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Re:Launch HN: Enombic (YC S20) – Create your own stock indexes by endisneigh on Thursday February 25, 2021 @03:02PM (#26267511)
If and when you become huge one interesting thing you might consider (if legal) is to become very liquid and actually allow users to trade stocks directly without selling to minimize tax.

For example, if AMC is $1 and GME is $1, instead of buying the stocks directly we pay you $1.001 for both and you basically hold the stock for us. If we sell you sell the stock on our behalf and give us the cash and handle the tax forms.

However, if we wanted more GME and GME's price fell in half to $0.50 and AMC's price doubled, the new prices are GME: $0.50 and AMC: $2. It would be awesome if we could "trade" our AMC for 4 more GME without having to pay the gains on the $1 we earned on AMC.

Obviously you can only delay so much under this scheme, but I'd be willing to pay a slight commission if you could facilitate a scheme legally to minimize the tax burden of trading.

Like Robinhood making commission-free trades mainstream, if you can popularize this that would be good - sometimes if you're holding a very popular bubble stock you don't necessary want to cash out for cash and want to directly trade it for another stock without selling. Unfortunately what I'm describing would require crazy volume to be worth the implementation effort, but it's worth thinking about!

Re:Launch HN: Enombic (YC S20) – Create your own stock indexes by dmurray on Thursday February 25, 2021 @03:23PM (#26267775)
I think this is not illegal per se, but it's an equity derivative product which the SEC would not approve, since they don't approve CFDs which go a lot less far than this.
Re:Launch HN: Enombic (YC S20) – Create your own stock indexes by scott00 on Friday February 26, 2021 @12:24PM (#26277250)
RenTech had the same idea and it made the IRS pretty mad: https://www.bloomberg.com/opinion/newsletters/2019-11-13/mon...

I believe it's still being litigated, so the legality hasn't been firmly established yet.

Re:Launch HN: Enombic (YC S20) – Create your own stock indexes by _eb13 on Thursday February 25, 2021 @03:44PM (#26268036)
This is super interesting.

Reminds me of how a lot of centralized crypto exchanges work off-chain. Buy / sell is still taxable though.

That being said, tax implications are really important so we're thinking through what's best for our users with every feature we build.

Re:Launch HN: Enombic (YC S20) – Create your own stock indexes by nrmitchi on Thursday February 25, 2021 @03:52PM (#26268139)
This sounds sort of like an exchange fund, which are typically used to people who are extremely concentrated in a single stock/position and want some diversification without selling.
Re:Launch HN: Enombic (YC S20) – Create your own stock indexes by Jommi on Thursday February 25, 2021 @08:08PM (#26270433)
Re:Launch HN: Enombic (YC S20) – Create your own stock indexes by justusthane on Thursday February 25, 2021 @09:08PM (#26270727)
You've commented three times on this post, and they've all been links to Passiv. Are you affiliated with the company?