During August 2008, Madeline invests $400,000 in Qual Company, Inc., buying 100,000 shares of stock. Her broker

Question:

During August 2008, Madeline invests $400,000 in Qual Company, Inc., buying 100,000 shares of stock. Her tells her this will be an excellent investment because the securities are qualified small business stock. He predicts the stock will triple in value over the next 3 years. At the end of 2010, Madeline’s shares are valued at $700,000. Madeline is encouraged. She decides to cash out of this investment in December 2011 if the stock continues to appreciate. Madeline comes to you for advice. Write a letter advising her what she should do.

Broker
A broker is someone or something that acts as an intermediary third party, managing transactions between two other entities. A broker is a person or company authorized to buy and sell stocks or other investments. They are the ones responsible for...