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That's good information but it's simply marginal tax rate once again, not average tax rate. And it has nothing about gross income, but only taxable income. You understand the difference right? I thought I explained.
The VAST majority of stock is bought from other investors, not newly issued stock.
The principle is still the same; you're putting your money into the equity of a company. One investor once owned a piece of the company, and you're now buying that piece from him.
The principle is still the same; you're putting your money into the equity of a company. One investor once owned a piece of the company, and you're now buying that piece from him.
No it isn't. The only time a company derives funds to invest in their business is when stock is issued. The original argument was that when someone invests in stock they are creating jobs, which is not true unless they are buying new shares.
No it isn't. The only time a company derives funds to invest in their business is when stock is issued. The original argument was that when someone invests in stock they are creating jobs, which is not true unless they are buying new shares.
Well, true, market price doesn't effect equity. But indirectly when people are buying more shares, it will mean they are buying it at a higher cost than originally, and the value of a company is increased. Increased value in turn increases the ability for a company to borrow.
Company owned stock also becomes it's own currency - for capital purposes (i.e. for other company buyouts).
Well, true, market price doesn't effect equity. But indirectly when people are buying more shares, it will mean they are buying it at a higher cost than originally, and the value of a company is increased. Increased value in turn increases the ability for a company to borrow.
Company owned stock also becomes it's own currency - for capital purposes (i.e. for other company buyouts).
Where is it written that when they are buying more shares it will mean they are buying it at higher cost? They could just as easily be buying at lower cost. At any rate this discussion has gotten completely off topic, and to reiterate my original position, the best way to stabilize the economy and create jobs would be to raise taxes on the rich, and at the same time lower taxes on the lower and middle class. It is not only the most feasible solution it is the moral thing to do.
Where is it written that when they are buying more shares it will mean they are buying it at higher cost? They could just as easily be buying at lower cost. At any rate this discussion has gotten completely off topic, and to reiterate my original position, the best way to stabilize the economy and create jobs would be to raise taxes on the rich, and at the same time lower taxes on the lower and middle class. It is not only the most feasible solution it is the moral thing to do.
Wow, they have done a good job on you. Stealing is now moral.
The principle is still the same; you're putting your money into the equity of a company. One investor once owned a piece of the company, and you're now buying that piece from him.
Money was invested once into a company upon the initial offering, investors can buy and sell tens, hundreds, even thousands of times over and over again.
Well, true, market price doesn't effect equity. But indirectly when people are buying more shares, it will mean they are buying it at a higher cost than originally, and the value of a company is increased. Increased value in turn increases the ability for a company to borrow.
Company owned stock also becomes it's own currency - for capital purposes (i.e. for other company buyouts).
BAC, Bank of America, has ranged in price over the past two years from $36 to $3.
And more people were buying, 6 times as many people in fact, when it was $3/share than it was $36.
Unearned income tax varies - not sure where you got 15% from.
The qualified dividend rate, for folks who hold dividend stocks long term.
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That is assuming most of their income is unearned. I wouldn't make that conclusion. Business owners and some high in demand fields certainly get earned income. All depends on how we define "the rich". Clearly those making in the 250k to 500k range aren't "the filthy rich", most are professional working people, in a high demand field, or succesful small/medium sized business owners.
Right. We've kinda swayed here but if you can back to the second page, my first post in the thread mentions the more you earn the more you save. The more you save the less impact on the economy you have. People at the lower end of the pay scale put all their money back into the economy.
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And, as the previous poster pointed out, obviously investing includes putting money in banks, funds, stocks, bonds. Companies issue stocks and bonds to obtain capital, which in turn is used to buy inventory, plants, etc. That is pretty much the definitive financial definition of "expanding wealth" in a nutshell. That's really economy 101 and no further explanation should be needed.
Money isn't invested in banks, it's parked there until a better use can be found.
Buying funds and stocks doesn't increase the companies capital unless you are buying newly issued shares. How often are new shares issued to the public? Not very often.
Money was invested once into a company upon the initial offering, investors can buy and sell tens, hundreds, even thousands of times over and over again.
you can't deny, though, that more people buying stocks is generally beneficial to a company (larger sustained market cap = more valuable company)
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