In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest (the coupon) and/or to repay the principal at a later date, termed maturity. A bond is a formal contract to repay borrowed money with interest at fixed intervals.Bonds are a long-term investment strategy, which are … [Read more...]
Tax Theory of Dividends
Putting together a dividend tax theory to match a buy-and-hold investment strategy is much complicated by shifting tax laws. Types If you have held a stock for 60 days, dividends paid from the profits of a domestic publicly traded company are "qualified" dividends and currently are taxed at a maximum 15 percent, which is lower than the marginal tax rate for most investors. … [Read more...]