Trading as an investment
so called "shareholder"
--> for the purpose of earning dividend income
--> treat as capital gain/ loss
Trading as business
so called "share trader"
--> for the purpose of earning income from buying / selling shares.
--> factors to consider as share trader for business:
- regular trading activity
- the higher volume of purchases or sales of shares , the more likely this is carrying on business
- similar transactions nature (buy / sell)
factors to consider as investment (capital gain/ loss) or business (taxable income/ loss)