Bed and Breakfast

sugna

Can someone please explain it me what bed and breakfast means in dealing with shares? Can someone also give me advice, I must transfer shares. Do I transfer to an Irish stockbroker a foreign one or computershare?
Thank you.

RATM

I understand it to have two meanings- one is the practice of closing out your investment positions on the very last day of the financial year (putting them to bed) and then re-opening (breakfast) those same positions the next day, starting over in the new financial year. The purpose of doing it is to limit your liabilities on capital gains tax.

The other way I've heard it used is to describe when traders hold positions only for a short-time, usually less than 24 hours. As jargon the trader may be said to be 'bed and breakfasting', i.e in for a really quick profit and selling the position just as quick as it is made. This could be an overnight trade which is hoping for positive news out of market hours and then wait for the morning upside.

sugna

Thanks RATM. Would you have an advice on what should I do with my shares? Irish Stockbroker, foreign one or computershare?

EMPM

sugna wrote: »

Can someone please explain it me what bed and breakfast means in dealing with shares? Can someone also give me advice, I must transfer shares. Do I transfer to an Irish stockbroker a foreign one or computershare?
Thank you.

A lot of people used to use a B&B to utilise their tax free allowance (€1270).

What do you mean by you 'must transfer shares'?

sugna

Mercer hold my shares but they won't hold onto mature shares anymore so I have to transfer them to a broker.