Faith Godwin is a dealer in securities. She has spotted a fast-rising company and would like to

Question:

Faith Godwin is a in securities. She 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 Faith thinks it will climb to $40 a share within two years. Faith's coworkers have told her that there is "no way" she can get long-term capital gain treatment when she purchases stock because she is a securities Faith has asked you to calculate her potential gain and tell her whether her coworkers are right. Draft a letter to Faith responding to her request. Her 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...