How Do I Sell My Stock on Cash App? The Definitive Guide

Selling stock on Cash App is a straightforward process that leverages the platform’s user-friendly interface. Simply navigate to the Investing tab, select the stock you wish to sell, tap the “Sell” button, enter the number of shares or dollar amount you want to sell, and then confirm your transaction. Let’s delve into the specifics.

Understanding the Cash App Investing Platform

Cash App has evolved from a simple peer-to-peer payment app into a platform offering basic investment options, including stocks and ETFs. It’s important to understand that Cash App simplifies the trading experience, making it accessible to beginners. However, this simplicity can come with limitations compared to traditional brokerage accounts.

Setting Up Your Investing Account

Before you can buy or sell stocks, you need to set up your Cash App Investing account. This involves providing personal information, including your Social Security number, to comply with regulatory requirements. Cash App uses this information to verify your identity and ensure compliance with securities laws. Once verified, you can link a bank account to fund your investing activities.

Navigating the Investing Interface

The Investing tab in Cash App is where you’ll find all your investment-related activities. From here, you can browse stocks, ETFs, view your portfolio, and initiate trades. The interface is designed to be intuitive, but familiarity with investment terms and concepts will definitely be helpful.

Step-by-Step Guide to Selling Your Stock

Now, let’s walk through the specific steps to sell your stock on Cash App:

1. Open Cash App: Launch the Cash App application on your mobile device.
2. Navigate to the Investing Tab: Tap the Investing icon (usually a dollar sign with an upward trending arrow) at the bottom of the screen.
3. Locate Your Stock: Scroll through your portfolio or use the search bar to find the specific stock you want to sell.
4. Select the Stock: Tap on the stock to view its details, including current price, performance chart, and other relevant information.
5. Tap the “Sell” Button: You’ll find the “Sell” button prominently displayed on the stock’s detail page. Tap it to initiate the selling process.
6. Enter the Amount to Sell: You have two options here:
   • Sell by Share: Enter the number of shares you want to sell.
   • Sell by Dollar Amount: Enter the dollar value of the stock you want to sell. Cash App will automatically calculate the approximate number of shares based on the current market price. This is particularly useful for selling fractional shares.
7. Review Your Order: Cash App will display a summary of your order, including the estimated proceeds, any applicable fees (Cash App doesn’t explicitly charge commission fees but incorporates them into the price), and the expected settlement date. Carefully review all details before proceeding.
8. Confirm Your Transaction: Tap the “Confirm” button to finalize the sale. You might be prompted to enter your Cash App PIN or use biometric authentication for security purposes.

Understanding Order Types and Execution

Cash App primarily offers market orders, which means your order will be executed at the best available price at the time of execution. You don’t have the option to place limit orders (orders to buy or sell at a specific price) or other advanced order types commonly found in more sophisticated brokerage platforms. This limitation can be a drawback for experienced traders.

Settlement and Funds Availability

After you sell your stock, the proceeds are not immediately available. There is a settlement period, typically two business days (T+2), before the funds become available in your Cash App balance. This is a standard practice in the securities industry.

Important Considerations and Potential Issues

While selling stock on Cash App is generally simple, there are a few important considerations to keep in mind:

• Market Volatility: Stock prices can fluctuate rapidly. The price at which your order is executed may differ slightly from the price displayed when you placed the order.
• Fractional Shares: Cash App allows you to buy and sell fractional shares, which means you can invest in companies even if you don’t have enough money to buy a full share. However, selling fractional shares can sometimes result in small discrepancies due to rounding.
• Cash App Limitations: Compared to traditional brokerage accounts, Cash App offers limited investment options and features. If you become a more active or sophisticated investor, you may eventually want to consider using a dedicated brokerage platform.
• Tax Implications: Selling stock can have tax implications. You may be subject to capital gains taxes on any profits you make. It’s important to keep accurate records of your transactions and consult with a tax professional to understand your tax obligations.

Frequently Asked Questions (FAQs)

1. What happens if I sell stock on Cash App, and the price drops before the order executes?

Since Cash App primarily uses market orders, your order will execute at the best available price at the time of execution. If the price drops before your order is filled, you will receive less money than initially anticipated. This is a risk inherent in market orders.

2. Are there any fees associated with selling stock on Cash App?

Cash App does not explicitly charge commission fees. However, they may incorporate a small markup into the price of the stock. This markup is typically minimal but can affect your overall profit. Review the estimated proceeds carefully before confirming your transaction.

3. How long does it take for the money to become available after selling stock on Cash App?

The standard settlement period is two business days (T+2). After the settlement period, the funds will be available in your Cash App balance and can be withdrawn to your linked bank account or used for other transactions within Cash App.

4. Can I cancel a stock sale order after I’ve placed it on Cash App?

Generally, you cannot cancel a market order once it has been submitted. Since market orders are designed to execute quickly, there’s usually no window of opportunity to cancel them. Review your order carefully before confirming it.

5. What are the tax implications of selling stock on Cash App?

Selling stock can result in capital gains taxes if you sell the stock for more than you originally paid for it. The tax rate will depend on how long you held the stock (short-term vs. long-term capital gains) and your overall income. Consult with a tax professional for personalized advice.

6. How do I withdraw the money after selling stock on Cash App?

Once the funds are available in your Cash App balance, you can withdraw them to your linked bank account. Simply tap the “Cash Out” button, enter the amount you want to withdraw, and select your linked bank account. Standard transfers typically take 1-3 business days, while instant transfers incur a small fee.

7. Can I sell stock on Cash App outside of market hours?

Yes, but your order will only be executed when the market reopens. These are called after-hours trading, and you are exposed to the potential of price shifts happening before your order is executed when the market reopens.

8. What happens to my fractional shares if I close my Cash App Investing account?

If you close your Cash App Investing account with fractional shares still held, Cash App will typically liquidate those shares and send you the proceeds.

9. Is my money insured when investing through Cash App?

Your investments through Cash App are protected by the Securities Investor Protection Corporation (SIPC) up to $500,000 (including $250,000 for cash claims). This protects you if Cash App were to fail financially.

10. How do I see my transaction history for stock sales on Cash App?

You can view your transaction history within the Investing tab of Cash App. Look for a section labeled “Activity” or “History” to see a record of all your buy and sell orders.

11. Can I transfer stock from another brokerage account to Cash App?

No, Cash App does not currently support the transfer of stocks from other brokerage accounts. You would need to sell the stock in your other brokerage account and then use the proceeds to buy stock within Cash App.

12. What are the risks of using Cash App for investing compared to a traditional brokerage?

While Cash App offers a simplified and accessible investing experience, it also has limitations compared to traditional brokerages. These include:

• Limited Investment Options: Cash App offers fewer stocks and ETFs compared to larger brokerages.
• Basic Order Types: Cash App primarily offers market orders, limiting your control over execution prices.
• Lack of Research Tools: Cash App provides limited research and analysis tools compared to traditional platforms.
• Limited Account Types: Cash App primarily offers individual taxable accounts, lacking options like retirement accounts (IRAs).

By understanding these considerations and limitations, you can make informed decisions about whether Cash App is the right platform for your investment needs. Always perform your own research and consider consulting with a financial advisor.