### Comment:
isn’t that only for inventory tho?

### REPLY:
Nope.  
  
 Let say you buy 100 shares of WSB for $1 and hold for two years.  WSB is now selling for .50 so you buy another 100 shares.  
  
 Two weeks later WSB goes to the moon and you decide to sell. If you sell the shares you bought for 1.00 you would pay a different tax rate due to the time you held the shares.  
  
 Different scenarios call for different lots to sell.

### END.