At 11:59 AM 11/2/01 +1200, Steve Baldwin wrote: >My understanding is that the dividend doesn't exist in the US. You >buy stock at the current price and only make a gain when you sell >it at (hopefully) a higher price.
No. We are getting pretty far outside the list subject; initially the relevance is software maintenance, which is, arguably, within the topic. But to clean up this detail, U.S. stocks do pay, if the company chooses, dividends, it is just that in the madness of the last few years, dividends were considered pitiful creatures and only wimps were interested in them. Capital gain, if from a period longer than I forget, a year?, is taxed at lower rates than are dividends, which are considered ordinary income; but the theoretical basis for a stock's value is the dividend that it promises to pay, someday. Then, because it is an instrument that may produce income, it has a certain present value based on that expected income. Plus the madness multiplier. [EMAIL PROTECTED] Abdulrahman Lomax Easthampton, Massachusetts USA * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * To post a message: mailto:[EMAIL PROTECTED] * * To leave this list visit: * http://www.techservinc.com/protelusers/leave.html * * Contact the list manager: * mailto:[EMAIL PROTECTED] * * Forum Guidelines Rules: * http://www.techservinc.com/protelusers/forumrules.html * * Browse or Search previous postings: * http://www.mail-archive.com/[email protected] * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
