Syphon
Rookie
- Feb 22, 2012
- 1,449
- 84
- 0
- Banned
- #61
you still havent even made an attempt to explain your belief that corporate profits are the same as dividends and are the same capitals gains. how can i refute something that you have not attempted to explain?
a companies stock price can fluctuate based on external forces or even speculation. lets use apple for example. lets say apple announces a new product, that will be released in 6 months. the stock immediately rises in price based upon this new news. does the company actually see more cash? no not at all. they havent sold this new product yet, or increased sales based upon a product that has not been released. but investors speculate the new product will raise revenues which will then drive the price of the stock up. so it was at $5 per share, and it rises to $10 per share. you decide to cash out and sell your shares on the open market. you are not taxed on the original $5, you are only taxed on the $5 increase. how is this money the exact same as corporate profits earned selling a product or service?
a companies stock price can fluctuate based on external forces or even speculation. lets use apple for example. lets say apple announces a new product, that will be released in 6 months. the stock immediately rises in price based upon this new news. does the company actually see more cash? no not at all. they havent sold this new product yet, or increased sales based upon a product that has not been released. but investors speculate the new product will raise revenues which will then drive the price of the stock up. so it was at $5 per share, and it rises to $10 per share. you decide to cash out and sell your shares on the open market. you are not taxed on the original $5, you are only taxed on the $5 increase. how is this money the exact same as corporate profits earned selling a product or service?
Last edited: