Do I owe taxes on an ISO stock transaction when I only sell enough to cover the purchase?
If I exercise 20000 shares at $2 for a $10 stock, and sell just enough to cover the $40000 transaction cost (4000 shares) will I owe short term (30%) taxes on the $40000? I didn’t make a profit in this transaction so is it a wash? As long as I hold the remaining 6000 shares for a full year, I will owe long term taxes on sales of those stocks right?
What does it mean to buy at cover share or short shares, when investing?
I am good beginning researcher in finding the best and ideal stock, but when it comes to buy a stock, what is cover shares, and what is short shares. I thought you just buy and sell, those are the only the 2 terms you need to know to make your transaction.
Please help!
Thank you 
!!
Is selling short/buying to cover actually legal with most brokers? I ask because it seems unethical. ?
If I short a stock is there a max amount of days i have before i have to cover?
I read somewhere if you sell short you only have 3 days
What are “Short Selling” and “Buy to Cover”?
Can someone explain these terms and give example how it works?
For “Buy” we have “Limit”, for “Sell” we have “Stop”, how about short and cover?
If I wana short a stock when it reaches xx dollars how do I do that?
or if I wana cover it when it drops to yy dollars how do I do it?
Also how can I set my order to be executed today (if the price reaches) or cancel the order to prevent after/before market trading?
Thanks a lot for your answers, it is really useful
What’s the difference between buying to cover and selling short?
If you short a stock is their a time limit on when you have to “cover it”?
So if you short sell a stock could you just hold on to it for a very long period of time and wait for it to go back down? Or is there a time limit on to how long you can have it before you have to sell it again or “cover it”? Is there limitations put on you? Or can you just watch the stock and choose to sell when you want?
Current price of Vonage (VG) is $8.65. Would you sell-short it at today’s rate and cover it later at like 1$?
I think Vonage will break the $5 barrier on or before the Fed’s meeting next week. I’m new to investing and shorting is kind of exotic to me right now. But looking at it right now, it looks like Vonage is prime candidate for shorting.
