Hello,
I recently was organizing the investments in my accounts. I previously had 2 accounts with a mix of stock A and B in both.
What I did was I sold stock A in one account and purchased stock B.
In the other account I sold stock B and purchased stock A.
The trades executed and later I received a letter from Merrill saying that I performed a wash trade and my trading may be restricted if this continues.
Is there any penalties associated with this action? Additionally, how serious is wash trading? I will make sure to wait for trades to settle if I need to organize going forward.
Thanks