Here are three of the week’s top financial news, gathered from the web:
$ 800,000 wash sale fiasco
An obscure IRS settlement left an amateur stock trader on Robinhood on an $ 800,000 tax bill on $ 45,000 profit, Juliet Bennett Rylah told Agitation. The anonymous trader broke what is known as the “blank sale rule”, which prohibits traders from repurchasing a security within 30 days of its sale (or a “substantially identical security”) at a loss. It is intended to dissuade taxpayers from taking advantage of tax breaks on inventory losses. In this case, the investor “made 10 to 50 trades per day” after opening their Robinhood account last year. He finished with a gain of $ 45,000 on more than $ 45 million in transactions by the end of the year, but his $ 800,000 in short-term gains were still taxed as ordinary income.
Is the CFA exam worth it?
Licensing of aspiring asset managers has never been so difficult, Claire Ballentine and Natasha Abellard told Bloomberg. Certified Financial Analyst, or CFA, certification has long been “seen as a no-frills, low-cost route to gaining a foothold in the otherwise clubby world of high finance.” But pass rates on the three-part exam “plunged during the pandemic” to the lowest levels since 1963. Only a quarter of candidates passed the May Level I exam and only 42% made it. III. The low numbers have raised questions as to whether the program’s benefits – including accessibility and affordability – are “outweighed by constraints on applicants’ time and effort.” CFAs typically spend over 300 hours studying for exam levels. An MBA program takes two years (costing over $ 140,000), but “graduation rates are over 90%.”
Amazon adds tuition fees for workers
Amazon last week became the last major employer to offer a free college as a workplace benefit, Annie Palmer told CNBC. The e-commerce giant said “it will cover tuition, fees and textbooks for hourly employees in its operating network after 90 days of employment,” with the benefit applying to “hundreds of ‘educational institutions across the country “. Amazon said it would also cover “high school diploma programs, GEDs and ESL certifications.” More and more companies are offering educational services as a lure to hire and retain workers in an increasingly competitive labor market. Walmart said in July it would fully subsidize the tuition and books of 1.5 million part-time and full-time employees, and expanded its university partners. Target, Chipotle, and Starbucks have made similar commitments.
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