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How to Sell a Stock on Cash App: A No-Nonsense Guide

So, you’ve dipped your toes into the world of investing with Cash App, and now you’re ready to cash in (pun intended) or perhaps rebalance your portfolio. Selling a stock on Cash App is surprisingly straightforward, but like any financial transaction, understanding the process is crucial. Here’s the lowdown:

How to sell a stock on Cash App?

To sell a stock on Cash App, follow these simple steps:

Open the Cash App: Launch the Cash App on your mobile device.
Navigate to the Investing Tab: Tap the “Investing” icon, which typically looks like a graph or a rising arrow, located at the bottom of the screen.
Select the Stock: Find the stock you want to sell in your portfolio. You should see a list of the stocks you currently own.
Tap “Sell”: Once you’ve selected the stock, tap the “Sell” button.
Enter the Amount to Sell: You’ll be prompted to enter the dollar amount or the number of shares you wish to sell. Cash App allows you to sell fractional shares, meaning you don’t need to sell whole shares.
Review Your Order: Carefully review the details of your order, including the estimated price and the total amount you’ll receive.
Confirm the Sale: If everything looks correct, confirm the sale by tapping the “Confirm” button. You might be asked to enter your Cash App PIN or use biometric authentication (like fingerprint or facial recognition).

That’s it! Your sell order will be submitted. Keep in mind that it may take a little time for the order to execute, depending on market conditions and the type of order you placed (more on that later). The proceeds from the sale will be deposited into your Cash App balance.

Frequently Asked Questions (FAQs)

Let’s dive deeper into the nuances of selling stocks on Cash App.

1. What happens after I confirm the sale?

After you confirm the sale, Cash App submits your order to the market. The actual execution time can vary. Generally, market orders (where you sell at the current market price) are executed relatively quickly, often within seconds or minutes during regular market hours. Limit orders (where you specify a price you’re willing to sell at) will only execute if the market price reaches your specified price. Once the order is executed, the funds from the sale will be credited to your Cash App balance.

2. What are the fees for selling stock on Cash App?

One of the appealing features of Cash App Investing is its commission-free trading. That’s right, there are no commission fees charged by Cash App itself when you buy or sell stocks. However, it’s crucial to be aware of other potential fees, such as regulatory fees (small fees imposed by regulatory bodies like the SEC and FINRA) that apply to all brokerages. These fees are typically very small and are automatically deducted from your proceeds.

3. Can I cancel a sell order after submitting it?

Whether you can cancel a sell order depends on its status. If the order hasn’t been executed yet, you can usually cancel it. To do this, go to your Activity feed within the Investing section of Cash App, find the pending order, and look for a “Cancel Order” option. However, if the order has already been executed, you can’t cancel it. Time is of the essence, so act quickly if you need to cancel.

4. How long does it take for the money to appear in my Cash App balance after selling a stock?

The settlement time for stock sales is typically T+2, which means it takes two business days after the trade date for the funds to become available in your Cash App balance. This is a standard practice in the securities industry and allows for the clearing and settlement of the transaction.

5. Can I sell fractional shares on Cash App?

Yes! This is one of the key benefits of Cash App Investing. You can sell fractional shares, allowing you to sell any portion of a stock you own, even if it’s less than one whole share. This is especially useful if you’ve accumulated fractional shares through dollar-cost averaging or dividend reinvestment.

6. What are the tax implications of selling stocks on Cash App?

Selling stocks can have tax implications. When you sell a stock for more than you paid for it (your cost basis), you’ll realize a capital gain. If you hold the stock for more than a year, it’s a long-term capital gain, which is typically taxed at a lower rate than ordinary income. If you hold the stock for less than a year, it’s a short-term capital gain, taxed as ordinary income. You’ll receive a Form 1099-B from Cash App detailing your sales activity, which you’ll need when filing your taxes. It’s always wise to consult with a tax professional for personalized advice.

7. What is a market order versus a limit order?

Cash App allows you to place market orders and potentially limit orders (depending on updates to their platform).

Market Order: This is an order to sell the stock at the current market price. It’s the simplest and fastest way to sell, but you might not get the exact price you see on the screen due to market fluctuations.
Limit Order: This is an order to sell the stock at a specific price or higher. Your order will only execute if the market price reaches your specified limit price. This allows you to control the price you sell at, but there’s no guarantee your order will be filled. Check Cash App to see if they offer limit order functionality, as it may not be available for all stocks or all users.

8. What happens if the market is closed when I try to sell a stock?

If you attempt to sell a stock when the market is closed (e.g., outside of regular trading hours of 9:30 AM to 4:00 PM ET on weekdays, or on holidays), your order will be queued and executed when the market reopens. Keep in mind that the price might change between the time you place the order and when it’s executed.

9. How do I transfer my stock from Cash App to another brokerage account?

Cash App Investing doesn’t currently support ACATS (Automated Customer Account Transfer Service) transfers to other brokerage accounts. If you want to move your stocks to another brokerage, you’ll need to sell your holdings on Cash App and then repurchase them in your new account. This will trigger a taxable event, so consider the tax implications before proceeding.

10. Is Cash App Investing safe for selling stocks?

Cash App Investing is generally considered safe. Cash App is regulated by the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA). Your investments are also protected by the Securities Investor Protection Corporation (SIPC) up to $500,000 (including $250,000 for cash claims). However, remember that all investments involve risk, and you could lose money.

11. What if I have problems selling stock on Cash App?

If you encounter any issues selling stocks on Cash App, your first step should be to consult Cash App’s help center and FAQs within the app. If you can’t find the answer there, contact Cash App’s customer support directly through the app. Be prepared to provide details about the issue you’re experiencing, such as the stock you’re trying to sell, the error message you’re seeing (if any), and the steps you’ve already taken to resolve the problem.

12. How can I see my sell order history on Cash App?

You can view your past sell orders (and all investment activity) within the Investing section of Cash App. Look for an “Activity” or “History” tab. This will display a record of all your transactions, including buy orders, sell orders, dividend payments, and any other relevant events. Reviewing your order history can be helpful for tracking your investment performance and for tax purposes.