Stock in trade v/s capital assets

I THINK THE IMPROVEMENT COST WILL BE ADDED TO UR COST PRICE AND THIS WILL BE DEDUCTED IN THE YEAR U SOLD AND REMAINING IS TAXABLE UNDER BUSINESS OR PROFESSION,BUT NO INDEXATION BENEFIT IS GIVEN AND

IF U WANT CONVERT STOCK TO CAPITAL ASSET ALSO THEN SAY AFTER THREE YEARS THEN IT WILL BE LTCG,NOW U CAN AVAIL INDEXATION BENEFIT NOT FROM THE DATE OF CONVERTING INTO CAPITAL ASSET BUT FROM THE DATE U PURCHASED THIS COULD BE A GOOD TAX SAVING BENEFIT.

CORRECT ME IF I AM WRONG,

THANK U.