You may buy stock in other companies. However, buying other shares of the same company would trigger the wash sale rule.Wash sale rule questions?
The Wash Sale Rule only applies when you purchase a ';substantially identical'; asset within 30 days (before or after) of disposing of one at a loss. If it applies, you defer the loss until the replacement assets is sold. Of course, if the value then goes up again you may not have a loss but a gain.
For example, if you dump 100 shares of GM common stock at a loss you cannot buy GM common stock within 30 days prior to or after the sale date or the wash sale rule will apply. You could however buy GE common stocks and it would not apply. Or you could buy GM bonds and it would not apply.
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