Stock trading & cutting distribution
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harry
Apprentice
Joined: 20 Dec 2005
Posts: 5
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 Posted: 03/26/09 - 09:48 Post subject: |
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| Good evening everyone. For some time I am thinking about investing in shares. I heard that there are two types of shares: regular and preferred. Can any of you explain this difference to me and which ones are better to buy? Is it true that there is taxloss selling of preferred shares? Thank you. |
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cliff
Apprentice
Joined: 15 Jul 2007
Posts: 11
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| Posted: 04/05/09 - 07:43 Post subject: |
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| Hello to you too. It is true that there are both regular and preferred shares which are pretty much different. But it’s quite simple. Regular shares give you voting right, which means that you can have influence on company’s business. Preferred shares don’t provide you with voting right, but you get the dividend first. |
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sansone
Apprentice
Joined: 03 Jul 2004
Posts: 10
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| Posted: 04/15/09 - 05:37 Post subject: |
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| Hello hello. Preferred shares give you right of preferrence when it comes to dividend payments. When company pays its shareholders, preferred sharholders get the money first, and then regular ones. Same things happen if company goes into liquidation. When it comes to taxation, there is no taxloss selling of preferred shares. You have to pay taxes on capital gains. |
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harry
Apprentice
Joined: 20 Dec 2005
Posts: 5
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| Posted: 04/25/09 - 03:31 Post subject: |
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| Hello there. Selling of both regular and preferred shares causes tax liability and I don’t think you can avoid it. What you have to pay is capital gains tax. Capital gain is basically a profit that you get with the sale of shares as well as every other asset. You just have to apply the appropriate rate on that difference. That would be all. Bye! |
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