AICPA Exam CPA-Regulation Topic 1 Question 39 Discussion

Choice 'a' is correct. Trade date.

Gain or loss on a year-end sale of listed stock arises on the trade date.

Rule: Whether on the cash or accrual method of accounting taxpayers who sell stock or securities on an established securities market must recognize gains and losses on the trade date, rather than on the settlement date.

Choices 'b', 'c', and 'd' are incorrect, per the above rule.