Official: Rivian IPO priced at $78 per share (@ $77 billion valuation)!

[OldGoat]

Good point! How long do you have to hold before its not "Short Term Gains"?

One year.
As far as whether one owes taxes on stock that they bought, then sold, and then bought again via another account...yes, it's going to be taxed. You, whether wittingly or not, just became a day trader.

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[cardad]

Good point! How long do you have to hold before its not "Short Term Gains"?

After 1 year it is taxed as “long term” but on a volatile position like this you should think of it more like free money vs the possibility of losing money over a period of time that is expected to be volatile (aka would you rather lose half your profits to taxes now or half your total position to a down market later)

 

[Sgt Beavis]

Rough day to IPO.

I thought it did extremely well despite the economic data.
Rivian originally targeted a market cap of $80billion, then lowered it A LOT then raised it a bit more, but still under $80billion. But here we are today at $85billion. That's a successful day IMO.

 

[SeaGeo]

And their Forever fund is worth about 3/4 of a billion dollars.

 

[Ladiver]

And this is why IPOs should not be offered to day-traders!

Uncle Sam thanks you all for your short-term capital gains. LOL

 

[St Bernard]

7
Just focusing on the original 175 shares, math was this:

Realized profit of $38/share on the 175 shares before tax
Uncle Sam takes $15/share in taxes (40% of $38), so effectively you sold for $101
Repurchased the original 175 shares (plus some) for $97.

So, you made about $4/share on the original 175 shares, or $700.

How are you figuring only $4?

 

[Dbeglor]

How are you figuring only $4?

I just showed my work, feel free to poke holes. Basically, two reasons: 1) Uncle Sam took 40% of the profit, $15/share, and 2) they repurchased shares at $97 that were previously owned for $78.

If they just sold and went away, they made $23/share after taxes, but then they repurchased shares at a higher cost.

 

[Speedrye]

Am I the only one that uses a Roth IRA stock account for things like this? No worries of long-term or short-term capital gains!

 

[xyskis]

Am I the only one that uses a Roth IRA stock account for things like this? No worries of long-term or short-term capital gains!

I thought about this but didn’t have any accounts with MS before now.

 

[Forager]

Am I the only one that uses a Roth IRA stock account for things like this? No worries of long-term or short-term capital gains!

Not at all! Anything I don’t plan to keep several years or more, I trade in my IRA and Roth IRA. Because the DSP had to be done outside my IRA accounts and because I think this is a long-term hold, this will be moved to my brokerage account.

When I increase my holdings, that will likely be done in my IRA so I can day trade it if it makes sense to do so.

 

[McMoo]

And this is why IPOs should not be offered to day-traders!

Uncle Sam thanks you all for your short-term capital gains. LOL

Am I the only one that uses a Roth IRA stock account for things like this? No worries of long-term or short-term capital gains!

It wasn’t an option with DSP. I sold my DSP shares and will probably buy back in my Roth once things calm down and stabilize in a few months. I could be completely wrong but I see this dipping back to the $60-$70 range. Who the hell knows though. It’s not going to 10x in the short term so not a huge amount of $.

 

[protamine]

Am I the only one that uses a Roth IRA stock account for things like this? No worries of long-term or short-term capital gains!

Not everyone has a Roth IRA for various reasons. I never could do one during residency and then on day 1 of being a practicing physician you get priced out.

 

[McMoo]

Not everyone has a Roth IRA for various reasons. I never could do one during residency and then on day 1 of being a practicing physician you get priced out.

Backdoor Roth.

 

[3l3c7r1c]

7
Just focusing on the original 175 shares, math was this:

Realized profit of $38/share on the 175 shares before tax
Uncle Sam takes $15/share in taxes (40% of $38), so effectively you sold for $101
Repurchased the original 175 shares (plus some) for $97.

So, you made about $4/share on the original 175 shares, or $700.

And by any chance that person end up selling those stocks at loss in less than 30 days, you can't subtract the loss from profit for tax purpose. In other words, if I'd still make money by buying at $78 and selling at $90 but I'd owe more taxes than profit if I have to sell the stocks I bought at $97.

Anyway, the way purchase and sells timed at peak-bottom, I'd be surprised if it's not pure imagination.

 

[xyskis]

Not everyone has a Roth IRA for various reasons. I never could do one during residency and then on day 1 of being a practicing physician you get priced out.

Gotta get those backdoor roths! Do you work with vascular patients?

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