Monthly Archives: January 2015

CAPITAL GAINS TAXES: Overview 2

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In the third case, assume the firm pays no dividend prior to liquidation and that the investor sells the share immediately prior to liquidation. The purchaser of the share would be willing to pay $11 because he would receive $11 in the final distribution and pay no taxes. The seller (original investor) would receive $11 […]

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CAPITAL GAINS TAXES: Overview

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Shareholder capital gains taxes are assessed on the difference between a stock’s sales price and its investor’s tax basis. Changes in expected capital gains tax rates could affect share prices in at least three ways. First, when companies repurchase shares from their shareholders on an ongoing basis or at liquidation, capital gain taxes are levied […]

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