Hyacinth, Inc., is a dealer in securities. The firm has spotted a fast-rising company and would like

Question:

Hyacinth, Inc., is a in securities. The firm has spotted a fast-rising company and would like to buy and hold its stock for investment. The stock is currently selling for $2 per share, and Hyacinth thinks it will climb to $40 a share within two years. How can Hyacinth ensure that any gain it realizes will be taxed as long-term capital gain? Draft a letter responding to Hyacinth's inquiry. The firm's address is 200 Catamon Drive, Great Falls, MT 59406.
Dealer
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...