Investment and Finance
The most frequently asked tax questions related to Investment and Finance
Investments & Financial Planning
What is the Repurchase of stock strategy ?
Asked Tuesday, January 16, 2001 by an anonymous userCPA Answer:
The Repurchase of stock technique is when the corporation pays cash to the firm's shareholders that provides more preferential tax treatment for shareholders than dividends. Generally, after the repurchase, less stocks are available and the price per share increases. Treasury stock is the name given to previously issued stock that has been repurchased by the firm. A repurchase is achieved through either a , open market, purchase, tender offer or Dutch auction.
Investments & Financial Planning
What is a Reverse stock split strategy ?
Asked Tuesday, January 16, 2001 by an anonymous userCPA Answer:
A Reverse stock split strategy is when there is a proportionate decrease in the number of shares, but not the total value of shares of stock held by shareholders. Shareholders maintain the same percentage of equity as before the split. A 1-for-3 split would result in stockholders owning one share for every three shares owned before the split. After the reverse split, the firm's stock price is, three times the before reverse split price. A firm generally institutes a reverse split to boost its stock's market price. Some managers think this strategy supposedly attracts investors.
Up to what date can I make a Educational IRA contribution?
Asked Tuesday, January 16, 2001 by an anonymous userCPA Answer:
Contributions to an Educational IRA must be completed by the due date of your individual tax return, (generally 4/15/XX) NOT including extensions.
Investments & Financial Planning
Educational IRA - Contribution Due Date
Asked Tuesday, January 16, 2001 by an anonymous userCPA Answer:
Contributions to an Educational IRA must be completed by the due date of the return 4/15/XX , NOT including extensions.
IRA - Early distribution for medical expenses
Asked Tuesday, January 16, 2001 by an anonymous userCPA Answer:
In the current year, you can receive an early distribution from your IRA to pay for your wife's medical expenses and will not be subject to a 10 % penalty on the amount that exceeds 10% / 7.5% of your Adjusted Gross Income.
The money can be used to hire a nurse, pay for prescription drugs and other items such as hearing aids, dentures and eyeglasses.
The money can be used to hire a nurse, pay for prescription drugs and other items such as hearing aids, dentures and eyeglasses.
Investments & Financial Planning
What is a Pyramid scheme ?
Asked Tuesday, January 16, 2001 by an anonymous userCPA Answer:
Pyramid scheme is an fraudulent, illegal scheme in which a con artist convinces victims to invest by promising an extraordinary large return on their investment but instead simply use newly invested funds to pay off any investors who insist on terminating their investment.
This timing scheme usually continues to a point in which the con artist disappears with the bulk of the investors funds.
This timing scheme usually continues to a point in which the con artist disappears with the bulk of the investors funds.
Investments & Financial Planning
What is the International Monetary Fund ?
Asked Friday, January 12, 2001 by an anonymous userCPA Answer:
The International Monetary Fund also known as the IMF is an organization founded to oversee exchange arrangements of member countries and to lend foreign currency reserves to members with short term balance of payment problems.
Investments & Financial Planning
What is an Investment letter ?
Asked Friday, January 12, 2001 by an anonymous userCPA Answer:
An Investment letter is a letter of intent between the issuer of new securities and the buyer, in the private placement of these new securities. The letter of intent establishes that the securities are being bought for a minimum time period and are treated as an investment, not for resale. If no such letter exists, the securities must be registered with Securities and Exchange Commission.
Investments & Financial Planning
Does Italy have a stock exchange ?
Asked Friday, January 12, 2001 by an anonymous userCPA Answer:
Yes. Italian Stock Exchange is based
in Milan. It came into effect after the unification of Italy's 10 national exchanges in 1991. All listed securities are traded electronically. The main indexes are the MIB and the MIBTEL, based on the prices of all listed shares, and the MIB Thirty, based on a sample of the thirty most liquid and highly capitalized shares.