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Part $1$

When is the gain on the sale or exchange of securities by a dealer in securities classified as capital$$ gain?

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Part $1$

A$.$

The security must not be held primarily for sale to customers in the ordinary course of the$$ dealer's trade or business at any time after the day of purchase.

B$.$

The dealer must clearly identify that the security is held for investment. The identification of the security type must occur before the close of the day on which the security is acquired.

C$.$

The gain on the sale or exchange of securities by a dealer in securities is always classified as capital gain.

D$.$

Both A and B are correct