What Does First In First Out Mean For Stocks | How To Select The Block Of Stock You Want To Sell
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 Published On Feb 13, 2021

When selling stock, the order of operations matter. If you bought 10 shares of stock each week for a year, you can select which of those weeks' stock purchase you want to sell.


Why does it matter? If some of those shares were purchased for more than they are worth today, you can sell them without triggering a tax event.


If you sell the weeks where you made money, however, you WOULD potentially be on the hook for taxes.


The method of the stock sale matters, and the default setting might not be the best option for your account.


Always make sure to consult a tax expert before making any moves in your account. I am not a tax expert and am simply sharing a method that works for me.

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