Question

The wash sale provisions DO NOT apply to which of the following?

A) Securities traded on a national securities exchange
B) Securities traded in the over-the-counter market
C) Securities traded in a foreign stock exchange
D) Securities traded on a regional stock exchange

Answer 1

The wash sale provisions do not apply to securities traded on a foreign stock exchange, but do apply to securities traded on a national securities exchange, in the over-the-counter market, and on a regional stock exchange.

Step-by-step explanation:

The wash sale provisions DO NOT apply to securities traded on a foreign stock exchange.

The wash sale provisions are rules that prevent investors from claiming a capital loss on a security if they repurchase the same or a substantially identical security within 30 days of selling it at a loss. This rule is designed to prevent investors from artificially manipulating their tax liabilities.

However, the wash sale provisions do apply to securities traded on a national securities exchange, in the over-the-counter market, and on a regional stock exchange.