Can someone help me read my report?
Here’s a summary of the main problem and the solutions discussed:
- Main Problem: The user is confused about why their trades for NVIDIA shares appear as separate line items and if Fidelity sold their shares in a specific order.
- Solution: Fidelity explained that the default method for disposing of stocks is “First in, First out” (FIFO), meaning the shares held the longest are sold first, which accounts for the separate line items.
- Additional Solution: The user can change their default disposal method by logging into their Fidelity account and following specific steps, but this change will take effect overnight and won’t affect cost basis information for trades already settled.
- Further Assistance: Fidelity offered to review the user’s trades further and provided contact information for additional support.
Here’s the full thread
I’m new to stock investing and I made some financial moves, but I don’t fully understand how to read the data.
If it helps:
A: I bought 1 share of NVIDIA.
B: I later on bought 1.9 shares of NVIDIA.
C: I put a stop loss order to sell 2 shares of NVIDIA at 700.
I think I just don’t understand why one trade splits .1 and .9. Between the 1 share and .9 share I bought, did Fidelity sell my 1 share bought at point A and .9 shares at point B?
Thanks for helping. 🙂
Hey there, @Gr8Potato. Thanks for stopping by! I’m happy to review this with you.
Based on the information in the screenshot you provided, let’s first cover the default disposal method. The default disposal method for stocks and Exchange Traded Funds (EFTs) is “First in, First out,” or “FIFO.” Therefore, the shares that you’ve held the longest will be sold or delivered first. Lots chosen at the time of the trade, or by your default method will appear on the closed positions page, which may explain the separate line items you’re noticing.
Just so you know, you may change the default disposal method for your account at any time, but the change requires an overnight cycle to take effect. You can change the disposal method as often as you wish; however, changes made after trade settlement will not affect the cost basis information in your closed positions.
To make this change, log into Fidelity.com and take the following steps to designate your disposal method before you trade:
1. Click “Accounts & Trade,” then “Account Features”
2. Select “Brokerage & Trading” and then “Cost Basis Information Tracking”
3. Under “STOCKS/ETFS, OPTIONS, FIXED INCOME,” you will see your current disposal method for each account.
4. Select “Change,” then choose from the list of disposal methods available.
All of that being said, we’re happy to review your trades with you if you need any further clarification. Feel free to give our service team a call. Associates are available 24/7.
Fidelity Contact Information: https://www.fidelity.com/customer-service/contact-us
Once again, we appreciate you stopping by. We are here to help if anything else comes up! 🟢