<topic sku="core" tNum="226272" author="sallyh" xmlns="x-schema:hhTopicSchema.xml"><index><title>Learn about lots</title><category fLocale="cdn">investing</category><klink type="cncpt">Tell me about lots</klink></index>
<content>
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<p>Shares of the same investment that you purchased in different transactions are grouped by <glossary tNum="287031">lots</glossary>, one lot for each transaction. For example, using an automatic savings plan to purchase investment shares could result in the following lots:</p>
<ul>
<li>Lot 1: 20 shares of ABC stock purchased at $10/share on March 1.</li>
<li>Lot 2: 15 shares of ABC stock purchased at $15/share on April 1.</li>
<li>Lot 3: 10 shares of ABC stock purchased at $20/share on May 1.</li>
</ul>
<p>When you sell, it's important to specify which lot of shares you want to sell because shares with different purchase prices have a different <glossary>cost basis</glossary>. When you own multiple lots of an investment in a single account and you sell or transfer less than the total quantity you own, you can specify the lots to sell or transfer. If you don't specify the lots, Money uses the <glossary tNum="287000">first in, first out (FIFO)</glossary> method to determine which lots are sold. You must instruct your broker to sell specific shares of stock and receive confirmation from them unless you want to use the FIFO method. Additional rules apply to mutual fund sales; see your tax professional for more information.</p>
