To: supercat
If stock prices get high enough, it becomes worthwhile for companies to issue more stock,
IF the reason for an INDIVIDUAL stock going up is because their business is booming and dividends are way up but NOT of the market as a whole is going up because people are jumping in to make easy money
Market going from 2000 to 14000 in the time it did was shear insanity
50 posted on
11/21/2008 4:48:05 AM PST by
uncbob
To: uncbob
Market going from 2000 to 14000 in the time it did was shear insanity Indeed so. Were it not for the double taxation of dividends, sensible market behavior would be for stocks to have stable prices, with shareholders expecting to profit from dividends rather than appreciation. As the company expanded, it would issue more stock (paying out the proceeds as dividends) thus keeping prices stable and avoiding mania. Unfortunately, tax policies would preclude such behavior.
51 posted on
11/21/2008 6:29:35 AM PST by
supercat
(Barry Soetoro == Bravo Sierra)
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