emielbo2

emielbo2 t1_ja45bgi wrote

Its counted as investment interest in the US, assuming you hold the position for longer than 45 days. If you held it for shorter than 45 days the cost gets added to your purchase cost. In the end both results are the same (increasing your cost base), just the item on your taxes changes.

Edit: for tax purposes you made a loss (option 2).

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emielbo2 t1_iua5mbq wrote

He is describing a darkpool, not a market maker. Specifically a broker-dealer dark pool. A market maker is simply a company registered at an exchange (usually investment banks, but not always) that acts as a middleman, both buying and selling shares on the exchange so that there is enough liquidity to complete transactions. They make money by buying shares for P-1 and selling for P+1, so to say. When you place a buy order you pay slightly more than you would get if you sold that same share. Market makers earn their living on the difference between those two.

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