COSCIENS Biopharma Inc T.CSCI

Tax-loss selling season:

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Tax-loss selling typically occurs near the end of the calendar year in both Canada and the United States:

Canada

In Canada, tax-loss selling generally starts in November and continues until December 27, 2024

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. This is the last day for tax-loss selling transactions to be settled within the 2024 tax year.

United States

For US investors, tax-loss selling usually begins in November and extends until December 31, 2024

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Behavior of Thinly Traded Stocks

A thinly traded stock like Cosciens Biopharma may experience more pronounced effects during the tax-loss selling season:Increased Volatility: With lower trading volumes, the stock could see larger price swings as investors sell for tax purposes.Amplified Downward Pressure: If the stock has performed poorly this year, it may face more significant selling pressure as investors look to harvest tax losses.Potential Overselling: The limited liquidity could lead to a more substantial price decline compared to more heavily traded stocks.Year-End Bounce: Once tax-loss selling subsides, the stock might experience a quicker price recovery in early January, as even small amounts of buying can have a more significant impact on thinly traded stocks.Given the general performance of stocks this year and assuming Cosciens Biopharma has underperformed, it could be a prime candidate for tax-loss selling. However, it's important to note that the stock's behavior will also depend on company-specific factors and broader market conditions.Investors should be aware that if a large number of sellers execute sell orders simultaneously, the price of thinly traded securities could fall more dramatically

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. Additionally, once the selling season ends, shares that have become largely oversold may bounce back, potentially creating buying opportunities for those who have been on the sidelines

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