Where does your profit come from?

Source: Cobden Centre
by Keith Weiner

“A few recent articles bring to the public’s awareness that wealthy investors are preferring not to sell their assets, and thereby pay capital gains taxes. Instead, they borrow against them, on margin. This reminds me of an experience I had some years back. I was on a panel, and the moderator asked this question. ‘Should companies pay dividends, or should investors get their profits in the form of capital gains?’ One of my co-panelists was an innovator in methods for public companies to engineer higher share prices. But he was stuck on promoting higher share price — capital gains — as the only means for investors to profit from their investments. He said no, companies should not pay dividends as a matter of principle.” (09/08/21)

http://www.cobdencentre.org/2021/09/where-does-your-profit-come-from/