Investment and Finance

The capital gain and loss limitations do not apply to the securities of a “dealer”, except for securities held primarily for investment. Nor do they apply to real estate sales by a dealer in realty, except for property as an investment.
A “trader” as distinguished from a “dealer” in securities is subject to the capital gain and loss limitations.
A securities “dealer” is similar to a merchant in that he purchases securities with the expectation of reselling them for a profit.
The profit is based on hopes of finding a market of buyers to purchase the securities in excess of his cost. A “trader” buys and sells securities for his own account.
A trader’s expectations of making a profit depend on the rise in value to sell at a price in excess of cost. More details can be found in IRS Publications 544 and 550 http://www.irs.ustreas.gov/prod/forms_pubs/forms.html

Yes. The capital gain and loss limitations do not apply to securities of a “dealer”, except for securities held primarily for investment. Nor do they apply to real estate sales by a dealer in realty, except for property as an investment. A “trader” is distinguished from a “dealer” in securities is subject to the capital gain and loss limitations. A securities “dealer” is similar to a merchant in that he purchases securities with the expectation of reselling them for a profit. The profit is based on hopes of finding a market of buyers to purchase the securities in excess of his cost. A “trader” buys and sells securities for his own account. A trader’s expectations of making a profit depend on the rise in value to sell at a price in excess of cost. More details can be found in IRS Publications 544 and 550 found at http://www.irs.ustreas.gov/prod/forms_pubs/forms.html

Securities Dealers are required to follow the IRS “market to market” rules. Traders may elect to use the “market to market” rules.
If elected, all security gains and losses are treated as ordinary income or loss, and all securities on hand at the end of the year are deemed to be sold at the end of the year at Fair Market Value.
The unrealized gain or loss on a security increases or decreases the basis of the security.
The benefit of making this election is that “traders” can take ordinary loss deductions for short term trading losses that are not subject to the $3,000 per year limit.
Also the “wash sale’ rules do not apply. Taxpayers may make the "market to market" election by attaching a statement to a timely filed return for the taxable year immediately preceding the election year. It is also necessary to complete IRS Form 3115 - Application for change in accounting method.

Some advantages of a SEP Simplified Employee Pension Plan are: Contributions to a SEP are tax deductible and your business pays no taxes on the earnings on the investments. You are not locked into making contributions every year. In fact, you decide each year whether, and how much, to contribute to your employees’ SEP-IRAs. Generally, you do not have to file any documents with the government. Sole proprietors, partnerships, and corporations, including S corporations, can set up SEPs. You may be eligible for a tax credit of up to $500 per year for each of the first 3 years for the cost of starting the plan. Administrative costs are low.

SIMPLE IRA plans must be set up by 10/1/xx for that year's contributions to be deductible on that year's tax return.

A Real Estate Investment Trust (REIT) invest in real estate or loans secured by real estate and issue shares in such investments. A Real Estate Investment Trust is similar to a closed-end mutual fund.

A Real Estate Investment Trust (REIT) invest in real estate or loans secured by real estate and issue shares in such investments. A Real Estate Investment Trust is similar to a closed-end mutual fund.

Pyramid scheme is an fraudulent, illegal scheme in which a con artist convinces victims to invest by promising an extraordinary large return on their investment but instead simply use newly invested funds to pay off any investors who insist on terminating their investment.
This timing scheme usually continues to a point in which the con artist disappears with the bulk of the investors funds.

A Real Time stock or bond quote is one that states a security's most recent offer to sell or buy. The quote is as that precise point in time as opposed to a delayed point in time. This is different from a delayed quote, which shows the same bid and ask prices Fifteen or twenty minutes after a trade takes place.