Guidelines for Year-End Trading

U.S. stock markets won’t be taking a New Year’s holiday: They will be open for regular sessions on Friday, a federal holiday, as well as on Thursday and Monday. Regular closing time is 1 p.m. PST.

Here are some tips for investors considering year-end financial transactions:

* Under IRS rules, any capital gain or loss realized by selling a stock or mutual fund through Friday is recorded in this tax year, even if settlement of the trade takes place in 2005.

* A long-term capital gain -- profit on the sale of an investment held for more than one year -- is taxed at a maximum federal rate of 15%. Short-term gains are considered ordinary income and are taxed at the same rate as wages and other such income.

* Investors who want to sell mutual fund shares before year-end should check with their fund company to make sure that they can do so via phone or e-mail. Some funds require redemption requests in writing.