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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: t2 who wrote (13626)	12/30/1998 10:30:00 AM
From: Teflon	Read Replies (1) \| Respond to of 74651

Two questions for the Board, and please excuse the ignorance... 1) Why is it that everyone believes that the "Funds" will be buying in the beginning of January when one would believe that if a Fund had money to put to work and wanted to show ownership in MSFT, it would be buying it NOW, prior to yearend, to show ownership on their 12/31 Statement??? 2) What is the Basic premise of the "January Effect" vs a "December Effect"; is there substantial new money that comes in after yearend that is not there in December? If so, where does it come from?? Thanks, Teflon

To: t2 who wrote (13626)	12/30/1998 10:52:00 AM
From: John Carragher	Read Replies (1) \| Respond to of 74651

Securitires traded on established market. For securities traded on an established securities market, your holding period begins the day after the trading date you bought the securities, and ends on the trading date you sold them. Ignore the settlement date (s) for tax purposes. from 1997 tax guidepub #17 EXAMPLE you are a cash-basis, calendar-year taxpayer. You sold stock at a gain on Dec. 27,1997 (per example. According to the rules of the stock exchange, the sale was closed by delivery of the stock 3 trading days after the sale, on jan 2, 98. You received payment of the sales price on that same day. Report your gain on your 1997 return, even though you received the payment in 1998. Hope this helps folks.