A client sells a stock short in their portfolio. The client plans to cover the short sale but prior to covering, calls to ask the RR how to achieve long-term status for capital gains purposes on the short sale. How should the RR respond?

Explanation:

Since the client sold the stock short he is anticipating a decrease in share price hence he wants to know how to achieve long-term status for capital gains purposes.

What the RR has to do is to communicate to the client that the short sales made is not eligible for long-term capital gains treatment, irrespective of how long the stock was sold short in the account of the client, the capital gains rate on short term will always be short term.

i would say that they would most likely use a e-mail