I am not into stocks at all, but I believe this is why it isn't that attractive to invest in BP:
Assuming you had 100k to invest and bought when it was at its low which is about 30 per share-
That would net you 3333 shares - Then, if the stock instantly went back up to 60 and you sold after a year, you would have 200k, which you would have to pay 15% long term capital gains (federal) and 9.3% for California ) - This means your total take home under the most ideal of situations would be about 75k , not even doubling your money.
Now, if it dipped into the single digits, that is another story. That is where you can invest 100k and turn it into millions.
Assuming you had 100k to invest and bought when it was at its low which is about 30 per share-
That would net you 3333 shares - Then, if the stock instantly went back up to 60 and you sold after a year, you would have 200k, which you would have to pay 15% long term capital gains (federal) and 9.3% for California ) - This means your total take home under the most ideal of situations would be about 75k , not even doubling your money.
Now, if it dipped into the single digits, that is another story. That is where you can invest 100k and turn it into millions.