Tranquility Base
Recycles dryer sheets
- Joined
- Nov 18, 2017
- Messages
- 104
I haven't sold that many stocks and, when I have, I have generally sold the entire position. My understanding is that when stocks are sold (at least at Schwab where most of my portfolio is) I have the option of selecting which stocks to sell so I might be able to make the sale at a loss or a gain, depending on which stocks I sell and my basis in those stocks. Also I can sell one stock or the entire position, or any number in between.
Is the same true of US Treasury Bills and Notes? I am considering moving some of my funds from an online savings account to US Treasury Bills. It is mainly to gain some experience on how various things are purchased at Schwab. I also don't mind picking up some additional interest on the funds compared to what they would earn at an online savings account.
Suppose I was moving $5,000 from savings into US Treasury Bills. Would it be better to buy five $1,000.00 US Treasury Bills (thus 5 separate transactions) instead of one $5,000.00 US Treasury Bill? The interest would be the same. But if for some reason I wanted to pull out some of the $5,000, I am assuming that in the second example (one transaction, one $5,000.00 US Treasury Bill) I could only sell the whole thing, that is, there would be just one position and one Treasury Bill in the amount of $5,000.00. But in the first example, even though I had a little more hassle up front with five separate transactions, I would have the ability to pull out my $5,000 in increments of $1,000.00 each. Of course I am glossing over the fact that the value of the original $5,000.00 position might be more or less, depending on whether interest rates had declined or increased since the $5,000.00 was invested in the Treasure Note(s). I don't really anticipate selling a US Treasury Bill before maturity. I am just trying to understand how things work and what my options would be.
Is the same true of US Treasury Bills and Notes? I am considering moving some of my funds from an online savings account to US Treasury Bills. It is mainly to gain some experience on how various things are purchased at Schwab. I also don't mind picking up some additional interest on the funds compared to what they would earn at an online savings account.
Suppose I was moving $5,000 from savings into US Treasury Bills. Would it be better to buy five $1,000.00 US Treasury Bills (thus 5 separate transactions) instead of one $5,000.00 US Treasury Bill? The interest would be the same. But if for some reason I wanted to pull out some of the $5,000, I am assuming that in the second example (one transaction, one $5,000.00 US Treasury Bill) I could only sell the whole thing, that is, there would be just one position and one Treasury Bill in the amount of $5,000.00. But in the first example, even though I had a little more hassle up front with five separate transactions, I would have the ability to pull out my $5,000 in increments of $1,000.00 each. Of course I am glossing over the fact that the value of the original $5,000.00 position might be more or less, depending on whether interest rates had declined or increased since the $5,000.00 was invested in the Treasure Note(s). I don't really anticipate selling a US Treasury Bill before maturity. I am just trying to understand how things work and what my options would be.