third-grade understanding of arithmetic. (Notice that I didn't use the term mathematics, since I don't want to trigger your math phobia and have the explanation go over your head.)
Since May 1997, I have made 120 transactions in RMBS shares. The profit (not proceeds) from the sales is $232,675.
Currently, I am holding 4,414 shares at a cost basis of $131,908. If you subtract this amount from the $232,675 profit from previous sales, I am left with
1. a net profit of $100,767
2. 4,414 shares.
If my 4,414 shares were to decline to $0, I would still have a net profit of $100,767 from my Rambus investments. This is the point that I was making in my previous post, as I believe Ekid was also trying to convey to you.
We are not using the term "cost basis" in a tax accounting sense. Furthermore, nearly all my sales were in tax-deferred accounts with no present tax ramifications.
As far as your questioning my credibility, I could care less, since I doubt that you have the capability to recognize the attribute even if it were staring you in the face! After all, one needs to have a little experience with it in order to recognize and appreciate it.
Multico |
